NEGROS COLLEGE

Tampocon II, Ayungon, Negros Oriental

Entrepreneurial Behavior and Competencies

Midterm Exam
Name: ____________________ Score: _______
I. TRUEor FALSE.Write TRUEif the statement is correct and write FALSE if the statement is wrong. Write
your answers on a separate sheet of paper. (20 points)

1. Planning is of great importance in all types of organization whether businessor non-business, private or public,
small or large.
2. Planning is pervasive / universal and it extends throughout the organization
3. The process of setting objectives and determining how to accomplish them is called planning.
4. Planning Bridges the gap between where the business is now and where it wants to be.
5. Planning should answer the questions “what” “who” “when” “where” and “how”.
6. The purpose of planning is to set the standards to facilitate control
7. An organization with FOCUS knows what it does best, what its customerswant and how to serve them.
8. Flexibility means ready and abletochange in responseto,oranticipation of,emergingproblems and opportunities.
9. One of the objectives of planning is to encourage innovation and creativity.
10. Strategic planning decides on the major goals and policies of allocation of resources to achieve the goals.
11. Operational planning decides the detailed use of resources for achieving the goals.
12. A procedureisadetailedsetofinstructions/systematic stepsforperforminga sequence of actions/handling
activities.
13. Rules are detailed and recorded instructions that a specific action can orcannot be performed in a given
situation.
14. A programmeisasequence of activitiesdirectedtowardstheachievement of certain objectives.
15. A budget is a statement of expected results expressed in quantitative terms.
16. Decision is selecting the best among alternative courses of action.
17. Decision-making like any other managerial process is goal oriented.
18. The decision making process concentrate on the problem at hand.
19. Issues that affects your decision making are perception issues, organizational issues, environmental issues
20. Certainty, which is a situation where a manager can make accurate decisionsbecause the outcome of every
alternative is known.

II. Essay. (20 points)

1. Differentiate strategic and operational planning.