FACTORS TO CONSIDER IN STARTING A BUSINESS AND TYPES OF BUSINESS

Question 1

means that there should be a clear and documented vision-mission and strategies to begin with. Start right by “beginning with the end in mind.”

Answer 1

FOCUS AND ATTENTION

Question 2

different sources of capital that can be used depending on the needs to start the venture. These can be from personal funds, family and friends, a retirement account, banks/financial institutions, a government loan, and/or the stock market.

Answer 2

SOURCE OF CAPITAL

Question 3

Building good relationships and working with other people could help start the business.

Answer 3

GOOD NETWORK

Question 4

• It is very important to know the laws and regulations that govern the type of business that will be opened to avoid major problems that can arise if legal requirements are overlooked.

Answer 4

LEGAL REQUIREMENTS

Question 5

• Consider the degree of risk related to a specific business opportunity. A business is said to be risky when the probability or chances of failure is high.

Answer 5

DEGREE OF RISK

Question 6

• There should be a strong research and development that should be undertaken. The government should provide adequate support to investors, scientists and engineers and their new technologies to commercialize their Research and Development products.

Answer 6

RESEARCH AND DEVELOPMENT

Question 7

creativity, opportunity seeking, self-confidence, persistence, commitment, and risk-taking, as well as technical background and related experiences needed to run the particular business, are necessary to start running the business.

Answer 7

PERSONAL COMPETENCIES

Question 8

• Resources pertain to raw materials, human resources, and machineries/equipment. Knowing where and how entrepreneurs get their materials and where they source them is vital.

Answer 8

AVAILABILITY OF RESOURCES

Question 9

owned as usually managed by one person. They register with the Department of Trade and Industry (DTI)

Answer 9

SINGLE PROPRIETORSHIP

Question 10

is an association of two or more persons who act as co-owners of a business. Each partner contributes money, property or service to the business. They register with Securities and Exchange Commission (SEC)

Answer 10

PARTNERSHIP

Question 11

an artificial being created by operation of law, having the right of succession, and the powers, attributes and properties expressly authorized by or incident to its existence.

Answer 11

CORPORATION

Question 12

a duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contribution to the capital required, and accepting a fair share of the risks and benefits of the undertaking in accordance with the universally accepted principles of the cooperatives.

Answer 12

COOPERATIVE

Question 13

four (4) forms of business, based on ownership, namely:

Answer 13

SINGLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
COOPERATIVE

Question 14

– it has an asset size not exceeding Php 50,000. it is usually a home -based enterprise, operating in makeshift or temporary quarters.

Answer 14

MICRO ENTERPRISE

Question 15

an asset of Php 250,000 but not exceeding Php 500,000. it is a home-based business which is often managed and operated by the members of the family.

Answer 15

COTTAGE ENTERPRISE

Question 16

has an asset of Php 500,000 but not exceeding Php 2.5 million. It is owned by an individual or group and has enough resources to continue operating. It employs from 10 to 20 people.

Answer 16

SMALL ENTERPRISE

Question 17

an asset of Php 5 million to less than Php 20 million and employs 1000 or more workers. It is owned by a single individual, business partners, or a corporation. It employs more than 20 to 100 people.

Answer 17

MEDIUM ENTERPRISE

Question 18

an asset of Php 20 million or more. It is often owned and managed by a corporation. It is large in scope of operation and number of products or services that it offers to the market.

Answer 18

LARGE ENTERPRISE

Question 19

There are three (3) forms of business, based on its activities, namely:

Answer 19

SERVICE BUSINESS
MERCHANDISING BUSINESS
MANUFACTURING BUSINESS

Question 20

commonly known as the “buy and sell” business. Products are bought from manufacturers or other merchandisers and are sold as is at an amount higher than the purchase price.

Answer 20

MERCHANDISING BUSINESS

Question 21

businesses focus on providing intangible products such as offering professional skills, proposals, and expertise.

Answer 21

SERVICE BUSINESS

Question 22

a type of business wherein materials are bought to create a new product.

Answer 22

MANUFACTURING BUSINESS

Question 23

products that are processed from raw materials that are consumable. They are things that people use such as clothes, shoes, tables, books, cosmetics, toys, jewelry, and many more.

Answer 23

GOODS

Question 24

activities which help are demanded by consumers based on their needs and wants. Examples of these services are medical, dental, banking, transportation, printing, publishing, insurance, education, and wellness programs.

Answer 24

SERVICES

Question 25

exploitation of vegetal and animal natural resources, harvesting, breeding animals, and etc.

Answer 25

ARCHITECHTURE, FORESTRY, AND FISHING

Question 26

extraction of minerals occurring naturally as solids (coal and ores), liquids (petroleum), or gases (natural gas).

Answer 26

MINING AND QUARRYING

Question 27

physical or chemical transformation of materials, substances, or components into new products

Answer 27

MANUFACTURING

Question 28

activities of providing electric power, natural gas, steam, hot water, and permanent infrastructure (network) of lines, mains and pipes

Answer 28

ELECTRICITY, GAS, STEAM, AND AIR CONDITIONING SUPPLY

Question 29

activities related to the management of various forms of waste, such as solid or non-solid industrial or household waste.

Answer 29

WATER SUPPLY, SEWERAGE, WASTE MANAGEMENT, AND REMEDIATION ACTIVITIES

Question 30

general construction and specialized activities for buildings and civil engineering works.

Answer 30

CONSTRUCTION

Question 31

whole sale and retail sale of any type of goods and the rendering services

Answer 31

WHOLESALE AND RETAIL TRADE

Question 32

provision of passenger or freight transportation, whether scheduled or not, by rail, pipeline, road, water, or air and associated activities

Answer 32

TRANSPORTAION AND STORAGE

Question 33

provision of short-stay accommodation for visitors and other travelers and the provision of complete meals and drinks fit for immediate consumption

Answer 33

ACCOMODATION AND FOOD SERVICE ACTIVITIES

Question 34

financial service activities, including insurance, reinsurance and pension funding and activities to support financial services

Answer 34

INFORMATION AND COMMUNICATION

Question 35

acting as lessors, agents and/or brokers in one or more of the following: selling or buying, renting real estate or providing other real estate

Answer 35

REAL ESTATE ACTIVITIES

Question 36

specialized professional, scientific and technical activities

Answer 36

PROFESSIONAL, SCIENTIFIC, AND TECHNICAL ACTIVITIES

Question 37

variety of activities that support general business operations.

Answer 37

ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES

Question 38

– a wide range of activities to meet varied cultural, entertainment and recreational interests of the general public, including live performance, operation of museums sites, sports, gambling and recreational activities

Answer 38

ARTS, ENTERTAINMENT, AND RECREATION

Question 39

activities of governmental nature, normally carried out by the public administration

Answer 39

PUBLIC, ADMINISTRATION, AND DEFENSE

Question 40

education at any level or for any profession, oral or written as well as by radio and television or other means of communication.

Answer 40

EDUCATION

Question 41

provision of health and social work activities, involving a wide range of activities

Answer 41

HUMAN HEALTH AND SOCIAL WORK ACTIVITIES

Question 42

activities of membership organization, the repair of computers and personal and household goods

Answer 42

OTHER SERVICE ACTIVITIES(as a residual category)