Lesson 2

Question 1

Constant change such as innovation Continuously grows, develops and expands
Entrepreneurship is not a science but an art.
Creativity should always be applied to entrepreneurial undertaking

Answer 1

Entrepreneurship is an art of correct practices

Question 2

Wealth creating rather than profit generation
It is not an income generating venture
Provides goods and services which could also give benefits to the owner
Wealth creation is not merely selling products and services to a price
Wealth is created when it gives value to the business.

Answer 2

Entrepreneurship isa wealth-creating venture

Question 3

Entrepreneurship Provides Valuable Goods and Services

Answer 3

Goods and Services

Question 4

Entrepreneurship Intrapreneurship

Answer 4

Entrepreneurship Entails Opening and Managing the Self- Owned Enterprise

Question 5

The entrepreneur opens his own business under the principle of entrepreneurship
The entrepreneur manages the daily activities
It is not about the size of the business but rather about its sole ownership.

Answer 5

Entrepreneurship

Question 6

Business that being managed by others for the benefit of the owners.
It includes the business practices such as frannching and buyout.

Answer 6

Intrapreneurship

Question 7

Risk can be detached from any entrepreneurial venture

Answer 7

Entrepreneurship as Risk-taking Venture

Question 8

• Economic development as product of structural change • New product
• New Product Method
• New Market
• New Supplier
• New industry structure

Answer 8

Innovation Theory: Joseph Schumpeter

Question 9

• Role of the government in entrepreneurial and economic development especially during depression.
• Active participation of the government

Answer 9

Keynasian Theory: Maynard Keynes

Question 10

Maintaining the monetary, taxation and revenues policy without the negative effect to the market economy and its operations.

Answer 10

Economic Stabilization

Question 11

• Four factors in production (Land, labor, capital and organization
• Organization is an coordinating element
• Entrepreneurs are the prime movers in the organization - Skills and abilities in entrepreneurship are required
• Entrepreneurs must foresee the possible changes in supply and demand

Answer 11

Alfred Marshall Theory

Question 12

• An important dimension that will differentiate entrepreneur from a worker.
• The entrepreneur is the agent of production process where he or she connects the producers and the consumers.
• Uncertainty is an important factor in the production of goods and services.

Answer 12

Risk and
Uncertainty-Bearing Theory: Frank Hyneman Knight