Entrep 1 Reviewer

QUESTIONS 1-4 ARE FROM THE TOPIC “UNDERSTANDING ENTREPRENEURSHIP”

1. It provides better understanding of the concept of Entrepreneurship. They also help in

determining whether a particular business is operating within the realm of entrepreneurship.
A. Theories of Entrepreneurship
B. Salient Features of Entrepreneurship

Correct Answer: B. Salient Features of Entrepreneurship

The salient features of entrepreneurship provide better understanding of the whole concept.
They also act as the point of reference in determining whether a particular business endeavor is
operating within the realm of entrepreneurship.

2. It is the theory that proposes the term "systematic innovation" as the term that refers to
Entrepreneurship.
A. Theory of Social Behavior
B. Theory of Leadership
C. Theory of Model Personality
D. Theory of Systematic Innovation

Correct Answer: D. Theory of Systematic Innovation

Theories of Entrepreneurship
Innovation Theory- In Schumpeterian theory, the main theme is the innovation. He makes a
distinction between an innovator and an inventor. According to him, an inventor discovers new
methods and new materials. But, an innovator is one who applies inventions and discoveries in
order to make now combinations

Need for Achievement Theory- The entrepreneur is concerned with need for achievement (n
-achievement).

Status Withdrawal Theory- This theory provides that a class which lost its previous prestige or
a minority group tends to show aggressive entrepreneurial drive.

Theory of Social Change- The central figure of the Weber’s theory of social change consists in
his treatment of the protestant ethic and the spirit of capitalism. Moreover, this theory provides
an analysis of religion and its impact on entrepreneurial culture.

Theory of Social Behavior- Behavioral model concerned with the overtly expressed activities
of individuals and their relations to the previous and present surroundings, social structures and
physical conditions.

Theory of Leadership- Entrepreneurship is a function of managerial skills and leadership.

Business also requires finance but that is of secondary importance. He further explains that a
person who is to become an industrial entrepreneur must have more than the drive to earn
profits and amass wealth.

Theory of Model Personality- An entrepreneur is neither a super normal individual nor a

deviant person but represents a society’s model personality.

Entrepreneurial Behavior
 Entrep 1 Reviewer

Theory of Systematic Innovation- Systematic innovation consists in the purposeful and

organized search for changes and in the systematic analysis of the opportunities such changes
might offer for economic or social innovation.

3. Entrepreneurship is considered a science. The statement is

A. True
B. False

Correct Answer: B. False

Entrepreneurship is an art and not a science. It is not governed by fixed and absolute rules,
whereas science is.

4. Which of the following is the correct statement about entrepreneurship and

intrapreneurship?
A. Entrepreneurship is a business of an individual while intrapreneurship is a business of a
group of individual.
B. Entrepreneurship requires small amount of capital while intrapreneurship requires a
large amount to start up the business.
C. Entrepreneurship is opened and managed by the same the person, the entrepreneur
himself. While intrapreneurship is when a person invested money on a business but
allows another person to manage it.
D. None of the above

Correct Answer: C. Entrepreneurship is opened and managed by the same the person, the
entrepreneur himself. While intrapreneurship is when a person invested money on a
business but allows another person to manage it.

Entrepreneurship Intrapreneurship

It must be self-owned in order to qualify as an Businesses that are being managed by

entrepreneurial endeavor. A business is others for the benefit of the owners do not fall
considered self-owned when the person within the sphere of entrepreneurship. Such
managing its daily activities is also its owner. businesses are operating under the concept
of intrapreneurship.

QUESTIONS 5-9 ARE FROM THE TOPIC “UNDERSTANDING ENTREPRENEURSHIP”

5. Aficionado is one of the leading brands of perfume in the Philippines. It is founded by Joel
Cruz. Mr. Tan, a fan of Aficionado Perfume also wants to sell Aficionado products so he
invested his time and money to have his own stall of Aficionado at the Mega Mall located at
their city. Mr. Tan is a
A. Founder or Pure Entrepreneurs

Entrepreneurial Behavior
 Entrep 1 Reviewer

B. Franchisee
C. Second-Generation owner of Family Business

Correct Answer: B. Franchisee

Classification on the Basis of Ownership

Founders or “Pure Second-generation Franchisees Owner-Managers

Entrepreneurs” operators of family-
owned businesses

-Founders of the -They are the -The franchisee has -When a person buys
business. They are individuals who have not conceptualized a business from the
the ones who inherited the the business but has founder and then
conceptualize a business from their invested his money invests his time and
business plan and fathers and and time in the resources in it, he is
then put in efforts to forefathers. business. called the owner-
make the plan a manager.
success.

