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Entrepreneurship Quarter 1 Week 4 Lesson 1: Capslet
Entrepreneurship Quarter 1 Week 4 Lesson 1: Capslet
Entrepreneurship
QUARTER 1
Week 4 Lesson 1
CapsLET
Capsulized Self-Learning Empowerment
Toolkit
IMPORTANT: Do not write anything on this material. Write your answers on the Learner’s
Activity and Assessment Sheets provided separately.
UNDERSTAND
Topic Title: Developing a Business plan
Viability of a business- is measured by its long-term survival and its ability to sustain profits over a
period of time. A business is able to survive when it’s viable because it continues to make a profit year
after year. The longer a company can stay profitable, the better its viability.
Profitability- is measured with income and expenses. Income is money generated from the activities of
the business. For example, if crops and livestock are produced and sold, income is generated.
Sustainability- viability into the future.
Time- delimited viability- viability for a defined period, which no requirements for survival after the
period has ended.
Income Stocks- examples; utilities such as water company. Steady earnings market, expected to pay
regular dividends to shareholder.
Growth Stocks- example, high-tech companies. May not be earning much today. Most/all earnings
retained for investment.
Robustness- viability across a range of environmental conditions.
Niche viability- viability in a single specialized environment.
Profit – income minus expenditure.
Below are the core concepts of viability and its different dimensions.
Let’s Practice
Directions: Read and analyze the following questions carefully. Then, write your answer on
a separate sheet of paper.
REMEMBER
KEY POINTS Variable Cost is not Linear
Profitability: As volume increases, the unit price of some inputs can
Viability= Future Profit be reduced (e.g.volume discounts, bulk buying.)
▪ But expenditure generally percedes income. Cost change over time
▪ Expenditure may exceed Income for several Productivity increases the more you do something, the
years(“Cash Burn”), before the company more efficient yuou get (learning by doing).
reaches Break Even. Resource Smoothing
▪ A company is Viable if it is expected to make Where resources come in large units, larger volumes
a profit one day. should produce less wasted resource. Better utilization
▪ Conversely, a company that is currently of skilled people.
profitable may have a uncertain future. Diseconomies of Scale (Possible disadvantages of large
Viability= Profit companies).
▪ Profit= Income minus Expenditure Scarse Resources
▪ The simplest notion of viability is that a Demand for a scarse resource increases its price or
company is viable if it makes a profit. reduces its quality/ reliability.
Viability= Shareholder Value Step Costs
Distribution As volume increases, new fixed costs are incurred.For
▪ Some profit goes on interest(bank, debt.,etc.) example, a larger factory or an additional layer of
and tax. management.
▪ Some profit may be distributed to investors. Complexity Costs
▪ Some profit may be retaine to fund further Loss of efficiency, reliability or performance.
growth (organic/acquisition).
Note distinction between
▪ “value stocks”- share price based on dividend
yield.
▪ “Growth stocks”-share price based on
expected growth.
In the growth phase, money flows into the company
from investors. Company profits (if any) are mostly
reinvested.
In the Income phase, money is returned to investors.
Viability and Size: Is Bigger Better?
Four Routes to Economies of scale (Possible
advantages of large companies)
Cost=Fixed Cost+Variable Cost
as volume increases, the fixed cost is shared across
larger number of units, so the average cost goes down.
TRY
Let’s see how much have you learned today!
Let’s
Directions: Readseeandhowunderstand
much havetheyougiven
learned today! Choose and encircle only the letter of
questions.
your choice.
(Answer Let’s
on thesee Learner’s
how much Activity andlearned
have you Assessment
today! sheets.)
