A PERSPECTIVE ON ENTREPRENEURSHIP

Question 1

Is a scheme aimed at improving the living standards of the nation’s citizenry.

Answer 1

Economic Development

Question 2

To achieve economic development goals, proper management of the following elements is necessary:

Answer 2

1. Human resources (labor supply, education, discipline, motivation);
2. natural resources (land ,minerals, fuel, climate);
3. capital formation (machines, factories, roads); and
4. technology (science, engineering, management, entrepreneurship).

Question 3

” true or false?
The effective and efficient utilization of the various resource elements contribute to the economic growth.

Answer 3

TRUE

Question 4

The abundance of natural resources like fertile land, minerals, fuels, and good climate are plus factors but are not guarantees for positive economic development.

Answer 4

TRUE

Question 5

The performance of the entrepreneur, however, will depend much on the support provided by the government, Apart from other obstacles, government restrictions limit the effectiveness of entrepreneurs.

Answer 5

TRUE

Question 6

Refers to the economic activity of a person who starts, manages, and assumes the risk of a business enterprise. A person who undertakes entrepreneurial activities is called an entrepreneur.

Answer 6

Entrepreneurship

Question 7

The person who undertakes entrepreneurial activities

Answer 7

Entrepreneur

Question 8

Identifies an economic need, considers offering a business solutions, proceeds to assemble the resources required, and assumes the risk of either succeeding or failing.

Answer 8

Entrepreneur

Question 9

If all the requirements in a capitalist economy are in place, the entrepreneur can assume his assigned role in the development of the economy. A review of the contributions of entrepreneurs will reveal that no business, big or small, started without the hand of the entrepreneur.

Answer 9

TRUE

Question 10

The surviving enterprise are responsible for providing the following:

Answer 10

1. products and services for costumers and producers;
2. employment
3. taxes
4. demand for supplies products and services; and
5. training facilities for future entrepreneurs.

Question 11

Foundational establishment needed for further economic development

Answer 11

Surviving enterprise

Question 12

The taxes paid to the government in the form licenses, fees, and permits applicable to the enterprise, as well as income taxes applicable to the employees and entrepreneurs, easily amount to billions of pesos. The taxes collected are, in turn, poured into development projects of the government.

Answer 12

TRUE

Question 13

The entrepreneurs also make sure that the suppliers will have a ready market for their products and services.

Answer 13

TRUE

Question 14

Provide a training ground for future entrepreneurs.

Answer 14

Business Enterprise

Question 15

Most important factors in starting an economy

Answer 15

1. Land {natural resources)
2. Labor (human resources)
3. Capital (financial resources)

Question 16

With these resources, they can be utilized by the _____
To start the _____ of goods and services
After that, the final products become ____ that can be utilized for the economy.

Answer 16

Entrepreneur
Production Process
Finished Goods and Services

Question 17

In the attempt to make profits, the entrepreneur performs the following specific functions:

Answer 17

1. to supply the necessary capital;
2. to organize production by buying and combining inputs like materials and labor;
3. to decide on the rate of output, in the light of his expectation about demand; and
4. to bear the risk inherent to the venture.

Question 18

Any business enterprise must offer products or services to the buyers whether these buyers are consumers or producers.

Answer 18

TRUE

Question 19

Define as the introduction of a new method, procedure, custom, device, among others.
May also be viewed as the last stage in an important process

Answer 19

Innovation

Question 20

Innovation could be any of the following:

Answer 20

1. new products;
2. new process of production;
3. substitution of a cheaper material in an unaltered product;
4. reorganization of production, internal function or distribution arrangement leading to increased efficiency, better support for a given product, or lower costs; or
5. improvement in instruments or method of doing innovation.

Question 21

Innovation may also be viewed as the last stage in an important process consisting of the ff:

Answer 21

1. Invention
2. Development
3. Innovation

Question 22

refers to the discovery or devising of new products and processes.

Answer 22

Invention

Question 23

refers to the process by which the ideas and principles generated from the stage of invention are embodied in concrete products and techniques.

