Business Naming and Industry Overview

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Questions and Answers

What is the primary purpose of a project summary?

To list the team members involved in the project

To provide detailed financial projections

To outline the marketing strategy

To present highlights, major assumptions, and conclusions (correct)

What is one key consideration when selecting a business name?

It must have a historical reference.

It should resonate with customer preferences. (correct)

It should avoid any ties to the business's mission.

It should be the longest name possible.

Which section is NOT included in a project summary?

Analysis of competitors (correct)

Proposed name of the business

Description of the industry

Summary of findings and conclusion

Why is the selection of a business name critical?

It directly influences brand identity and customer perception. Signup and view all the answers

What is NOT a factor to consider when selecting a location for a business?

Personal emotional attachment to the area Signup and view all the answers

Which government agency is primarily responsible for ensuring trade names are unique in the Philippines?

Department of Trade and Industry Signup and view all the answers

What does a business name need to reflect?

The company's philosophical values and culture Signup and view all the answers

What is the role of assumptions in a project summary?

They help summarize the project's major findings. Signup and view all the answers

Which entity must obtain approval from the Securities and Exchange Commission for trade names?

Corporate entities Signup and view all the answers

What is one of the specific requirements for trade name approval in banking operations?

Regulations set by the Bangko Sentral ng Pilipinas Signup and view all the answers

In industry analysis, what should be clearly defined?

The industry and its scope Signup and view all the answers

Which of the following is a key area to consider in an industry analysis?

Major players and market share Signup and view all the answers

What do customer needs and preferences inform according to market demand?

Buying behavior of customers Signup and view all the answers

What is included in the legal and regulatory framework of an industry analysis?

Relevant laws and regulations Signup and view all the answers

Which step is often the final step in the trade name approval process for sole proprietorships and partnerships?

DTI check Signup and view all the answers

What should entrepreneurs consider when choosing a business name?

Legal compliance and target market resonance Signup and view all the answers

What advantage does the stable climate provide for the proposed location?

Reduced likelihood of operational interruptions Signup and view all the answers

What should the project feasibility study begin with?

Basic details of the project and its goals Signup and view all the answers

Why are realistic and measurable assumptions important in feasibility studies?

Unrealistic assumptions can lead to investor doubt. Signup and view all the answers

Which of the following factors is NOT mentioned as a basis for assumptions in feasibility studies?

Employee satisfaction surveys Signup and view all the answers

Which element is essential in the project description?

A detailed timeline and task breakdown Signup and view all the answers

What is a critical question for assessing market feasibility?

Is there a similar product/service that could prevent success? Signup and view all the answers

What is one of the four critical questions related to project feasibility?

Is the project feasible in terms of market conditions? Signup and view all the answers

Which pricing strategy involves starting with a low price to attract customers?

Penetration Pricing Signup and view all the answers

What is a major component often provided in a project's summary?

Descriptions of major assumptions Signup and view all the answers

What does a strategic location provide for a project?

Unique opportunities and advantages Signup and view all the answers

Which aspect is highlighted as critical for a business venture's feasibility?

Government programs indicating support or challenges Signup and view all the answers

What is the consequence of continuing a project without sufficient market demand?

Project failure Signup and view all the answers

What might cause doubt and loss of interest among investors?

Unrealistic assumptions in the study Signup and view all the answers

What does a stable climate allow for in terms of project operations?

Year-round operational capabilities Signup and view all the answers

What does competitive advantage enable a business to do?

Gain an edge over its competitors that is hard to copy Signup and view all the answers

What outcome should a project aim to produce for the company?

A tangible product or service Signup and view all the answers

What is the primary responsibility of the proponent in a feasibility study?

To provide specific conclusions and recommendations Signup and view all the answers

What indicates a high probability of feasibility for a project?

All critical questions answered positively Signup and view all the answers

What does the investor's binary decision making entail?

To either implement or abandon the project Signup and view all the answers

What happens upon the investor's commitment of funds?

The proponent develops a detailed business plan Signup and view all the answers

Which of the following statements represents a negative feasibility indicator?

A definitive conclusion cannot be reached Signup and view all the answers

What is the significance of the proponent's evaluation?

To summarize conclusions and recommendations Signup and view all the answers

Why might the investor's final decision differ from the proponent's recommendations?

The investor has additional information not presented Signup and view all the answers

What does the proponent evaluate to arrive at conclusions regarding organizational feasibility?

The organizational setup of the project Signup and view all the answers

Study Notes

Project Summary

A project summary is an overview of the study, summarizing major findings and conclusions.

Proposed Name of the Business

Choosing a business name is essential for brand identity and customer perception.
The name should reflect business identity, align with philosophical values and culture, be memorable, and appeal to the target audience.

Government Requirements for Trade Name Approval

The Department of Trade and Industry (DTI) ensures trade names are unique and not registered.
Sole proprietorships and partnerships only require DTI approval.
Corporations need DTI and Securities and Exchange Commission (SEC) approval.
Businesses involving banking operations need approval from the Bangko Sentral ng Pilipinas (BSP).

Description of the Industry

Industry analysis examines productive enterprises that produce or supply goods, services, or income.
Key areas of analysis include industry overview, competitive landscape, market demand, and industry regulations.

Description of the Project

The project description details the project scope, tasks, timeline, and end result.
Market feasibility assesses whether there is a need, want, and demand for the product or service.

Pricing Strategies

Penetration Pricing: Initially low price for a high-quality product, later increasing the price.
Price Skimming: Initially high price for a new, low-quality product, later reducing the price.
Premium Pricing: High price for high-quality goods.
Loss Leader: Low price used to attract customers, hoping they will purchase other products with higher profit margins.

Location of the Project

Strategic location offers economic, political, or military advantages due to proximity to resources, transportation routes, etc.
It should provide competitive advantage and ensure maximum efficiency.
Climate, temperature, and weather conditions should be considered.

Highlights of Major Assumptions

Assumptions are based on past experiences of similar businesses, current market trends, government programs, and regulations.
Assumptions should be realistic and measurable to prevent doubt from investors.
They help answer questions about project goals, scope, timeline, resources, and constraints.

Summary of Findings and Conclusions

The summary of findings and conclusions encapsulates the study's results and recommendations.
Key considerations include:
- Market feasibility
- Technical feasibility
- Organizational feasibility
- Financial feasibility
The proponent provides conclusions and recommendations for each area.
If all four feasibility questions are answered positively, the project is likely to be successful.
A negative answer to any of the questions raises potential challenges for the project.

Proponent's Role

The proponent is responsible for providing conclusions and recommendations for each area of the feasibility study.
They do not guarantee the success of the project, but provide an evaluation based on the gathered evidence.

Investor's Decision

The investor decides whether to implement the project (committing funds) or abandon it.
If the investor decides to proceed, the proponent develops a detailed business plan.

Conclusion and Recommendations

The proponent summarizes conclusions and recommendations, resulting in a general conclusion based on the study.
The investor's final decision may differ from the proponent's recommendations.
A clear and decisive conclusion is essential for the investor's decision-making process.

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Description

This quiz covers essential aspects of choosing a business name, including brand identity and alignment with values. It also provides insights into government requirements for trade name approval and an overview of industry analysis. Test your knowledge on these critical elements for starting a business.