Chapter 3-4 Flashcards
1
Q
This is said to be the beginning of
business endeavor
A
Ideation
2
Q
What should be the first investment of
anyone who seeks to be an entrepreneur
A
Ideation
3
Q
If you have an idea you should
A
write it
4
Q
To be a entrepreneurial business opportunity the ______
A
idea should b new or innovative
5
Q
What are the sources of idea?
A
Consumers/ market in general
Trade Journals
Exhibits
Trade shows
6
Q
Why is the consumers the best source of idea?
A
Because the are the one who is in need for a certain product
7
Q
Ideas that are worth a business should be
A
the one that has a market now and in the future
8
Q
Ideas can be driven by
A
Need/want
Time saving
Money savings
Passion, Talent or ability
9
Q
Most common ways in developing an idea
A
a. Recognize the need
b. Improving an existing product
c. Recognize trends
d. Be aware of everything
e. Name it first, then develop it
10
Q
How to protect your ideas?
A
a. Confidentiality agreements
b. Patent
c. Trademark
d. Copyright
11
Q
A form of contract that specifically provides that a signer (i.e. investor, manufacturer etc.) will not share the idea to anyone.
A
Confidentiality agreement
12
Q
What should you do if you are preparing for an agreement?
A
Ask advise to those with experience or patent attorneys
13
Q
What will happen if you violate a confidentiality agreement?
A
Potential fines or legal and reputational repercussions
14
Q
This gives the inventor exclusive legal rights to exclude anyone else from manufacturing, selling, importing, or using an invention during the life of the patent.
A
Patent
15
Q
What is a patent?
A
exclusive right to a product, method, design of a new product.
16
Q
How many years id the protection of patent?
A
20 years
17
Q
Thomas Edison (1878)
A
Light bulb
18
Q
- Steve Jobs and his colleagues at Apple
A
Apple
19
Q
Alexander Fleming
A
Penicilin
20
Q
Alexander Fleming
A
Airplane
21
Q
University of Toronto (Frederick Banting, Charles Best, JJR Macleod) (1923)
A
Insulin
22
Q
Types of patents
A
Design
Utility
Plant
23
Q
It means any visible sign capable of distinguishing the goods (________) or services (_______ ___) of an enterprise and shall include a stamped or marked container of goods.
A
trademark, service mark
24
Q
can be one word, a group of words, sign, symbol, logo, or a combination of any of these to identify their goods and distinguish them from others sold in the market.
A
Trademark
25
How long is the registration of trademark?
10 years renewable to another 10 years as long as it is still used
26
* It protects the creative work of composers, authors/writers, artist, and other artist.
Copyright
27
This is the easiest form of protection for Intellectual Property Rights. It is applied to books, pamphlets, articles and other writings, works of drawing, painting, architecture, sculpture, engraving, musical
compositions, with or without words, etc.
Copyright
28
The term of protection of copyright is
the life of the author and 50 years after his death
29
What are the steps in enterprise planning?
1. Idea generation and opportunity identification
2. Informal Screening
3. Analysis of the situation
30
What method is used in idea generation?
Brainstorming
31
This is the process of selecting from the list of ideas and possible opportunities to be pursued.
Informal Screening
32
In informal screening you should select ideas that _______
Interest you most and the one with potential to earn profit
33
The criteria in informal screening:
A. Marketability of the product/Availability of demand for the product.
B. Availability of skills
C. Availability of qualified personnel
D. Availability of technology/equipment
E. Availability of raw material
F. Availability of supplier
G. Ease of implementation
H. Perceived profitability
I. Investment requirement
J. Environmental considerations
K. Government support
I. Competitors
34
This means analyzing the resources which
include the 7 M’s
Resource analysis
35
Tangible resources
money, materials, and machines
36
Intangible resources
methods (processes) and moment (time)
37
Human resources
manpower (skills and knowledge) and management (reasoning and decision-making abilities)
38
This includes factors or conditions in the
environment which can affect the business you are planning to set up.
Environmental Analysis
39
- include government regulations and legal issues
Political factors
40
affects the purchasing ability of the consumer and the business’ cost of capital
Economic factors
41
include the demographic and cultural aspects
Socio-cultural factors
42
indicate technological advancement, research, and development
Technological factors -
43
include changes in temperature which can affect many industries, including farming and tourism
Environmental factors
44
This involves examining the vision and
mission of the business
Value analysis
45
It indicates what a business can do
Resource analysis
46
Indicates what the business may do
Environmental analysis
47
Indicates what the business wants to do
Value analysis
48
This is one tool in analyzing the environment to include both the internal and external.
SWOT analysis
49
What does the SWOT Analysis studies?
Financial resources
Physical Facilities
Management Capabilities
Market
Production process
Information system
Sources of supply and social environment
50
Refer to positive characteristics that the
organization can exploit to achieve its goals.
Strengths
51
Refer to positive characteristics that the
organization can exploit to achieve its goals.
Weaknesses
52
Refer to positive characteristics of the external environment that have the potential to help the organization achieve or exceed its goals.
Opportunity
53
Refer to positive characteristics of the external environment that have the potential to help the organization achieve or exceed its goals.
