Module 3B: Starting a Business kn the Philippines

Question 1

Business idea generation

Answer 1

Creativity
Innovation
Invention

Question 2

ability to develop something original, particularly an idea or a representation of an idea.

Answer 2

Creativity

Question 3

adds value to an existing product or service

Answer 3

Innovation

Question 4

truly novel product, service, or process that, though based on ideas and products that have come before

Answer 4

Invention

Question 5

The creative process: The 5 stages of creativity

Answer 5

[PIIEE]
Preparation
Incubation
Insight
Evaluation
Elaboration

Question 6

involves investigating a chosen field of interest, opening your mind, and becoming immersed in materials, mindset, and meaning

Answer 6

Preparation

Question 7

refers to giving yourself, and your subconscious mind in particular, time to incorporate what you learned and practiced in the preparation stage

Answer 7

Incubation

Question 8

a.k.a. “illumination,” a term for the “aha!” moment

Answer 8

Insight

Question 9

when the solution to a creative problem suddenly becomes readily accessible to your conscious mind

Answer 9

Insight

Question 10

the purposeful examination of ideas

Answer 10

Evaluation

Question 11

the actual production release of a “minimum viable product”. It functions well enough that you can begin to market it while still elaborating on it in an iterative development process.

Answer 11

Elaboration

Question 12

• a feeling of dissatisfaction among customers
• persistent or recurring problem that frequently inconveniences or annoys customers

Answer 12

pain points

Question 13

response to both changes within markets and changes from outside markets

Answer 13

Key point about innovation

Question 14

Seven sources for innovative opportunities

Answer 14

[TIPI DCN]
1. The unexpected
2. Incongruities
3. Process need
4. Industry and market structure
5. Demographics
6. Changes in perception, mood, and meaning
7. New knowledge

Question 15

Internally focused sources for innovative opportunities

Answer 15

[TIPI]
1. The unexpected
2. Incongruities
3. (Innovation based on) Process need
4. Industry and Market Structures

Question 16

Externally focused sources for innovative opportunities

Answer 16

[DCN]
5. Demographics
6. Changes in Perception, Mood and Meaning
7. New knowledge - both scientific and non-scientific

Question 17

Types of innovation

Answer 17

1. Incremental innovation
2. Pioneering innovation
3. Disruptive innovation
4. Social innovation

Question 18

Type of innovation that modifies an existing product or service

Answer 18

Incremental Innovation

Question 19

Type of innovation that is based on new technology. Advancements in the related field that leads to the development of a new product

Answer 19

Pioneering innovation

Question 20

Type of innovation that makes a product more affordable or accessible

Answer 20

Disruptive innovation

Question 21

Type of innovation that address social and environmental challenges

Answer 21

Social innovation

Question 22

Developing an Invention

Answer 22

[ESCCD]
1. Educate yourself
2. Stay organized
3. Conduct Market
4. Research
5. Conduct Patent
6. Research
7. Develop a Prototype

Question 23

Source of the Known

Answer 23

Education / Research
Experience / skill
Family (business/tradition)

Question 24

Source of the Unknown

Answer 24

Information from friends
Brainstorming
Tips/information from various sources

Question 25

→ creates significant value for customers and offers significant profit potential to the entrepreneur

→ it can also be said that there exists an entrepreneurial opportunity when a gap exists between supply (amount and characteristics of the product produced) and demand (consumers’ desire for the product).

Answer 25

Entrepreneurial Opportunities

Question 26

Identify the problem → Test hypothesis → Evaluate opportunity (Competency, Competition, Sustainability, Profitability, and Financing)

Answer 26

Shaping opportunities

Question 27

→ focus on what creates that value

→ defining and refining the problem that needs to be solved for customers and users.

→you need to be sure that the problem exists and be able to describe it in some detail before you even begin to invest heavily in building your solution

Answer 27

Shaping opportunities

Question 28

Evaluate Opportunity

Answer 28

[CCSPF]
Competencies
Competition
Sustainability
Profitability
Financing

Question 29

Evaluate opportunities
* Do I have substantial knowledge and skills?
* Do I know someone who has advanced knowledge and skill who I can trust to be a partner or employee?
* Do I have connections inside the industry who can help me?

Answer 29

Competency

Question 30

Evaluate Opportunity
* How many competitors are there in the area? in the industry?
* What are their strengths and weaknesses?
* How are you going to be different?

Answer 30

.Competition

Question 31

How to do a competitor check

Answer 31

• Mystery Shopping
• Buy their product/service
• Interviewing competitor’s customers
• Competitor’s website/social media
• Testimonials

Question 32

Evaluate Opportunity
* Threat of new entrants
* Threat of substitute/s
* Bargaining power of supplier
* Short lived trend/fad

Answer 32

Sustainability

Question 33

Evaluate opportunity
* Net income
* net profit margin
* break-even point
* payback period
* return of investment

Answer 33

Profitability

Question 34

Evaluate Opportunity
* Compute for capital requirement
* check if this can be funded by your savings

Answer 34

Financing

Question 35

4 legal forms of ownership

Answer 35

sole proprietorship
partnership
corporation
cooperative

Question 36

Types of partnership

Answer 36

General partnership
Limited partnership

Question 37

A business co-owned by 2 or more general partners
simplest form
made up of general partners
most common type of partnerships
have unlimited liability

Answer 37

General partnerships

Question 38

a person who has full or shared responsibility for running the business

Answer 38

General partners

Question 39

a business co-owned by at least one general partner and one limited partner

Answer 39

Limited partnerships

Question 40

In partnerships, they have unlimited liability

Answer 40

general partners

Question 41

In partnerships, they have limited liability (only able for the amount they invested in busines)
-they do not operate on business, they provide capital

Answer 41

limited partners

Question 42

Special elements of a corporation

Answer 42

stock
stockholder
dividend
board of directors
closed (private) corporations
open (public) corporations

Question 43

• shares of ownerships of corporations

Answer 43

stocks

Question 44

2 types of stocks

Answer 44

common stock
preferred stock

Question 45

stock with voting privilege

Answer 45

common stock

Question 47

stock without voting rights; dividend paid first

Answer 47

preferred stock

Question 47

a person who owns a share of a corporations stock

Answer 47

stockholder

Question 47

a corporation whose stock is bought and sold on exchanges and can be purchased by any individual

Answer 47

open (public) stock

Question 47

corporation with a single stockholder, who must be a natural person, trust, or an estate
provided in Title XIII (Special Corporations) of Republic Act No. 11232, also known as the “Revised Corporation Code”

Answer 47

One person corporation

Question 47

a portion of the corporation’s profit (earnings) that is distributed to stockholders

Answer 47

dividend

Question 47

a corporation whose stock is owned by relatively few people and is not sold publicly

Answer 47

closed corporation

Question 47

governing body of the corporation
elected by the stockholders and appoint corporate officers

Answer 47

board of directors

Question 47

autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of risks and benefits of the undertaking in accordance with the universally accepted cooperative principles.

Answer 47

cooperatives