BAE100 – MIDTERM EXAMINATION

Prepared by Marl T. Ale, MBA

I. Multiple Choice. Tick the correct answer of the given statement.

1. This the period where Marco Polo attempted to established trade routes to the Far East.
a. Earliest Period
b. Middle Ages
c. 17th Century
d. 18th Century
2. The term entrepreneur was used to describe both an actor and a person who managed large
production projects.
a. Earliest Period
b. Middle Ages
c. 17th Century
d. 18th Century
3. The period when the person with capital was differentiated from the one who needed capital
a. 17th Century
b. 18th Century
c. 19th and 20th Century
d. Middle Ages
4. Entrepreneurs were frequently not distinguished from managers and were viewed mostly from an
economic perspective.
a. 17th Century
b. 18th Century
c. 19th and 20th Century
d. Middle Ages
5. It is an individual who creates something for the first time, is a highly driven individual motivated by
his or her work and personal ideas.
a. Entrepreneur
b. Inventor
c. Manager
d. Innovator
6. It is the process of creating something new and assuming the risks and rewards.
a. Business
b. Entrepreneurship
c. Innovation
d. Invention
7. This is the four basic aspect of being an entrepreneur.
a. Solving process, devotion of time and effort, goal, risk
b. Creation process, devotion of time and effort, rewards, risk
c. Creation process, dedication of time and effort, rewards, risk
d. Solving process, devotion of time and effort, rewards, risk
8. The vicious cycle of development resulted from entrepreneurship.
 a. Entrepreneurs investment , savings and taxes, Employment and income
b. Employment and income, entrepreneurs investment, savings and taxes
c. Entrepreneurs investment ,Employment and income, savings and taxes
d. Employment and income, savings and taxes, entrepreneurs investment
9. Entrepreneurs sometimes use their own savings for their business venture.
a. Service providers
b. Employers
c. Mobilizers of capital
d. Suppliers of capital
10. Business ventures of entrepreneurs could be along the line of service like parlor, spas or coffee shop.
a. Service providers
b. Employers
c. Mobilizers of capital
d. Suppliers of capital

II. True or False. Write TRUE if it is true and FALSE if otherwise.

______________1. Entrepreneur provides supply to the market. (true)

______________2. Purchasing power means the power to buy. (true)

______________3. The small scale entrepreneurship offers the opportunity for employment. (true)

______________4. The production of candies like pastilles de leche falls under entrepreneurship. (true)

______________5. The supply of halo-halo during summer is increased because of the entrepreneurial
traits of people in the community. (false)

______________6. Entrepreneurship demands hard work and but less stress. (false)

______________7. Entrepreneur has risk to do what he feels is fit in his business. (false-freedom)

______________8. Good feeling of being of service to others is one of the benefits of an entrepreneur.
(true)

______________9. One of the characteristic or competency of an entrepreneur is humility. (false)

______________10. The risk taking quality of an entrepreneur is the same as that of a gambler. (false-
not the same as that of a gambler)

III. Essay. Answer the following question short and concise. (5 points each)

1. What are the rewards of entrepreneurship?

2. Write and explain the formula of PROFIT.
3. Explain the vicious cycle of development
4. How to assess competitor marketing strategies.
5. Give at least 3 critical issues for industry analysis.