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This refers to a person who strongly advocates and correctly practices the
concepts and principles of entrepreneurship?
A. Entrepreneur

2. This is a term that is used to call this self-own business venture that is being
operated and managed by a person who strongly advocates and correctly
practices the concepts and principles of entrepreneurship.
A. Small Business

3. It is an art of observing correct practices in managing and operating a self-

owned wealth creating venture by providing goods and services to customers.
B. Entrepreneurship

4. It refers to an enterprise that correctly adopts and practice the principles of

entrepreneurship.
C.Small Business

5. What do you call the type of business that owned by one person with a limited
workforce of not more than 20 persons without practicing the concepts of
entrepreneurship?
D. Ordinary Small Business
 ASSESS WHAT HAVE YOU LEARNED

Instructions: Write True if the statement is correct. Otherwise write False

and state your reason briefly.
False 1. Knowing all the entrepreneurial concepts will assure a person of becoming a successful
entrepreneur.
Reason: Knowing entrepreneurial concepts will only a person to become successful but it
doesn’t ensure you the success because it is still on the person’s actions and actions that will
predict one’s success, knowledge is only a helping tool.

True 2. Entrepreneurship originates from the Greek word

entreprendre which means to undertake a business.

True 3. The distinguishing mark that differentiates an

entrepreneur from an owner of an ordinary small business is the commitment of
the entrepreneur to entrepreneurial concepts and principles.

False 4. All businesspeople are entrepreneurs.

Reason: All entrepreneurs are businesspeople not the other one around.

True 5. Most owners of ordinary small businesses open their

businesses because of the profitability aspect of the operations.

II. Instructions: Identify what is asked or described in each item. Encircle the letter of the
correct answer.
1. Nicole’s mother plans to start a small sari-sari store outside their house to
generate income for the family. Nicole’s mother is an example of __________.
B. Businessperson
2. Winrey advocates and practices the concepts and principles of entrepreneurship. He
operates and manage his business through observing correct practices. Winrey is an example of
____________.
A. Entrepreneur
3. It pertains to a business enterprise managed and operated by an owner who is
not an advocate of and does not practice the concepts and principles of
entrepreneurship.
D. Ordinary Small Business
4. It refers to a business or enterprise that correctly adopts and practices the
principles of entrepreneurship.
A. Small Business
5. Claire focuses on creative marketing, new ideas, building a team, and
connecting to people when it comes to business. On the other hand, Hannah
focuses on numbers, profit, cashflow, deliverables and follows the trend when
it comes to business. Which of the terms below correctly describes Claire?
A. Entrepreneur

III. Answer the following questions in a paragraph form.

1. Discuss the need to have a correct understanding of the concept of
entrepreneurship. What advantages will it provide to a person who is interested
in becoming a successful entrepreneur?
Knowledge is the basic foundation of all walks of life therefore it is essential that if a person
wants to become a successful entrepreneur, he must have a good understanding about
entrepreneurship and how business is being managed so that whatever odds are coming in his
business he wont easily break and give up.
2. Enumerate the reasons why there is no universally accepted definition of the term
entrepreneurship.
I have been in the mentorship of one of the brightest entrepreneurs I have met and he told me
that being involved in business doesn’t mean stability because from time-to-time market values
tend to rise and crash and this principle is the reason why there is no universally accepted
definition of entrepreneurship because aside from that the definition of entrepreneurship vary
also from which place you live in, time you are in and your personal opinions.

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Instructions: Identify what is asked or described in each item. Encircle the letter of
the correct answer.
1. Which of the following is NOT a feature of entrepreneurship?
C. Income-generating venture

2. It differentiates an entrepreneur from an ordinary small businessperson through

transforming feasible new ideas into an entrepreneurial venture.
A. Creativity

It is created when the value of the business has increased abundantly and the
life of its owner has improved considerably.
B. Wealth

4. It is an important principle in management. It refers to the process of setting

the goals of the business.
A. Planning
5. It is a theory of entrepreneurship that regards economic development as the
product of structural change.
D. Innovation Theory
 ASSESS WHAT HAVE YOU LEARNED

Instructions: Write True if the statement is correct. Otherwise write False

and state your reason briefly.
True 1. The entrepreneur seeks a wealth-creating venture rather
than a profit-generating venture.

False 2. Entrepreneurs find ways to avoid business risk.

Reason: Business will always come with risk and the only way to avoid it is to close the business
but entrepreneurs doesn’t avoid business risks they faced in intelligently.

False 3. The primary objective of any business endeavor is profit.

Reason: The primary objective of businesses is to create wealth through products and services.

True 4. In sociological theory, Weber emphasizes that the social

cultures are the primary elements of entrepreneurship.

False 5. The entrepreneurship theory of Alfred Marshall suggests

that the active participation of the entrepreneur in the organization will affect the
economy negatively.
Reason: Alfred Marshall didn’t say that active participation causes negative effects in the
economy instead he suggested that entrepreneurs are prime movers

II. Instructions: Identify what is asked or described in each item. Encircle the
letter of the correct answer.
1. It is an entrepreneurial undertaking wherein wealth is created and where
resources are utilized fully to maximize the investment of the entrepreneur.
A. Wealth-creating venture
2. Businesses that are being managed by others for the benefit of the owners are
operating under the concept of _____________.
C. Intrapreneurship
3. This is a feature of entrepreneurship that is inherent in an entrepreneurial venture. It cannot
be detached from any entrepreneurial venture and the only way to remove it is to close the
venture.
B. Risk
4. This theory put so much emphasis on the role of the government in
entrepreneurial and economic development, most especially when the
economy was experiencing depression.
B. Keynesian Theory
5. This theory gives importance to the advancement of technology as an element
of production.
D. Kaldor’s Technological Theory
Lesson 1.3

TRY THIS
Instructions: Identify what is asked or described in each item. Encircle the letter of
the correct answer.
1. Joy’s primary goal is making the business as a source of livelihood. What type
of person is joy?
C. Businessperson

2. In connection to number one question, what area of difference is being

described?
A. Motive in opening a business

3. Cyrus explores ways to generate the much-needed funds from both internal
and external sources. What area of difference did Cyrus manifest?
B. Sources of business funds

4. What type of person is Cyrus?

B. Entrepreneur

5. When a person remains passive and static to changes in business the

environment, he/she is a/an _____________.
D. Intrapreneur
 ASSESS WHAT HAVE YOU LEARNED
Write True if the statement is correct. Otherwise write False and state your reason briefly.

True 1. An entrepreneur and an owner of an ordinary small business are totally different from
each other.
True 2. The primary motive of an owner of an ordinary small
business in opening the business is the business opportunity provided by the environment.
False 3. An entrepreneur finds alternative ways to avoid business risks.
Reason: Entrepreneurs don’t avoid business risks they face it squarely.
False 4. The owner of an ordinary small business considers
business risks inherent in the business venture.
Reason: They see business risks as deterrent and avoid it.
True 5. Changes in the external environment present business
opportunities based on the perception of an entrepreneur.
False 6. The owner of an ordinary small business anticipates
possible changes in the external environment.
Reason: They don’t anticipate changes that is why they are caught off guard during a change in
environment.
False 7. Competition increases the creativity and innovative
characteristics of the owner of an ordinary small business.
Reason: Ordinary small business owners hate competition for they don’t respond to it wisely.
True 8. The perspective for development and growth is usually
manifested in the short-and-long term plans of entrepreneurs.
True 9. A person who is an entrepreneur is also a
businessperson.
True 10. In most instances, owners of ordinary small businesses
are hesitant to look for external sources of funds.