Lesson 1

Question 1

A person who is engaged in carrying out any activity, related to commercial and industrial purposes is known as

Answer 1

BUSINESSMAN

Question 2

a person who conceives a unique idea or concept to start an enterprise and brings it into reality.

Answer 2

ENTREPRENEUR

Question 3

Businessman’s traits

DIFFERENCE BETWEEN BUSINESS MAN AND ETNREPRENEUR

Answer 3

-Starts a business from an existing idea
-Traditional
-Avoding taking riska
-Profit oriented
-market player

Question 4

Entrepreneur’s traits

Answer 4

• starts a business from a unique and innovative idea
• Revolutionary
• Risk taker
• Customer oriented
• Market leader

Question 5

activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Answer 5

ENTREPRENEURSHIP

Question 6

(1)10 Principles of Entrepreneurship

Answer 6

• Be a Solution Provider
• Have a Vision
  -Select the Team Wisely
  -Make Viable Products or Services
  -Proper Identification of Capital Requirements

Question 7

(2)10 Principles of Entrepreneurship

Answer 7

-Accountability and Responsibility with Integrity
-Effective Growth and Marketing
-Know your Customers
-Find the Right Opportunity
-Respect your Customers and Employees

Question 8

TRAITS OF AN ENTREPRENEUR

Answer 8

-Good Leader
-Optimistic
-Confident
-Passionate
-Disciplined
-Proactive
-Open minded
-Competitive
-Kind

Question 9

planning is the process of managing your money to achieve specific financial goals and objectives

Answer 9

Financial Planning

Question 10

: Develop a realistic and comprehensive budget that outlines your income, expenses, and savings goals.

Answer 10

Create a Budget

Question 11

Keep a record of your daily expenses to identify areas where you can cut back and save more.

Answer 11

Track Expenses

Question 12

is a crucial safety net for unexpected expenses like medical bills or car repairs, preventing the need to rely on credit cards or loans

Answer 12

Emergency Fund

Question 13

Rule of Thumb of emergency funds

Answer 13

Have three to six months’ worth of living expenses in the emergency fund.

Question 14

Types of Debt:

Answer 14

Good and Bad Debt

Question 15

typically considered an investment in your future, as it has the potential to generate long-term benefits or increase your overall net worth.

Answer 15

Good Debt

Question 16

Buying a home is often the most significant investment for many individuals.

Good Debt

Answer 16

Mortgage

Question 17

Investing in education to enhance skills and career opportunities

Good Debt

Answer 17

Student Loans

Question 18

Funding the start-up or expansion of a business.

Good Debt

Answer 18

Business Loans

Question 19

generally considered non-essential and does not contribute to wealth creation. It often involves high-interest rates and can lead to financial stress if not managed properly.

Answer 19

Bad Debt

Question 20

Purchasing non-essential items or covering living expenses beyond one’s means.

Bad Debt

Answer 20

Credit Card Debt

Question 21

Financing a vehicle that depreciates in value over time.

Bad Debt

Answer 21

Car Loans for Depreciating Assets

Question 22

Short-term loans to cover immediate expenses until the next paycheck

Bad Debt

Answer 22

Payday Loans

Question 23

focuses on paying off the smallest debts first, regardless of interest rates. The idea is to create small victories by eliminating smaller debts, providing motivation to tackle larger

. Debt Management

Answer 23

Debt Snowball Method

Question 24

prioritizes paying off debts with the highest interest rates first. It aims to minimize the total interest paid overtime.

Debt Management

Answer 24

Debt Avalanche Method

Question 25

involves spreading investments across different asset classes (e.g., stocks, bonds, real estate) to reduce risk. The goal is to create a well-balanced port

Investing Basics

Answer 25

Diversification

Question 26

Investment strategies differ based on the time horizon of financial goals. Long-term goals, such as retirement, allow for a more aggressive and growth-oriented investment approach.

Investing Basics

Answer 26

Long-Term vs. Short-Term Goals

Question 27

Types of Insurance:

Insurance Planning

Answer 27

Liability Insurance
Health Insurance
Life Insurance:
Auto Insurance:
Property Insurance:
Liability Insurance

Question 28

Discuss how insurance can be a crucial tool in managing financial risks.

Answer 28

Risk Management

Question 29

Regularly assess your insurance needs as life circumstances change (e.g., marriage, childbirth, home purchase).

Answer 29

Regular Assessment

Question 30

Recognize that insurance complements an emergency fund in managing unexpected financial risks.

Answer 30

Emergency Fund

Question 31

Financial Planning Cycle

Answer 31

Assessment Phase
Planning Phase
Implementation Phase
Monitoring and Adjustment Phase

Question 32

Financial planning involves a systematic approach to identify and understand potential risks that could impact one’s financial stability.

Risk Management

Answer 32

Minimizing Financial Risks

Question 33

is a designated pool of money set aside to cover unforeseen expenses or financial emergencies

Risk Management

Answer 33

Emergency Preparedness

Question 34

are two fundamental financial activities that individuals engage in to build wealth, achieve financial goals, and secure their financial future.

Building Wealth

Answer 34

. Saving and Investing