Entrepreneurship Exam Review

Entrepreneurship Exam Review

• Manpower and Productivity:

  • Manpower (human workforce) is vital for productivity.
  • Skills, labor, and management are components of manpower.

• Product Sampling:

  • A prototype is an initial product sample for testing and refinement before mass production.

• Product Research:

  • Product descriptions on packaging provide crucial feature and benefit information.

• Prototype Development:

  • 3D models aid in visualizing and refining product design and functionality before full-scale production.

• Prototype Testing:

  • Prototype testing uncovers defects and gathers feedback for improvements.

• Product Validation:

  • Early Bird Offers (discounts to initial customers) gauge market interest and validate products.

• Diagrams in Prototyping:

  • Diagrams illustrate product dimensions, materials, and fabrication processes. This ensures proper instructions and specifications.

• Feedback Prototyping:

  • Building an initial product version for demonstration allows for practical testing and feedback collection.

• Utilities Costs:

  • Utilities (electricity, water) are operating expenses that contribute to overall business costs.

• Net Profit Calculation:

  • Net profit is the income remaining after deducting all expenses from gross profit.

• The 4Ms in Production:

  • A workflow diagram illustrates the interaction and contribution of materials, manpower, machines, and money to production efficiency.

• Manpower and Machine Interaction:

  • Training programs enhance worker machine interaction, improving production outcomes.

• Markup:

  • Markup is the amount added to the cost price for overhead and profit.

• Revenue and Cost Estimation:

  • Forecasting analyzes historical data to anticipate future financial performance.

• Net Turnover:

  • Net turnover is calculated by adding gross profit to the cost of goods sold, yielding total income after the cost of goods is accounted for.

• Carriage Outwards:

  • Carriage outwards is a business expense, deducting from net profit.

• Daily Revenue Calculation:

  • Daily revenue is calculated by multiplying quantity and price.

• Profitability Measurement:

  • Profitability ratios assess a company's resource use for profit generation.

• Total Expenses:

  • Total expenses example: P9,000 (rent + salaries + utilities).

• Net Income:

  • Net income example: P11,000 (revenue minus total expenses).

• Investor Product Description:

  • Product descriptions highlight features and benefits directly to potential investors.

• Retail Pricing with Profit:

  • Retail price calculation for 15% profit example: P115 (100 + [15% of 100]).

• Donation Percentage:

  • Donation percentage example: 15% (22,500/150,000).

• Profit Calculation:

  • Profit calculation example: P625 [(25x30) + (25x25) -1000].

• Profit Margin:

  • operating profit margin example: 25% (Profit / Total Revenue) x100).

• Business Plan Mistakes:

  • Lack of a clear business vision hinders decision making and investor appeal.

• Supply Chain:

  • The supply chain encompasses raw materials procurement, manufacturing, warehousing, distribution, and customer service to ensure smooth operations.

• Business Plan Structure Analysis:

  • A marketing plan analyzes the market, prices, and distribution strategies.

• Financial Operation Evaluation:

  • A worksheet summarizes balance sheet and income statements for a financial health and operational efficiency review.