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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