6. Mr. Noble is the owner of Celba Philippines. He founded this company to promote the
Engineering industry of the Philippines by conducting Tech Fairs and at the same time it
offers employments to many Filipinos in the area of Engineering and Machineries.
A. Achiever
B. Induced Entrepreneur
C. Idea Generator

Correct Answer: B. Induced Entrepreneur

Classification on the Basis of Personality Traits and their Style of Running Business

The Achiever The Induced The Idea The Real The Real
Entrepreneur Generator Manager Achievers

-entrepreneurs -entrepreneurs -entrepreneurs -run the - full of life. They

who have who are induced who are highly business in a are looking for
personal desires by some creative people systematic the achievement
to excel; desire external factors who are always manner. They of not even their
to achieve to start a in search of analyze own goals but
something in life, business. It innovative ideas business also of people
the desire to could be for setting up situations, associated with
make a mark in supporting new business assess the themselves like
society, the government ventures. demands of employees,
desire to prove policies, future, both in suppliers and
their excellence. unemployment, terms of distributors.
family support, opportunities
facilitating and threats and

Entrepreneurial Behavior
 Entrep 1 Reviewer

institutional then take

support, etc. actions.

7. Ato Belen’s Farm and Nursery sells different fruits and vegetables harvested from his own
farm. He also sells 45 days-chicken. Ato Belen is a
A. Trading Entrepreneur
B. Service Entrepreneur
C. Agricultural Entrepreneur

Correct Answer: C. Agricultural Entrepreneur

Classification based on the Type of Business

Industrial Trading Corporate Agricultural

Entrepreneur Entrepreneur Entrepreneur Entrepreneur

an entrepreneur who one who undertakes a person who entrepreneurs who

is into manufacturing trading activities demonstrates his undertake business
of a product (buying and selling of innovative skill in related to agricultural
goods and services) organizing and activities like farm
and is not concerned managing a equipment, fertilizers
with the corporate and other inputs of
manufacturing of undertaking agriculture
products

8. Restaurant owners and hotel-resort owners fall under what type of entrepreneur?
A. Trading Entrepreneur
B. Service Entrepreneur
C. Corporate Entrepreneur

Correct Answer: B. Service Entrepreneur

Service entrepreneurs give services to clients.

9. Mr. San Diego saw the demand of face mask and face shield because of our current
situation in the pandemic. So he invested to sell the said items.
A. First generation entrepreneur
B. Modern Entrepreneur
C. Classical Entrepreneur

Correct Answer: B. Modern Entrepreneur

Entrepreneurial Behavior
 Entrep 1 Reviewer

Classification based on the Stages of Development

First Generation
Entrepreneur
-one who starts an industrial -one who undertakes
unit by means of an
innovative skill. He is
essentially an innovator
combining different
technologies to produce a
marketable product or
service.
Modern Entrepreneur
business to satisfy the
contemporary demands of
the market. They undertake
those ventures which suit the
current socio-cultural trends.
Classical Entrepreneur
-a stereo-type entrepreneur is
one whose aim is to
maximize the economic
returns at a level consistent
with the survival of the firm,
with or without element of
growth.

QUESTIONS 10-11 ARE FROM THE TOPIC “ENTREPRENEURIAL CHARACTER TRAITS,

SKILLS, AND COMPETENCIES”

10. Entrepreneurial Concepts plus principles, plus character traits, plus skills.
A. The overall entrepreneur
B. Entrepreneurial Skills
C. Entrepreneurial Competencies
D. Cognitive

Correct Answer: C. Entrepreneurial Competencies

The harmonious combination of entrepreneurial concepts and principles, entrepreneurial

character traits, and entrepreneurial skills define the entrepreneurial competency.

11. Sarah is an entrepreneur who went through a lot of downs in her business ventures. But she
still continues and believes that quitting and surrender is not an option. What entrepreneurial
character traits does Sarah have?
A. Opportunity Seeker
B. Committed
C. Persuasion and Network
D. Persistence

Correct Answer: D. Persistence

Entrepreneurial Character Traits

Achievement Cluster
A. Opportunity-seeker-
Sees and acts on new
business opportunities; and
Seizes unusual opportunities
to obtain financing,
equipment, land, work, space
or assistance
Planning Cluster Power Cluster
A. Goal-setter- The basic A. Persuasive and positive
concept of planning is setting networker- Successful
goals and objectives. Goals entrepreneurs are persuasive
and objectives are the and can easily influence and
guiding points that direct all win over to their side the
actions, efforts, and struggles other stakeholders in
of the entrepreneur. Although business such as customers,
goals and objectives may suppliers, and prospective

