Entrepreneurship Finals Reviewer PDF

NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship LESSON 9: FACTORS TO CONSIDER IN LESSON 10:...

NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship LESSON 9: FACTORS TO CONSIDER IN LESSON 10: ORGANIZATIONAL PLAN STARTING A BUSINESS Organization Types of Businesses Available to - Collection of people involved in Entrepreneur: pursuing defined objectives - One or more people with a particular Micro Enterprise purpose - Asset size not exceeding Php 50,000 Organization Plan - Home-based, operating in makeshift - Method for planning the future goals or temporary quarters of the organization Cottage Enterprise - “To do” list of the organization - Asset of Php 250,000 but not exceeding Php 500,000 Basic Types of Ownership: - A home-based business, often managed and operated by family Sole proprietorship members - Business owned by an individual Small Enterprise who generally has full control over - Asset of Php 500,000 but not the business exceeding Php 2.5 million - No legal distinction between the - Owned by an individual or group owner and the business - Employs 10-20 people - Simplest business form Medium Enterprise - Asset of Php 5 million to less than Partnership Php 20 million - Formal agreement between two or - Employs 20-100 workers more parties to operate a business - Could be owned by a single and share its profits individual, business partners or a - Not a separate legal business entity, corporation does not have to be registered with Large Enterprise the state - Asset of Php 20 million or more Partnership Agreement - Often owned and managed by a - Contract between partners which sets corporation terms and conditions of the - Large in scope of operation and relationship between the partners number of products or services - Employs 100 or more workers based *The partnership dissolves upon a partner's of their expertise death, but the firm may carry on if the remaining partners decide to continue the business.*  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship Kinds of Partners in an Organization: Non-Stock General Partners - Does not issue shares of stock - Has the authority to act on behalf of - For-profit corporations the business without the knowledge - May be formed for a single, or permission of the other partners. short-term purpose or a - Can legally bind and are personally specific transaction. liable for the business’ debts and - Non-profit corporations obligations. - Without any profit motive Limited Partners and are formed to provide a - Have limited control and not service to their members involved in day-to-day operations Silent Partner Organizational Structure - Whose involvement in a partnership - Outlines how activities are directed is limited to providing capital in order to achieve the goals of an - They rarely engage in daily organization operations or participate in - How people in an organization are management meetings. grouped and to whom they report Industrial Partner Organizational Chart - Solely puts time and effort as - Diagram that conveys the company’s contribution and not capital internal structure - Financial investors often grant the - Let employees transparently see how industrial partner a certain share in their roles fit the organization the company. Corporation Types of Organizational Structure: - Is a legal entity that separate and Functional distinct from its owners - Divided into smaller groups based on - Also refers as “Legal person” specialized functional areas - Greater operational efficiency as Types of Corporations: employees are grouped according to Stock Corporation shared skills and knowledge - For-profit organizations that issue - Disadvantage: different groups may share of stock to stockholders to not communicate with one another raise capital Divisional - Shareholders are granted ownership - Groups each organizational function rights into a division  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship - Each division has the resources and Bricks and Mortar: physical store functions needed to support its Bricks and Clicks: physical and product line or geography. online presence - Disadvantage: operational Franchise Business inefficiencies from separating - Uses parent business model and separating specialized function brand while paying royalties to it Matrix - May be a manufacturer, distributor, - Employees report to two or more or retailer managers E-Commerce - Encourages employee contribution - A business model for buying and and places a higher value on selling goods and services on the workers' point of view. Internet. - Disadvantage: could cause workers - A website where a specific brand to become conflicted between sells its own products. Inventory is managers and projects. owned by the website owner only Online Marketplace Business Model - Website or app that facilitates from - Outline of how a company plans to many different sources make money with its product and - Operator doesn’t own any inventory, customer base in a specific market. its business is to present others inventory and facilitate a transaction Types of Business Model: Freemium Manufacturer of Products - Offer basic services to customer for - Takes raw materials and creates free while charging certain premium product for extra add-ons - Applies to companies that assemble Subscriptions products to premade parts - Keeps customers over a long-term Distributor of Products contract and get recurring revenues - Purchases products directly from a from them through repeated purchase manufacturer for resale - More commonly known as LESSON 11 A: MARKETING “wholesalers” STRATEGIES Retail Outlets Selling to End Users - Purchase products from a distributor Market or wholesaler, then sells products to - The group of consumers or the general public or to corporate end organizations interested in and able users. to legally purchase the product.  