2ND QUARTER FLASHCARDS

Question 1

They play a big role in the economy. They determine what kind of products and services to be produced.

Answer 1

Customers

Question 2

Why is it important that the customers’ feedbacks be acknowledged?

Answer 2

Because they are the basis for product/service development.

Question 2

The customers’ consumption creates __________ ______.

Answer 2

additional jobs

Question 3

The economic sources that households bring and these resources are used to make goods and services.

Answer 3

land, labor, capital, and entrepreneurship

Question 4

These are existing because of households since entrepreneurs also came from households.

Answer 4

Firms

Question 5

How do households and firms contribute to the economy?

Answer 5

By buying goods and services, paying taxes that are used for government expenditures, and their savings in the banks are the sources of investment.

Question 6

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

Answer 6

Standard of living

Question 7

Why is the standard of living in an area be considered in starting a business?

Answer 7

To determine the target market of the products to sell or services to render.

Question 8

Who should consume more products to increase productivity in the economy?

Answer 8

Those with more income

Question 9

Why is our standard of living increase when we produce more products?

Answer 9

Because our consumption does not stop

Question 10

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

Answer 10

Suppliers

Question 11

When firms create products/services, there should be someone who…

Answer 11

who will supply the materials

Question 12

3 Stages of goods/services

Answer 12

Raw material goods, Intermediate goods, and Final goods

Question 13

Why should the business owners be more in control of the suppliers than the other way around?

Answer 13

Because they are the consumers.

Question 14

These are entities that act as financial sources of businesses w/ the intention of gaining profits.

Answer 14

Investors

Question 15

How can savings and investment be related to one another?

Answer 15

When money is increasing, it is good to save it in bank institutions as they inject interest, and it would also help the bank.

Question 16

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

Answer 16

Start-up capital

Question 17

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

Answer 17

Add-up capital

Question 18

Foreign entities invest in local companies.

Answer 18

Foreign Portfolio Investment

Question 19

Foreign businesses operate/enter the local or domestic markets.

Answer 19

Foreign Direct Investment

Question 20

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

Answer 20

Government

Question 21

It is the government’s process of collecting fees from individuals and businesses.

Answer 21

Taxation

Question 22

Why is taxation the most important role in the government’s process?

Answer 22

So they can provide the service, collect more from the rich and give more to the poor, and it is part of the inherent power of the state.

Question 23

Government projects funded and operated by private firms or entities.

Answer 23

Public-Private Partnership

Question 24

What does the government guarantee to their partnered private entity in a PPP?

Answer 24

the value of its investment + a reasonable interest

Question 25

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

Answer 25

Business

Question 26

What primary factors of production does an entrepreneur combine?

Answer 26

land, labor, capital

Question 27

Knowing it will make you understand what all the information you will need.

Answer 27

Step 1: Identifying the type of business

Question 28

Loans, investor, etc.

Answer 28

Step 2: Getting the initial capitalization

Question 29

The most common factors to identify is its accessibility to the suppliers and the amount of traffic that the consumers will experience.

Answer 29

Step 3: Selecting the location of the business

Question 30

How the owner will run the business.

Answer 30

Step 4: Directing operations and management

Question 31

Long and short-run adjustments and shutdown/graceful exit.

Answer 31

Step 5: Getting profits/losses

Question 32

These are important to secure the business.

Answer 32

Functions Of Management

Question 33

PLANNING

Answer 33

• management sets the firms’ goals & objectives
• drafting the mission-vision statement
• identifying and disseminating specific objectives

Question 34

ORGANIZING

Answer 34

• creating an organization’s structure

* detailing the jobs, positions, and hierarchy of command in the business

Question 35

STAFFING

Answer 35

• hiring, training, promoting, firing, & retiring people ; deals with human resource aspects
• develops skills through training and experience
• recognizes and rewards accomplishments
• sanctions errors

Question 36

DIRECTING/LEADING

Answer 36

• leading and directing the people to achieve the firm’s goals
• ability of the manager to run the business to meet the goals

Question 37

CONTROLLING

Answer 37

• maintaining and improving the quality of business and the products/services
• quality control, feedbacking of the customers, etc.