Introduction to Entrepreneurship

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Questions and Answers

What is the primary purpose of a business?

To produce and sell goods and services to satisfy societal needs (correct)

To establish brand recognition

To generate revenue for the local government

To provide employment opportunities for individuals

Entrepreneurship is primarily aimed at achieving financial dependency.

False (B)

In what type of economic system does entrepreneurship thrive?

capitalist economy

An entrepreneur is a person who _________________ entrepreneurial activities.

undertakes Signup and view all the answers

Match each concept with its definition:

Business = An organized effort to produce and sell goods and services. Entrepreneurship = The pursuit of an opportunity regardless of current resources. Entrepreneur = The person who organizes, manages, and assumes the risks of a business. Signup and view all the answers

Which of the following best describes entrepreneurship?

A process of creating or seizing an opportunity, regardless of resources (A) Signup and view all the answers

The term 'entrepreneur' was coined by a renowned American Economist.

False (B) Signup and view all the answers

What French word is the term 'entrepreneur' derived from, and what does it mean?

<code>entreprende</code>, which means to undertake Signup and view all the answers

Besides providing products and services, entrepreneurs also generate _______ for the government.

taxes Signup and view all the answers

Which of the following is NOT a task typically associated with entrepreneurs?

Working exclusively for the government. (A) Signup and view all the answers

Which of the following is the main goal of economic development?

Improving living standards (B) Signup and view all the answers

According to the Invisible Hand Theory, economies grow due to government intervention.

False (B) Signup and view all the answers

Who is considered the father of economics?

Adam Smith Signup and view all the answers

Nicholas Kaldor proposed that economies are like _________ which live, grow, and die.

organisms Signup and view all the answers

Match each economic theory with its key factor

Invisible Hand Theory = Private enterprise Harrod-Domar Theory = Capital Ricardo's Theory of Growth = Land Schumpeter's Innovation Theory = Innovation Signup and view all the answers

According to Sir Harrod and Prof. Domar, what is the primary factor for economic growth?

Capital (C) Signup and view all the answers

Entrepreneurship is not considered a component of economic development.

False (B) Signup and view all the answers

What did Joseph Schumpeter identify as the catalyst for development?

innovation Signup and view all the answers

David Ricardo, an English classical economist, theorized that ________ is the key to economic growth.

land Signup and view all the answers

Which type of businesses most often drive innovation according to Joseph Schumpeter?

Small businesses (B) Signup and view all the answers

Study Notes

Introduction to Entrepreneurship

Change is inevitable and widespread, impacting all aspects of life, including economies like the Philippines
Entrepreneurship is crucial for capitalist economies, fostering innovation and hard work
Entrepreneurship is vital to the nation's economic well-being

Topic 1: Entrepreneurship and the Entrepreneur

Learning Objectives

Distinguish between entrepreneurship and entrepreneur
Understand the role and characteristics of an entrepreneur

Business Defined

Businesses are organized efforts to satisfy societal needs by making and selling goods and services
Businesses operate as a form of livelihood, work, or profession
Commercial activities aim at generating income

What is Entrepreneurship?

Entrepreneurship is a process of creating or seizing opportunities, continuing despite resource limitations
It involves starting, managing, and taking risks associated with business ventures
Entrepreneurship is an integral aspect of capitalist economies
The aim of entrepreneurship is to create self-employment. This is achieved by identifying and pursuing opportunities regardless of existing resources.
Entrepreneurship is viewed as a force of "creative destruction" where existing business practices, methods or ideas are disrupted and replaced by new ones. (Schumpeter)
Entrepreneurs, in this context, drive innovation and improvement in the business world.
Entrepreneurs identify and exploit change as opportunities (Drucker).

The Entrepreneur

The entrepreneur is the person who takes the lead in entrepreneurial activities and manages risks associated with enterprise.
They organize, manage and bear the risks associated with business ventures.
The term "entrepreneur" originates from the French word "entreprendre," meaning "to undertake."
This term was popularized by Jean Baptiste Say

The Entrepreneur's Task

Entrepreneurs are responsible for providing products and services to consumers and producers
They create employment opportunities
They contribute to tax revenues for the government.
They generate demand fulfilling suppliers' needs
They aid future entrepreneurs through training facilities.
These enterprises create goods and services beneficial to society.

Entrepreneur's Characteristics

Drive
Ambition
Leadership
Perseverance
Competitive nature
Innovation
Vision
Motivation
Independent
Self-satisfaction
Confidence
Energy
Intelligence
Resourcefulness
Optimism
Creativity
Initiative
Flexibility
Responsibility
Accuracy
Cooperativeness
Sense of power
Imagination
Commitment
Sensitivity to others
Honesty
Maturity
Hard Working
Ability to bounce back

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Description

Explore the fundamental concepts of entrepreneurship, including the distinction between entrepreneurs and entrepreneurship itself. This quiz delves into the characteristics of entrepreneurs and the critical role they play in economic development. Test your knowledge on how business operates to satisfy societal needs and drive innovation.