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Questions and Answers
What does profit represent in a business context?
Which classification of industry does construction fall under?
What is NOT considered a physiological need according to Maslow's hierarchy?
Which element is NOT part of a business system?
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What primarily drives individuals to engage in business?
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What characterizes the industrial phase of economic development?
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Which economic system is characterized by private ownership of production and capital?
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Which type of business primarily aims to satisfy consumer needs and wants?
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What is a characteristic of socialism as an economic system?
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During which phase of economic development did humans begin to settle longer periods due to livestock?
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What characterizes a Barter Economy?
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What is a primary disadvantage of Sole Proprietorship?
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Which form of business ownership allows for limited liability?
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Which type of economy involves the exchange of goods and services using money?
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What is the primary feature of a Corporation?
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Which of the following is a characteristic of a Partnership?
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How does a Money and Credit Economy primarily function?
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Which of the following is NOT an advantage of Operating under a Partnership?
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What does the International Economy primarily encompass?
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Which aspect distinguishes a General Partner in a Partnership?
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The profit motive is calculated as expenses minus income.
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In business, 'labor' refers to the management skill provided by entrepreneurs.
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According to Maslow's hierarchy of needs, safety and security needs are the most basic human requirements.
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Industry is a classification that includes service-oriented businesses.
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The relationship between business and the economy indicates that businesses provide the factors of production.
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The extractive industries include sectors like farming, fishing, and mining.
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Socialism is characterized by private ownership of production and capital.
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The Industrial Phase of economic development is marked by the use of manual labor over machinery.
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In a capitalist system, the means of production are collectively owned by the state.
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A professional service enterprise focuses on public welfare rather than individual client needs.
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A Sole Proprietorship allows multiple people to own and manage the business together.
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In a Money Economy, items must have intrinsic value to be considered money.
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The International Economy is solely based on the internal trade of a single nation.
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A General Partner in a Partnership has limited liability compared to a Limited Partner.
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Dissolution of a partnership can occur due to conflicts between partners.
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A Corporation has no legal rights and exists solely at the will of its owners.
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A Barter Economy exclusively relies on the use of currency for transactions.
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The decision-making process in a Sole Proprietorship must involve multiple stakeholders.
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Credit in a Money and Credit Economy is the power to obtain goods and services based on a promise to pay later.
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Economic activities on a national scale are primarily defined by the National Economy.
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Study Notes
Concept of Business
- Business involves activities related to the production and distribution of goods and services to meet consumer needs, ultimately driven by profit motives.
- Businesses evolve from simple functions to complex systems over time.
Relationship Between Business and the Economy
- Businesses produce goods and services while the economy provides factors of production.
- The economy pays for the goods and services generated by businesses.
Industry Classifications
- Industries are categorized into several types:
- Agricultural
- Manufacturing
- Trade
- Construction
- Government
Elements of a Business System
- Key components include:
- Land (raw materials)
- Capital (financial resources)
- Labor (manpower)
- Enterprise (management skills)
- Entrepreneur (driving force and leader)
Profit Motive
- Profit is calculated as the difference between income and expenses:
- Income – Expenses = Profit
Responsibilities of a Business Enterprise
- Responsibilities extend to various stakeholders: owners, workers, customers, suppliers, the community, and government bodies.
Reasons for Engaging in Business (Maslow's Hierarchy of Needs)
- Individuals are motivated by several needs:
- Self-actualization
- Self-esteem
- Love and belonging
- Safety and security
- Physiological needs
Types of Business Activity
- Divided into three categories:
- Industries: Convert raw materials into products (e.g., Nokia, Honda).
- Commerce: Focuses on buying and selling (e.g., SM, Rustans).
- Services: Provides customer satisfaction (e.g., MERALCO, CTAs).
Economic Systems
- Capitalism: Private ownership of production aiming for personal gain.
- Socialism: Government ownership and regulation of production.
- Communism: Classless society with government ownership of production, associated with China.
Phases of Economic Development
- Livelihood phases:
- Hunting and Fishing
- Pastoral
- Handicraft
- Agricultural
- Industrial
- Economic activity extent:
- Household Economy
- Village Economy
- National Economy
- International Economy
Medium of Exchange
- Types include:
- Barter Economy: Direct exchanges of goods or services.
- Money Economy: Use of currency accepted publicly.
- Money and Credit Economy: Use of credit based on future payments.
Legal Forms of Business Ownership
- Sole Proprietorship: Owned by one person, simplest form of business.
- Partnership: Collaborative ownership with shared contributions and responsibilities.
- Corporation: Legal entity with specific rights and protections.
Comparative Attributes of Business Ownership
- Sole Proprietorship: Easy to start, limited growth potential.
- Partnership: Shared checks and balances, prone to dissolution.
- Corporation: Flexible structure, complex setup, limited individual control.
Starting a New Business vs. Buying an Existing One
- Decisions depend on:
- Nature of business and market approaches.
- Availability of acquisition opportunities.
- Personal biases and satisfaction.
Project Feasibility Study
- A critical assessment for business viability, covering:
- Data collection
- Data analysis
- Recommendations for successful operation
Aspects of Project Feasibility Study
- Marketing: Estimating product sales based on competition.
