Questions and Answers
What defines a small business according to the market share approach?
Which of the following is NOT a characteristic of a small business?
Which of the following types of small businesses is classified as a service business?
What is the capital asset threshold that classifies microenterprises?
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What is one of the advantages of operating a small business?
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Which of the following is a type of small business listed in the content?
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In terms of financial capacity, which group typically operates small businesses?
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What kind of small business is primarily focused on providing entertainment?
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Why are small businesses considered important in an economy?
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Which of these is a type of small manufacturing business?
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A small business is defined solely by its total assets exceeding P1.5 million.
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Independent management is a key characteristic of small businesses.
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Small businesses play a minimal role in the overall development of an economy.
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Small service businesses can be differentiated into categories such as business services and educational services.
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Microenterprises are defined as having total assets valued at P2 million and below.
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The market share approach indicates that small businesses are dominant in their fields of operation.
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Retailing is considered a type of small manufacturing business.
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Small businesses typically require large capital commitments from their owners.
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Private enterprises can include small businesses engaged in various sectors, unlike public enterprises.
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General construction firms are categorized as small service businesses.
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An enterprising personality prefers systematic activities and avoids verbal influence.
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Self-confidence in entrepreneurs is characterized by a person's doubt in their abilities.
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The motivation to become an entrepreneur includes the desire for financial rewards and job security.
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Innovative thinking is unnecessary for entrepreneurs as long as they can follow existing methods.
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A reasonable risk taker is characterized as someone who is entirely conservative and avoids any risk.
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The characteristic of 'drive' in entrepreneurs only relates to social interactions.
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The ability to communicate effectively is essential for maintaining relationships in business.
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Entrepreneurs typically set goals to aimlessly pursue various ventures without direction.
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Human relations ability is significant for entrepreneurs as it impacts relationships with customers and employees.
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A personality trait of being 'investigative' involves enjoying activities that are non-analytical and spontaneous.
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What personality trait is characterized by enjoying physical exertion and aggressive behavior?
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Which characteristic involves an entrepreneur's ability to solve problems and make decisions effectively?
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What motivation is commonly cited for individuals becoming entrepreneurs?
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Which of these is NOT a characteristic commonly associated with successful entrepreneurs?
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Which personality type values systematic manipulation of data and organization?
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What aspect does 'human relations ability' primarily impact for entrepreneurs?
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In what way does being a reasonable risk taker benefit entrepreneurs?
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What is one of the main distinctions between an entrepreneur and a manager?
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Which motivation reflects a desire for independence in entrepreneurship?
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What characteristic embodies the persistent pursuit of goals regardless of challenges faced?
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Study Notes
Definition of Small Business
- Small businesses can be defined through the market share approach, indicating they are independently owned and not dominant in their field.
- Under the total assets approach, a small business is defined by total assets falling within a specific financial bracket.
Types of Small Businesses
- Micro Enterprises: Businesses with total assets valued at P1.5 million and below.
- Small Manufacturing Businesses: Focus on producing goods on a smaller scale.
-
Small Service Businesses: Offer various services including:
- Business Services: Support services for other businesses.
- Personal Services: Direct services to individuals.
- Repair Services: Maintenance and repair tasks.
- Entertainment and Recreation: Services for leisure activities.
- Hotels and Motels: Lodging and hospitality services.
- Education Services: Institutions providing education and training.
- Additional types include wholesaling, retailing, and general construction firms.
Characteristics of Small Businesses
- Operated with independent management rather than being part of large corporations.
- Small capital requirements make them more accessible for new entrepreneurs.
- Primarily operate on a local level, focusing on nearby customers.
Economic Importance of Small Businesses
- Small businesses significantly contribute to economic development and job creation.
- They are crucial for local economies by providing goods and services.
Advantages of Operating a Small Business
- Flexibility and adaptability to market changes.
- Opportunity for personalized customer service.
- Potential for low startup costs compared to larger enterprises.
Disadvantages of Operating a Small Business
- Limited financial resources can constrain growth.
- Smaller market share may lead to less influence in the industry.
- Vulnerability to economic fluctuations and competition from larger businesses.
Definition of Small Business
- Small businesses can be defined through the market share approach, indicating they are independently owned and not dominant in their field.
- Under the total assets approach, a small business is defined by total assets falling within a specific financial bracket.
Types of Small Businesses
- Micro Enterprises: Businesses with total assets valued at P1.5 million and below.
- Small Manufacturing Businesses: Focus on producing goods on a smaller scale.
-
Small Service Businesses: Offer various services including:
- Business Services: Support services for other businesses.
- Personal Services: Direct services to individuals.
- Repair Services: Maintenance and repair tasks.
- Entertainment and Recreation: Services for leisure activities.
- Hotels and Motels: Lodging and hospitality services.
- Education Services: Institutions providing education and training.
- Additional types include wholesaling, retailing, and general construction firms.
Characteristics of Small Businesses
- Operated with independent management rather than being part of large corporations.
- Small capital requirements make them more accessible for new entrepreneurs.
- Primarily operate on a local level, focusing on nearby customers.
