Name: Ma. Krisselda R. Guerra Course/Year:BSAIS- 1st Year.
CONCEPT DISCUSSION
Briefly discuss the following:
1. In what way do customers influence a business enterprise?
If your company is dependent on one or few customers your business is at serious risk. If just one of
your customers leave it could seriously affect your revenues and profits. Having high customer
concentration has a substantial impact on the company's value as it presents a huge risk to a
prospective buyer.
2. Explain each basic business resources.
Men. These are the people who work in business enterprises. Among the productive resources,
people are considered the most important.
Money. Obviously, funds are very important. These are needed in putting up the business.
Machines. Modern production requires the use of machines. This is more efficient and economical.
Materials. These are needed in the creation of products. For instance, the production of rice or
corn, seeds, fertilizers, and pesticides constitutes the production inputs.
3. In your own opinion, which is the best economic system? Why?
Capitalism is the best economic system because it rewards the ones that work hard and since the
government does not control trade, there is a large variety of goods and creates options for
consumers to fit their personal needs. Capitalism is the best economic system for many reasons.
4. Explain at least one (1) basic market model.
Oligopoly is a market form wherein a market or industry is dominated by a small group of large
sellers. For example, it has been found out that insulin and the electrical industry are highly
oligopolist in the US.
5. Are you in favor of free trade between a poor and a rich country? Why?
Yes, because free trades has the best benefits for developing countries and free trade can improve
the quality of life for a nation's citizens.
6. Explain one major area of government regulation of business enterprise. Is the government
successful in its regulatory powers? Why?
DEFINITION OF TERMS
Define the following and give examples:
1. Business
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or
professional activities.
Examples:
Service Business
Merchandising Business.
Manufacturing Business.
2. Capitalism
An economic and political system in which a country's trade and industry are controlled by private
owners for profit, rather than by the state.
Examples:
The creation of mega-corporations which are owned by a set of private individuals and institutions.
3. Market Models
The market model is used to illustrate how the forces of supply and demand interact to determine
prices and the quantity that is sold.
Examples:
Pure competition
Competition
Oligopoly
Pure monopoly
4. Laissez faire
An economic system in which transactions between private groups of people are free from or
almost free from any form of economic interventionism such as regulation and subsidies.
Example:
An example of laissez faire is when a homeowner is allowed to plant whatever they want to grow in
their front yard without having to get permission from their city.
5. Communism
Communism is a political and economic ideology that positions itself in opposition to liberal
democracy and capitalism, advocating instead for a classless system in which the means of
production are owned communally and private property is nonexistent or severely curtailed.
Examples:
Prominent examples of communism were the Soviet Union and China. While the former collapsed in
1991, the latter has drastically revised its economic system to include elements of capitalism.
6. Oligopoly
A market characterized by a small number of firms who realize they are interdependent in their
pricing and output policies.
Examples:
Steel manufacturing
Oil
Railroads
Tire manufacturing
Grocery store chains
Wireless carriers
7. Fiscal Policy
Fiscal policy is the use of government spending and taxation to influence the economy.
Examples:
The two major examples of expansionary fiscal policy are tax cuts and increased government
spending.
8. Free- enterprise
Free enterprise is the freedom of individuals and businesses to regulation.
Examples:
Opening a coffee shop
Starting an online business
9. Business environment
Business environment is the sum totals of all factors external to the business firm and that greatly
influence their functioning.
Examples:
Economic Environment
Business Cycle
Competition
Economic Security
Culture
Values
Demographics
Markets
10. Monopolistic competition
An industry in which many firms offer products or services that are similar, but not perfect
substitutes.
Examples:
Restaurants
Hair salons
Clothing
Consumer electronics
11. Socialism
Socialism is a political, social, and economic philosophy encompassing a range of economic and
social systems characterised by social ownership of the means of production and democratic
control, such as workers' self-management of enterprises.
Examples:
Republic of India
United Republic of Tanzania
Republic of Angola
Portuguese Republic
12. Monetary policy
The control of the quantity of money available in an economy and the channels by which new
money is supplied
Examples:
Decreasing the discount rate.
Purchasing government securities.
Reducing the reserve ratio.
ENUMERATIONS
1. What are the essential features of communism.
No one owns property privately.
