ENTREP PRELIM
  • 1. A tourism graduate notices that many visitors in her hometown struggle to find authentic local food experiences. She opens a small food tour business highlighting local cuisine. This situation BEST illustrates:
A) Employment substitution
B) Operational efficiency
C) Opportunity recognition as a core entrepreneurial function
D) Routine business management
  • 2. Which statement BEST explains the relationship between tourism and hospitality?
A) Tourism and hospitality operate independently
B) Tourism creates demand, while hospitality provides the services that meet that demand
C) Hospitality exists without tourism
D) Tourism is a subset of hospitality
  • 3. A rise in tourist arrivals leads to the opening of restaurants, homestays, and transport services. This demonstrates entrepreneurships:
A) Economic role in job creation and enterprise development
B) Focus on corporate monopolies
C) Dependence on government subsidies
D) Elimination of competition
  • 4. Tourism differs from hospitality primarily because tourism:
A) Focuses solely on food and accommodation services
B) Involves the movement of people outside their usual environment for temporary purposes
C) Refers only to leisure travel
D) Requires permanent relocation
  • 5. A family travels from Manila to Palawan for a five-day vacation and stays in a resort. In this situation, tourism refers to:
A) The resort employees' work
B) The act of traveling to Palawan for leisure
C) The restaurant meals consumed
D) The resort services provided
  • 6. Hospitality is BEST described as:
A) The promotion of tourist destinations
B) The provision of accommodation, food, and guest services that enhance visitor experience
C) The management of transportation systems
D) The act of traveling for leisure or business
  • 7. A community in Bukidnon develops farm-stay experiences that provide income to local families while preserving culture. This BEST illustrates:
A) Social entrepreneurship within tourism
B) Mass tourism development
C) Industrial tourism expansion
D) Corporate tourism outsourcing
  • 8. Which of the following is a major reason tourism and hospitality are ideal industries for entrepreneurs?
A) They are unaffected by external changes
B) They guarantee immediate profits
C) They are service-oriented industries that value creativity and innovation
D) They require no capital investment
  • 9. Which scenario BEST represents entrepreneurship in the tourism and hospitality industry?
A) A resort owner introducing eco-friendly lodging to attract sustainability-focused tourists
B) A tourist visiting a destination
C) A government office issuing tourism permits
D) A hotel employee following standard check-in procedures
  • 10. Entrepreneurship is BEST defined as a process that involves
A) Managing existing businesses with minimal risk
B) Maximizing profits without innovation
C) Following traditional employment structures
D) Identifying opportunities, organizing resources, and taking calculated risks to create value
  • 11. Which statement BEST defines creativity in entrepreneurship within tourism and hospitality?
A) The replication of successful tourism businesses in different locations
B) The ability to generate novel or improved solutions to enhance customer experiences
C) The act of inventing completely new products that never existed before
D) The use of artistic talent unrelated to business operations
  • 12. In entrepreneurship, opportunity recognition mainly involves:
A) Identifying problems or gaps that can be transformed into viable business ventures
B) Implementing ideas based on intuition alone
C) Developing creative skills without evaluating customer needs
  • 13. A hospitality entrepreneur notices the rise of wellness tourism and introduces yoga retreats in a coastal town. This opportunity was MOST LIKELY recognized through:
A) Observing industry trends and changing customer preferences
B) Copying existing hospitality services without modification
C) Random experimentation without market analysis
D) Reliance on traditional tourism practices
  • 14. A tourism entrepreneur uses customer complaints as the basis for developing a new service. This approach demonstrates:
A) Creative thinking without strategic direction
B) Risk avoidance through service elimination
C) Opportunity recognition derived from customer feedback
D) Innovation based purely on technology adoption
  • 15. A resort owner redesigns standard accommodations to include local cultural themes and eco-friendly features. This action primarily demonstrates:
A) Opportunity recognition driven by technological innovation alone
B) Risk avoidance through operational standardization
C) Market entry strategy based on competitor imitation
D) Creative application of existing services to add unique value
  • 16. Which situation BEST distinguishes an opportunity from a mere business idea?
A) A product created without considering feasibility or profit
B) A business concept based on the owner's personal preference
C) A business concept based on the owner's personal preference
D) A travel service designed to address a specific tourist problem with clear demand
  • 17. Which of the following BEST explains why creativity is essential in tourism and hospitality entrepreneurship?
