Topic 1

Question 1

is the process by which long-term income is created through multiple sources like savings, investments and many more income-generating assets.

Answer 1

Wealth building

Question 2

3 steps to building wealth:

Answer 2

(1) Make money
(2) save money
(3) invest money

Question 3

combination of all financial planning and investment of assets owned by an individual, family, or company.

Answer 3

Wealth Creation

Question 4

planning for the future like getting married, having children, the costs of education, tax services, estate planning, and retirement planning.

Answer 4

Wealth Creation

Question 5

Readings: one must remember that to be successful in wealth creation, needs, wants, and goals must be understood, organized, and prioritized first, to be able to meet the growth opportunities of wealth.

Question 6

entails the use of one’s imagination and hard work to be able to produce a huge amount of money. Hereby, wealth creation is all in the mind of a person. It is the way a person thinks that will help him/her do something unique that leads to wealth creation and possibly a way out of poverty.

Answer 6

Wealth Creation

Question 7

process of producing a supply of assets like stocks, gold, cash, bonds, and real estate; that is considered to be sufficient in generating a stable source of income to help in livelihood.

Answer 7

Wealth Creation

Question 8

Robert Kiyosaki:

Answer 8

“Don’t work for money, let money work for you.”

Question 9

3 Importance of Wealth Creation:

Answer 9

1. Regular source of income
2. Healthy Retirement
3. Goal-based investing

Question 10

is the estimation of income and expenses over some time. It is commonly compiled and evaluated periodically to achieve a certain amount. Creating a budget is for everyone that wants to track their money and how they spend it.

Answer 10

Budget

Question 11

a type of investment in that assets are owned and purchased by an investor. Examples include stocks, real estate properties, and bullion, among others. Having a business and funding is also an example.

Answer 11

Ownership Investments

Question 12

bonds are the main instrument when it comes to lending investment. The money you invest is used to fund banks to give loans to other people and also the government to fund some projects.

Answer 12

Lending Investments

Question 13

these are the type of investments which can easily be converted into cash, with a minimal level of risk.

Answer 13

Cash Equivalents

Question 14

is the result when prices of goods and other services increase in a specific economy.

Answer 14

Inflation

Question 15

Readings: inflation reduces the value of money. Therefore, the value of the money you saved today will not have the same value in the future due to inflation.

Question 16

are the inputs that a business uses to manufacture its finished products. There are unprocessed materials like metal stock or unrefined natural resources that businesses use in the manufacturing processes to produce finished goods to sell to consumers

Answer 16

Raw materials

Question 17

is a term for financial assets. These are funds detained in deposit accounts and/or funds gained from distinct financing sources. Capital can also be linked with the capital assets of a company that entails significant sums of capital to finance or expand.

Answer 17

Capital

Question 18

is simply the buyers and users of the entrepreneurs’ products. Technically, people who buy the product are called customers, while people who use the product are called consumers or end-users.

Answer 18

The market

Question 19

can mean “labor force,” “workforce,” “workers,” or simply “people,” and applies to both men and women. In business, we need manpower who is right to the job. It is the utmost important resource used in business.

Answer 19

Manpower

Question 20

is science or knowledge put into practical use to solve problems or invent useful tools. It is important in the business enterprise because it increases production.

Answer 20

Technology

Question 21

person or business that offers a product or service to another entity. The part of a supplier in a business is to offer high-quality products at a good price from a manufacturer to a distributor or retailer for resale.

Answer 21

Supplier

Question 22

helps the entrepreneur to manage the business enterprise. Information is valued because it can affect behavior, a decision, or an outcome.

Answer 22

Information

Question 23

It is individual attention and focuses on his business. To succeed in your business owners shall give their full effort in managing their venture.

Answer 23

Interest

Question 24

explains that the government should not interfere in economic activities.

Answer 24

Laissez-Fare Theory

Question 25

explains that the government should play a key role in economic development.

Answer 25

Keynesian Theory

Question 26

is the theory of David Ricardo focuses on agriculture playing a major role in economic development

Answer 26

Ricardian Theory

Question 27

conceptualized by Sir Harrold of England and Prof. Domat of the US claims that the usage of machines leads to more products.

Answer 27

Harrold-Domar Theory

Question 28

by Nicholas Kaldor, maintains that the key factor is technology. This theory explains that the use of modern technology in the production of goods and services has been accountable for the economic success of highly developed countries.

Answer 28

Kaldor Theory

Question 29

developed by Joseph Schumpeter, stresses the role of innovators or entrepreneurs in economic development.

Answer 29

Innovation Theory