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Lesson Assessment 2

This document contains a lesson assessment on entrepreneurial principles with true/false questions and short answer discussions. It asks students to: 1) Indicate whether statements about entrepreneurship are true or false and explain their reasoning. Statements cover topics like the nature of entrepreneurial principles, objectives of business ventures, and how entrepreneurs handle risk. 2) Discuss in short answers why entrepreneurship is an art and not a science, differentiate wealth-creating from income-generating ventures, and why profit is not a good measure of entrepreneurial success. 3) Describe who determines the value of goods and services and how entrepreneurs and ordinary businesspeople differ in how they handle risk. 4)

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Carmel Angela Lavador
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1K views3 pages

Lesson Assessment 2

This document contains a lesson assessment on entrepreneurial principles with true/false questions and short answer discussions. It asks students to: 1) Indicate whether statements about entrepreneurship are true or false and explain their reasoning. Statements cover topics like the nature of entrepreneurial principles, objectives of business ventures, and how entrepreneurs handle risk. 2) Discuss in short answers why entrepreneurship is an art and not a science, differentiate wealth-creating from income-generating ventures, and why profit is not a good measure of entrepreneurial success. 3) Describe who determines the value of goods and services and how entrepreneurs and ordinary businesspeople differ in how they handle risk. 4)

Uploaded by

Carmel Angela Lavador
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Lesson Assessment 2

I. Write True if the statement is correct. Otherwise, write False and state your reason
briefly.
__False__ 1. Entrepreneurial principles are fixed in a person’s character.
The changing environment has a significant impact on entrepreneurial
principles and ideals.
__False_ 2. Creativity and innovation denote a status quo in appearance, procedure,
or practice.
Innovation and innovation imply that things are getting better. In other
words, innovation and creativity are developing and expanding.
__False_ 3. The primary objective of any business endeavor is profit.
It is in the best interests of the entrepreneur. Wealth is being amassed.
__True_ 4. Increase in the level of wealth of the entrepreneur means improvement in
his or her economic status.
_________________________________________________________________
__True_ 5. The entrepreneur seeks a wealth-creating venture rather than a profit
generating venture.
_________________________________________________________________
__False_ 6. Values or additional features added to products or services are also
valuable to the customers.
Additional costs may not add value to the goods in the eyes of the
consumer.
__False_ 7. Everybody is a potential customer of a business venture.
Not everyone is eligible to become a client of the business. The business
must select a target market.
__False_ 8. Business ventures under the direct supervision of the manager and not
the owner fall within the strict concept of entrepreneurship.
That type of business venture is referred to as intrapreneurship.

__True__9. Government programs on entrepreneurship are mainly focused on small


businesses.
_________________________________________________________________
__False_ 10. Entrepreneurs find ways to avoid business risk.
Entrepreneurs encounter business risks, but they discover methods to
mitigate them.

II. Discussion

1. Discuss why entrepreneurship is an art and not a science.

Science is very objective and calculated. Science has very strict rules and laws
that are to be followed. It takes ample time to perfect the study of science and
is not for everyone. Entrepreneurship, however, is very subjective. and is
open to different possibilities and innovations, which are all characteristics of
art. Like art, in entrepreneurship, you are given the full creativity and
freedom to do anything you want. It can depend between people to people,
and everyone can try and become an entrepreneur.
2. Differentiate wealth-creating venture from an income-generating venture.

A wealth-creating venture operates within the framework of wealth


accumulation. Wealth is established when the advantages acquired by the
owner from offering goods and services to clients surpass the costs incurred
by the firm. Furthermore, it provides the owner with personal benefits that
improve his or her quality of life. The wealth created by a small firm must
first improve the owner's quality of life before spreading to the growth of the
area economy and, eventually, the entire nation. An income-generating
venture is one on which you should rely to maintain yourself. You may make
enough money to invest and grow wealth, but the wealth builder wants a
steady income free of the ups and downs that wealth periodically encounters.

3. Discuss why profit is not a good measure to determine the success of an


entrepreneurial venture.

Profit is no longer a valid indication of a modern firm's performance. It is an


insufficient statistic that does not offer a comprehensive picture of a
company's status. Actually, the new criterion for success is in effect. Profit
must no longer take precedence above a company's good impact. Profits are
not the sole or even the best way to gauge corporate performance, despite the
fact that the business world is profit-oriented. Rather than continuing
unsustainable operations in order to raise profit margins, a corporation would
be better off increasing efficiency. The efficiency ratio is the output-to-input
ratio. Profit might fluctuate for causes unrelated to business.

4. Describe who determines whether the goods or services are valuable.

It is the buyer that determines whether the goods or services are valuable.
Every consumer determines the perceived value of a commodity or service on
their own. People will not buy if they do not see the value. Marketing to the
appropriate demography may increase perceived value and, as a result,
pricing. Every buyer, however, sets a value based on a range of circumstances
and emotions.

5. Differentiate how an entrepreneur and an ordinary businessperson handle


business risk.

The key difference between an entrepreneur and an ordinary business person


handling business risk is that an entrepreneur assumes the risk that they have
to face while an ordinary business person doesn’t want any risk and tries their
best to avoid facing it. This is because entrepreneurs handle business in an
innovative perspective and is open to all possibilities that may occur when
trying to do new and experimental things in business. In contrast,
businesspersons like to work on a calculated structure and are very profit-
driven, hence, they avoid risks as much as possible.
III. Class Entrepreneurial Activities

Form groups of four members each. As much as possible, group members should
come from the same community. Choose one activity from the list. Brainstorm about
it and report your findings in class.
1. Pick one small business in your neighborhood. Observe the day-to-day
activities of its owner. Interview him or her. Evaluate if the business is a
wealth-creating venture.
2. Recall an invention that you think has significantly changed your lifestyle.
Evaluate how creative and valuable it is to you.
3. Pick one of your present activities that you consider as risk-taking. Discuss
how you
minimize the risk.
4. Bring a product to the class like a bag, a pair of shoes, paper, and a paper fastener.
Enumerate its uses and explain its value to you. Tell also if it is valuable to others.

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