VICENTE MADRIGAL INTEGRATED SCHOOL

Palangoy, Binangonan, Rizal

SENIOR HIGH SCHOOL DEPARTMENT
ENTREPRENEURSHIP
Diagnostic Examination

Name: Sec: Date: Total Score:

Multiple Choice
Direction: Choose the correct answer and the letter on the space before each number. Strictly no erasures.

1. What does SCM stand for?

a. Systematic Cost Management
b. Supply Chain Management
c. Supply Cost Management
d. System Care Model
2. What is MARKET VALIDATION?
a. It is a series of interviews of people in your target market.
b. Strategy of differentiating a product or service by focusing on the communal specification that are offered by the
competitors.
c.Technique of selling a product or service by focusing on the features of the product offered by the competitors.
d. Strategy of differentiating a product or service by concentrating on unique features that are not offered by
competitors.

3. Do you agree that market validation should always be done before introducing a product?
a. No, market validation should start after introducing the product for a better understanding of the target market will help
build a better, more focused product.
b. Yes, market validation should start before introducing a product to verify the market and identify the customers who are
willing to use the product.
c.Yes, market validation should start much earlier in the process for a better understanding of the target market will
help build a better, more focused product.
d. No, market validation should start after introducing the product to minimize the cost of validating the market and
focus on the production rather than market validation.

4. Which of the following is the correct design process sequence of 4M’s in operation?
a. Method → Materials → Manpower → Machine
b. Materials → Machine → Manpower → Method  c.
Method → Manpower → Machine → Materials
d. Machine → Materials → Manpower → Method

5. Which statement best describes MACHINE in the 4M’s of Operation?  a. Facts, information, or ideas for use in creating work.
b. A particular form of procedure for accomplishing or approaching something especially a systematic or established
one.
c.The number of people working or available for work service.
d. An apparatus using or applying mechanical power & having several parts, each with a definite function & together
performing a particular task.

6. What is a product description?

a. It is the marketing copy that explains what a product is and why it’s worth purchasing. b. It is
the financial description of the product that explains the usage of a product.
c. It is the financial copy of a product that explains the benefit of a product.

d. It is the marketing description that explain the advantages of purchasing a product.

7. What would happen if there is a good product description?
a.Customers will be supplied with details around the features and benefits of the product so they’re compelled to
buy.
b. Customers will identify easily the product that they want to buy to fulfill their wants.
c.Customers will be supplied of the nutritional facts and benefits of the product so that they will buy the product.
d. Customers will buy automatically the product as they read the product description.

8. Which of the following process comes after Manpower in 4M’s of operation? 

a. Materials
b. Machine
c. Measurement
d. Method
 10. In developing business model, what question would you ask for in developing the cost structure? a. Who do
you need to rely on?
b. Which key elements drive your costs?
c. Which activities do you need to perform well in your business?
d. Which assets are essential?

11. What is selection?

a. The process of generating a pool of qualified candidates for a particular job.
b. It is a common methods for gathering information include application forms and resume, biographical data, and
reference checking.
c.Selection occurs when applicants respond to question posed by a manager or some other organizational
representative.
d. The process of choosing qualified individuals who are available to fill the positions in organization.

12. What is business model?

a. Describes the rationale of how an organization create, delivers, and capture value. b.
Describes the importance of how organization creates and delivers their product. c.
Show the relationship between the manufacture/producer and buyer/consumer.
d. Illustrates the model in manufacturing the product.

13. What would happen if you created a business model canvass for your business?
a. Difficult to create new business model.
b. It gives you an idea to generate profit.
c. You can analyze and update your existing business model
. d. You can project your future revenues.
14. Cindy bought 50 pens for for Php 300.00. She then sold the pen for Php 10.00.How much would be her profit when she sold all of the 50
pens?
a. Php 100.00
b. Php 200.00
c. Php 500.00
d. Php 300.00
15.This refers to the amount added to the cost of a product to determine theselling price.
a. Revenue b. Cost c. Mark Up d. Mark Down
16. Aling Marta sells bibingka in her neighbourhood, every day she can sell 45 pieces of bibingka at 20 pesos each. How much is her daily
revenue?
a. 900.00 b. 450.00 c. 800.00 d. 1000.00

17. It is a planning tool that helps entrepreneur copes up with uncertainties in the future operation of the business.
a. Revenue b. Selling c. Benchmarking d. Forecasting