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship Marketing Cause Marketing - All activities that a company does to - Cooperative effort between for-profit promote and sell their products or and nonprofit organization to services to the market promote and benefit from social and charitable causes Marketing Plan Guerilla Marketing - A detailed action plan on how to - An advertising strategy using achieve the strategy. surprise tactics to engage target Marketing Strategy audiences. - Overall game plan focusing on what Direct Selling needs to be achieved and why - Selling products directly to consumers. Involves personalized, Examples: face-to-face interaction between sellers and buyers. Celebrity Endorsement Co-branding & Affinity - Uses a well-known public figure to - Two brands join together to promote promote and sell a single product. May Content Marketing dissuade private label - To attract, engage and retain manufacturers from copying the audience by creating and sharing product relevant articles, videos, etc Point-of-Purchase Social Media Marketing - To encourage customers to make an - form of digital marketing that immediate purchase at the place of leverages the power of popular social the product, typically in retail. media networks to achieve your marketing and branding goals. Storytelling LESSON 11 B: MANAGING THE OPERATIONS FUNCTION - uses narrative elements to create emotional connections with their audience Operations Management Word of mouth - It involves designing, managing, and - process of customers promoting a improving systems to create goods or product through informal, organic services, while planning and conversations with friends, family, controlling resources to maximize colleagues, or online platforms (ex. efficiency in both manufacturing and reviews). services across sectors. - Influencer Marketing  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship Concept of Operational Management Manpower - Concerned with converting materials - Also referred to as a “Human and labor into goods and services as Resource” efficiently as possible to maximize - It involves recruiting, training, the profit. promoting, and managing personnel to handle business operations. Machinery - Also referred to as “Technology” - Basic tools used to produce goods or Related Activities: generate services Materials Warehousing - Pertains to anything used as inputs to - Storing physical goods before they production or manufacturing are sold or distributed - Can be finished products or Maintenance unprocessed raw materials— - To care or upkeep, as of machinery resources used by a company to or property, or to the means of produce finished goods upkeep, support, or subsistence. - Includes the business’ supply chain Inventory Management management procedures - Businesses track the amount of product they have on their shelves. Supply Chain Management Quality Control - Process of delivering a product from - Mechanisms instituted to assure raw materials to the consumer customers of the firm that its - It involves supply, product, demand, products are consistent and reliable and sales planning, with impacts on customer satisfaction and ROI 4 Ms of Operation Framework of Analyzing the Operations of Methods an Enterprise - Process to be followed in effectively manufacturing or delivering products IPO Framework - Involves routines and procedures to - Structure is an arrangement of be followed relationships between inputs and - More commonly referred to as outputs. Standard Operating Procedure (SOP)  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship Exchange Transformation - Commodity is transmitted from supplier to buyer. - Output: retail service of sari-sari store Extraction Transformation - Natural resource is taken out of habitat 3 components of IPO: - Output: Gold ores, timber logs 1. Resource Input: resources used to create goods and services. Grouped Value Chain Approach into two categories: Intermediate - Traces the value of a commodity in (raw materials) and Factor terms of how factor inputs are adding (transforming inputs). value to the raw materials 2. Process: various forms of - Value of commodity = transformation that factor inputs raw material price + value-added perform on the materials Value added: factor inputs that are 3. Output: result of the production used to transform raw material into process final output Forms of Transformation (from process to Assessing the Performance of a Business output): Enterprise Physical Transformation Efficiency - Processing