A) Tourism businesses focus only on physical products
B) The industry relies heavily on delivering unique and memorable customer experiences
C) Customer expectations are fixed and predictable
D) Hospitality services remain unaffected by competition
  • 18. A student entrepreneur designs a community-based tour using local guides and traditions to attract visitors. This example BEST reflects:
A) The integration of creativity and opportunity recognition using local resources
B) Innovation limited to financial investment
C) Opportunity recognition without creative input
D) Business planning focused solely on cost reduction
  • 19. Which statement correctly explains the relationship between creativity and opportunity recognition?
A) Opportunity recognition limits creative thinking
B) Creativity replaces opportunity recognition in business planning
C) Creativity and opportunity recognition operate independently
D) Creativity designs solutions, while opportunity recognition identifies market needs
  • 20. A tourism entrepreneur fails because she launched a luxury package despite research results showing high price sensitivity among respondents. This situation indicates weakness in:
A) Selecting an appropriate business location
B) Designing the survey questionnaire format
C) Identifying potential tourism trends
D) Data interpretation and decision-making after analysis
  • 21. Which of the following BEST explains the main objective of market research in entrepreneurship?
A) To guarantee profit regardless of market conditions
B) To replace the need for strategic planning in business operations
C) To reduce uncertainty by collecting and analyzing relevant market information
D) To eliminate all forms of entrepreneurial risk permanently
  • 22. A proposed eco-lodge conducts interviews to understand tourists' sustainability expectations.
    The primary purpose of this qualitative method is to:
A) Replace quantitative data with financial estimates
B) Test competitor reactions to environmental practices
C) Increase promotional exposure through public interaction
D) Obtain in-depth insights to guide service development decisions
  • 23. An entrepreneur gathers survey responses from 200 backpackers to determine acceptable pricing for hostel accommodation. This stage of the research process is primarily concerned with:
A) Collecting primary data relevant to the research objective
B) Identifying macro-environmental business factors
C) Promoting services to potential respondents
D) Interpreting statistical findings for final decisions
  • 24. A well-structured market research proposal includes objectives, target respondents, methodology, and expected outcomes. Its primary function is to:
A) Eliminate the need for competitive analysis
B) Provide a systematic framework for validating a proposed business concept
C) Serve as a substitute for financial planning and budgeting
D) Guarantee investor approval without further evaluation
  • 25. Which step in the market research process ensures that the study has a clear focus and measurable direction?
A) Implementing marketing campaigns during data gathering
B) Formulating a specific research objective before collecting data
C) Adjusting operational plans without analyzing results
D) Finalizing pricing strategies prior to research
  • 26. A student entrepreneur plans to open a heritage tour service but decides to first determine whether domestic tourists are willing to pay premium rates. This action primarily demonstrates
A) Creative service design without examining market feasibility
B) The use of market research to validate pricing strategy before business implementation
C) Immediate business launch based on projected demand assumptions
D) Operational planning focused solely on cost management
  • 27. Why is market research particularly important in tourism and hospitality entrepreneurship?
A) Because customer preferences and travel patterns frequently change due to external influences
B) Because hospitality businesses operate independently of consumer trends
C) Because tourism markets remain constant across different seasons
D) Because operational efficiency alone determines success
  • 28. A hospitality startup collects tourist arrival data from the Department of Tourism to analyze seasonal demand patterns. This is an example of:
A) Primary research through direct customer interviews
B) Informal observation without structured analysis
C) Experimental research focused on service testing
D) Secondary research using existing industry data
  • 29. A software company studies customer willingness to pay and discovers that businesses perceive its cybersecurity service as critical to operations. The firm sets a price far above production cost because customers associate higher price with reliability and risk reduction. Which pricing approach is primarily used?
A) Competitive Pricing
B) Economy Pricing
C) Value-Based Pricing
D) Penetration Pricing
  • 30. A luxury watch company intentionally limits supply and maintains extremely high prices despite lower production costs. The company avoids discounts to preserve exclusivity and brand perception. What pricing logic best explains this decision?
A) Competitive Pricing
B) Economy Pricing
C) Prestige (Premium) Pricing
D) Cost-Plus Pricing
  • 31. A new fintech startup enters a market dominated by two large banks. It introduces zero transfer fees for the first 12 months, expecting to build a large customer base before gradually introducing service charges once switching costs increase. Which pricing strategy is primarily being applied?
