Name: _______________________________________ Score: _______________

Grade 12- _______________ Date: ________________

Test I. Multiple Choice. Read and understand each question carefully. Shade the circle that corresponds to the correct answer on the
right side of the test paper.

1. When stable and sufficient demand is under consideration, the business idea is screened under the criteria of: 1. A B C D
A. market feasibility B. technical feasibility OOOO
C. financing feasibility D. financial feasibility
2. When practicable, the fastest means to solicit market information is through: 2. A B C D
A. mail questionnaires B. advertisements incorporating feedback mechanisms OOOO
C. phone interviews D. personal interviews
3. When the small business operator cannot produce sufficient capital to operate the business, the business 3. A B C D
should be screened out for failing the criteria on: OOOO
A. market feasibility B. technical feasibility
C. financing feasibility D. financial feasibility
4. When innovation thrives in an organization, it means the organization is characterized by: 4. A B C D
A. encouragement of creativity and risk-taking B. rewards for creativity OOOO
C. open communication D. allowance for errors
5. When the creative employee is allowed to engage in creative activities on hours most convenient to him and 5. A B C D
to the company, the firm has adapted as a matter of policy: OOOO
A. flexibility B. a climate of participation
C. allowance for errors D. open communications

6. When an employee develops a business idea as a result of direct contact with customers, this unanticipated 6. A B C D
means due to: OOOO
A. the person’s work B. the person’s hobbies
C. the person’s acquaintances D. a chance event encountered by the person
7. The projected cash flow statements shows: 7. A B C D
A. the planned or expected cash sales and/or purchases OOOO
B. the summery of the firm’s planned or expected financial performance in terms
of revenues, expenses, and profits over a given time period
C. the planned or expected financial position of the firm on a particular date
D. the sources and uses of funds during a given period
8. The forecast of something which will happen in the future is referred to as a; 8. A B C D
A. projected income statement B. projected financial statement OOOO
C. projected balance sheet D. projected cash flow statement
9. The free-flowing exchange of ideas between the members of an organizing is referred to as _____; 9. A B C D
A. Allowance for errors B. A climate of participation OOOO
C. Flexibility D. Open Communication

10. Refers to the process of determining the primary objectives of the firm and then adapting courses of action 10. A B C D
and allocating resources to achieve those objectives. OOOO
A. determinations of objectives B. adoption of course of actions
C. strategic planning D. allocation of resources

11. How the entrepreneur intends to use his resources and others. 11. A B C D
A. mission statement B. strategic objectives OOOO
C. strategy D. adoption of course of actions

12. The ___________ is to be able to deploy the right quality and quantity of resources 12. A B C D
A. aim of strategic planning B. new business OOOO
C. SWOT D. strategic planning
13. One example of the mission statement concern is 13. A B C D
A. expand production capacity by 50% within 2 years OOOO
B. strategic planning
C. how the entrepreneur intends to use his resources
D. forecast of future sales performance

14. This gives sufficient reason to disregard the benefits of strategic planning. 14. A B C D
A. Lack of expertise OOOO
B. Resource poverty
C. Focus on daily operations
D. All of the above

15. Refers to the chance offered by the external environment to improve the firm’s situation significantly. 15. A B C D
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Entrepreneurship Midterm Exam Senior High School Department
 A. weakness B. threats C. opportunity D. strength OOOO

16. A document that helps the SBO determine what resources are needed to achieve the objectives of the firm, 16. A B C D
and the like: OOOO
A. financial plan B. marketing plan
C. human resources plan D. business plan

17. The part of the business plan that indicates the name of the business, the names of the proponents, address, 17. A B C D
and others: OOOO
A. title page and contents B. executive summary
C. description of the business D. description of the product of service

18. The part of the business plan which contains information on the capital needs of the business how the 18. A B C D
money will spent, what benefits will be derived by the business from the loan or investment, among others: OOOO
A. executive summary B. description of the business
C. description of the product of service D. market strategies

19. When the business owners is determining which part of the total potential market will be served by the 19. A B C D
firm, he is actually developing a market strategy referred to as: OOOO
A. definition of the market B. determination of the market share
C. position strategy D. pricing strategy

20. When the business owners wants to know what the customers really want to buy from the firm, he is 20. A B C D
starting to develop a: OOOO
A. pricing strategy B. positioning strategy
C. distribution strategy D. promotion strategy
21. A method of pricing where the firm sets prices based on buyer desires: 21. A B C D
A. cost plus pricing B. demand pricing OOOO
C. competitive pricing D. markup pricing
22. They sell directly to consumers: 22. A B C D
A. brokers B. wholesalers OOOO
C. retailers D. manufacturer’s representatives

23. This portion of the promotion strategy is a detailed presentation of the publicity strategy of the firm: 23. A B C D
A. advertising aspects B. packaging OOOO
C. public relations D. sales promotions

24. That portion of the business plan that contains the organizational structure, operating expenses, capital 24. A B C D
requirements, and cost of goods sold: OOOO
A. market strategies B. analysis of the competition
C. operations and management D. financial data

25. The financial statement that shows the financial condition of the business as of a given data: 25. A B C D
A. income statement B. cash flow statement OOOO
C. balance sheet D. statement of planning premises

26. The __________ details a company's assets and liabilities at a certain period of time. 26. A B C D
A. income statement B. cash flow statement OOOO
C. balance sheet D. statement of planning premises

27. Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but 27. A B C D
not yet paid for by customers OOOO
A. Cash B. Receivables
C. Cash Sales D. Other Incomes
28. Is a business owned and operated by a single person. 28. A B C D
A. Corporate B. Partnership OOOO
C. Sole Proprietorship D. Incorporated

29. This Authority is very important especially under critical moments of competition. 29. A B C D
A. Government Regulation B. Control of the Business OOOO
C. Taxation D. Secrecy

30. Which of the following is not included with regards the advantages of partnership? 30. A B C D
A. Ease of Formation B. Unlimited Liability OOOO
C. Tax Advantage D. More source of capital

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Entrepreneurship Midterm Exam Senior High School Department