of raw materials converts - Accomplish something with the least into significantly altered new amount of wasted time or effort. products. Effectiveness - Output: food grains, canned goods - Something is successful in producing Locational Transformation a desired result; success - Arises when a product changes location through various means of Evaluating Performance Effectiveness transportation and communication. - Considered effective if they are able - Output: Train services, freight to produce goods and services that services were planned to be produced Information Transformation - Knowledge and specialized skills are transmitted to its customers. - Output: Educational & legal services  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship 2. Search for information (research): Measures of Productivity Customers want to find out their options Productivity 3. Evaluation of alternatives - Measuring output relative to the (consideration): Customer is value of inputs comparing options to make the best choice Common Business Productivity Challenges 4. Purchasing decision (conversion): and Pitfalls: Buying behavior turns into action Achieving “busyness” rather than 5. Post-purchase evaluation productivity (re-purchase): Customers consider Inefficient meetings if the product was worth it, Email recommendable, good enough to be Poor time management bought again, and be given feedback Putting off technology improvements Manual processes Marketing Mix - Set of actions or tactics a company LESSON 12: CONSUMER DECISION uses to promote its brand or product MAKING PROCESS, MARKETING MIX - The basic form, better known as 4Ps & BRANDING - Helps organizations make strategic decisions when launching new products Marketing vs. Sales Product: - Sales focuses on what salespeople - Represents items or services can control, which is selling a designed to satisfy customer needs product. and wants. - Marketers pitch ideas—not sales. Price: - Cost of the product that the customer Consumer Decision Making Process is willing to pay. Also referred to as - Consumers evaluate making a “Pricing.” purchasing decision. - The only revenue-generating element - Sometimes called the buyer in the marketing mix journey, buying cycle, buyer funnel, Place: and consumer purchase decision - Encompasses the entire process from process. manufacturer to accessibility to the - Involves 5 basic steps customer. 1. Need Recognition (awareness): The - Includes distribution channels that a first and most important stage. company uses.  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship Promotion - Include only words, symbols, or - It encompasses advertising, public marks that are legally registered for relations, and the overall media use by a single company strategy for introducing a product. - Creating meaningful messages The ® mark protects the brand image, while the TM mark, upon registration, can protect both the design Brand and color combinations. - Intangible marketing or business concept that helps identify a Differentiation company, product, or individual - Companies can use branding to differentiate themselves from the - Considered the company’s most competition. important and valuable assets Slogans Tells the customer two things: - Catchy phrase accompanying a logo 1. What they can expect or brand that makes it more 2. Differentiates from competitors memorable. - Also known as taglines Branding User Experience - Giving a meaning to specific - Branding is demonstrated by the user organization and shaping a brand in experience that companies attempt to the consumers’ minds create. - Strategy designed to help people identify and experience their brand LESSON 13: MANAGING THE HUMAN - The objective is to attract and retain RESOURCE FUNCTION loyalty Human Resource Key Concepts Used in Branding: - These are people who make up the Brand Identity: the way you want people to workforce of an organization, perceive you (logo, tagline, aesthetic, business or economy language) Human Resource Management Brand Image: the ways that customers - A strategic approach to managing actually perceive you (reputation, workplace culture, recruitment, and impression, belief) employee management. - Often referred to as HRM Forms of Branding: Delegation Symbols - Shifting of authority and - Form of a recognizable symbol to be responsibility for particular easily identified, such as a logo. functions, tasks or decisions from Trademark one person to another - A legal term.  