Handout 5

Question 1

the kind of business that is just about to be put-up or just starting. This usually starts from one (1) or two (2) or more entrepreneurs wanting to build their own business or venture.

Answer 1

start-up business

Question 2

This type of business will give the same level of income to the entrepreneur/s as what they are getting from a conventional job or employer without spending the whole day working. This type focuses on those usual products and services people need that are easily accessible or available

Answer 2

Salary-substitute firms

Question 3

This is the type of business established because of the longing to pursue a certain lifestyle and earn from it. Some examples are those who facilitate or own tour guiding activities and facilities, cooking, or baking.

Answer 3

Lifestyle firms

Question 4

This one is the kind of business that aims to bring new products and
services with value making the most of every opportunity with whatever resources are available.

Answer 4

Entrepreneurial firms

Question 5

This is the type of business where two (2) individuals or partners agree to a venture. It allows to use their trademark to sell the product, service, and/or business they are known for.

Answer 5

Franchising Business

Question 6

means privilege or freedom

Answer 6

Franchise

Question 7

This is the franchise where the franchisor guarantees the franchisee to buy its product and use its trade name. a trademark is the exclusivity of a business toward a product, service, and/or business.

Answer 7

A Product and Trademark Franchise

Question 8

This is the kind of franchise that is widely used by entrepreneurs
where the franchisor aids the franchisee in training and advertising to let his/her business grow.

Answer 8

Business Format Franchise

Question 9

This goes with big companies, as it means acquiring the controlling interest in a business. The word is being used to exemplify the biggest right acquired of an individual to make large decisions. This type of business is established through a right obtained by an individual within a company that allows him to take over or make major decisions. This happens when an individual within the said company owns more than 50% of it.

Answer 9

Acquiring (Buy-Out) Business

Question 10

happens when a buyer sees that a company can improve under new ownership and control, and most of the time, this is only pursued if the acquiring buyer or party believes that there will be a good return of investment.

Answer 10

Buy-out

Question 11

happens when a company acquires the biggest part of the company from
a private owner or parent company. This sometimes happens when an owner of a private company decides for his retirement

Answer 11

management buy-out

Question 12

happens when the buyer or purchaser controls a company with their assets
through bonds orloans. This allows the buyer to acquire the company without the need for a large amount of money; without investing too much, the ownership is being obtained.

Answer 12

leveraged buy-out

Question 13

This misconception often attracts entrepreneurs to push through
starting one without even thinking of any possible drawbacks. They spend money to let their ideas happen.

Answer 13

Business is a safe investment

Question 14

This assumption often creates disappointment and discouragement to many starting entrepreneurs because they think that doing business is an assurance of success.

Answer 14

The business ensures success

Question 15

A lot of aspiring entrepreneurs think that business rapidly grows that
they are becoming eager to create a business after business

Answer 15

Business grows rapidly