A) Premium Pricing
B) Price Skimming
C) Penetration Pricing
D) Loss-leader Pricing
  • 32. An airline increases ticket prices during holidays and long weekends, while lowering fares during off-peak seasons to maximize seat occupancy. Which pricing strategy is most evident?
A) High-Low Pricing
B) Penetration Pricing
C) Dynamic Pricing
D) Skimming Pricing
  • 33. A ride-hailing platform introduces lower fares in a new city to quickly gain riders and drivers, even though it temporarily reduces profit margins. Once market share stabilizes, prices are adjusted upward. Which strategy does this reflect?
A) Penetration Pricing
B) Pristige Pricing
C) Bundle Pricing
D) High-Low Pricing
  • 34. A beverage company offers a "meal combo" consisting of a sandwich, fries, and a drink at a lower total price than buying each separately. The strategy increases average transaction value and reduces decision complexity. What pricing method is illustrated?
A) Bundle Pricing
B) Cost-Plus Pricing
C) Economy Pricing
D) Dynamic Pricing
  • 35. A smartphone brand launches three versions of the same model: standard, pro, and ultra. The "pro" version is strategically priced to appear as the best value relative to the other two, encouraging customers to choose it. What strategy is this an example of?
A) Psychological Pricing
B) Skimming Pricing
C) Geographic Pricing
D) Product-Line (Price Lining) Pricing
  • 36. A clothing retailer prices jackets at 1,999 instead of 2,000, believing customers perceive the lower figure as significantly cheaper. Despite minimal difference, sales volume increases. Which pricing principle is being applied?
A) Skimming Pricing
B) Cost-Oriented Pricing
C) Psychological Pricing
D) Geographic Pricing
  • 37. A global electronics company launches a highly innovative product at an extremely high introductory price, targeting tech enthusiasts. After competitors introduce alternatives, the company systematically lowers the price to reach mass-market consumers. Which strategy best describes this pattern
A) Loss-Leader Pricing
B) Promotional Pricing
C) Price skimming
D) Penetration Pricing
  • 38. A supermarket advertises rice at a significantly lower price than competitors, even below cost. Data shows customers who purchase the discounted rice also buy higher-margin goods like canned products and beverages. Which pricing strategy explains this tactic?
A) Loss-Leader Pricing
B) Value-Based Pricing
C) Cost-Plus Pricing
D) Premium Pricing
  • 39. Which BEST represents the social role of entrepreneurship in tourism?
A) Maximizing shareholder dividends
B) Increasing product differentiation
C) Enhancing local employment and community participation
D) Reducing taxation burdens
  • 40. An entrepreneur introduces a farm-stay program combining accommodation and agricultural immersion. This illustrates:
A) Creative recombination of existing services into unique experiences
B) Risk avoidance through traditional hospitality models
C) Pure replication of established tourism formats
D) Market entry without industry awareness
  • 41. Which BEST explains the importance of analyzing trends before launching tourism ventures?
A) Trends reveal evolving customer preferences and demand patterns
B) Trends replace financial planning
C) Trends eliminate competition
D) Trends guarantee immediate profitability
  • 42. Which BEST describes the relationship between market research and opportunity recognition?
A) Both operate independently
B) Market research confirms whether identified opportunities are viable in the target market
C) Opportunity recognition eliminates the need for research
D) Research replaces entrepreneurial creativity
  • 43. Entrepreneurial risk is best described as
A) Uncertainty accepted when pursuing opportunities with calculated analysis
B) Guaranteed financial loss
C) Equal to operational error
D) Avoidable through tradition
  • 44. An entrepreneur observes tourists struggling with transportation between attractions. Turning this into a shuttle service reflects
A) Recognition of operational inefficiency
B) Opportunity recognition derived from customer problems
C) Diversification without analysis
D) Brand positioning strategy
  • 45. Which scenario BEST shows entrepreneurial mindset in tourism?
A) Viewing seasonal tourist decline as a chance to design alternative packages
B) Avoiding risks to maintain financial safety
C) Waiting for government tourism programs before acting
D) Maintaining traditional services without innovation
  • 46. Which BEST reflects primary research in tourism entrepreneurship?
