COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES

Week No: 4, Period: Test 1

Trimester: 3rd 2021
HOMEWORK/ASSIGNMENT/CASELET NO. 1
MARKS

COURSE CODE BSBI 516 COURSE TITLE Introduction to Entrepreneurship

SECTION TIME DAYS ROOM
STUDENT NAME ID NO. DATE

TOPIC Entrepreneurial Opportunities, Business Organizations and Growth (Parts 1 – 4)

ASSIGNMENT
DIRECTION & Instructions:
REQUIREMENT/S a. Answer all questions.
(Identify the ILOs b. All answers should be HAND – WRITTEN.
to be assessed at c. Use A4 paper for your answers and workings.
the end of each d. Submit output on the date as advised.
requirement.
Include the rubric
or marking scheme
for each CASE PROBLEM BUSINESS ORGANIZATIONS, GROWTH AND
item/requirement.) INTEGRATIONS

FACT 1. Every potential businessman can engage himself into business activities,
prompting him to generate income, assume growth and maximize profit. Presume that
you are proponent of a business. You have ready resources and capital to start the
operation and the venture.

FACT 2. There are many reasons of business expansion and assuming growth. There are
many ways of doing this but it takes time and efforts to gain competitive edge over the
market when there are many challenges that may affect the business.
Competition, management style, demand, productivity and many others are such of the
factors contributive to business success.

FACT 3. A business plan is a procedural format detailing out the processes of doing a
business. It is a dummy used by entrepreneurs to determine if their plan is feasible and
adaptive to the market for operation. You are a young entrepreneur and you would want
to engage in business.

1. Briefly define on your own understanding the following: (ILO1)

a. Business
b. Entrepreneurship
c. Sole Trader
d. Privatization
e. Synthetic Industry
2. Recognize by explaining the following aims of business. (ILO2)
3. Discuss the significant points of a free enterprise economy. (ILO1)
4. As a future businessman, when ask which form of business to operate,
which do you prefer, Sole Trader or Partnership? Interpret your options.
(ILO4)
5. As an entrepreneur who would want to expand his business, which of the
types of expansion would you prefer to adapt, Internal Growth or External

Prepared By: Checked and Verified By: Approved By:

1
DR. SURJIT VICTOR DR. VISHWAS CHAKRANARAYAN DR. VINODH DR. MARLUNA L. URUBIO
Course Coordinator NATARAJAN Dean
Program Head Associate Dean
Date Date Date
COURSE CODE BSBI 516 COURSE TITLE Introduction to Entrepreneurship
SECTION TIME DAYS ROOM
STUDENT NAME ID NO. DATE

ASSIGNMENT Attach Separately

OUTPUT

RUBRIC / 5 – Details are fully complete and demonstrate deep understanding of concepts. 4 –
MARKING Answer is acceptable but lacks minor details.
3 – Answer is responsive but not fully complete.
SCHEME
2 – Major details are missing and show low level of understanding the content. 1 –
Answer is lacking multiple major details.
0 – Non submission

LEARNING ASSESSMENT/MARKING FACULTY/MARKER’S FEEDBACK

ITEM CILOs MARKS MARKS AWARDED
1 1 5
2 2 5
3 1 5
4 4 5
5 3 5
6 6 5
TOTAL 30

Prepared By: Checked and Verified By: Approved By:

2
DR. SURJIT VICTOR DR. VISHWAS CHAKRANARAYAN DR. VINODH NATARAJAN DR. MARLUNA L. URUBIO
Course Coordinator Specialization Coordinator Program Head Dean

Date Date Date

1) a) Business; A business is defined as an organization or enterprising entity engaged in commercial,
industrial, or professional activities. Businesses can be for-profit entities or they can be non-profitorganizations
that operate to fulfill a charitable mission or further a social cause.

The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods
and services for profit. Businesses range in scale from a sole proprietorship to an international corporation.
Several lines of theory are engaged with understanding business administration including organizational
behavior, organization theory, and strategic management.

b) Entrepreneurship; Entrepreneurship is the act of creating a business or businesses while building and scaling
it to generate a profit.

