Entrepreneurship Finals Reviewer

What is a Micro Enterprise?

• Asset size not exceeding Php 50,000

• Home-based, operating in makeshift or temporary quarters

• Both A and B

Answer explanation

A Micro Enterprise is defined by both an asset size not exceeding Php 50,000 and often operates from home or makeshift quarters. Therefore, the correct answer is 'Both A and B'.

What defines a Cottage Enterprise?

• Asset of Php 250,000 but not exceeding Php 500,000

• A home-based business, often managed and operated by family members

• Both A and B

Answer explanation

A Cottage Enterprise is defined by both criteria: it has assets valued between Php 250,000 and Php 500,000 and is typically a home-based business managed by family members, making 'Both A and B' the correct choice.

What is the asset range for a Small Enterprise?

• Php 500,000 but not exceeding Php 2.5 million

• Php 250,000 but not exceeding Php 500,000

• Php 5 million to less than Php 20 million

Answer explanation

A Small Enterprise is defined as having assets ranging from Php 500,000 to Php 2.5 million. This makes the correct choice the first option, as it accurately reflects the asset range for small enterprises.

What is a Medium Enterprise?

• Asset of Php 5 million to less than Php 20 million

• Employs 20-100 workers

• Both A and B

Answer explanation

A Medium Enterprise is defined by having assets between Php 5 million to less than Php 20 million and employing 20-100 workers. Therefore, the correct answer is both A and B.

What characterizes a Large Enterprise?

• Asset of Php 20 million or more

• Often owned and managed by a corporation

• Both A and B

Answer explanation

A Large Enterprise is characterized by having assets of Php 20 million or more and is often owned and managed by a corporation. Therefore, the correct answer is both A and B.

What is a Sole Proprietorship?

• Business owned by an individual with full control

• A formal agreement between two or more parties

• A legal entity separate from its owners

Answer explanation

A Sole Proprietorship is a business owned by an individual who has full control over its operations and decisions. This structure allows for simplicity and direct management, distinguishing it from partnerships and corporations.

What is a Partnership?

• A business owned by an individual

• Formal agreement between two or more parties

• A legal entity that is separate from its owners

Answer explanation

A partnership is defined as a formal agreement between two or more parties to collaborate in business. This distinguishes it from sole proprietorships and corporations, which have different ownership structures.

What is the role of a General Partner?

• Has authority to act on behalf of the business

• Limited control and not involved in day-to-day operations

• Provides capital but not involved in management

Answer explanation

A General Partner has the authority to act on behalf of the business, making decisions and managing operations, unlike limited partners who have restricted roles and do not participate in management.

What is a Corporation?

• A legal entity separate from its owners

• A business owned by an individual

• A formal agreement between two or more parties

Answer explanation

A corporation is defined as a legal entity that is separate from its owners, meaning it can own assets, incur liabilities, and enter contracts independently. This distinguishes it from businesses owned by individuals or partnerships.

What is a Stock Corporation?

• For-profit organizations that issue shares of stock

• Does not issue shares of stock

• A legal entity that is separate from its owners

Answer explanation

A Stock Corporation is a for-profit organization that issues shares of stock, allowing it to raise capital from investors. This distinguishes it from entities that do not issue shares.