1. It is viability into the future, called? Continuation.
a. Profitability c. Income ..
b. Sustainability d. Stocks 6. Below are examples of stock, which
2. What do you mean with profit? among these is one example of income
a. Income minus expenditure Let’s stocks?
see
b. Viability into the future how much a. High-tech companies
c. Viability for defined period have b.you Utilities such as water company
d. Money learned c. Cost-cutting and good management
3. Viability means___________? today!d. Steady earnings
a. Viability into the future 7. How does money flows in growth
b. Viability for defined period Let’s phase?
see
how much
Written by: MA. ALICEF R. APOLINARIO
have you
“Unido, Junto avanza con el EduKalidad Cree,
learned
junto junto puede!”
today!
c. Money a. phase, money flows into the
d. Ability to survive company from investors
4. It is a steady earnings market, b. The money return to the investors
expected to pay regular dividends to c. The money flows into investors
shareholder, called? d. None of these
a. Profitability c. Income 8. What is step cost?
b. Sustainability d. Income Stocks a. As volume increases, new fixed
5. Niche Viability means? costs are incurred.For example, a
a. Viability into the future larger factory or an additional layer
b. Viability for defined period of management.
c. Viability in single specialized b. As volume decreases, new fixed
environment costs are incurred.
d. Ability to survive c. Loss of efficiency, reliability or
performance.
d. The money flows into investors
9. What do we mean with Robustness?
a. Viability across a range of
environmental conditions.
b. Viability into the future
c. Viability for defined period
d. Viability in single specialized
environment
10. It is measured by its long-term survival
and its ability to sustain profits over a
period of time called?
a. Robustness c. profit
b. Viability d. Income stocks
E-NET
http://www.netmba.com/marketing/market/definition/
https://learn.marsdd.com/article/deciding-which-market-problems-to-
solve/
Photo/ Image
REFERENCE/S
https://images.app.goo.gl/uKR1sotV1RhbUGy6A
https://images.app.goo.gl/JsaeSQEG8Qws1N9E8
Let’s Practice
TRY
Assessment
1. b
2. a
3. d
4. d
5. c
6. b
7. a
8. a
9. a
10. b
CapsLET
Learner’s Activity
and Assessment
Sheets
NAME:
CapsLETGRADE/SECTION:
UNDERSTAND
Topic Title: Developing a Business Plan
SAQ 1: How important is profit? How can a company survive when it isn’t making a profit?
Explain;
_________________________________________________________________________
_________________________________________________________________________
What is Digestion?
_________________________________________________________________________
SAQ-2: As a student, what do you think is the reason why some companies are successful and
some are not? Cite some example and explain;
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Let’s Practice!
Directions: Read and analyze the following questions carefully. Then, write your answer on
a separate sheet of paper.
TRY
Let’s see how much have you learned today!
Directions:
Let’s see how much have you learned today!
Written by: MA. ALICEF R. APOLINARIO
Let’s see
“Unido, Junto howcon
avanza much have you learned today!
el EduKalidad Cree, junto junto puede!”
11. It is viability into the future, called? Continuation.
c. Profitability c. Income ..
d. Sustainability d. Stocks 16. Below are examples of stock, which
12. What do you mean with profit? among these is one example of
e. Income minus expenditure Let’s income
see stocks?
f. Viability into the future e. High-tech companies
how much
g. Viability for defined period have f. you Utilities such as water company
h. Money learnedg. Cost-cutting and good
13. Viability means___________? today! management
e. Viability into the future h. Steady earnings
f. Viability for defined period Let’s see does money flows in growth
17. How
g. Money phase?
how much
h. Ability to survive have e.you phase, money flows into the
14. It is a steady earnings market, learned company from investors
expected to pay regular dividends to today!f. The money return to the investors
shareholder, called? g. The money flows into investors
c. Profitability c. Income h. None of these
d. Sustainability d. Income Stocks 18. What is step cost?
15. Niche Viability means? e. As volume increases, new fixed
e. Viability into the future costs are incurred.For example, a
f. Viability for defined period larger factory or an additional layer
g. Viability in single specialized of management.
environment f. As volume decreases, new fixed
h. Ability to survive costs are incurred.
g. Loss of efficiency, reliability or
performance.
h. The money flows into investors
19. What do we mean with Robustness?
e. Viability across a range of
environmental conditions.
f. Viability into the future
g. Viability for defined period
h. Viability in single specialized
environment
20. It is measured by its long-term survival
and its ability to sustain profits over a
period of time called?
c. Viability c. profit
d. Robustness d. Income stocks