Threats
54
Refer to negative internal characteristics that might inhibit or restrict the organization’s performance.
Weaknesses
55
Categories/sectors of business
Service-based business
product-based business/trading
manufacturing business
Licensed business opportunities
distributorship
Rack jobber
subcontracting
vending machines routes
56
Examples include consultancy, barber shops, repair shops, beauty parlors, care giving, designing works, rendering professional services such as dentistry, engineers, medical doctor, etc.
Service-based business
57
A buy-and-sell transaction that can happen in storehouse, showroom, etc. Examples are grocery stores, drugstores, general construction materials, etc.
Trading or product-based business.
58
A -------- or production-based business by creating a product. Examples are creating hand painted T-shirts or ceramic vases, candle making, food processing such as tocino, longganisa, ube jam, strawberry wines etc.
Manufacturing business
59
If you find some difficulties in launching a product or service, it is a good idea to look for licensed business opportunities. Franchising is a business format similar to _______ _______ operations.
licensed business opportunities.
60
It is where an independent entrepreneur, company, or individual enters into an agreement or contract to offer, sell, or distribute a particular product, but is not entitled to use the manufacturer’s trade name.
Distributorship.
61
Involves an agent or buyer entering an agreement with a parent company to market its goods to various stores by means of strategically located store racks.
Rack Jobber.
62
A familiar form of business format in the garments sector, as well as the shoe industry. Involves signing up an arrangement with a major producer to complete a set of product components on a pre-agreed price.
Subcontracting
63
Placed in various places or locations. Example includes coffee vending.
Vending machine routes
64
Things to Consider in Selecting the Best Legal Form of Organization:
Ownership
Management
Financing
Liability
Incentives
Taxation
Retention Income
Protection
65
FORMS OF BUSINESS ORGANIZATION
Sole proprietorship
Partnership
Corporation
Cooperation
66
A form of business organization initiated, organized, owned or capitalized, and managed by a single person.
Sole proprietorship
67
the entrepreneur is the capitalist, he manager, and administrator, and in the beginning of the business, he practically does everything for the business.
Sole proprietorship
68
What is called to the owner of a business with one owner?
sole/single proprietor
69
What are the advantages of Sole proprietorship?
It is easily created and terminated
The actions are direct and undiluted
All the rewards are to the owner
The flexibility
Minimum regulation and taxation
70
What are the disadvantages of Sole proprietorship?
Unlimited liability of the owner
Limited capital that restrict growth and expansion
Perils of individual
Limited skills and capabilities of owner
71
An association of two or more business partners who co-own for the purpose of making a profit.
Partnership
72
a partnership is treated as _______ ______, having a separate legal personality from that of its members.
juridical person
73
Type of partners
General partner
Limited partner
74
Type of partner that is the one who shares ownership and management of the business, and is liable to the extent of his separate property after all the assets of the partnership are exhausted.
General partner
75
Every partnership must have at least one ______ _______.
General partner
76
Refers to partners with limited financial liability and do not take active role in the management of the firm. He is also liable only to the extent of his capital contribution.
Limited partner
77
- This is where you register if your enterprise is a single proprietorship. The agency will issue a certificate of registration of business name.
Department of Trade and Industry (DTI)
78
If your enterprise is a partnership or a corporation, this is where you will register. It will issue a certificate of registration.
Securities and Exchange Commission (SEC)
79
If your set-up is a cooperative, register with this body. The agency will issue the certificate of registration.
Cooperative Development Authority (CDA)
80
You register your business with this office and apply for your business’s Tax Identification Number (TIN), registration of books of accounts, and authority to print.
Bureau of Internal Revenue (BIR)
81
- If you employ five workers or more, register your business with this agency. It is asked to promote gainful employment opportunities, protect workers and promote their welfare, develop human resources, and maintain industrial peace.
Department of Labor and Employment (DOLE)
82
What are the advantages of partnership?
Pooling of resources (ideas, managerial talent, money)
Ability to obtain capital
Simplicity and incentive
Limited regulation and taxation
83
What are the disadvantages of partnership?
Unlimited liability
Tenuous existence
Independence on management harmony and coordination
Problems in share liquidation
84
It is an artificial being, invisible, intangible, and exists only in a contemplation of law. Its owners are the stockholders who can sell their interests in the corporation without affecting the continuity of its operation because the life of the corporation is dependent or distinct from that of the owners or stockholders.
Corporation
85
The owners of corporation are called
stockholders/shareholders (at least five parties).
86
What are the advantages of CORPORATION?
Limited Liability (LIMITED IN THE AMOUNT INVESTED IN THE STOCK)
Legal entity- may not be affected by the death of owners
Ready transferability of ownership
Obtaining capital
Employee benefits
87
What are the disadvantages of corporation?
Legal formality and cost
Double taxation
Potential loss of control by founders of the corporation
88
A duly registered association of persons, with common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required, and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.
Cooperation
89
RA 9520
Cooperative Code of the Philippines 2008
90
Members of the coop must be at least___ _______ are the owners.
15 parties
91
What are the advantages and disadvantages of cooperation?
Tax privileges'
Ability to provide direct benefits to its members
Inequality of profit distribution
Pro-poor
