#2.3 : Socioeconomic Impact & Starting a Business

Question 1

They determine what kinds of products and services to be produced.

Answer 1

Consumers

Question 2

Products and services are developed by identifying what customers needs and also by their __________ with existing products and services.

Answer 2

feedback

Question 3

Consumers’ consumption creates ___________ _______.

Answer 3

additional jobs.

Question 4

They contribute to consumption through the act of buying goods and services.

Answer 4

Households

Question 5

Economic resources that households bring to firms

Answer 5

land, labor, capital, and entrepreneurship

Question 6

Savings in the banks are sources of ___________.

Answer 6

investment

Question 7

The level of wealth, comfort, and material goods available to an individual, community, or social class in a certain geographic area.

Answer 7

Standard of Living

Question 8

As one’s income and productivity increase, their _________ _______ change,

Answer 8

consumption patterns

Question 9

The quality and quantity of consumption are determined by the _______ ___ _____ and _______ by firms.

Answer 9

delivery of goods and services

Question 10

They are the sources of raw materials used in producing goods/services.

Answer 10

Suppliers

Question 11

3 stages of goods/services

Answer 11

Raw material goods, intermediate goods, and final goods

Question 12

Difference of raw material and intermediate goods

Answer 12

Raw material goods are materials for the product that has no process done. While, intermediate goods is when the raw material is semi-processed to use for the final good.

Question 13

Entities that act as financial sources of businesses with the intention of gaining profits.

Answer 13

Investors

Question 14

The initial capital or money a business needs to facilitate its costs. ; It is used to put up a business.

Answer 14

Start-up capital

Question 15

It is used for the expansion of the business, adding to the size of the factory, buying more equipment, or adding laborers.

Answer 15

Add-up Capital

Question 16

Difference of Foreign Portfolio Investment and Foreign Direct Investment

Answer 16

FOREIGN PORTFOLIO INVESTMENT - When foreign entities invest in local companies

FOREIGN DIRECT INVESTMENT - When foreign businesses operate in local or domestic markets.

Question 17

How do businesses influence suppliers and investors?

Answer 17

As a producer, a franchise holder, and an exclusive distributor, a firm can manipulate its suppliers because the supplier’s profit is dependent on the firm’s output.

Question 18

They provide basic social services to its citizens like health services, free education, and security

Answer 18

Government

Question 19

The government’s process of collecting fees from individuals and businesses

Answer 19

Taxation

Question 20

THE STATE’S INHERENT POWERS

Answer 20

Power of Taxation, Police Power, and Eminent Domain

Question 21

It is to impose & collect revenues to defray the necessary government expenditures.

Answer 21

Power of Taxation

Question 22

These are government projects funded and operated by private firms or entities. In exchange, the government guarantees that the private counterpart gets the value of its investment plus a reasonable interest.

Answer 22

PUBLIC-PRIVATE PARTNERSHIPS (PPP)

Question 23

Why do businesses partner with the government?

Answer 23

1. As a source of tax revenue
2. Poverty alleviation
3. Provision of services

Question 24

It is the field of study which examines how economic activity and social processes affect each other.

Answer 24

SOCIOECONOMICS

Question 25

It is a type of systematic analysis used to identify and evaluate the potential effects a proposed development may have on the social and economic aspects of the lives of the members of a community.

Answer 25

SOCIOECONOMIC IMPACT STUDY

Question 26

The SI should seek to address known ________.

Answer 26

problems

Question 27

The researcher must gather as much ________ ________ on the topic as possible.

Answer 27

related literature (RRL)

Question 28

The study should be within the boundaries of socioeconomic issues with a solid _________ _________.

Answer 28

theoretical framework

Question 29

There should be identified _________ & __________ variables

Answer 29

independent & dependent

Question 30

The study’s scope should neither be too broad that its _______ can no longer be achieved.

Answer 30

objectives

Question 31

The study’s scope nor should its limitations be too narrow such that it is no longer _______.

Answer 31

viable

Question 32

An entity engaged in commerce and trade, usually having a profit motive

Answer 32

BUSINESS

Question 33

The people who conceptualized the firm are not synonymous with it. The entities are ________ of one another.

Answer 33

independent

Question 34

One who combines the primary factors of production (land, labor, capital)

Answer 34

Entrepreneur

Question 35

1st step in starting a business

Answer 35

Identifying the type of business

Question 36

2nd step in starting a business

Answer 36

Getting the initial capitalization

Question 37

3rd step in starting a business

Answer 37

Selecting the initial capitalization

Question 38

4th step in starting a business

Answer 38

Directing operations and managemnet

Question 39

Last step in starting a business

Answer 39

Getting profits (long-run and short-run adjustments) and losses (shutdown/graceful exit)

Question 40

5 functions of management

Answer 40

planning, organizing, staffing, drafting/leading, and controlling