A) Observing seasonal occupancy trends from reports
B) Reviewing government tourism
C) Analyzing competitor brochures
D) Conducting structured interviews with potential tourists
  • 47. Which situation BEST reflects the economic role of entrepreneurship in tourism
A) Creating employment and stimulating local income circulation
B) Providing personal income to the business owner
C) Reducing operational inefficiencies in private firms
D) Increasing visitor experience through aesthetic improvements
  • 48. A tourism graduate opens a cafĂ© inside a heritage district after noticing tourists lack rest areas between walking tours. Which concept is primarily demonstrated?
A) Creative imitation of existing commercial establishments
B) Entrepreneurship focused on profit generation only
C) Opportunity recognition based on identifying unmet visitor needs
D) Business expansion through unrelated diversification
  • 49. The primary purpose of identifying a research objective before collecting data is to
A) Reduce research expenses
B) Accelerate promotional planning
C) Avoid statistical analysis
D) Provide clear direction and measurable focus for the study
  • 50. Which BEST represents data-driven entrepreneurship?
A) Copying competitors directly
B) Ignoring seasonal demand
C) Launching services based on personal intuition
D) Adjusting pricing after survey findings show high price sensitivity
  • 51. Which BEST differentiates an idea from a business opportunity?
A) An idea is always innovative
B) An opportunity has verified demand and feasibility potential
C) An idea guarantees profitability
D) An opportunity requires no research
  • 52. A poorly defined research objective often results in
A) Irrelevant or unfocused data collection outcomes
B) Accurate segmentation
C) Clear analytical conclusions
D) Reduced marketing costs
  • 53. A tourism business fails due to mismatch between service and target market. This indicates weakness in:
A) Financial accounting
B) Creative design
C) Market segmentation and research validation processes
D) Government compliance
  • 54. The process of analyzing collected survey responses primarily ensures
A) Increased promotional exposure
B) Elimination of operational risk
C) Faster product launch timelines
D) Interpretation of findings to guide strategic business decisions
  • 55. Which statement BEST distinguishes an entrepreneur from a manager?
A) A manager organizes operations, while an entrepreneur identifies and pursues opportunities under uncertainty
B) An entrepreneur supervises staff, while a manager avoids financial risk
C) A manager owns the firm, while the entrepreneur performs daily operations
D) Both roles are identical in tourism enterprises
  • 56. A hospitality student segments respondents by age and travel purpose before survey distribution.
    This primarily reflects:
A) Creative design of promotional materials
B) Organizational restructuring
C) Proper identification of a target market for accurate data collection
D) Financial forecasting strategy
  • 57. Which scenario demonstrates secondary research?
A) Observing tourists at attractions
B) Conducting focus group discussions
C) Interviewing hotel guests personally
D) Reviewing Department of Tourism arrival data for demand trends
  • 58. A resort owner redesigns packages after survey results show tourists prefer shorter stays. This action demonstrates:
A) Data-driven decision making aligned with market research findings
B) Creative intuition without analytical support
C) Cost-cutting independent of customer data
D) Random service modification
  • 59. Opportunity recognition differs from creativity because
A) Opportunity recognition replaces innovation entirely
B) Creativity produces ideas, while opportunity recognition evaluates market feasibility
C) Creativity guarantees demand automatically
D) Both terms mean identical processes
  • 60. A tour operator analyzes online reviews to identify recurring complaints. This is an example of
A) Direct field experimentation
B) Financial feasibility analysis
C) Promotional market testing
D) Secondary research utilizing documented customer feedback
  • 61. Which BEST summarizes Weeks 1-5 integration?
A) Profit generation alone ensures sustainability
B) Innovation is optional in hospitality
C) Successful tourism entrepreneurship combines mindset, creativity, opportunity recognition, and systematic market research
D) Market research is unnecessary for small firms
  • 62. Creativity in tourism most often involves:
A) Increasing fixed assets
B) Recombining existing services to produce unique customer experiences
C) Copying international models
D) Eliminating operational costs
  • 63. An entrepreneur who adapts services during off-peak season demonstrates
A) Operational stagnation
B) Cost minimization alone
C) Creative adjustment aligned with entrepreneurial mindset principles
D) Market withdrawal strategy
  • 64. A tourism entrepreneur launches a service solely because it is trendy without assessing demand. This shows lack of
A) Risk tolerance
B) Industry knowledge
C) Market research validation and feasibility assessment
D) Creative capacity
  • 65. Which BEST describes the relationship between market research and opportunity recognition?
