Davao Wisdom Academy

F. Torres St., Davao City

Basic Education Department

Entrepreneurship
Senior High School Unit – Preliminary Examination

Name: _____________________________ Grade level & Section: _______________

I. Multiple Choice Test

Direction: Read the questions carefully and encircle the letter of the correct answer in the blank.

1. The following are tips for the entrepreneur on how to create an effective unique selling proposition to the
target customers, except ____?
a. Identify and rank the uniqueness of the product or services characteristic
b. Completeness of proportion
c. Keep it short and simple
d. Be very specific
2. What is the first step in conducting strategic marketing?
a. Estimate the market share
b. Estimate business funding.
c. Estimate the potential market
d. Estimate the customers who are probably dislike to buy your product
3. Which among the following is the result of identifying entrepreneurial opportunities?
a. Creation of entrepreneurial ideas c. Sources of opportunity
b. Opening of entrepreneurial venture d. Entrepreneurial process
4.What entrepreneurial idea will you recognize, if you consider the new discovery and advancement of
technology as source of opportunity?
a. Changes in the environment c. Technological discovery and advancement
b. Government’s thrust, programs, and policies d. People’s interest

For questions 5 and 6 refer to the following statements:

A. Preferences and tastes of the customers easily change.
B. The buyer has the potential for backward integration.
C. The cost of switching the supplier cost is minimal.
D. Product differentiation is highly noticeable.

5. Which are the factors of the substitute product that pose a great threat in the industry environment?
a. A, B, C, D b. A and D c. A and C d. B and C
6. Which are the factors that influence the buyer to have a less threats because of the bargaining power?
a. A only b. A and D c. A and C d. B and C
7. Which of these is true about marketing?
a. Marketing is concerned about the sales only
b. Marketing is used to promote the product and services
c. Marketing considers only the needs of the organization and not the society
d. Marketing is the activity, and processes for creating, communicating, delivering of goods and services
to the people.
8. Why must the marketers monitor the competitor's activities?
a. The competitor may destroy the organization
b. The competitor may threaten the monopoly position of the company
c. new offerings of a competitor may need alterations in one or more components of the company's
marketing mix
d. The competitor may be violating the law to gain an advantage
9. Mr. Cruz owns a sari-sari store in their street. His problem is the budgeting of his finances in the business.
What shall he do to solve this problem?
a. He needs to itemize, record and monitor his expenses c. Record his daily profit
b. He needs to have a business plan d. Apply new marketing strategy
10. In the entrepreneurial world, new ideas and opportunities are evolving. What is the ability to create new
things, invest in new enterprises and expand business?
a. Creativity b. Entrepreneurship c. Manufacturing d. Producing
11. Alvin observed that there is an opportunity for him to put up his own business since he has enough capital
and very much interested to the idea. Which of these factors must he possess so that he will not rely on the
services of the employees?
a. Markets b. Manpower c. Supply of resources d. Knowledge/Skills
12. Which one is not included in planning a business?
a. how and when to do it b. how to increase profits c. what to expect in the future d. what to do
13. Who among the following is the principal actor of the production?
a. Entrepreneur b. Customer c. Production manager d. Worker
14. Which of the following statement is INAPPROPRIATE in starting a business?
a. Study the concepts and principles of entrepreneurial skills.
b. Cope with failures of the business.
c. Undergo training on entrepreneurial skills.
d. Know what characteristics are needed to become an entrepreneur.
15. Which of the following characteristics possesses accountability for his/her actions I managing the
business?
a. Responsible b. Goal-Oriented c. Inquisitive d. Independent
16. Which of the following is not considered a common characteristic of an entrepreneur?
a. High Need of Achievement b. Self-confidence c. Willing to take the risk d. Focus
17 All but which of the following is considered to be a myth associated with entrepreneurship?
a. Successful entrepreneurs are born not made c. First venture is always successful.
b. Successful entrepreneurs must have a break-through innovation d. Faces extraordinary risks
18. Why are small businesses important to country’s economy?
a. They give an outlet for entrepreneurs
b. They can be innovators of new products
c. They can provide specialist support larger companies.
d. small businesses startups that keep the economy moving.
19. Which of the following is a personality factor that convinces his/her customer to buy his/her product?
a. Initiative b. Persuasion c. Self-confidence d. Self-critical
20. Which of the following best describes your ability to cope with uncertainty?
a. You use manual skills and knowledge in creating products and services.
b. You know how to handle unusual events that may happen in the business.
c. You concentrate on your work and is dictatorial in giving commands to employees.
d. You are concerned on how to separate the money for your business and obligations.
21. When a supervisor notifies employees that their performance is below standards and their jobs are in
jeopardy, what should be the action to take by the supervisor?
a. post the notice on the bulletin board. c. gives verbal notification only
b. email the employees. d. put the notice in writing
22. Which of the following is LEAST likely to influence the timing of new business births?
a. Government policies b. Profitability. c. Consumer expenditure d. Weather conditions.
23. Which one is not the function of an entrepreneur?
a. Turning ideas into action c. Generating employment
b. Shutting down the existing business d. Planning
24. Which of the following is not economic factors affecting entrepreneurial growth?
a. Capital b. Labor c. Raw material d. Custom
25. What do you call a step-by-step outline of how an entrepreneur or the owner of an enterprise expects to
turn ideas into reality?
a. Planning b. Business Plan c. Marketing d. Process
26. What entrepreneurial idea will you recognized, if you consider the new discovery and advancement of
technology as source of opportunity?
a. Changes in the environment c. Government’s thrust, programs, and policies
b. Technological discovery and advancement d. People’s interest
27. Which of the following is NOT a source of fund for Ms. burgos future business?
a. seek assistance from central bank of the Philippines
b. borrow money from friends and relatives
c. avail of the government program on financing micro-macro business
d. use part of her retirement benefit
28. Which is considered a vehicle for information target market about the enterprise and the products or
services?
a. Product b. Price c. Place d. Promotion

