Questions and Answers
Which approach defines a small business as independently owned and operated, and not dominant in its field?
What is a characteristic typical of a small business?
Which of the following types of small businesses provides repairs and personal services?
Which statement accurately reflects the economic importance of small businesses?
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What is the total asset threshold for a microenterprise?
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Which of the following is NOT a type of small business by its classification?
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What is a common reason people engage in entrepreneurship related to financial capacity?
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Which of the following is considered a small service business?
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What is a primary classification of microenterprises based on total assets?
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Which characteristic is NOT typical of a small business?
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What type of engagement is typically associated with individuals with large amounts of capital?
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What type of business primarily focuses on providing entertainment services?
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Which of the following is NOT an aspect of small businesses mentioned?
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Which type of small business includes hotels and motels?
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Which of the following types of small businesses is focused on creating products?
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What is a disadvantage commonly associated with operating a small business?
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What characteristic distinguishes large enterprises from small businesses?
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Which of the following is classified as a small business in the service sector?
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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.
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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.
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Description
This quiz explores the definition and types of small businesses, focusing on market share and total assets approaches. You'll learn about different varieties such as micro enterprises, small manufacturing, and service businesses, including education and personal services. Test your knowledge on this essential aspect of entrepreneurship.