Government is the only producer and seller.
There are no economic freedoms.
The profit motive is prohibited.
2. What are the essential features of capitalism.
Private property
Economic freedoms
Free competition
Profit motive
3. What are the four (4) basic market models.
The 4 basic market models are pure competition, monopolistic competition, oligopoly, and pure
monopoly.
4. Give the four (4) factors affecting internal business environment.
Value Proposition.
Human Resource.
Financial and Marketing Resources.
Corporate Image and brand equity.
5. Give the four (4) factors affecting external business environment.
Name: Ma. Krisselda R. Guerra Course/Year:BSAIS- 1st Year.
_____________________________________________________________________________________
_________
CONCEPT DISCUSSION
Briefly discuss the following:
1. Explain one reason why people go to business. If you were to put your own business, what would be
your reason?
2. What qualities of an individual are needed to ensure his business success?
I believe that a man should know how to take the risks and initiative and also have a Leadership
skills and communication skills to ensure his business success.
3. How can cooperatives improve the social and economic conditions of the poor?
With the adoption of cooperatives, people in the rural communities managed to generate
employment, boost food production, empower the marginalised, especially women, and promote
social cohesion and integration, thereby improving their livelihoods and reducing poverty.
4. How do you start a new business?
1. Conduct market research
2. Write your business plan
3. Fund your business
4. Pick your business location
5. Choose a business structure
6. your business name
7. Register your business
8. federal and state tax IDs
9. Apply for licenses and permits
10. Open a business bank account
5. A feasibility study is very important before putting up a new business. Why?
Feasibility studies offer you the chance to “get it right” before committing time, money and business
resources to an idea that may not work in the way you originally planned, causing you to invest
even more to correct flaws, remove limitations, and then simply try again.
DEFINITION OF TERMS
Define the following and give examples:
1. Organization
An organization, or organisation is an entity – such as a company, an institution, or an association.
Examples:
Sole proprietorship
Partnership
Corporation
Limited liability company
Cooperative
Writers and consultants, local restaurants and shops, and home-based businesses.
3. Partnership
A formal arrangement by two or more parties to manage and operate a business and share its
profits.
Examples:
Red Bull & GoPro.
Sherwin-Williams & Pottery Barn.
West Elm & Casper.
Dr. Pepper & Bonne Belle.
Louis Vuitton & BMW.
Spotify & Uber.
2. Sole proprietorship
A type of enterprise owned and run by one person and in which there is no legal distinction between
the owner and the business entity.
Examples:
4. Corporation
A company or group of people authorized to act as a single entity (legally a person) and recognized
as such in law.
Examples:
Amazon
J.P. Morgan Chase
Google.
Apple.
Domino's Pizza.
Exxon Mobil.
5. Cooperative
A cooperative is "an autonomous association of persons united voluntarily to meet their common
economic, social, and cultural needs and aspirations through a jointly-owned enterprise".
Cooperatives are democratically owned by their members, with each member having one vote in
electing the board of directors.
Examples:
Philippine Army Finance Center Producers Integrated Cooperative (PAFCPIC)
Cebu CFI Community Cooperative
Tagum Cooperative
PLDT Employees Credit Cooperative (PECCI)
6. Project feasibility
A project feasibility study is a comprehensive report that examines in detail the five frames of
analysis of a given project.
Examples:
7. Management
A process of planning, decision making, organizing, leading, motivation and controlling the human
resources, financial, physical, and information resources of an organization to reach its goals
efficiently and effectively.
Examples:
Planning.
Communication.
Decision-making.
Delegation.
Problem-solving
8. Marketing
The action or business of promoting and selling products or services, including market research and
advertising.
Examples:
Television commercials.
Billboards on the side of the road.
Magazine advertisements.
9. Financial feasibility study
A tool used to introduce outsiders to your business plan or idea, whatever it may be.
Examples:
10. General partner
A part-owner of a partnership business and is involved with its operations and shares in its profits.
Examples:
Freddie and Anne decide to open a Fast food store.
John and Lea open a bake shop.
11. Limited partner
A limited partner is a part-owner of a company whose liability for the firm's debts cannot exceed
the amount that an individual invested in the company.
Examples:
Medical partnerships
Law firms
Accounting firms
12. Technical feasibility study
A technical feasibility study assesses the details of how you intend to deliver a product or service to
customers.
