Lesson: Contemporary Economic Issue Facing the Filipino Entrepreneur

Question 1

It is purchase of goods
that are not consumed today but used in the
future to create wealth.

Answer 1

Investment in Economic

Question 2

It is purchase of goods
that are not consumed today but used in the
future to create wealth.Is a monetary asset
purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

Answer 2

Investment in Finance

Question 3

Reasons why firms invest:

Answer 3

Investment may be required to replace worn out, or failing machinery, equipment, or building

Investment may be undertaken to purchase new machinery, equipment, or building in order to increase productive capacity.

Question 4

Includes both types of investment spending but net investment only
measure new assets rather than replacement assets.

Answer 4

Gross Investment

Question 5

Gross Investment - Depreciation

Answer 5

Net Investment

Question 6

carries more significance, as it provides the basis for economic growth.

Answer 6

Net Investment

Question 7

Main Determinants of Investment:

Answer 7

The Expected Return on the Investment
Business Confidence
Changes in National Income
Interest Rate
General Expectations
Corporation Tax
Level of Savings

Question 8

happens when an increase in national income (GDP) results

Answer 8

Accelerator Effect

Question 9

Status of Foreign Investment in the Philippines:

Answer 9

Foreign Investment in the Philippines is lagging behind.

Government should continue removing key infrastructure bottlenecks that have
limited the potential of various sectors of the economy, especially in the areas of industry and agriculture.

Investor face long list of challenges, including limited or poorly maintained roads on which to move goods.

Presidents are limited to a single six-year term and succeeding administrations have been known to repeal their predecessors’
work.

Joint Foreign Chambers

Question 10

a coalition of the American, Australian-New Zealand, Canadian, European, Japanese and Korean chambers in the Philippines and the Philippine Association of Multinational Companies Headquarters Inc.

Answer 10

Joint Foreign Chambers

Question 11

the biggest concern in
the Philippines, Inadequate public infrastructure, restrictive labor regulations,
supply inadequacy and high tariffs.

Answer 11

Corruption

Question 12

Challenges for the Filipino Entrepreneurs:

Answer 12

Government Licensing and Permits

Prohibitive Rental Rates and other Clauses in Malls.

There are Many Who Have No Jobs

Question 13

Current Problems of Filipino Entrepreneurs:

Answer 13

Inadequate access to technology

Financing Capital

Marketing Advice

Logistical problem in setting up and maintaining their competitiveness in their community

Question 14

Types of Business Taxes:

Answer 14

Value Added Tax ( VAT )
Salary and Wage Taxes
Amusement Taxes
Excise Taxes
Import Taxes
Individual Income Taxes
Corporate Income Taxes
Real Estate Taxes
Estate or Inheritance Taxes

Question 15

A 12% must be collected for almost all kinds of product sales, services, and leases

Answer 15

Value Added Tax ( VAT )

Question 16

As a Business owner responsible to the welfare of your employee, you must withhold and remit to the proper government agencies employee income withholding taxes, SSS Premiums, Pag-ibig and Medicare.

Answer 16

Salary and Wage Taxes

Question 17

Cockpits, Movie houses, Clubs, Boxing Tournaments, Basketball games, Horse racing,
Carnivals and other amusement businesses.

Answer 17

Amusement Taxes

Question 18

A business that involves in the manufacture of alcohol, tobacco, and petroleum products, importing of automobile or jewelry and mining.

Answer 18

Excise Taxes

Question 19

As part of goods as part of your raw materials, Importation of industrial Machinery and Equipment.

Answer 19

Import Taxes

Question 20

Your income from a sole proprietorship business

Answer 20

Individual Income Taxes

Question 21

A business that is structure as a Corporation

Answer 21

Corporate Income Taxes

Question 22

Business that owns real estate or land

Answer 22

Real Estate Taxes

Question 23

When you passed away, your heirs pay inheritance taxes on money and property that
you have leave to them.

Answer 23

Estate or Inheritance Taxes

Question 24

Effect of High Taxes on Business:

Answer 24

Inadequate Incomes
Low Wages
High Prices
Substandard Products
Product Unavailability and Continuation
Poverty and High Crime