Business Fundamentals Quiz
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Business Fundamentals Quiz

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Questions and Answers

What is one primary reason for exporting goods?

  • To comply with local regulatory requirements.
  • To ensure lower production costs in the local market.
  • To eliminate competition in the domestic market.
  • To reduce costs per unit when the home market cannot absorb the output. (correct)
  • Which of the following is NOT a positive value typically associated with Filipino entrepreneurs?

  • Gaya-gaya - imitations
  • Pakikipagsapalaran - risk-taker
  • Neglecting regulatory compliance (correct)
  • Pagtitipid - thrifty
  • Which organization is responsible for the registration of partnerships and corporations?

  • Securities and Exchange Commission (correct)
  • Department of Commerce and Industry
  • Bureau of Trade Regulation and Consumer Protection
  • Local Business Bureau
  • What is a common reason for importing goods?

    <p>The importing country lacks necessary goods.</p> Signup and view all the answers

    How does the value of 'Bahala na' reflect a trait of Filipino entrepreneurship?

    <p>It shows a strong-hearted willingness to face uncertainties.</p> Signup and view all the answers

    What is the primary aim of a business?

    <p>To meet the economic needs of consumers while earning profits</p> Signup and view all the answers

    Which factor of production refers to natural resources?

    <p>Land</p> Signup and view all the answers

    What motivates employees in terms of profit?

    <p>Fair wages and incentives</p> Signup and view all the answers

    Which of the following is NOT a reason why people engage in business?

    <p>Environmental Sustainability</p> Signup and view all the answers

    According to Maslow's hierarchy of needs, which level corresponds to the desire for security?

    <p>Safety</p> Signup and view all the answers

    Which type of industry focuses on the conversion of raw materials into finished products?

    <p>Manufacturing industries</p> Signup and view all the answers

    What is the relationship between business and the economy?

    <p>Business activities contribute to the production and distribution of goods and services in the economy.</p> Signup and view all the answers

    What is the difference between income and expenses called?

    <p>Profit</p> Signup and view all the answers

    Which economic system is characterized by private ownership and operation by individuals?

    <p>Capitalism</p> Signup and view all the answers

    What type of economy involves the exchange of goods and services without the use of money?

    <p>Barter Economy</p> Signup and view all the answers

    During which economic phase do people primarily rely on farming as a means of livelihood?

    <p>Agricultural Phase</p> Signup and view all the answers

    Which type of business ownership involves only one person managing the entire operation?

    <p>Sole Proprietorship</p> Signup and view all the answers

    What is the primary purpose of business registration?

    <p>To obtain a Permit to operate</p> Signup and view all the answers

    In which type of economy is there a combination of money and future payments for goods and services?

    <p>Money &amp; Credit Economy</p> Signup and view all the answers

    Which phase of economic activity involves the largest social units and international dealings?

    <p>International Economy</p> Signup and view all the answers

    What aspect of a project feasibility study involves analyzing potential market challenges?

    <p>Marketing</p> Signup and view all the answers

    Study Notes

    Definition of Business

    • Any activity involved in the production and distribution of goods and services
    • Aims to meet the economic needs of consumers
    • Objective is to eventually earn profits
    • Satisfies consumer's basic and secondary needs

    Relationship Between Business and the Economy

    • The economy measures the health of a business.
    • Businesses fuel the economy by providing jobs.
    • Consumers and businesses work together to support one another.
    • The economy dictates the level of demand for goods and services, which affects business.

    Elements of a Business System

    • Four factors of production:
      • Land: natural resources
      • Labor: people involved in the process
      • Capital: wealth invested in the business
      • Entrepreneur: the business owner

    Profit Motive

    • Difference between income and expenses
    • Prime motivator in business
    • Management perspective: Profit keeps the business viable
    • Employee perspective: Profit provides fair wages and incentives.

    Why People Engage in Business?