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship Functions of HRM: that best fit the requirements of the Recruitment & Selection job - Also known as staffing, involves the entire hiring process from posting a Employee Selection Process: job to negotiating a salary package. Job Analysis Compensation & Benefits - The entrepreneur must be clear on - Anything the employee receives the specific task and activity a new from their work. (Pay, Bonuses, etc.) employee must perform. Training & Development Competency Profiling - Training is a key component in - The entrepreneur must define what employee motivation. knowledge, skills and experience are - Employees who develop their skills needed to perform the job well. are happier, leading to higher Job Description retention. - Brief written description of the major Performance Evaluation duties and responsibilities a new - Is a formal and productive procedure employee must perform. to measure an employee’s work and results based on their responsibilities Nurturing and Engaging Talents: Quality of Work Life (QWL) Training- helps employees do their jobs - Defined as satisfaction a person better. develops for their career - On-the-job training: involves a Employee Relations trainee working alongside - An organization's effort to create and experienced employees who could maintain a positive relationship with teach theme the tasks they need to its employees perform Labor Relations - Job rotation: allows one to perform - Part of labor law that regulates different jobs, which provide relations between employees and exposure to a variety of tasks. workers - Apprenticeships: used in skilled trade or craft jobs Attracting and Retaining Talents: - Off-the-job training: in the form of Recruitment classroom lectures, multimedia - Activities that influence individuals learning and simulations. to apply for a job and accept jobs Development: prepares individuals for offered to them. future positions for responsibilities within Selection the business - Process which an organization chooses from a pool of applicants  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship - Job Coaching: Mentors employees Equity Financing: by assigning them to solve - Raising capital through the sale of organizational problems. shares in an enterprise. - Performance Evaluation: Meant to - Refers to the sales of shares of determine the extent of which interest to raise funds. employees perform their work Business Angels effectively. - Wealthy individuals that invest in high-growth businesses in return for LESSON 14: MANAGING THE a share in the business. FINANCIAL ASPECTS - Often experienced entrepreneurs Crowdfunding - is the use of small amounts of capital Financial Management from a large number of individuals to - Acquisition, financing, and finance a new business venture. management of monetary assets to achieve an organization's objectives Basic Accounting and Bookkeeping - Ideal practice for controlling the Accounting financial activities of an organization - Recording financial transactions pertaining to a business Requires 2 things: - Financial statements used are a Financial Plan summary of the financial - Statement of the long-term transactions made over an objectives of the firm accounting period - Detailed savings and investing Cash Flows: movement of money in strategy to achieve those objectives and out of a business Financial Decision - Inflow: money that comes in - Are the decisions that entrepreneurs - Outflow: money that goes out or managers take with regard to the finances of a business Bookkeeping - Process of recording all financial Sources of Funds for Starting a Business: transactions made by a business Debt Financing: Borrowing of money and paying it back with interest 4 Basic Financial Reports - Credit: lets borrowers draw, repay 1. Balance Sheet- show what a and redraw from available funds company owns and what it owes at a - Loan: sum of money repaid over a fixed point in time fixed period of time  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship 2. Income Statement- show how much customers or debtor to the business a company made and spent over a evidenced by a promissory note. period of time 3. Cash Flow Statement- exchange of If the note is within 1 year, it is considered as current assets money between a company and the Inventories: Refers to a company's outside world goods and products that are ready to 4. Statement of Shareholders’ sell, along with the raw materials Equity: show changes in the interest that are used to produce them. of the company’s shareholders Prepaid Expense: Type of asset that results from a business making advance payments for goods or Basic Account Titles used in Accounting services to be received in the future. Assets - Things a company owns that have Non-Current or Fixed Assets value - Equipment - defined as all such - Includes both tangible and intangible instruments which are used for things the firm owns that have value, producing any product or machine or such as trademarks and patents service. - Furniture and Fixtures - are larger 2 Types of Assets items of movable equipment that are - Current Assets: can be used to furnish an office. realized/converted into cash within - Building - refers to the physical one year from the reporting date structure owned and used by the - Fixed or Non-current Assets: if business to conduct business future economic benefits of the asset operations. exceed one year - Land - refers to the physical site owned by the business where the Current Assets building is situated. It is the only Cash: on hand, deposited in bank, asset not subject to depreciation. cash fund which are unrestricted to use Liabilities Accounts Receivable: money owed - Amounts of money that a company to the firm for goods or services owes to others. delivered or used but not yet paid for - Also includes obligations to provide by the customers goods or services to customers in the Notes Receivable: