PART 1 Flashcards
A product that people buy with the hope that they will be beneficial or will generate income in the future.
Investments
Two types of investments
Short-term and Long-Term Investments
Type of Investment: Buying a property or Engaging in real estate
Long-Term Investment
Type of Investment: Savings and Time Deposits
Short-term Investment
A place where traders buy and sell stocks for profit. Ideally, a broker buys stocks and sells them at a higher price later.
The Philippine Stock Exchange
It is defined as building up the capital stock for more future production and consumption.
Investment
TRUE OR FALSE: Low interest rate attracts more entrepreneurs to invest.
True
TRUE OR FALSE: The higher the interest rates, the higher the opportunity for the entrepreneurs to start their business in the country.
False
TRUE OR FALSE: In any kind of market structure, the first few months of operation usually find the business experiencing losses.
True
Fixed cost includes…
Rent, Machinery, and Equipment
What are the things you need to consider when you decide to expand?
Initial Capitalization, Cost of expanding, and Vulnerability of the Market
As an investor, what will you do if you don’t own land or space to beused for your business?
Rent or Lease
TRUE OR FALSE: The smaller the space, the higher the cost.
False
TRUE OR FALSE: It is more costly to rent in urban areas than in rural areas.
True
TRUE OR FALSE: Increasing cost of businesses is brought about by increasing wages.
True
When did the wage order for the minimum wage earners by DOLE got effective?
January 1, 2020.
How was minimum wage determined?
poverty threshold, prevailing wage rates as determined by the Labor Force Survey, and socio-economic indicators
Minimum wage for non-agricultural establishments employing 10 or more workers in the region XI
Php. 396.00
Minimum wage for the workers in the agricultural sector and retail/service establishments with not more that 10 workers.
Php. 381.00
TRUE OR FALSE: Over and above minimum wage is the voluntary productivity-based pay, which encourages workers and enterprises to become more competitive and productive by rewarding employees supplementary pay based on the quality of their performance
TRUE
The inflows for the government and outflows for firms.
Tax/Taxes
What does the business apply on gross receipts?
Percentage Tax (3%)
Value Added Tax (12%)
__________________ set the current minimum wage for non-agriculture and agriculture establishments.
National Wages and Productivity Board (NWPC) Wage Order NO.RTWPB-XI-20
Business taxes should be paid every___
Month
Income Taxes from the business should be paid ______
Quarterly
TRUE OR FALSE: Tax is the lifeblood of the economy. It fuels the social services provided by the government to its citizen.
TRUE
TRUE OR FALSE: Low taxes tend to lessen investment because this is considered an additional cost on the part of the entrepreneur.
FALSE
TRUE OR FALSE: Low taxes mean fewer government projects such as school buildings, roads, bridges and providing social services to people
True
