• Economic Organization - coordinating the other production factors - land, labor, and capital. The organization is performed by the entrepreneur described as the “captain of industry”.

• Property - is best understood as a socially acknowledged right rather than a material object. It involves the right of ownership which differs from a simple possession of goods or commodities.

• Economic Exchange - the process by which individuals and organizations give each other valuable goods and services in return for different goods and services.

• Division as Labor - refers to the distribution of work in reference to age, gender, skill, or qualification. In an economic organization, tasks are specialized and there is interdependence among various statuses and roles.

• Economic Socialization - a process by which people learn the values and behavior needed to fill positions in the economic community.

• Price - refers to the monetary value of goods and services. It is determined by the interplay of supply and demand.

• Laws of Supply and Demand - states that when demand is greater than supply, the price increases; and when supply is greater than demand, price decreases.

4 TYPES OF ECONOMIC ORGANIZATIONS

1. Sole Proprietorship - known as a “one man-business”. It is an economic organization in which the proprietor solely manages the business and undertakes the risks of the business. The proprietor owns capital and performs all the functions of an entrepreneur.

2. Partnership - a type of economic organization where business is carried on by 2 or more men called partners. It’s a business arrangement in which 2 or more individuals share the capital, profits, and liabilities of a business venture.

3. Corporation - a legal entity that’s separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual possesses that is, a corporation has the right to enter into a contract or loan, and is often referred to as a “legal person”.

4. Cooperatives - a business organization that is established for the purpose of providing services on a non-profit basis to its shareholders or members who own and control it.

TYPES OF COOPERATIVES IN THE PHILIPPINES

1. Credit Cooperative - the one that promotes and undertakes savings and lending services among its members.

2. Consumer’s Cooperative - one of the primary purposes of which is to procure and distribute commodities to members and non-members.

3. Producer’s Cooperative - the one that undertakes a joint production whether agricultural or industrial.

4. Marketing Cooperative - the one which engages in the supply of production inputs to members and markets their products.

5. Service Cooperative - the one who engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electricity, light and power, communication, professional and other services.

6. Multi-Purpose Cooperative - the one that combines 2 or more of the business activities of these different types of cooperative.