Why is it there a need to analyse the need

of target market?
a. To satisfy the wants and the needs of
the consumer.
b. To satisfy the luxurious life of
consumers.
c. To find additional burden to the life of
consumers.
d. To acquire additional assets for some
consumers
29. Which of the following attitudes Is not generally associated with successful entrepreneurship?
a. Competition and co-operation c. Desire to influence others
b. Innovation and product improvement d. desire to pull down other entrepreneurs
30. Which of the following sentence is inconsistent in the context of entrepreneur?
a. He is owner of the business c. He is risk taker
b. He operates production activities d. He searches out business opportunities

31. Why do businesses need a clear and specific objective?

a. To know everything about the business and its control.
b. To make the business be well-known.
c. To guide the business on what should be achieved and its main purpose.
d. To give hope and determination on pursuing the business
32. Which of the following is not part of identifying an opportunity?
a. observing trends. c. trying out alternative uses of existing products
b. solving a problem. d. finding gaps in the marketplace.
33. All but which of the following is considered to be a myth associated with entrepreneurship?
a. Successful entrepreneurs are born not made
b. First ventures are always successful
c. All entrepreneurs must willingly invest significant sums of money
d. Successful entrepreneurs must have a break-through invention
34. Which of the following is the reason why the purpose of the business should be clearly stated?
a. For the sake of customers who will detest your product.
b. For the sake of investors who do not mind the money they invested.
c. For the sake of financers critiquing the business
d. For the sake of customers who are fond of your business
35. Which of the following should a businessman consider in hiring his/her employees?
a. The employees should always contradict the decisions of their boss.
b. The employees should have a good character and competence.
c. The employees should be too confident to the point of ignoring other’s opinions.
d. The employees should be courteous to the customers only
36. Why is it there a need to analyze the need of target market?
a. To satisfy the wants and the needs of the consumer.
b. To satisfy the luxurious life of consumers.
c. To find additional burden to the life of consumers.
d. To acquire additional assets for some consumers
37. Which of the following sentence is not a characteristic of entrepreneurship:
a. Risk taking b. Innovation c. Creative activity d. Managerial training
38. Which among the following is the result of identifying entrepreneurial opportunities?
a. Creation of entrepreneurial ideas c. Sources of opportunity
b. Opening of entrepreneurial venture d. Entrepreneurial process
39.The price of prescription medicine is high, partly because when someone is sick there is no real alternative
to buying medicine. Which of Porter's Five Forces explains how this aspect of the prescription medicine
industry helps keep its profitability high?
Why is it there a need to analyse the need
of target market?
a. To satisfy the wants and the needs of
the consumer.
b. To satisfy the luxurious life of
consumers.
c. To find additional burden to the life of
consumers.
d. To acquire additional assets for some
consumers
a. Rivalry among existing firms c. Threat of new entrants
b. Threat of substitutes d. Bargaining power of buyers
40. Which of the following is the distinction between an "entrepreneur" and "small business owner", if made,
revolves around?
a. really nothing; they are truly one and the same
b. the Small Business Administration definitions
c. whether the business is an Internet based one or not
