Contemporary Economic Issues Facing Filipino Entrepreneurs
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Questions and Answers

What is the main characteristic of real estate?

  • It is a payment for a factor of production in excess of its opportunity cost.
  • It is a form of real property that includes land and permanent structures. (correct)
  • It is a type of security that gives ownership in a company.
  • It is a type of investment that pools money from many investors.

    • What is the purpose of bonds?

  • To provide life insurance to individuals.
  • To raise money by borrowing from investors. (correct)
  • To pay a premium in exchange for a sum of money.
  • To pool money from many investors and invest in securities.

    • What is the definition of unemployment?

  • A situation where a person actively searches for employment but is unable to find work. (correct)
  • A situation where a person is employed but is not working.
  • A situation where a person has found a job but is not satisfied.
  • A situation where a person is not searching for employment.

    • What is the main characteristic of a stock?

    <p>It is a type of security that gives ownership in a company.</p> Signup and view all the answers

    What is the purpose of a mutual fund?

    <p>To pool money from many investors and invest in securities.</p> Signup and view all the answers

    What is the definition of rent?

    <p>A payment for a factor of production in excess of its opportunity cost.</p> Signup and view all the answers

    Which term refers to a person who sets up a business, taking on financial risks in the hope of profit?

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

    What is a key characteristic of successful entrepreneurs?

    <p>Setting high standards for themselves</p> Signup and view all the answers

    What distinguishes employees from entrepreneurs?

    <p>Entrepreneurs can make their own decisions</p> Signup and view all the answers

    What is a disadvantage of entrepreneurship?

    <p>Uncertain and irregular incomes</p> Signup and view all the answers

    Which is one of the processes involved in becoming an entrepreneur?

    <p>Opportunity Identification</p> Signup and view all the answers

    What kind of investment involves spending on physical assets used to produce goods and services?

    <p>Direct Investment</p> Signup and view all the answers

    Study Notes

    Real Estate and Investments

    • Real estate refers to the land and any permanent structures attached to it, including natural or man-made improvements.
    • Real estate is a form of real property.
    • Indirect investments include savings accounts, bonds, and stocks.
    • Bonds are used by governments or companies to raise money by borrowing from investors.
    • Stocks give stockholders a share of ownership in a company.

    Kinds of Indirect Investments

    • Mutual Funds are companies that pool money from many investors and invest in securities such as stocks, bonds, and short-term debt.
    • Life Insurance is a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.

    Rent and Unemployment

    • Rent is a payment of a factor of production in excess of its opportunity cost.
    • There are four types of rent: Inframarginal Rent, Pure Economic Rent, Quasi Rent, and Monopoly Rent.
    • Unemployment is a situation where a person actively searches for employment but is unable to find work.
    • Types of unemployment include Fictional Unemployment, Cyclical Unemployment, and Structural Unemployment.

    Entrepreneurship

    • Entrepreneurship refers to the process of identifying, creating, and pursuing opportunities to develop and manage innovative business ventures.
    • An entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit.
    • An entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.

    Characteristics of Entrepreneurs and Employees

    • Employees are people employed for wages or salary, especially at non-executive level.
    • Inventors are people who invent a particular process or device or who invent as an occupation.
    • Characteristics of a successful entrepreneur include being independent, self-confident, determined, and persevering.
    • Successful entrepreneurs are goal-oriented, know what they want, and are able to focus on achieving it.

    Entrepreneurial Business

    • Types of entrepreneurial business include Manufacturing and Wholesaling.
    • Advantages of entrepreneurship include being one's own boss, choosing a business of interest, being creative, and making lots of money.
    • Disadvantages of entrepreneurship include risk, uncertain and irregular incomes, working long hours, and making all decisions alone.

    Entrepreneurial Process

    • The four entrepreneurial process stages are:
      • Identification and evaluation of the opportunity
      • Development of the business plan
      • Determination of the required resources
      • Management of the resulting enterprise

    Direct Investment

    • Direct investment refers to business investments, such as spending by private businesses and nonprofits on physical capital (long-lasting assets used to produce goods and services).

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    Learn about the economic challenges and opportunities that Filipino entrepreneurs are currently facing. Explore concepts of entrepreneurship, business innovation, and the role of employees in a business venture.

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