18. The selling price of an item or merchandise is computed by adding cost per unit and __?
a. revenue b. mark up c. discount d. number of Items
19. Mang Berting is a fruit vendor selling at the local public market. He gets his
mangoes from a supplier at 25 pesos per kilo and sells it at 45 per kilo to his customers. How much mark-up was Mang Berting adding to his
selling price?
a. 25.00 b. 30.00 c. 15.00 d. 20.00
20. Aling Elvie sells t-shirt at 175.00 pesos each. If each t-shirt costs 135.00 pesos, How much is the mark-up?
a. 30.00 b. 45.00 c. 40.00 d. 50.00
21. It is the result when sales exceed the cost to produce goods or render services.
a.Forecasting b. Selling c. Revenue d. Benchmarking
22. It is a tool that allows managers to make educated estimates on revenue and
costs of the business in order to cope up with uncertainties of the future.
a. Estimating b. Guessing c. Forecasting d. Benchmarking
23. This refers to goods and merchandise at the beginning of operation of business or accounting period.
a. Merchandise Inventory, end c. Expenses
b. Merchandise Inventory, beginning d. Freight-in
24. Mang Lito sold 5 pairs of slippers. Suppose Mang Lito purchased the 5 pairs of slippers at P 30.00 each and pays P120.00 freight.
Calculate how much is the cost of goods sold?
a. 220.00 b. 420. c. 270.00 d. 200.00
25.This refers to amount paid to transport goods or merchandise purchased from the supplier to the buyer.
a. Merchandise Inventory, end c. Expenses
b. Merchandise Inventory, beginning d. Freight-in
26.This refers to costs incurred through payment of utilities such as electricity and water.
a. Revenue c. Mark-up
b. Operating expenses d. Freight-in
 27. Which of the following best definition for profit?
a. Profit is the value remaining after a company’s expenses have been paid and can be found on an income statement.
b. Profit is the value that remains after the cost of sales, or cost of goods sold (COGS), has been deducted from sales
revenue.
c. Profit is the value that remains after all operating expenses have been deducted from revenue.
d. Profit is the amount of all the sales.

28. Merchandise or goods purchased are referred to as –

a. Purchases b. Costs c. Operating Expenses d. Loss
29. It is the result when cost to produce goods or render services is greater than the sales.
a. Selling b. Revenue c. Benchmarking d. Loss
30. Jean purchased 5 baskets for P 30.00 each. According to her calculation, P 10.00 shall be added to the cost as mark-up.
How much is the selling price of each basket?
a. 35.00 b. 40.00 c. 50.00 d. 60.00 Directions
31 . It suggest how raw materials will be transformed using the other factors in the
production.
a. Machine b. Material c. Manpower d. Method
32. It is not limited to muscular activities but also intellectual, creative abilities etc.
a. Capital b. Land and technology c. Labor d. Money
33. It is another term used to describe factor inputs because of its transforming properties.
a. Intermediate input b. Processors c. Productive input d. Transformers
34. The following are productive inputs EXCEPT for one.
a. Capital b. Land and technology c. Labor d. Money
35. The Kitchen Therapy bake cakes and pastries, and sugar is one of the must have in their grocery list. What does sugar
represents in their production of goods?
a. Machinery b. Raw material c. Decoration d. Finished product
36. Entrepreneurs can protect their product through .
a. Connivance b. Bribery c. Patent d. Black Propaganda
37. It is a process of appointing a third party manufacturer to do the manufacturing operations of the business.
a. Operation Planning b. Outsourcing c. Manufacturing d. Training
38. Cost, quality and availability should be considered in choosing .
a. Product b. Material c. Price d. Machine
39. It is the first version of the product.
a. Supply b. Imitation c. Sample d. Prototype
40. What is not a risk in outsourcing?
a. Saves you from buying expensive machines b. Runs out of supplies
c. Outsource company closes d. Produces sub-standard product

II.Write True if the statement is correct, while False if the statement is incorrect.

______41. When sales exceed the cost to produce goods its result is called forecasting.
______42. Mark-up refers to the amount added to the cost of a product to determine the selling price.
______43. Forecasting is a planning tool that helps entrepreneur copes up with uncertainties in its future operation.
______44. Costs incurred through payment of utilities such as water and electricity is called operating expenses.
______45. Mang Mario is a fruit vendor. Selling fruits is an example of a service concern business.
______46. The selling price of a product is calculated by adding its cost per unit and mark-up.
______47. Mark-up refers to the amount added to the cost of a product to determine the selling price.
______48. Merchandise or goods purchased are called Purchases.
______49. Aling Becky sells suman in her neighbourhood, every day she can sell 75 pieces of suman for 5.00 pesos each. Her
daily revenue is 325.00 pesos.
______50. Loss is a result when cost to produce goods is greater than the sale 2. The gross profit rate provides information on
the cost ratio of the business
______51. In evaluating the profitability of the entrepreneurial venture, the evaluation must focus on the information reflected
on the face of the balance sheet.
______52. The operating profit margin rate indicates information on the percentage of operating expenses on the net sales.
______53. Mr. Q is a practicing Doctor of Medicine. During the month of March 2019 he received Professional Fees amounting
to P 1,000,000 and total expenses of P250,000. The net income of Mr. Q is P750,000.
______54. Profit is the money received from customer in exchange of products given to customer.
______55. The gross profit rate of the entrepreneurial venture is computed by dividing the cost of goods sold by net sales.
______56. The gross profit rate provides information on the cost ratio of business.
______57. One of the objectives in evaluating the gross profit rate of the business is to determine whether the amount of the
gross profit is sufficient to cover the operating expenses.
______58. The operating profit margin rate indicates information on the percentage of operating expenses to net sales.
______59. The government is not interested in financial statements since it is not a party to any of the transactions of the
business.
______60. The net profit margin rate presents the general perspective of the operating performance of the business.
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