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Finals Flashcards

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1
Q

This is generally the simplest way to set up a business.

A

Sole Proprietorship

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2
Q

t is owned by a single individual who is singly responsible for running the business and is accountable for all debts and obligations related to the business.

A

Sole Proprietorship

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3
Q

He enjoys exclusive control and decision-making as well as getting all the profits earned.

A

Sole Proprietorship

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4
Q

He also shoulders all losses and has unlimited liability, which means payment of his loans will extend to his assets.

A

Sole Proprietorship

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5
Q

an agreement in which two or more persons combine their resources in a business to make a profit.

A

Partnership

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6
Q

profits are divided among the partners according to the terms of the agreement.

A

Partnership Agreement

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7
Q

Two types of partnership

A
  • General partnership
  • Limited Partnership
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8
Q

All owners share the
management of the
business, and each is
personally responsible
for and must assume the
consequences of the
actions of other
partners.

A

General Partnership

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9
Q

All _______ have unlimited liability; loan payments will extend to their personal property

A

General Partnership

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10
Q

Some members who are ____________ who control and manage the business and may be entitled to a greater profit share.

A

General Partners

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11
Q

In contrast, other partners are __________ and contribute only capital, take no part in control or management, and are liable for debts to a specific extent only.

A

Limited Partnership

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12
Q

a legal entity separate from its owners, the shareholders.

A

Corporation

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13
Q

No shareholder is personally liable for the corporation’s debts, obligations, or acts.

A

Corporation

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14
Q

Directors and officers can bear liability for their involvement with the corporation.

A

Corporation

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15
Q

It has an individual identity of its own.

A

Corporation

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16
Q

How many years can corporations exist?

A

50 years, renewable for another 50 years

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17
Q

Owners have limited liabilities.

A

Corporations

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18
Q

They are burdened with taxes

A

Corporations

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19
Q

an entity organized by people with similar needs to provide themselves with goods or services or to use available resources to improve their income jointly.

A

Cooperative

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20
Q

members have an equal say in decision-making with one vote per member regardless of the number of shares held

A

Cooperative

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21
Q

there is an open and voluntary membership, and surplus earning is returned to the members according to the amount of their patronage.

A

Cooperative

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22
Q

What are the types of business organizations?

A
  • Sole Proprietorship
  • Partnership
  • Corporation
  • Cooperative
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23
Q

What are the types of businessess?

A
  • Micro business
  • Small business
  • Medium business
  • Large business
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24
Q

If the business has a total assets of below P1,500,000, then the type of business is…

