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Economics > Finals > Flashcards

Finals Flashcards

1
Q

This is generally the simplest way to set up a business.

A

Sole Proprietorship

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2
Q

t is owned by a single individual who is singly responsible for running the business and is accountable for all debts and obligations related to the business.

A

Sole Proprietorship

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3
Q

He enjoys exclusive control and decision-making as well as getting all the profits earned.

A

Sole Proprietorship

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4
Q

He also shoulders all losses and has unlimited liability, which means payment of his loans will extend to his assets.

A

Sole Proprietorship

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5
Q

an agreement in which two or more persons combine their resources in a business to make a profit.

A

Partnership

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6
Q

profits are divided among the partners according to the terms of the agreement.

A

Partnership Agreement

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7
Q

Two types of partnership

A
  • General partnership
  • Limited Partnership
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8
Q

All owners share the
management of the
business, and each is
personally responsible
for and must assume the
consequences of the
actions of other
partners.

A

General Partnership

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9
Q

All _______ have unlimited liability; loan payments will extend to their personal property

A

General Partnership

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10
Q

Some members who are ____________ who control and manage the business and may be entitled to a greater profit share.

A

General Partners

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11
Q

In contrast, other partners are __________ and contribute only capital, take no part in control or management, and are liable for debts to a specific extent only.

A

Limited Partnership

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12
Q

a legal entity separate from its owners, the shareholders.

A

Corporation

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13
Q

No shareholder is personally liable for the corporation’s debts, obligations, or acts.

A

Corporation

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14
Q

Directors and officers can bear liability for their involvement with the corporation.

A

Corporation

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15
Q

It has an individual identity of its own.

A

Corporation

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16
Q

How many years can corporations exist?

A

50 years, renewable for another 50 years

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17
Q

Owners have limited liabilities.

A

Corporations

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18
Q

They are burdened with taxes

A

Corporations

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19
Q

an entity organized by people with similar needs to provide themselves with goods or services or to use available resources to improve their income jointly.

A

Cooperative

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20
Q

members have an equal say in decision-making with one vote per member regardless of the number of shares held

A

Cooperative

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21
Q

there is an open and voluntary membership, and surplus earning is returned to the members according to the amount of their patronage.

A

Cooperative

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22
Q

What are the types of business organizations?

A
  • Sole Proprietorship
  • Partnership
  • Corporation
  • Cooperative
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23
Q

What are the types of businessess?

A
  • Micro business
  • Small business
  • Medium business
  • Large business
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24
Q

If the business has a total assets of below P1,500,000, then the type of business is…

A

Micro Business

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25
Q

If the business has a total assets of P1,500,001 to P15,000,000, then the type of business is…

A

Small Business

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26
Q

If the business has a total assets of P15,000,001 to P60,000,000, then the type of business is…

A

Medium Business

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27
Q

If the business has a total assets of P60,000,000 and above, then the type of business is…

A

Large Business

28
Q

In legal terms, what is said about the ownership of sole proprietorships and partnership?

A

100% must be owned and capitalized by Filipinos.

29
Q

In legal terms, what is said about the ownership of corporations

A

at least 60% of the outstanding capital stocks must be owned by Filipino citizens.

30
Q

Where should business activities be done?

A

major sectors of industry, service, the practice of the profession, or operation of tourism-related business and agri-business.

31
Q

According to a guide developed by North Carolina’s Small Business and Technology Development Center, what are the key factors that must be considered in analyzing the industry?

A
  • The geographic area to which your business will cater. Is it limited to local areas? Or will it cover a region, the entire country, or even the international market?
  • The size and outlook of the industry. What trends can be identified?
  • Description of the product.
  • The buyers must be identified. Who are your target consumers?
  • The regulatory environment. Are the local and national laws that will restrict the business? One needs to identify government regulations specific to the chosen industry.
  • The need to identify the industry’s leading businesses and provide company information on the most successful businesses you will be up against.
  • Factors that will affect the growth of the business.
32
Q

Who created the SWOT Analysis?

A

business gurus
- Edmund P. Learned
- C. Roland Christensen
- Kenneth R. Andrews,
- William D. Book

33
Q

What book can the SWOT Analysis be found?

A

Business Policy, Text and Cases (Irwin 1969)

34
Q

It is an analytical framework that can help a company meet its challenges and identify new markets.

A

SWOT Analysis

35
Q

The framework can help identify the business’s risks and rewards.