represents the future. amount of money owed by the  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship paid off all of its liabilities, owned 2 Types of Liabilities: by shareholders or the owners - Current liabilities: Expected to be settled in cash by the business within 2 Types of Earnings: one year from the reporting date. - Revenue: earnings that arise from - Noncurrent Liabilities: Are the main line of operations of the obligations reasonably expected to business. be paid in cash beyond one year. - Income: earning interests from bank deposits is not the main line of Liabilities Account operation of the business. - Accounts Payable: open accounts which represent the amount of Income money owed by the business to - The money that people and creditors or suppliers businesses receive in exchange for - Notes Payable: the amount of working, producing a product or money owed by the business to the service, or investing capital supplier or creditor evidenced by a promissory note. Income Account - Loan Payable: the amount of money - Service Revenue: represents the borrowed by the business from a earnings made by the company bank or lending institution. through services rendered. - Mortgage Payable: the amount of - Interest Income: is the amount of money borrowed by the business interest that has been earned during a from a bank or a lending institution specific time period. It is earned which is secured by collateral (ex: from investments that pay interest, taking of properties). such as in a savings account or time - Advances from Customers: deposit. represents cash collected by the - Sales: represents the earnings made business in advance for a service or by any business that is into selling good that is yet to be rendered or goods or merchandise. delivered. - Professional Fees: represents earnings made by professionals or Shareholder’s Equity experts from rendering services to - Sometimes called capital or net their clients. worth - The money that would be left if a Expense company sold all of its assets and - Costs incurred by the business in generating revenues  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship - Cost of doing the main line of charged to expense in the current operation of the business accounting period. Expense Account Basic Financial Reports - Utilities Expense: refers to costs Balance Sheet associated with the usage of - Provides detailed information about electricity, water and communication a company’s assets, liabilities and for a particular accounting period. shareholders’ equity. Designed to - Salaries Expense: refers to costs communicate exactly how much a associated with the services rendered company or organization is worth. by permanent and full-time - Assets = Liabilities + Shareholders' employees who are paid on a regular Equity basis, usually monthly. - Wage Expense: refers to costs Income Statement associated with the services rendered - Shows the costs and expenses by contractual and temporary associated with earning that revenue. employees and workers who are paid - The literal “bottom line” of the on an hourly rate or based on output. statement usually shows the - Tax and Licenses: represents costs company’s net earnings or losses. incurred to register the business, to - Total Sales - Total Expenses = Net acquire the right to operate and to Income settle taxes. - Cost of Goods Sold: represent the Cash Flow Statement cost of merchandise or goods that - A financial statement that were sold during a particular summarizes the amount of cash and accounting period. cash equivalents entering and leaving - Supplies Expense: refers to the a company. amount of supplies that was used during a particular accounting Three Main Parts period. - Operating Activities: the actual - Doubtful Account Expense: cash the company received from or represents management's estimate of used in its operating activities the amount of accounts receivable - Investing Activities: generally that will not be paid by customers. include purchases or sales of - Depreciation Expense: refers to the long-term assets. allocated portion of the cost of - Financing Activities: are cash property plant and equipment transactions related to the business  NOTRE DAME OF GREATER MANILA ABM STUDENT SOCIETY EMPOWERING TRUTH IN SERVICE STUDENTS ADVISORY BOARD S.Y 2024-2025 1st Semester - Finals Reviewer for Entrepreneurship raising money from debt or stock, or repaying that debt. Cash receipt of a loan Financing received from a financial institution. Cash payment for Investing purchase of machinery. Cash payment of the Operating wages to the employees. Cash payment for the Financing acquisition of an investment in shares. Cash receipt from Operating dividends of shares of stocks. Cash collection of a grant, Investing to finance the purchase of a new machinery. Cash payment to the Tax Operating Agency for the income tax. Statement of Owner’s Equity - shows the changes in the capital account due to contributions, withdrawals, and net income or net loss. Working Capital - The measure of the company's liquidity, operational efficiency and its short-term financial health. - Is the amount of a company's current assets less the amount of its current liabilities.