A) Both operate independently
B) Opportunity recognition eliminates the need for research
C) Market research confirms whether identified opportunities are viable in the target market
D) Research replaces entrepreneurial creativity
  • 66. Add a fixed markup to the unit cost (materials + labor overhead) to set selling price. Simple and common for retailers, manufacturers, contractors
A) Penetration pricing
B) Price Skimming
C) Cost-plus pricing
D) Vue-based pricing
  • 67. Set price primarily based on competitors' prices rather than costs or value. Good in saturated markets.
A) Loss-leader pricing
B) Competitive pricing
C) Premium/pristige pricing
D) Penetration pricing
  • 68. Price based on the perceived value to the customer, not on cost. Works well for differentiated products/services
A) Value-based pricing
B) Product line pricing
C) Penetration pricing
D) Price Skimming
  • 69. Start with a low price to enter a market and gain market share, later raise prices. Often used with new products or new market entry.
A) Penetration pricing
B) Price Skimming
C) Dynamic pricing
D) High-low pricing
  • 70. Launch at a high price targeted at early adopters, then gradually lower price to access more price-sensitive segments.
A) Bundle / combo pricing
B) Premium/prestige pricing
C) Price Skimming
D) Psychological pricing
  • 71. Use price points that influence perception (e.g., P99.75 or 199.99) or "prestige" round numbers.
A) Cost plus pricing
B) Value-based pricing
C) Loss-leader pricing
D) Psychological pricing
  • 72. Sell several products together at a price lower than buying each separately (mixed or pure bundling).
A) High-low pricing
B) Dynamic pricing
C) Bundle/Combo pricing
D) Penetration pricing
  • 73. Set high price to signal high quality/status. Works for luxury goods or strong brands
A) Price Skimming
B) Premium/prestige pricing
C) Dynamic pricing
D) Economy pricing
  • 74. Lowest possible price with minimal marketing and service target price-sensitive customers
A) Price skimming
B) Economy pricing
C) Penetration pricing
D) Loss-leader pricing
  • 75. Price one product at or below cost to attract customers who then buy other higher-margin items (also used as an intro tactic).
A) Dynamic/surge pricing (real-time)
B) Loss-leader/promotional pricing
C) Value-based pricing
D) High-low (seasonal/promotional) pricing
  • 76. Set initial high price then frequently discount in promotions-common in fashion and electronics
A) Price skimming
B) Dynamic pricing
C) High-low pricing
D) Competitive pricing
  • 77. Price changes in real-time based on demand, inventory, customer profile, or time (airline fares, ride-hail surge pricing).
A) Product line pricing
B) Dynamic pricing
C) Promotional/discount & coupon pricing
D) Penetration pricing
  • 78. Offer a free basic version and charge for premium features; or charge recurring subscription fees for ongoing access.
A) Product line pricing
B) Freemium/trial/subscription models
C) Penetration pricing
D) Cost-plus pricing
  • 79. Offer multiple versions of a product at different price points to capture different segments (good/better/best).
A) Cost-plus pricing
B) Price Skimming
C) Product-line pricing / versioning (price lining
D) Value-based pricing
  • 80. Different prices for different locations due to costs, taxes, purchasing power, or competition.
A) Geographic/regional pricing
B) High-low pricing
C) Penetration pricing
D) Economy pricing
  • 81. Time-limited discounts, coupons, rebates to spur short-term demand or clear inventory.
A) Promotional/discount & coupon pricing
B) High-low (seasonal/promotional) pricing
C) Dynamic pricing
D) Competitive pricing
  • 82. Systematic collection and analysis of market information
A) Market research
B) Yes
C) Maybe
D) No
  • 83. Identifies customer needs and preferences
A) Cuetomer driven
B) Knowing customers
C) Market research
  • 84. Reduces business risk through informed decisions
A) Market research
B) Sales talking
C) Marketing
  • 85. Design Solution
A) Market research
B) Creativity
C) Opportunity Recognition
  • 86. Identifies problems
A) Opportunity recognition
B) Creativity
C) Customer driven
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