A

SWOT Analysis

36
Q

It is also the means of identifying the internal and external forces that may affect the business

A

SWOT Analysis

37
Q

refer to the internal factors, which are the resources and experiences readily available to the business proponent.

A

Strength and Weaknesses

38
Q

What are internal factors of a business?

A
  • Financial resources such as money and sources of funds and investment - Physical resources, such as the company’s location, facilities, machinery, and equipment
  • human resources consisting of employees
  • access to natural resources, trademarks, patents, and copyrights
  • current processes include employee programs, department hierarchies and software systems, sales distribution capabilities, marketing programs, etc.
39
Q

these affect a company, an organization, an individual, and those outside their control.

A

External Forces

40
Q

What are external forces of a business?

A
  • economic stand trends, local, national, and international financial trends, developments in the country’s stock market, reforms in the banking system, growth of GDP
  • market trends, such as new products or technology or evolving buyers’ profiles, including changes in tastes and lifestyle behavior
  • national and local laws and statutes, as well as political, environmental, and economic regulations
  • demographic characteristics of the target market, such as the age, gender, and culture of the customers; relationships with suppliers and co- owners
  • competitive threats.
41
Q

Internal or External

Financial resources such as money and sources of funds and investment

A

Internal

42
Q

Internal or External

Physical resources, such as the company’s location, facilities, machinery, and equipment

A

Internal

43
Q

Internal or External

human resources consisting of employees

A

Internal

44
Q

Internal or External

access to natural resources, trademarks, patents, and copyrights

A

Internal

45
Q

Internal or External

current processes include employee programs, department hierarchies and software systems, sales distribution capabilities, marketing programs, etc.

A

Internal

46
Q

Internal or External

economic stand trends, local, national, and international financial trends, developments in the country’s stock market, reforms in the banking system, growth of GDP

A

External

47
Q

Internal or External

market trends, such as new products or technology or evolving buyers’ profiles, including changes in tastes and lifestyle behavior

A

External

48
Q

Internal or External

national and local laws and statutes, as well as political, environmental, and economic regulations

A

External

49
Q

Internal or External

demographic characteristics of the target market, such as the age, gender, and culture of the customers; relationships with suppliers and co- owners

A

External

50
Q

Internal or External

competitive threats.

A

External

51
Q

How to Conduct a SWOT Analysis for Your Small Business

A

Strength - What do you do well?
Weaknesses - Where do you need to improve?
Opportunities - What are your goals?
Threats - What obstacles do you face?

52
Q

Who created the PORTER’S FIVE FORCES OF COMPETITIVE POSITION ANALYSIS

A

Michael E. Porter

53
Q

framework or a guide for assessing and evaluating a business organization’s competitive strength and position.

A

PORTER’S FIVE FORCES OF COMPETITIVE POSITION ANALYSIS

54
Q

These forces can determine the competitiveness and attractiveness of a market and which seek to locate the power in a business situation, its current competitive position, and the strength of a position that an organization may enter into.

A

PORTER’S FIVE FORCES OF COMPETITIVE POSITION ANALYSIS

55
Q

What are the five forces of competitive position analysis?

A
  1. Threat of new entrants
  2. Rivalry among competitors
  3. Supplier Power
  4. Buyer power
  5. Threat of substitute products or services
56
Q

If a supplier can enjoy the power to drive prices up, it is also possible for a buyer to drive prices down.

A

Buyer Power

57
Q

It is important to assess how much power the supplier has in his ability to drive up prices.

A

Supplier Power

58
Q

enjoys this power if there are few suppliers of an essential and they control the y of that input.

A

Supplier Power

59
Q

Another source of power is how unique the product or service Is.

A

Supplier Power

60
Q

The smaller the number of buyers in the market, the greater the power the buyer enjoys.

A

Buyer Power

61
Q

also impact the market’s attractiveness

A

Number of Competitors

62
Q

If competitors are numerous and offer similar products and services, the market will be less attractive.

A

Number of Competitors

63
Q

When it is easy to substitute products in a market, buyers are expected to switch to alternatives in case of price Increases.

A

Possibility of Substitution

64
Q

The suppliers will enjoy less power to drive prices up, and the market will be less attractive.

A

Possibility of Substitution

65
Q

When investors see that a market is profitable, they want to join the bandwagon and get a share of the profits.

A

Possibility of new entrants

66
Q

when new investors enter a market, the participants’ share will be divided among more people and will therefore decline, thus eroding products.

A

Possibility of new entrants

Economics (5 decks)

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