BM2217: Starting an Enterprise

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Questions and Answers

What should be minimized among employees to foster a healthy work environment?

Conflict of interest (correct)

Employee promotions

Internal disagreements

Transparency

What is unethical in a business context regarding employee agreements?

Interpreting contracts unreasonably (correct)

Providing employee benefits

Honoring contracts

Communicating expectations clearly

What is the primary purpose of the Consumer Act of the Philippines?

To promote international trade agreements

To regulate business taxes and revenues

To protect consumer rights in transactions (correct)

To establish a national currency system

Which act regulates electronic transactions in the Philippines?

Republic Act No. 8792 Signup and view all the answers

How can organizations encourage ethical behavior among stakeholders?

Implementing a code of ethics Signup and view all the answers

What type of program is essential for resolving disagreements in a business?

Conflict resolution program Signup and view all the answers

What is one of the best practices to assure customers that their data is secure?

Implement regular data security audits Signup and view all the answers

How should important information be shared within a company?

Complete access to crucial data should be provided Signup and view all the answers

According to business ethics, what impact does technology have?

It complicates ethical decision-making Signup and view all the answers

When considering what business to start, which factor is NOT typically assessed?

Personal appearance and grooming Signup and view all the answers

What is a potential outcome for not adhering to ethical standards in a business?

Demotions or dismissals Signup and view all the answers

Why is respect for the rule of law important in business ethics?

It prevents corporate misconduct Signup and view all the answers

What should be avoided in employee-employer disagreements?

Public disputes Signup and view all the answers

Which step involves focusing on the market's needs or alleviating common hassles?

Find the sweet spot Signup and view all the answers

What criteria should a feasible business idea meet according to the steps outlined?

Specific, measurable, attainable, realistic, and time-bound Signup and view all the answers

What is the primary role of an ethics review committee in a business?

To ensure that the company’s ethical standards are upheld Signup and view all the answers

Which of the following statements about training on business ethics is true?

It prepares employees to handle ethical issues. Signup and view all the answers

What is the primary focus of the step 'Create hypotheses for obstacles and key assumptions'?

To examine potential challenges and clarify key assumptions Signup and view all the answers

Why is support from upper management crucial for ethical programs?

It ensures the programs run smoothly and equitably. Signup and view all the answers

Which step comes after prioritizing and choosing the most potential business idea?

Create hypotheses for obstacles and key assumptions Signup and view all the answers

What does Republic Act No. 8792, or the E-Commerce Act, primarily address?

Penalties for offenses involving computers and the Internet Signup and view all the answers

What is recommended when conducting research for validating a business idea?

Prototyping or mocking the value proposition Signup and view all the answers

What characterizes the idea with the most potential, according to the prioritization step?

It provides a sustainable source of competitive advantage Signup and view all the answers

How does culture influence business ethics?

Business ethics vary significantly between different cultures. Signup and view all the answers

Which of the following is NOT a consequence of violating the E-Commerce Act?

Increased business opportunities Signup and view all the answers

What type of trends were seen in the 1920s regarding industry?

A boom in the establishment of numerous industries Signup and view all the answers

What should be a prime concern in technopreneurial enterprises?

Maintaining sound business ethical behaviors Signup and view all the answers

What is essential when analyzing the results of validated assumptions?

Refine the product and test again if necessary Signup and view all the answers

What is the primary goal of business innovation?

To increase business income Signup and view all the answers

What is a characteristic feature of laws governing technopreneurial businesses?

They protect clients and promote fair practice. Signup and view all the answers

Which of the following closely describes process innovation?

Changing how products are manufactured to improve efficiency Signup and view all the answers

What is an example of product/service innovation?

The waterproof Cicret Bracelet that projects smartphone visuals Signup and view all the answers

What distinguishes disruptive innovation from other types of innovation?

It creates new value propositions and reshapes markets Signup and view all the answers

How does Zara exemplify process innovation?

By producing garments without upfront ads or extensive marketing Signup and view all the answers

What are the two types of disruptive innovation?

Low-end and new markets Signup and view all the answers

Which statement about innovation is false?

Innovation is irrelevant in rapidly changing markets. Signup and view all the answers

What is NOT a benefit of innovation in a business context?

Heightened market competition Signup and view all the answers

Study Notes

Innovation and Ideas

Business innovation primarily aims to increase income rather than just focus on technology.
Companies must innovate to adapt to rapid market changes and technological disruption to remain competitive.
Key benefits include enhanced income, improved efficiency, and resolution of pressing business issues.

Types of Innovation

Process Innovation: Involves changes in product or service manufacturing and distribution processes for greater efficiency. Example: Zara's production system, which relies on minimal pre-season manufacturing.
Product/Service Innovation: Development of new concepts that don't modify existing business models. Example: Cicret Bracelet projects smartphone visuals onto the arm for interaction.
Disruptive Innovation: Creates new markets or transforms existing ones. Two types include low-end and new market disruptions.

Steps to Generate a Feasible Business Idea

Find the Sweet Spot: Identify market needs or common consumer frustrations.
Generate Business Ideas: Ideas should be SMART (specific, measurable, attainable, realistic, time-bound).
Prioritize Ideas: Evaluate potential ideas against multiple criteria to determine the most viable option.
Create Hypotheses: Identify potential challenges and clarify key assumptions driving the business idea.
Validate Core Assumptions: Conduct research using prototypes to reduce bias and preliminarily test ideas before full market entry.

New Industry Trends

1920s industrial boom led to simplified transportation and increased customer-business interactions emphasizing transparency.
Encourage healthy competition and minimize conflicts of interest among employees.

Ethical Business Practices

Code of Ethics: Guides ethical behavior in business stakeholders.
Reward and Punishment System: Controls stakeholder actions based on adherence to ethical standards.
Conflict Resolution Programs: Essential for addressing disputes to maintain organizational goals.
Ethics Review Committee: Ensures adherence to established ethical standards and provides advice on ethical challenges.
Training on Business Ethics: Prepares staff to handle ethical dilemmas effectively.

Laws Governing Entrepreneurship and Technology

Increased regulation helps protect clients in growing technopreneurial sectors.
Legal Framework:
- Republic Act No. 8792 (E-Commerce Act): Protects against internet fraud with penalties including fines and imprisonment for offenses like hacking and copyright violations.
- Promotes e-commerce and business-to-consumer transactions while deterring unethical practices.

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Description

This quiz covers the key concepts of innovation and ideas in starting a business. Understand the importance of business innovation for income growth and how industries are being disrupted by technology. Explore design thinking and brainstorming as essential tools for staying competitive in the market.