Examples:
Concepts
Infrastructure
Facilities
Architecture & Design
Data
Compliance
Platforms & APIs.
Components
ENUMERATIONS
1. What are the steps in starting a new business?
1. Conduct market research
2. Write your business plan
3. Fund your business
4. Pick your business location
5. Choose a business structure
6. Choose your business name
7. Register your business
8. Get federal and state tax IDs
9. Apply for licenses and permits
10. Open a business bank account
2. Give the reasons why people go into business.
1. Each day at the office will be motivating.
2. They'll be following their passions.
3. They can pursue social justice or support non-profits.
4. They can achieve financial independence.
5. They can control their lifestyle and their schedule.
6. They can start from scratch.
7. They'll get tax benefits.
8. They'll have true job security.
9. They become an expert at a broad range of skills.
10. They can be creative.
3. A sole proprietorship business is owned or managed by one person. What are its advantages?
In this form of business ownership, an individual proprietor owns the business, manages the
business, and is responsible for all of the business' transactions and financial liabilities. This means
that any debts incurred must be paid by the owner.
4. There are two types of corporation: private and open corporation. What are its disadvantages?
Being time-consuming and subject to double taxation, as well as having rigid formalities and
protocols to follow.
5. Give at least five most common type of cooperatives.
Retail Cooperatives.
Worker Cooperatives.
Producer Cooperatives.
Service Cooperatives.
Housing Cooperatives.
Name: Ma. Krisselda R. Guerra Course/Year:BSAIS- 1st Year.
____________________________________________________________________________
CONCEPT DISCUSSION
Briefly discuss the following:
1. Explain at least characteristics of small business?
Lower Revenue and Profitability.
Smaller Teams of Employees.
Small Market Area.
Sole or Partnership Ownership and Taxes.
Limited Area of Fewer Locations.
2. In what way can a giant business enterprise influence the economy and government of a small, poor
country.
New and improved products, services, or technology from entrepreneurs enable new markets to be
developed and new wealth to be created. Additionally, increased employment and higher earnings
contribute to better national income in the form of higher tax revenue and higher government
spending.
3. The innovator has a competitive edge in business. Why?
4. Small business is possible for the poor entrepreneurs. Why?
5. Explain at least two causes why a small business fails.
Lack of financing- The most common reasons small businesses fail include a lack of capital or
funding, retaining an inadequate management team, a faulty infrastructure or business model, and
unsuccessful marketing initiatives.
Lack of business experience- The skills gap can affect a company's ability to stay competitive in the
global market.
6. How do you classify small business and micro enterprises?
Small business is defined as a privately owned corporation, partnership, or sole proprietorship that
has fewer employees and less annual revenue than a corporation or regular-sized business. While,
micro enterprises is a type of small business that employs fewer than 10 people.
DEFINITION OF TERMS
Define the following and give examples:
1. Entrepreneur
An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying
most of the rewards.
Examples:
Bill Gates
Steve Jobs
Mark Zuckerberg
Pierre Omidyar
Arianna Huffington
Caterina Fake.
2. Micro business
a small business that employs few people.
Examples:
Lawn and landscaping companies.
Street vendors.
Carpenters.
Plumbers.
Independent mechanics.
Machine shop operators.
Shoemakers.
Small farmers.
3. Economy
An economy is the large set of inter-related production and consumption activities that aid in
determining how scarce resources are allocated.
Examples:
An example of economy is the stock market system in the United States. Effective management of
the resources of a community or system. Collective focus of the study of money, currency and
trade, and the efficient use of resources.
4. Capital
The capital of a business is the money it has available to fund its day-to-day operations and to
bankroll its expansion for the future.
Examples:
5. Profit
A financial gain, especially the difference between the amount earned and the amount spent in
buying, operating, or producing something.
Example:
An example of profit is the money a business has left after paying their expenses.
6. Disbursement
Disbursement means paying out money.
Examples:
Payroll expenses
Rent
Taxes
Insurance premiums.
7. Management independence
8. Enterprise
A project or undertaking, typically one that is difficult or requires effort.
Examples:
A new start-up business.
Someone taking initiative to start a business.
9. Competition
Competition is a rivalry where two or more parties strive for a common goal which cannot be
shared.
