ENRICO T.

PRADO NATIONAL HIGH SCHOOL

Senior High School
Diagnostic Test in Entrepreneurship
Directions: Read the questions carefully and answer them correctly on a separate sheet of paper.

1. The most basic management functions of an entrepreneur, which tells you where you are going and how to get there?
a. controlling b. organizing c. planning d. staffing
2. Plans are categorized in different ways. Which plan is used repeatedly as it covers policies, procedures, and rules in management functions?
a. organizational plans b. staffing plans c. standing plans d. single-purpose plans
3. This plan is essentially non-repetitious. Since it is usually used within a short period of time. It comprises programs, projects and budgets
a. improvement plan b. organizational plan c. single purpose plan d. standing plan
4. A management function that clusters the activities into departments or job positions, and designating the personnel to head and compose each
department is called ______.
a. directing b. organizing c. planning d. staffing
5. A diagram that shows the relationships of the position and their corresponding authority, responsibility, and accountability is ______.
a. functional type organization b. line and staff organization c. line organization d. organizational chart
6. Directing is a challenging task. The principal concern of directing as a management function is to ______.
a. assess the skills, strengths, weaknesses and potentials of personnel
b. discover the problem in quantity or quality of skills of personnel
c. influence subordinate to contribute to the attainment of the firm objectives
d. make sure that what is done in the enterprise conforms with what had been planned
7. Which among the choices below is necessary to determine how often you should measure performance in the controlling process?
a. compare performance with standards and analyze deviations b. establish standards
c. measure actual performance d. set performance measurements
8. A type of organization chart where officers have staffs to assists them but who do not have any authority over line personnel is .
a. line and staff organization b. line organization c. functional staff organization d. organizational chart
9. Assessing the skills, strengths, weaknesses and potentials of your personnel will tell you whether_______.
a. your company has just the right quantity and quality of men b. you have an excess in quantity but are short in quality
c. both quantity and quality of skills of your personnel are insufficient d. a b & c
10. If you find out that there is a problem in quantity and quality of skills among your present personnel. What solution should you adopt to solve the
problem?
a. consider recruiting from inside or outside the organization b. undertake training and skills development
c. advise the person to look for another job d. a & b
11. The statistical study of human population and its distribution is called _________.
a. demography b. ecology c. photography d. psychology

12. Environmental scanning is the acquisition and use of information about events, trends and relationships in an organization’s external environment.
New products or materials and new processes in doing things are vital aspects of_______________.
a. ecological environment b. educational environment c. political environment d. technological environment

13. As an entrepreneur, the first thing that you should find out are the demands of the community. This refers to___________.
a. community needs b. evaluation c. industrial information d. technology

14. How will you determine the needs of the people in your community?
a. conduct an environmental scanning b. make use of observations
c. make use of surveys and referrals d. all of the above

15. The growth of industry always creates opportunities for establishing an enterprise. This refers to ________.
a. industrial information b. review of old projects c. synchronization of plans
d. technology

16. Read technical and business journals. The underlined words refer to ____________.
a. evaluation of development plans b. industrial information c. local specialized skills d. review of old projects

17. Why is there a need for an entrepreneur to explore the economic, cultural, and social conditions of the community?
a. To determine the number of population in the community
b. To discover the developed enterprise in the community
c. To find out the analytical skills among the professional in the community
d. To identify the problems, needs and business opportunities in the community

18. As an entrepreneur, how will you make your product more useful and of good quality?
a. change the brand of the product into a new one b. seek assistance from the government
c. use your creativity and imagination d. none of the above

19. When you identify the demands of the people then you are identifying the ______________.
a. Community Needs b. Industrial Information c. Local Specialized Skills d. Technology

20. When there is competition, then there are ___________ in business.

a. opportunities b. strengths c. threats d. weaknesses

21. Anything that can be offered to a market that might satisfy a want or need is called_______.
a. package b. product c. service d. technology

22. The acronym SWOT means _________.

a. Style, Wear, Operation, Tool b. Strengths, Weaknesses, Opportunities, Threats
c. Store, Warehouse, On – line, Technology d. all of the above

23. If the people in the community patronize your product, then your business has ______________.
a. Operation b. Strength c. Threats d. Weakness

24. Which of the following questions can be categorized as an opportunity?

a. What could you improve? b. What are the interesting trends you are aware of?
c. What obstacles do you face? d. Is it accessible to all?