Entrepreneurial Behavior
 Entrep 1 Reviewer

B. Committed- A highly appear similar, goals are creditors.

committed entrepreneur
displays full commitment to
the work or endeavor that
he/she is undertaking.
He/she does not entertain
negativism or skepticism.
C. Persistent- Trails,
sacrifices, and failures
challenge the entrepreneur to
be persistent. The terms
“quit” and “surrender” are not
included in the vocabulary of
successful entrepreneurs.
They exhaust all possible
means to keep their business
afloat in the market. Being
humans, they may feel down
or discouraged at times, but
they keep on moving forward.
D. Risk-taker- The
entrepreneur weighs pros
and cons of a particular
business opportunity before
taking the risk. Though an
entrepreneur is an risk-taker,
he/she still takes all
precautionary measures
before engaging in a
particular business endeavor.
long-term while objectives
are short-term. B. Self-confident-
SMART Principle (Specific, Successful entrepreneurs are
Measurable, Achievable, known to have a high level of
Realistic, Time-bound) self-confidence. They project
a favorable image of
B. Information-seeker- Seek themselves which is founded
relevant information on target on respect and good deeds in
customers, supplier of raw the business community.
materials, and competitors;
C. Systematic in planning
and monitoring- Planning
simply refers to the setting of
goals and objectives.
Monitoring, on the other
hand, refers to the evaluation
of the activities and adopted
courses of actions whether
they are carried in
accordance with the plans.
Planning serves as the
preventive course of action,
while monitoring acts as the
corrective course of action.

E. Efficient and quality-

oriented- 1. Always performs
the required tasks in
accordance with existing
standards of excellence or
continuously improves on
his/her past performance and
2. Strive to do things better
and faster with minimal cost.

QUESTIONS 12-14 ARE FROM THE TOPICS” FORMS OF ENTREPRENEURIAL VENTURE

AND PROBLEM SOLVING STRATEGIES”

12. Abraham, Isaac, and Jacob decided to put up their Accounting Firm by contributing their
respective money, property, and industry respectively. The firm established is in the form of

Entrepreneurial Behavior
 Entrep 1 Reviewer

A. Sole Proprietorship
B. Partnership
C. Corporation
D. None of the above

Correct Answer: B. Partnership

Forms of Entrepreneurial Venture

Sole Proprietorship
This business organization has a single owner called the proprietor who generally is also the
manager. The owner receives all profits, absorbs all loses and is solely responsible for all debts
of the business.
Partnership
A partnership is a business owned and operated by two or more persons who bind themselves
to contribute money, property, or industry to a common fund, with the intention of dividing the
profits among themselves.
Corporation
A corporation is a business owned by its stockholders. It is an artificial being created by
operation of law, having the rights of succession and the powers, attributes and properties
expressly authorized by law or incident to its existence.

13. VM Inc. has 150 workers at its present operations. It was established in 2015 with the
capital of 50 million.
A. Micro Enterprises
B. Small Enterprises
C. Medium Enterprises
D. None of the above
Correct Answer: C. Medium Enterprises

Micro Enterprises are those with assets, before financing of P3 million or less and employ not
more than nine workers.
Small Enterprises are those with assets, before financing of above P3 million to P15 million
and employ 10 to 99 workers.
Medium Enterprises have assets, before financing of above P15 million to P100 million and
employ 100 to 199 workers.

14. They are causal diagrams to show the causes of a specific event. Its purpose is to allow
management to determine which issues have to be addressed in order to gain or avoid a
particular event.
A. SWOT Analysis

Entrepreneurial Behavior
 Entrep 1 Reviewer

B. Porter's Five Forces Analysis

C. Ishikawa Diagram
D. Blue Ocean Strategy
Correct Answer: C. Ishikawa Diagram
SWOT Analysis?
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to
evaluate a company's competitive position and to develop strategic planning. SWOT analysis
assesses internal and external factors, as well as current and future potential.

A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths
and weaknesses of an organization, its initiatives, or an industry. The organization needs to keep
the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on
real-life contexts. Companies should use it as a guide and not necessarily as a prescription.

Ishikawa Diagram
An Ishikawa diagram is a diagram that shows the causes of an event and is often used in
manufacturing and product development to outline the different steps in a process, demonstrate
where quality control issues might arise and determine which resources are required at specific
times.

Ishikawa diagrams are sometimes referred to as fish bone diagrams, herringbone diagrams,
cause-and-effect diagrams, or Fishikawa. They are causal diagrams created by Kaoru Ishikawa to
show the causes of a specific event. They resemble a fish skeleton, with the "ribs" representing
the causes of an event and the final outcome appearing at the head of the skeleton. The purpose
of the Ishikawa diagram is to allow management to determine which issues have to be addressed
in order to gain or avoid a particular event.

Michael Porter’s Five Forces Strategies

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape
every industry and helps determine an industry's weaknesses and strengths.
Porter's five forces are:
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products

Blue Ocean Strategy

How Blue Ocean Works
In an established industry, companies compete with each other for every piece of available
market share. The competition is often so intense that some firms cannot sustain themselves.
This type of industry describes a red ocean, representing a saturated market share bloodied by
competition. Blue oceans offer the opposite. Many firms choose to innovate or expand in the
hopes of finding a blue ocean market with uncontested competition. Blue ocean markets are also
of high interest to entrepreneurs.

Entrepreneurial Behavior