Economic Importance of Small Businesses
- Small businesses significantly contribute to economic development and job creation.
- They are crucial for local economies by providing goods and services.
Advantages of Operating a Small Business
- Flexibility and adaptability to market changes.
- Opportunity for personalized customer service.
- Potential for low startup costs compared to larger enterprises.
Disadvantages of Operating a Small Business
- Limited financial resources can constrain growth.
- Smaller market share may lead to less influence in the industry.
- Vulnerability to economic fluctuations and competition from larger businesses.
Understanding Personality and Environment in Entrepreneurship
- Personality shapes individual characteristics that differentiate one person from another, affecting entrepreneurial success.
- The environment includes both the physical and economic elements that can influence entrepreneurial ventures.
Holland's Personality Types
- Realistic: Favors hands-on activities involving physical exertion and assertive behavior.
- Investigative: Values analytical thought processes; curious, methodical, and precise in approach.
- Artistic: Emphasizes creativity; tends to be original, expressive, and nonconforming.
- Social: Prefers collaborative interactions and avoids systematic tasks.
- Enterprising: Engages in verbal interactions to persuade and influence others, often seeking power and status.
- Conventional: Enjoys structured tasks, such as data processing and record management.
Characteristics of Successful Entrepreneurs
- Drive: Persistent pursuit of goals despite setbacks, demonstrating resilience and tenacity.
- Thinking Ability: Capable of effective problem-solving and decision-making amidst uncertainty.
- Human Relations Ability: Strong interpersonal skills; builds relations with customers, employees, and stakeholders.
- Ability to Communicate: Proficient in conveying and comprehending messages clearly.
- Technical Knowledge: Skilled in performing various tasks critical to business operations.
- Reasonable Risk Taker: Balances caution with boldness; neither overly conservative nor reckless.
- Self-Confidence: High belief in one’s abilities contributes to entrepreneurial success.
- Goal Setter: Creates specific objectives that motivate and guide strategic planning and efforts.
- Accountability: Takes ownership of business outcomes, fostering a sense of responsibility.
- Innovative: Drives creativity and innovation, vital for business growth and adaptability.
Motivations for Entrepreneurship
- Desire for Autonomy: Strong interest in being one's own boss and controlling one's work life.
- Financial Incentives: Pursuit of monetary rewards motivates many to start entrepreneurial ventures.
- Job Security: The need to create personal employment stability leads some to entrepreneurship.
- Quality of Life Improvement: Many are driven by the desire to enhance their lifestyle through their own businesses.
Distinction Between Entrepreneur and Manager
- Entrepreneur: Focuses on innovation, risk-taking, and creating new opportunities.
- Manager: Primarily concerned with organizing, planning, and maintaining business operations within established frameworks.
Understanding Personality and Environment in Entrepreneurship
- Personality shapes individual characteristics that differentiate one person from another, affecting entrepreneurial success.
- The environment includes both the physical and economic elements that can influence entrepreneurial ventures.
Holland's Personality Types
- Realistic: Favors hands-on activities involving physical exertion and assertive behavior.
- Investigative: Values analytical thought processes; curious, methodical, and precise in approach.
- Artistic: Emphasizes creativity; tends to be original, expressive, and nonconforming.
- Social: Prefers collaborative interactions and avoids systematic tasks.
- Enterprising: Engages in verbal interactions to persuade and influence others, often seeking power and status.
- Conventional: Enjoys structured tasks, such as data processing and record management.
Characteristics of Successful Entrepreneurs
- Drive: Persistent pursuit of goals despite setbacks, demonstrating resilience and tenacity.
- Thinking Ability: Capable of effective problem-solving and decision-making amidst uncertainty.
- Human Relations Ability: Strong interpersonal skills; builds relations with customers, employees, and stakeholders.
- Ability to Communicate: Proficient in conveying and comprehending messages clearly.
- Technical Knowledge: Skilled in performing various tasks critical to business operations.
- Reasonable Risk Taker: Balances caution with boldness; neither overly conservative nor reckless.
- Self-Confidence: High belief in one’s abilities contributes to entrepreneurial success.
- Goal Setter: Creates specific objectives that motivate and guide strategic planning and efforts.
- Accountability: Takes ownership of business outcomes, fostering a sense of responsibility.
- Innovative: Drives creativity and innovation, vital for business growth and adaptability.
Motivations for Entrepreneurship
- Desire for Autonomy: Strong interest in being one's own boss and controlling one's work life.
- Financial Incentives: Pursuit of monetary rewards motivates many to start entrepreneurial ventures.
- Job Security: The need to create personal employment stability leads some to entrepreneurship.
- Quality of Life Improvement: Many are driven by the desire to enhance their lifestyle through their own businesses.
Distinction Between Entrepreneur and Manager
- Entrepreneur: Focuses on innovation, risk-taking, and creating new opportunities.
- Manager: Primarily concerned with organizing, planning, and maintaining business operations within established frameworks.
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Description
This quiz explores the definition of small businesses using the market share and total assets approaches. It also covers various types of small businesses, including micro enterprises and different service sectors. Test your knowledge on key concepts related to small business classification.
