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Lesson 6

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CONTEMPORARY ISSUES

FACING THE FILIPINO


ENTREPRENEUR
INVESTMENT
Is a product that people buy with the
hope that they will be beneficial or will
generate income in the near future.
We classify investments as
either long-term
investments or short term
investments.
Long term investment- you buy a property and
wait for the value to increase.

Short term investment- Stocks and bonds

Business sell out stocks for ownership.


Bonds is where a company directly or indirectly
borrows money from you.
RENTALS
Having your own small business is also an
investment, but there are things that you should
consider. In any kind of market structure, the
first few months of operation usually find the
business experiencing losses. This is because of
fixed cost.
MINIMUM WAGE
• In the Philippine setting, each region has its
own minimum wage determined by the
standard of living of its residents.
• The objective of increasing minimum wage is
to improve the lives of ordinary households.
• But in reality, it brings about unemployment.
TAXES
• Tax is also a significant issue facing the
entrepreneur. Taxes are considered inflows for
the government and outflows for the firms.
PROBLEMS UNDER DIFFERENT MARKET
STRUCTURES
MARKET STRUCTURES- are different
compositions of sellers and distinguishing
quality of goods.
TYPES SELLER PRODUCT ENTRY OF EXAMPLE COMMON
NEW FIRMS PROBLEM

Pure Many Homogenous Free Sugar Profit/Market Share


competition

Monopoly One One No Telecom Improvement of


product/service

Oligopoly Few Differentiated Restricted Oil/Fuel High capital


requirement

Monopolistic Many Differentiated Free Shampoo Distinguishing


Competition Quality

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