Answer 23

Development

Question 24

refers to the actual introduction of new products or process.

Answer 24

Innovation

Question 25

The entrepreneur must develop a new venture into a small business or make it grow into a mature and bigger company if he is to recoup the cost of opening a new venture and take advantage of the opportunities presented by a mature business.

Answer 25

TRUE

Question 26

The transition from a new venture to a successful long-term enterprise consists of at least four major stages:

Answer 26

1. prestart-up stage
2. start-up stage
3. early growth stage; and
4. late growth stage

Question 27

Happens when the entrepreneur starts to question the feasibility of an idea, product, or service. He seeks answers to questions regarding potential markets,
production, and financing. If he errs in his evaluation, he will fail before considerable growth is attained.

Answer 27

Prestart-up stage

Question 28

1. formation of the business;
2. generation of necessary capital;
3. purchase of facilities and equipment;
4. constructing prototype products; and
5. testing the market.

• no full-scale activity must be undertaken at this stage for the simple reason that feasibility must be established and verified.

Answer 28

Start-up stage

Question 29

follows after establishing feasibility. Activities will be on a small scale, i.e., selling to limited markets with limited resources. If losses occur, it will naturally be limited also. If the enterprise is successful at this stage, the option to move to the next stage can be exercised.

Answer 29

Early growth stage

Question 30

final stage before the new venture matures into a stable enterprise. This is when management is structured, long-term financing is established, and facilities planning are undertaken. This is also the stage where the skill of the entrepreneur are less needed. Instead, the skilled manager begins to take over.

Answer 30

Late growth stage

Question 31

“Things required for making a commodity” consist of:

Answer 31

1. Land
2. Labor
3. Capital
4. Entrepreneur

Question 32

refers specifically to the price paid per unit of time for the service of a durable good, which, most often, refers to land or buildings.

Answer 32

RENT

Question 33

The rates of compensation provided to the factors of production are limited to a large extent by either industry norms or market forces. Legislation, however, have modified the rates like the minimum wage rates and mandated interest rates on capital.

Answer 33

TRUE

Question 34

The profits accruing to the entrepreneur, on the other hand, are limited only by his skill and industry.

Answer 34

TRUE

Question 35

As the landowner earns RENT for allowing use of his property, the owner of capital earns INTEREST for allowing use of his capital. The laborer on duty earns WAGES for his effort, while the entrepreneur earns PROFIT for deciding how the business shall be run. If he succeeds, he is compensated for his vision, originality, and bold undertaking

Answer 35

TRUE

Question 36

In the creation of a new venture, the entrepreneur may be successful in offering innovative products or services. This situation may be temporary because the competitor may attempt to improve his position by making moves to outpace the entrepreneur in the race.

Answer 36

TRUE

Question 37

Small businesses have the advantage of switching to another business concept whenever necessary. Large businesses cannot do the same without spending much.

Answer 37

TRUE

Question 38

Entrepreneurship is an activity that assumes the viability and growth of the economy. Through entrepreneurship, goods and services are produced, employment is provided to many people, taxes are paid to the government, the products and services of suppliers are bought, and future entrepreneurs are provided with venues for training.

Answer 38

TRUE

Question 39

Consists of assembling the resources consisting of land, labor and capital for the purpose of producing goods and services.

Answer 39

Entrepeneur’s Task

Question 40

If the entrepreneur’s task appears to be a great burden, the prospect of profits make it bearable.

Answer 40

TRUE

Question 41

Introduction of a new method, procedure, custom, device, among others.

Answer 41

Innovation

Question 42

Responsible for deciding on the rate of output his venture must produce. Also bears the risk inherent to the venture.

Answer 42

Entrepreneur

Question 43

New ventures must develop into small business or grow into a mature and bigger company. This is because the entrepreneur must recover the cost of reopening the venture.

Answer 43

TRUE

Question 44

The transition from a new venture to a long-term enterprise consists of:

Answer 44

Prestart-up stage, start-up stage, early growth stage, and late growth stage