ENTREPRENEURSHIP

Summative test (Chapter 6-10)

I. True or False (2 pts)

1. The executive summary should contain the probable risk only
2. The 3 distinct phases of managing and controlling of the EDS are: Per-
operations, operations and post-operations.
3. A very good business plan limits what it can communicate about the enterprise
4. Business name reflects the company and its products and services
5. The input is composed of six M’s: manpower, machine, material, methods,
management and money.
6. The OWF must be very efficient in terms of time, measurement and utilization of
resources.
7. Operations management is responsible for production programming and service
or PPS.
8. Quality Control is the enterprise standards for running the entire operations of
the factory or service shop.

II. Identification (15 pts)

1. A type of investor that contributes expertise and experience for the business
2. Partners who are liable to all claims in the Partnership
3. Type of asset also called short-lived assets
4. Business ownership that is easiest to organize
5. Binding agreement or contract in forming a Corporation
6. Composed of 2 or more persons binding themselves to a contract to contribute
money, properties and expertise with the intention of dividing profits among
themselves.
7. A special form of corporation allowed by law usually in managing the affairs of
the church.
8. A type of corporation that limits the ownership of issued stocks at most for 20
persons.
9. Incorporate by at least 5 to 15 natural persons
10. A partner who is not personally liable for all obligations of the business beyond
his or her capital contribution.
11. What does BIR stands for?
12. It is the figment of the imagination of the accountant.
13. How do we compute for the percentage using the horizontal analysis?
14.

III. Matching type (10 pts)

A. 8 Rs of HR

1. Allows people to reinvent themselves

 2. Measures and evaluate performance with the organizational goals in mind
3. Assessing the potentials as their ability to contribute to the organization in
various functions and responsibilities
4. Advising, coaching and mentoring as three effective ways to evoke, coax the best
out of people
5. Need to have a harmonious and symbiotic relationship between the
organization and its people

B. 7 Functions of Finance
6. Finance person must master the art and science of managing people, managing
information, managing processes, managing systems, and managing policies.
7. Terms and conditions are negotiated, debated, and agreed upon with the
blessings of the Finance person.
8. Monitor the flow of funds and ensure that they keep on circulating.
9. Finance person may be put in charge of Treasury, Accounting, Management
Information Systems, Financial Planning, Comptrollership, and Budgeting.
10. Finance Person is in charge of collecting all corporate information and
generating all the numbers needed for translation into accounting entries,
financial reports, and management control and information systems.

IV. Enumeration
 What are the 5 units of enterprise that supports the operations function
 What are the 9 critical sub-processes of transformation process
 What are the 8 Rs of Human Resource function
 What are the 7 functions of Finance department

V. Analogy (5 pts)

VI. Odd one out (10 pts)

Cash
Marketable securities
Supplies
Equipment

Liquidity
Solvency
Accounts receivable
Profitability

Banks Payable
Notes Payable
Bank Loans
 Accounts receivable

Cost of Goods Sold

Operating expenses
Taxes
Retained earnings

Stockholder’s equity
Retained earnings
Capital
Supplier’s credit

VII. Computation
Cash 100,000
Marketable securities 20,000
Sales 1,000,000
Cost of goods sold 30,000
Capital 500,000
Accounts payable 80,000
Notes payable 70,000
Net Profit after Taxes 40,000

1. How many percent is the Return on Sales?

2. Compute for the Asset Turnover ratio.
3. How many percent is the Return on Equity?
4. Compute for the Quick ratio.
5. Compute for the Total Debt-to-Owner’s Equity ratio.

6. If the Cost of Goods sold is 100,000 and 200,000 in 2017 and 2018 respectively,
compute for the percent of growth using the horizontal analysis.

7. Using the vertical analysis, compute for the percentage of Net profit after taxes using
the following information.
Sales 130,000
Cost of Goods Sold 70,000
Net Profit after taxes 85,000

8. Using the vertical analysis,