Nerida, Paul Justine P.
BSMT-2C
PACKET TWO
Pre-Test (30 POINTS)
1. What do you think are the personalities that an entrepreneur should possess
in order to be successful in his/her business?
Answer:
As an entrepreneur you should be a risk-taker, a business has a lot of advantages but also
has disadvantage. You should give all to have a better result and improve your business.
2. For you, what motivates people to become entrepreneurs?
Answer:
Money is the one who controls the world, it driven people from doing efforts and tasks to
gain it. Sometimes people think busines is the greatest opportunity for living. And by improving
your business it gives a lot of advantages.
3. What is the importance of planning? Is it applicable to small business? Explain.
Answer:
Planning is the most important step in building business, even if it is small or big. This is
the first step to research and find of what is the most suitable kind of business for a particular
place that is in your budget and in your control.
ACTIVITY # 7
1. What is a small business?(10 POINTS)
Answer:
Small business may be defined by using any of the two approaches: market share or total
assets. An independently owned and operated business, whose owner exercises close control over
operations and decisions. The equity is not publicly traded and business financing is personally
guaranteed by the owner.
2. What are the types of small business? Explain each and give 2 examples in each
types of small businesses?(10 POINTS)
Answer:
Manufacturing
A manufacturing business is one involved in the conversion of raw
materials into products needed by society. Examples of small business
engaged in manufacturing are: Bakeries, tricycle sidecar assembly shops,
bagoong manufacturers, restaurants and others.
Example:
Bakeries
Restaurants
Service
Service businesses are those that provide service in one way or another.
Example:
Repair shops
Plumbing services
Wholesaling
Wholesaling is the sale of merchandise in bulk to a retailer for repackaging
and resale in smaller quantities at a higher price.
Example:
Overruns store
Warehouse store
Retailing
Retailing covers all activities involved in the sale of goods and /or services
to the final consumers.
Example:
Grocery store
Drug store
General construction firm
Retailing covers all activities involved in the sale of goods and /or services
to the final consumers.
Example:
Contractors
3. What are the advantages and disadvantages of operating a small business? ( 10
POINTS)
Answer:
Advantages of Small-Business Ownership
Independence. Entrepreneurs are their own bosses. They make the decisions. They choose
whom to do business with and what work they will do. They decide what hours to work, as well
as what to pay and whether to take vacations. For many entrepreneurs the freedom to control
their destiny is enough to outweigh the potential risks.
Financial gain. Entrepreneurship offers a greater possibility of achieving significant financial
rewards than working for someone else. Owning your own business removes the income restraint
that exists in being someone else’s employee. Many entrepreneurs are inspired by the mega-
millionaire entrepreneurs we see today, such as Steve Jobs, Elon Musk, Jeff Bezos, and Mark
Zuckerberg.
Control. It enables one to be involved in the total operation of the business, from concept to
design to creation, from sales to business operations to customer response. This ability to be
totally immersed in the business is very satisfying to entrepreneurs who are driven by passion
and creativity and possess a “vision” of what they aim to achieve. This level of involvement
allows the business owner to truly create something of their own.
Prestige. It offers the status of being the person in charge. Some entrepreneurs are attracted to
the idea of being the boss. In addition, though, there is the prestige and pride of ownership.
When someone asks, “Who did this?” the entrepreneur can answer, “I did.”
Equity. It gives an individual the opportunity to build equity, which can be kept, sold, or passed
on to the next generation. It’s not uncommon for entrepreneurs to own multiple businesses
throughout their life. They establish a company, run it for a while, and later sell it to someone
else. The income from this sale can then be used to finance the next venture. If they’re not
interested in selling the business, the goal may be to build something that can be passed down to
their children to help ensure their financial future. One thing is sure: In order to fully reap the
financial benefits of a business venture, you need to be the owner.
Opportunity. Entrepreneurship creates an opportunity for a person to make a contribution. Most
new entrepreneurs help the local economy. A few—through their innovations—contribute to
society as a whole.
Disadvantages of Operating a Small Business
There are certain disadvantages that must be considered in operating a
small business. These are the following:
1. Uncertainty of income
2. Risk of losing your entire capital investment
3. Lower quality of life until the business gets established
4. Complete responsibility
5. Having to serve undesirable customers
6. Paperwork and other chores
7. Long hours and demanding work condition.
