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ENTREPRENEURSHIP > WEEK 1 > Flashcards

WEEK 1 Flashcards

1
Q

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

A

Businessman

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2
Q

Sets up hisbusiness as a new entrant in the market as for the existing business. When it comes to originality of ideas, most of the businessmen go for a business which is highly in demand, or which can make huge profits for them irrespective of uniqueness.

A

Businessman

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3
Q

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

A

Entrepreneur

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4
Q

He is the person who bears risks and uncertainties of the business.

A

Entrepreneur

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5
Q

The venture established by the entrepreneur is known as _____________, which is formed for the very first time regarding the idea, innovation or business process.

A

Startup Company

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6
Q

Main Difference between Businessman and Entrepreneur

A

Businessman:
-Starts business from an existing idea
- Traditional
- Avoids taking risks
- Profit Oriented
- Market Player

Entrepreneur
- Start business from a unique and innovative idea
- Revolutionary
- Risk Taker
- Customer Oriented
- Market Leader

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7
Q

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

A

Entrepreneurship

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8
Q

The process of starting and developing a company, with the aim of delivering something new or improved to the market, or by organizing the means of production in a superior way.

A

Entrepreneurship

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9
Q

The process of creating a new enterprise and bearing any of its risks, with the view of making the profit.

A

Entrepreneurship

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10
Q

TRUE OR FALSE:

Entrepreneurship is Prone to High Failure

A

False

Entrepreneurship is Dependent on Performance

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11
Q

TRUE OR FALSE:

Entrepreneurs are Made

A

True

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12
Q

TRUE OR FALSE:

Entrepreneurs Have to be challenge-takers

A

True

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13
Q

TRUE OR FALSE:

Entrepreneurs are Mainly Motivated by Money

A

False

Entrepreneurs are Motivated by Passion

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14
Q

TRUE OR FALSE:

Entrepreneurs are Essentially Inventors

A

False

Entrepreneurs are Ideators

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15
Q

10 Principles of Entrepreneurship

A
  1. Be a solution Provider
  2. Have a Vision
  3. Select Team Wisely
  4. Make Viable Products or Services
  5. Proper Identification of Capital Requirements
  6. Accountability and Responsibility with Integrity
  7. Effective Growth and Marketing
  8. Know your Customers
  9. Find the Right Opportunity
  10. Respect your Customers and Employees.
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16
Q

Traits of an Entrepreneur

A
  1. Good Leader
  2. Optimistic
  3. Confident
  4. Passionate
  5. Disciplined
  6. Proactive
  7. Open-minded
  8. Competitive
  9. Kind
17
Q

It is the process of managing your money to achieve specific financial goals and objectives. It involves setting financial goals, creating a budget, saving, and investing, and managing risks.

A

Financial Planning

18
Q

Tips and Tools for Financial Planning

A

A. Budgeting
B. Emergency Fund
C. Debt Management
D. Investing Basics
E. Insurance Planning

19
Q

It is the foundation of financial planning. It helps individuals understand their income, expenses, and how they allocate their money.

A

Creating a Budget

20
Q

_______________ provides insights into spending habits, making it easier to identify areas for improvement and potential savings.

A

Track Expenses

21
Q

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

A

Emergency Fund

22
Q

Rule of Thumb of Emergency Fund

A

Have at least 3 to 6 months worth of living expenses in the Emergency Fund

23
Q

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

A

Good Debt

24
Q

Example of Good Debt

A

Mortgage, School Loans, and Business Loans

25
Q

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.

A

Bad Debt

26
Q

Example of Bad Debt

A

Credit Card Debt
Car Loans of Depreciating Assets
Payday Loans

27
Q

What are the two Debt Management Strategies

A

Debt Snowball Method - prioritizing small debts first before large debts. It provides motivation to pay the next debt

Debt Avalanche Method - prioritizing large debt first then small debts. It reduce the interest paid overtime

28
Q

It involves spreading investments across different asset classes (e.g., stocks, bonds, real estate) to reduce risk. The goal is to create a well-balanced portfolio that can withstand market fluctuations.

A

Diversification

29
Q

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.

A

Long Term Vs Short Term Goals

30
Q

Types of Insurance

A
  1. Health Insurance
  2. Life Insurance
  3. Auto Insurance
  4. Property Insurance (Homeowners’ and Renter’s Insurance)
  5. Liability Insurance (Umbrella and Professional Liability (Errors and Omissions) Insurance)
31
Q

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

A

Risk Management

32
Q

Financial Planning Cycle

A
  1. Assessment Phase
  2. Planning Phase
  3. Implementation Phase
  4. Monitoring and Adjustment Phase
33
Q

Importance of Financial Planning

A

A. Achieving Financial Goals
B. Risk Management
C. Building Wealth

34
Q

Financial planning empowers individuals to take control of their financial future and work towards their goals.

A

Empowerment

35
Q

Having a well-thought-out financial plan provides a sense of security and peace of mind.

A

Peace of Mind

36
Q

Financial planning involves a systematic approach to identify and understand potential risks that could impact one’s financial stability. These risks may include market volatility, economic downturns, job loss, or unexpected expenses.

A

Minimizing Financial Risk

37
Q

An emergency fund is a designated pool of money set aside to cover unforeseen expenses or financial emergencies. It serves as a crucial component of financial planning to provide a financial safety net in times of need.

A

Emergency Preparedness

38
Q

are two fundamental financial activities that individuals engage in to build wealth, achieve financial goals, and secure their financial future. While both involve putting money aside with the goal of increasing financial well-being, they serve different purposes and come with distinct characteristics.

A

Saving and Investing

39
Q

is the process of determining how much money you need to save for retirement and creating a strategy to achieve that goal.

A

Retirement Planning

ENTREPRENEURSHIP (4 decks)

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