    • Profit
    • Power
    • Service to the community
    • Prestige
    • Livelihood
    • Social Approval

    Hierarchy of Needs

    • Abraham Maslow's theory on human needs
    • Physiological or Biological: Essential need to survive
    • Safety: Desire for security, stability or protection
    • Social: Need for group belongingness, affection, love and friendship
    • Ego or Self-Esteem: Need for self-recognition
    • Self-Fulfillment: Need for the realization of personal ambition

    Kinds of Business

    • Industries: Conversion of raw materials into finished products, with the application of labor.
      • Examples: Manufacturing industries
    • Commerce: Buying and selling goods, moving them from production to consumption.
      • Examples: Shopping malls, retail stores
    • Service Enterprises: Satisfying customer needs and wants through services
      • Public and Community Service: Transportation services, electricity providers
      • Professional Service: Lawyers, accountants

    Kinds of Economic Systems

    • Capitalism: Owned and operated by private individuals (capitalists who provide capital)
    • Socialism: Free enterprise system with government control and supervision (mixed economy)
      • Promotes equality and balance in society
    • Communism: The state owns and controls all economic activities

    Phases of Economic Development

    • Criteria for evaluating economic development:
      • Means of Livelihood
      • Extent of Economic Activity
      • Medium of Exchange

    Means of Livelihood

    • Hunting and Fishing Phase: Relying on nature's bounty
    • Pastoral Phase: Raising livestock
    • Handicraft Phase: Developing skills to create items
    • Agricultural Phase: Farming
    • Industrial Phase: Manufacturing

    Extent of Economic Activity

    • Household Economy: Focusing on family needs
    • Village Economy: Organized economic activity within a village
    • National Economy: Broader economic activities at a national level
    • International Economy: Global trade

    Medium of Exchange

    • Barter Economy: Exchanging goods and services without using money
    • Money Economy: Using standardized money for payments
    • Money and Credit Economy: Using credit to pay for goods and services at a later time
    • Sole Proprietorship: Organized and managed by one person
    • Partnership: Two or more people combine to operate a business
    • Corporation: Legal entity separate and distinct from its owners, commonly owned by stockholders or shareholders
    • Cooperative: A group of people working together to achieve specific goals

    Project Feasibility Study

    • Aspects to consider:
      • Marketing
      • Organization and Management
      • Technical
      • Financial
      • Socio-economic

    Starting a Business

    • Consider starting a new business or buying an existing one:
      • Nature and kind of business
      • Availability of acquisition opportunities
      • Personal biases

    Business Registration

    • Purposes:
      • Establishing legal personality of the business
      • Obtaining a permit to operate
      • Complying with government requirements and programs

    Security and Exchange Commission (SEC)

    • Handles registration for partnerships and corporations

    Bureau of Trade Regulation and Consumer Protection (BTRCP)

    • Handles registration for single proprietorships

    The Entrepreneur and the Manager

    • Entrepreneur: Organizes and operates a business, often willing to take financial risks
    • Manager: Responsible for controlling and running the business

    Positive Values of a Filipino Entrepreneur

    • Pakikipagkapwa tao: Human relation
    • Bahala na/malakas ang loob: Strong-hearted
    • Pakikipagsapalaran: Risk-taker
    • Gaya-gaya: Imitation
    • Utang na loob, hiya, awa, bayanihan: Principles of gratitude, shame, pity and community support
    • Kasipagan: Industriousness
    • Pagtitipid: Thrifty
    • Pagtitiis: Enduring
    • Pagtitimpi: Self-control
    • Katapatan: Honesty

    International Business Environment

    • Exporting: Selling goods to another country
    • Importing: Purchasing goods or services from a foreign company

    Reasons for Exporting

    • Large production volume required to reduce costs
    • Seasonal and irregular demand in local markets
    • Product life cycle
    • Establishing goods in new overseas markets

    Reasons for Importing

    • Goods may be needed but unavailable locally
    • Foreign goods may have prestige value
    • Lower production costs in other countries

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    Description

    Test your knowledge on the definition of business, its relationship with the economy, and the essential elements of a business system. Additionally, explore the significance of the profit motive in the context of business operations. Ideal for students studying foundational business concepts.

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