- Organizational Management: Evaluating organizational effectiveness and qualifications.
- Technical: Ensuring technical soundness.
- Financial: Assessing costs and capital requirements.
- Socio-Economic: Evaluating social and economic benefits.
Entrepreneurs vs. Managers
- Entrepreneurs: Visionaries who turn ideas into reality.
- Managers: Employees who execute business operations, may also be partners.
Values of Filipino Entrepreneurs
- Pakikipagkapwa Tao: Emphasizes social relationships and mutual concern.
- Bahala Na: Depends on fate when uncertain, trusting in divine compassion.
- Pakikipagsapalaran: Represents a willingness to take risks.
- Gaya-Gaya: Adapting and learning from new approaches.
- Supportive values: Include Utang na Loob, Hiya, Awa, and Bayanihan.
Additional Positive Values
- Kasipagan: Hard work and diligence.
- Pagtitipid: Frugality.
- Pagtitiyaga: Perseverance.
- Pagtitimpi: Self-control.
- Katapatan: Integrity and honesty.
Concept of Business
- Business involves activities related to the production and distribution of goods and services to meet consumer needs, ultimately driven by profit motives.
- Businesses evolve from simple functions to complex systems over time.
Relationship Between Business and the Economy
- Businesses produce goods and services while the economy provides factors of production.
- The economy pays for the goods and services generated by businesses.
Industry Classifications
- Industries are categorized into several types:
- Agricultural
- Manufacturing
- Trade
- Construction
- Government
Elements of a Business System
- Key components include:
- Land (raw materials)
- Capital (financial resources)
- Labor (manpower)
- Enterprise (management skills)
- Entrepreneur (driving force and leader)
Profit Motive
- Profit is calculated as the difference between income and expenses:
- Income – Expenses = Profit
Responsibilities of a Business Enterprise
- Responsibilities extend to various stakeholders: owners, workers, customers, suppliers, the community, and government bodies.
Reasons for Engaging in Business (Maslow's Hierarchy of Needs)
- Individuals are motivated by several needs:
- Self-actualization
- Self-esteem
- Love and belonging
- Safety and security
- Physiological needs
Types of Business Activity
- Divided into three categories:
- Industries: Convert raw materials into products (e.g., Nokia, Honda).
- Commerce: Focuses on buying and selling (e.g., SM, Rustans).
- Services: Provides customer satisfaction (e.g., MERALCO, CTAs).
Economic Systems
- Capitalism: Private ownership of production aiming for personal gain.
- Socialism: Government ownership and regulation of production.
- Communism: Classless society with government ownership of production, associated with China.
Phases of Economic Development
- Livelihood phases:
- Hunting and Fishing
- Pastoral
- Handicraft
- Agricultural
- Industrial
- Economic activity extent:
- Household Economy
- Village Economy
- National Economy
- International Economy
Medium of Exchange
- Types include:
- Barter Economy: Direct exchanges of goods or services.
- Money Economy: Use of currency accepted publicly.
- Money and Credit Economy: Use of credit based on future payments.
Legal Forms of Business Ownership
- Sole Proprietorship: Owned by one person, simplest form of business.
- Partnership: Collaborative ownership with shared contributions and responsibilities.
- Corporation: Legal entity with specific rights and protections.
Comparative Attributes of Business Ownership
- Sole Proprietorship: Easy to start, limited growth potential.
- Partnership: Shared checks and balances, prone to dissolution.
- Corporation: Flexible structure, complex setup, limited individual control.
Starting a New Business vs. Buying an Existing One
- Decisions depend on:
- Nature of business and market approaches.
- Availability of acquisition opportunities.
- Personal biases and satisfaction.
Project Feasibility Study
- A critical assessment for business viability, covering:
- Data collection
- Data analysis
- Recommendations for successful operation
Aspects of Project Feasibility Study
- Marketing: Estimating product sales based on competition.
- Organizational Management: Evaluating organizational effectiveness and qualifications.
- Technical: Ensuring technical soundness.
- Financial: Assessing costs and capital requirements.
- Socio-Economic: Evaluating social and economic benefits.
Entrepreneurs vs. Managers
- Entrepreneurs: Visionaries who turn ideas into reality.
- Managers: Employees who execute business operations, may also be partners.
Values of Filipino Entrepreneurs
- Pakikipagkapwa Tao: Emphasizes social relationships and mutual concern.
- Bahala Na: Depends on fate when uncertain, trusting in divine compassion.
- Pakikipagsapalaran: Represents a willingness to take risks.
- Gaya-Gaya: Adapting and learning from new approaches.
- Supportive values: Include Utang na Loob, Hiya, Awa, and Bayanihan.
Additional Positive Values
- Kasipagan: Hard work and diligence.
- Pagtitipid: Frugality.
- Pagtitiyaga: Perseverance.
- Pagtitimpi: Self-control.
- Katapatan: Integrity and honesty.
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Description
Explore the essential concepts of business and its development within Filipino culture. This quiz covers the relationship between business activities and the economy, specifically tailored for Filipino learners. Test your understanding of how businesses operate and contribute to economic needs.