But as a basic entrepreneurship definition, that one is a bit limiting. The more modern entrepreneurship
definition is also about transforming the world by solving big problems. Like bringing about social change or
creating an innovative product that challenges the status quo of how we live our lives on a daily basis.

c) Sole trader; A sole trader is a self-employed person who owns and runs their own business as an
individual. A sole trader business doesn’t have any legal identity separate to its owner, leading many to say
that as a sole trader you are the business. In this article, we look at what a sole trader is, how to get started
and your ongoing responsibilities.
As a sole trader, you have absolute control over your business, its assets and profits after tax. Alongside this
control, this business model offers comparative simplicity, versatility and a number of other advantages. In
another article, we look in detail at sole trader advantages.

Unlike the owners of a limited company, however, a sole trader is personally liable for their business’s
debts and their personal assets may be at risk if creditors cannot be paid. This unlimited liability and the
pressure involved in having to shoulder all the responsibility can be significant challenges.

d) Privitization; The transfer of ownership, property or business from the government to the private sector
is termed privatization. The government ceases to be the owner of the entity or business.
The process in which a publicly-traded company is taken over by a few people is also called privatization.
The stock of the company is no longer traded in the stock market and the general public is barred from
holding stake in such a company. The company gives up the name 'limited' and starts using 'private limited'
in its last name.

e) Synthetic Industury; Synthetically industries are the types of industries of various ingredients which are
brought together and combined in the manufacturing process to produce a new product. Paper
manufacturing, yarn spinning, paint making and soup making are the examples of synthetical industries.

In this industry, two or more materials are mixed together to create a new product. For example, producing
soap, biscuits, etc.

2. Recognize by explaining the following aims of business. (ILO2)

Objectives of the Business

Objectives provide a well-defined objective for the company. Then, plans may be developed to accomplish these
objectives. This may serve as a motivator for workers. Additionally, it allows the company to track its progress
toward its stated objectives.

Business goals that are most successful satisfy the following criteria:

S – Particular – goals are targeted towards the business's operations; for example, a hotel may have a specific
objective of filling 60% of its beds each night during October.

M – Measurable – the company may quantify the goal, for example, €10,000 in sales during the following half-year
of trade.

A - Accepted by all parties involved in attempting to accomplish the goal.

R - Realistic – the goal should be difficult, but also achievable with the given resources.

T- Time-bound — they provide a deadline for completing the goal, such as by the end of the year.

A business's primary goals may include the following:

Survival — a short-term goal, most often for small businesses that are just getting started, or when a new company
enters the market or during a period of crisis.

1. Profit maximisation - attempting to earn the most profit possible – is often the goal of owners and
shareholders.

2. Profit satisfaction - attempting to earn enough profit to maintain the owners' standard of living – is
presumably the goal of smaller companies whose owners do not want to work longer hours.

3. Sales expansion - the process through which a company attempts to make as many sales as feasible. This
may be because the management think that the business's existence is contingent upon its size. Economies
of scale may also help large companies.

c. Discuss the significant points of a free enterprise economy. (ILO1)

The U.S. economic system of free enterprise has five main principles: the freedom for individuals to choose
businesses, the right to private property, profits as an incentive, competition, and consumer sovereignty.

4. As a future businessman, when ask which form of business to operate, which do you prefer, Sole Trader or
Partnership? Interpret your options.

If you want sole or primary control of the business and its activities, a sole proprietorship or an LLC might be the
best choice for you. You can negotiate such control in a partnership agreement as well. A corporation is constructed
to have a board of directors that makes the major decisions that guide the company.

In addition to legally registering your business entity, you may need specific licenses and permits to operate.
Depending on the type of business and its activities, it may need to be licensed at the local, state and federal levels.
"States have different requirements for different business structures," Friedman said. "Depending on where you set
up, there could be different requirements at the municipal level as well. As you choose your structure, understand
the state and industry you're in. It's not a 'one size fits all,' and businesses may not be aware of what's applicable to
them."
The structures discussed here only apply to for-profit businesses. If you've done your research and you're still
unsure which business structure is right for you, Friedman advises speaking with a specialist in business law.

5. As an entrepreneur who would want to expand his business, which of the types of expansion would
you prefer to adapt, Internal Growth or External Growth? (ILO3)
Internal (organic) growth - the business grows by hiring more staff and equipment to increase its output . External
growth - where a business merges with or takes over another organisation. Combining two firms increases the scale
of operation.

6. Evaluate the strong points of a marketing aspect of business plan. (ILO6)

In the marketing strategy section of your plan, you'll address issues such as:

o Identification of your target buyers.

o The market segment in which you'll compete.
o The reasons why the product or service you offer is unique.
o Your pricing philosophy.
o Your plans for market research.
o Your ongoing product or service development plans.