Examples:
A competition between Jollibee and mcdo.
10. Poverty
A state or condition in which a person or community lacks the financial resources and essentials for
a minimum standard of living.
Examples:
The state a person is in when he is homeless and has no money or assets.
The state of being poor
Lack of the means of providing material needs or comforts.
ENUMERATIONS
1. What are the characteristics of a small business?
1.Labor intensive. Most small businesses have inadequate funds. They cannot afford to mechanized
their operations. So, they use manual labor instead of machines. These are usually in retailing and
service industry.
2.Efficient in specialized skill or service. It can efficiently produce goods and services that are
designed to meet the particular needs of clients. Example: car and appliance repair shop.
3.Successful in small, isolated or overlooked markets. Most viable in the rural areas where
population is small. Example: sari-sari stores, Barber shops, tailoring shops, & restaurants.
4.Often operates in unstable markets. With little capital, they are not afraid to test the market.
They can easily and quickly respond to changing market conditions.
5.Closer to markets. Most very small businesses conduct their operation right inside the market
place. Being close to the buyers, they get first-hand information about the taste and preferences of
consumers.
6.Ownership and management are under the same and one person. Most small enterprises are
owned and managed by the same individual. The owner and is also the manager.
7.Capital comes from the owner or small group. A small business is usually funded by the family
through its own savings and /or loans.
8.Small area of operation. Small business is community based. The owner and the employees
live in the place where the business is located.
9. The size of the enterprise is small in relation to the industry. For example, the shoe industry
is a big one. There are many shoe stores. One shore store cannot dominate the market for shoes.
2. What are the ways can small business contribute the economy of the nation?
1.Create employment. Small businesses are the main providers of job.
2. Fill needs of society and big businesses. Small businesses, can profitably fit their products and
services to the needs of smaller group of consumers.
3. Introduce innovation. Innovation is a key factor in economic development. It is greatly
responsible in reducing time, labor, and materials of production.
4. Provide competition. Small businesses as a group offer good competition to big businesses in
some ways. They tend to be more efficient and responsive in satisfying the needs of consumers.
3. Differentiate between big and small businesses.
1. Small business as a group changed through a cycle of births and deaths. In case of big enterprises,
change is effected through expansion or contraction.
2. The risk or reward estimate in a small business is done by the owner who either gets a profit or
loss. In case of a big business, the risk or reward calculation is done by the manager who is an employee.
The loss in a small business can ruin the livelihood of the owner and his fami9ly. This need not happen to
the manager of a big business.
3. A small business has little or no economic power. On the other hand, a big business has a tremendous
influence on the economy and the government. A case in point is the multi-national corporation control
of our global economy. In some poor countries, multinational corporations can determine the results of
national election. They have enormous resources to influence election results.
4. A small business serves markets which a big business does not like to serve or cannot serve efficiently.
Another difference between small businesses and large companies is that small companies often focus
on a niche market, while larger companies tend to offer more products and services to a wider variety
of consumers.
4. State the reasons why business fails.
1. Lack of business experience. Usually, owner does not know the pitfalls of his business; so, he cannot
prevent or resolve such problems.
2. Lack of financing. Usually, small business owners have very limited fund. In many cases, such
funds are even used to meet the basic needs of the family.
3. Lack of adequate sales. Such situations may be due to poor management, ineffective marketing,
many competitors or unfavorable economic conditions.
4. Poor credit practices. It is really hard to balance cash and credit purchases. Not, a few small
enterprises, like retail stores, sell their products on credit.
5. Wrong choice of business. Before putting up a business, the prospective entrepreneur should
first evaluate his interests, skills, experiences, financial resources, and the markets.
6. Lack of business records. The performance of a business can be seen in its records. There must
be records for income and expenses .
5. What are the disadvantages of small business enterprise.
1. Difficult of raising capital. The owner of a small business has limited ability to obtain funds from
others.
2. Risk of failure. A small business does not have enough financial resources to enable it to survive
during bad economic times.
3. Limited management skills. Owners of small businesses generally lack management skills. They have
no formal education or training in management and marketing.
4. Lack of opportunities for employees. Only very few among the employees have the chance to be
promoted to supervisory position. Small business enterprises are family-owned.
