test Flashcards
Someone who creates and runs a business is
called an
entrepreneur.
is a business concept that
results in profit if it is turned into a tangible
product or service.
Business idea
also defined as the potential to
create something new that involves change in
knowledge, technology, economy, politics,
social, and demographic conditions.
Opportunity
- the suggestion of business
ideas must be proven by the law.
Legality
➢ Those who are in the same business
➢ Have a potential to serve the entrepreneur’s
customers
➢ Entrepreneurs can identify competitors by
asking customers from his existing business
➢ Competitors are identify - the entrepreneurs
should identify the strengths and weaknesses of
Competitors
- the amount invested in the
company.
Capital Requirement
➢ Define as period of uncertainty experienced
by a business as a result of unforeseen
events which lead to either poor earnings
and resultant failure.
Risk
➢ Define as
is the amount of the capital that had
been used to buy the asset of the company.
Fixed capital
➢ Referred to as operating capital
➢ Also known as assets of business that can be used to
supports business operations.
➢ Often used to pay bills and salaries to buy inventories
Working Capital
➢ Not related to current business situation.
➢ Used to help small business to change its
primary direction.
Plantation or growth capital
In creating or searching for business opportunities,
one must consider the following factors:
- The needs of the community-
- Available resources-
- Skills and interests-
- Market -
- Supplies or raw materials-
- Manpower-
- Technology
means the
physical surrounding
you live in.
Environment
are amount spent in order to produce the product.
Direct expenses-
are incidental expenses made in the course of
running the business.
Indirect expenses-
EPP
Establish, Position, Project