A

Micro Business

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25
If the business has a total assets of P1,500,001 to P15,000,000, then the type of business is...
Small Business
26
If the business has a total assets of P15,000,001 to P60,000,000, then the type of business is...
Medium Business
27
If the business has a total assets of P60,000,000 and above, then the type of business is...
Large Business
28
In legal terms, what is said about the ownership of sole proprietorships and partnership?
100% must be owned and capitalized by Filipinos.
29
In legal terms, what is said about the ownership of corporations
at least 60% of the outstanding capital stocks must be owned by Filipino citizens.
30
Where should business activities be done?
major sectors of industry, service, the practice of the profession, or operation of tourism-related business and agri-business.
31
According to a guide developed by North Carolina's Small Business and Technology Development Center, what are the key factors that must be considered in analyzing the industry?
- The geographic area to which your business will cater. Is it limited to local areas? Or will it cover a region, the entire country, or even the international market? - The size and outlook of the industry. What trends can be identified? - Description of the product. - The buyers must be identified. Who are your target consumers? - The regulatory environment. Are the local and national laws that will restrict the business? One needs to identify government regulations specific to the chosen industry. - The need to identify the industry's leading businesses and provide company information on the most successful businesses you will be up against. - Factors that will affect the growth of the business.
32
Who created the SWOT Analysis?
business gurus - Edmund P. Learned - C. Roland Christensen - Kenneth R. Andrews, - William D. Book
33
What book can the SWOT Analysis be found?
Business Policy, Text and Cases (Irwin 1969)
34
It is an analytical framework that can help a company meet its challenges and identify new markets.
SWOT Analysis
35
The framework can help identify the business's risks and rewards.
SWOT Analysis
36
It is also the means of identifying the internal and external forces that may affect the business
SWOT Analysis
37
refer to the internal factors, which are the resources and experiences readily available to the business proponent.
Strength and Weaknesses
38
What are internal factors of a business?
- Financial resources such as money and sources of funds and investment - Physical resources, such as the company’s location, facilities, machinery, and equipment - human resources consisting of employees - access to natural resources, trademarks, patents, and copyrights - current processes include employee programs, department hierarchies and software systems, sales distribution capabilities, marketing programs, etc.
39
these affect a company, an organization, an individual, and those outside their control.
External Forces
40
What are external forces of a business?
- economic stand trends, local, national, and international financial trends, developments in the country’s stock market, reforms in the banking system, growth of GDP - market trends, such as new products or technology or evolving buyers’ profiles, including changes in tastes and lifestyle behavior - national and local laws and statutes, as well as political, environmental, and economic regulations - demographic characteristics of the target market, such as the age, gender, and culture of the customers; relationships with suppliers and co- owners - competitive threats.
41
Internal or External Financial resources such as money and sources of funds and investment
Internal
42
Internal or External Physical resources, such as the company’s location, facilities, machinery, and equipment
Internal
43
Internal or External human resources consisting of employees
Internal
44
Internal or External access to natural resources, trademarks, patents, and copyrights
Internal
45
Internal or External current processes include employee programs, department hierarchies and software systems, sales distribution capabilities, marketing programs, etc.
Internal
46
Internal or External economic stand trends, local, national, and international financial trends, developments in the country’s stock market, reforms in the banking system, growth of GDP
External
47
Internal or External market trends, such as new products or technology or evolving buyers’ profiles, including changes in tastes and lifestyle behavior
External
48
Internal or External national and local laws and statutes, as well as political, environmental, and economic regulations
External
49
Internal or External demographic characteristics of the target market, such as the age, gender, and culture of the customers; relationships with suppliers and co- owners
External
50
Internal or External competitive threats.
External
51
How to Conduct a SWOT Analysis for Your Small Business
Strength - What do you do well? Weaknesses - Where do you need to improve? Opportunities - What are your goals? Threats - What obstacles do you face?
52
Who created the PORTER'S FIVE FORCES OF COMPETITIVE POSITION ANALYSIS
Michael E. Porter
53
framework or a guide for assessing and evaluating a business organization's competitive strength and position.
PORTER'S FIVE FORCES OF COMPETITIVE POSITION ANALYSIS
54
These forces can determine the competitiveness and attractiveness of a market and which seek to locate the power in a business situation, its current competitive position, and the strength of a position that an organization may enter into.
PORTER'S FIVE FORCES OF COMPETITIVE POSITION ANALYSIS
55
What are the five forces of competitive position analysis?
1. Threat of new entrants 2. Rivalry among competitors 3. Supplier Power 4. Buyer power 5. Threat of substitute products or services
56
If a supplier can enjoy the power to drive prices up, it is also possible for a buyer to drive prices down.
Buyer Power
57
It is important to assess how much power the supplier has in his ability to drive up prices.
Supplier Power
58
enjoys this power if there are few suppliers of an essential and they control the y of that input.
Supplier Power
59
Another source of power is how unique the product or service Is.
Supplier Power
60
The smaller the number of buyers in the market, the greater the power the buyer enjoys.
Buyer Power
61
also impact the market's attractiveness
Number of Competitors
62
If competitors are numerous and offer similar products and services, the market will be less attractive.
Number of Competitors
63
When it is easy to substitute products in a market, buyers are expected to switch to alternatives in case of price Increases.
Possibility of Substitution
64
The suppliers will enjoy less power to drive prices up, and the market will be less attractive.
Possibility of Substitution
65
When investors see that a market is profitable, they want to join the bandwagon and get a share of the profits.
Possibility of new entrants
66
when new investors enter a market, the participants’ share will be divided among more people and will therefore decline, thus eroding products.
Possibility of new entrants

Economics (5 decks)

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