d. the risk taking or re-invention of a business vs. someone who "simply" starts a business or buys an
existing one
41. Which of the following is the BEST goal in motivating entrepreneurial activity?
a. to improve the social welfare of the people in terms of their health
b. to improve the wealth of the entrepreneurs
c. to maintain social publicity among customers
d. to sustain the operation of the business
42. In planning you have to know how much money or funds you have for your business plan. What will you
do?
a. establish your goals. b. study your market c. determine your capital d. analyze your managerial skill
43. How does an entrepreneur create value for his/her products or services?
a. by focusing on product packaging.
b. by satisfying the needs and wants of the customers.
c. by giving products and service for free to those who are in need.
d. by increasing the price of the product or service.
44. Which of the following best describe a hardworking entrepreneur?
a. Mr. Cruz always open his laundry on time
b. Mr. Santos computes the daily earnings in the business
c. Mr. Torres completes the delivery of the products to the customers everyday
d. Mr. Reyes extends hours before closing his computer shop

45. Alvin observed that there is an opportunity for him to put up his own business since he has enough capital
and very much interested to the idea. Which of these factors must he possess so that he will not rely on
the services of the employees?
a. Markets b. Manpower c. Knowledge/Skills d. Supply of resources
46. What is the benefit of business planning wherein the entrepreneur determines whether the business is
profitable or not?
a. minimize cost production c. detect the weakness of the business
b. eliminate business risk d. estimate sales
47.Management functions and principles play a very critical role in running a business. What principle of
planning specifies that the objectives of an entrepreneur should match the needs of the society?
a. must be realistic c. must focus on dealing with a crisis
b. must be based on felt needs d. must start with a simple project
48. Which of the following is a primary cause of failure in small business?
a. Poor financial control b. Poor location c. Management mistakes d. Improper inventory control
49. Why is it important to share the best techniques for performing a job task with your coworkers?
a. It builds good working relationships. c. Your coworkers will consider you an expert.
b. It will convince your boss to promote you d. It can reduce your work responsibilities.
50. Which of the following questions would Allison ask herself when deciding if she should hire an assistant for
her growing business?
a. Does this applicant meet my minimal educational requirements?
b. Does the workload require a full-time or part-time employee?
c. How will I recruit applicants for the job?
d. Can I trust this person to get the work done on time?

II. Essay (10 points)

Direction: Write at least 3 to 5 sentences to answer the question and you will be rated according to the rubric
below.
Ideas This paper is clear and focused. It holds the reader's attention. Relevant details and quotes
4 points enrich the central theme.

Organization The organization enhances and showcases the central idea or theme. The order, structure of
4 points information is compelling and moves the reader through the text.

The writer demonstrates a good grasp of standard writing conventions (e.g., spelling,
Conventions
punctuation, capitalization, grammar, usage, paragraphing) and uses conventions
2 points
effectively to enhance readability.

51-60 In your own understanding, explain the concept of the Entrepreneurial Process of Creating New Venture
Essentials in the Business? What should entrepreneurs do to develop their ideas before pursuing a venture?

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