25. You encounter difficulty in hiring workers due to low salary. This is classified as ________________.
a. opportunities b. strengths c. threats d. weaknesses

26. Which of the following is not an ingredient that defines a product?

a. brand promises b. delivery processes c. description and features d. tangible elements

27. What business term describes the complete process of bringing a new product to market?
a. business environment b. new product development c. product design d. product development process
28. The producer’s view of a product is called__________.
a. feature of the product b. product formulation c. product concept d. all of the choices

29. The following are the factors to consider in preparing a product concept EXCEPT:
a. the costs b. the market c. the goods and services d. the people

30.The following statements tell how environmental scanning is done. Choose from the options the correct arrangement of the steps in conducting
environmental scanning.
1. Note down the needs of the people in the community.
2. For things and services needed, find out what are not available and plan how to develop these into entrepreneurial ventures.
3. Communicate with people through interviews, observations and advertisements on what is new.
4. Check those items which are already available and think how they may improve the packaging and quality.
a. 4,1,2,3 b. 3,1,4,2 c. 2,4,1,3 d. 1,4,2,3

31. Which of the following is a type of intangible business property that is protected by law:
A. Acreage B. Inventory C. Trademark D. Equipment

32. Basic torts relating to businesses often involve disputes concerning

A. emotional stress. B. assaults. C. defamation. D. contracts.

33. Which of the following is a characteristic of a business-format franchise:

A. The name of the business is chosen by the franchisee. B. Products are bought directly from the supplier.
C. It is the least popular franchise arrangement. D. Continuous assistance is provided by the franchisor.

34. Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are
considered advantages of a
A. sole proprietorship. B. partnership. C. trade union. D. corporation.

35. Channels of distribution benefit consumers by

A. increasing profits for businesses. B. lowering the prices of all consumer products.
C. raising the quality of all consumer products. D. making a variety of products available to them.

36. For which of the following markets would producers use a short channel of distribution:
A. Local consumers B. Generation X C. Baby boomers D. Senior citizens

37. If a business considers where the consumers are and who they are before selecting a channel of
distribution, the business is considering the __________ factor.
A. human B. promotion C. market D. sales

38. What do business employees often need to do before they are able to write proposals?
A. Research the problem B. Analyze personal biases
C. Contact the customer D. Evaluate technical skills

39. Which of the following is an example of a manager developing a policy that impacts customer relations:
A. Increasing use of security devices B. Extending business hours on weekends
C. Revising bookkeeping procedures D. Scheduling employees' work hours

40. What should a successful brand promise be able to do?

A. Customize the product for each customer B. Clarify the company's processes
C. Communicate an appealing benefit D. Convey a high-quality image

41. Which of the following is one way that freedom in a private enterprise system is limited by laws:
A. Certain occupations must be licensed. B. All workers must take ability tests.
C. Specific pay scales are regulated. D. Employees must register with the state.

42. During the month of July, sales at Handy's Shoe Mart totaled $2,500. The cost of the shoes was $1,025.
The owner paid $866 for supplies, insurance, rent, and utilities during the month. The $609 left over
represents the owner's
A. net profit. B. gross profit. C. sales income. D. operating expenses.

43. Non-corporations are taxed as pass-through entities, meaning that

A. profits and losses are claimed on owners' personal tax returns. B. they do not have to pay payroll taxes.
C. their income tax rates are lower than those of corporations. D. they pay only state and local taxes.

44. Which of the following activities is an example of preparing before attempting to sell an idea:
A. Explaining solutions to audience needs B. Determining the details of your idea
C. Overcoming objections from the audience D. Affirming the audience's decision to "buy"

45. Managers are more likely to be able to persuade employees to follow new procedures if the managers
have
A. organizational skills. B. credibility. C. enthusiasm. D. self-motivation.

46. Ali wants to negotiate with her boss to take on more job responsibilities. Before approaching her boss, Ali
needs to determine her boss's position and
A. abilities. B. interests. C. standards. D. procedures.

47. After writing your personal vision, what must you do to achieve it?
A. Commit to your vision through hard work and dedication.
B. Put your vision in a safe space and look at it again in five years.
C. Get the highest-paying job that you can find out of high school.
D. Spend all of your free time working on self-improvement.

48. Ryan keeps a list of his goals to remind himself of what he's working toward. Which tip for smart goal
setting is Ryan following?
A. Putting goals in writing B. Tying goals to a timetable
C. Making goals specific D. Making goals difficult but possible

49. The future that you desire to create is known as a

A. mission statement. B. goal C. prediction. D. vision.

50. The entrepreneurial discovery process that involves finding a way to meet an existing demand by
inventing new products from available resources is based on
A. science. B. medicine. C. psychology. D. physics.