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) Operational efficiency
B) Routine business management
C) Employment substitution
D) Opportunity recognition as a core entrepreneurial function
  • 2. Which statement BEST explains the relationship between tourism and hospitality?
A) Hospitality exists without tourism
B) Tourism creates demand, while hospitality provides the services that meet that demand
C) Tourism and hospitality operate independently
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) Dependence on government subsidies
B) Focus on corporate monopolies
C) Elimination of competition
D) Economic role in job creation and enterprise development
  • 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) Requires permanent relocation
D) Refers only to leisure travel
  • 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 resort services provided
C) The act of traveling to Palawan for leisure
D) The restaurant meals consumed
  • 6. Hospitality is BEST described as:
A) The act of traveling for leisure or business
B) The provision of accommodation, food, and guest services that enhance visitor experience
C) The promotion of tourist destinations
D) The management of transportation systems
  • 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) Corporate tourism outsourcing
C) Industrial tourism expansion
D) Mass tourism development
  • 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 are service-oriented industries that value creativity and innovation
C) They require no capital investment
D) They guarantee immediate profits
  • 9. Which scenario BEST represents entrepreneurship in the tourism and hospitality industry?
A) A government office issuing tourism permits
B) A hotel employee following standard check-in procedures
C) A resort owner introducing eco-friendly lodging to attract sustainability-focused tourists
D) A tourist visiting a destination
  • 10. Entrepreneurship is BEST defined as a process that involves
A) Maximizing profits without innovation
B) Managing existing businesses with minimal risk
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 act of inventing completely new products that never existed before
B) The ability to generate novel or improved solutions to enhance customer experiences
C) The use of artistic talent unrelated to business operations
D) The replication of successful tourism businesses in different locations
  • 12. In entrepreneurship, opportunity recognition mainly involves:
A) Developing creative skills without evaluating customer needs
B) Identifying problems or gaps that can be transformed into viable business ventures
C) Implementing ideas based on intuition alone
  • 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) Random experimentation without market analysis
C) Copying existing hospitality services without modification
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) Creative application of existing services to add unique value
C) Risk avoidance through operational standardization
D) Market entry strategy based on competitor imitation
  • 16. Which situation BEST distinguishes an opportunity from a mere business idea?
A) A travel service designed to address a specific tourist problem with clear demand
B) A business concept based on the owner's personal preference
C) A business concept based on the owner's personal preference
D) A product created without considering feasibility or profit
  • 17. Which of the following BEST explains why creativity is essential in tourism and hospitality entrepreneurship?
A) Customer expectations are fixed and predictable
B) Hospitality services remain unaffected by competition
C) Tourism businesses focus only on physical products
D) The industry relies heavily on delivering unique and memorable customer experiences
  • 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) Business planning focused solely on cost reduction
C) Innovation limited to financial investment
D) Opportunity recognition without creative input
  • 19. Which statement correctly explains the relationship between creativity and opportunity recognition?
A) Opportunity recognition limits creative thinking
B) Creativity designs solutions, while opportunity recognition identifies market needs
C) Creativity replaces opportunity recognition in business planning
D) Creativity and opportunity recognition operate independently
  • 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) Data interpretation and decision-making after analysis
B) Designing the survey questionnaire format
C) Selecting an appropriate business location
D) Identifying potential tourism trends
  • 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 eliminate all forms of entrepreneurial risk permanently
D) To reduce uncertainty by collecting and analyzing relevant market information
  • 22. A proposed eco-lodge conducts interviews to understand tourists' sustainability expectations.
    The primary purpose of this qualitative method is to:
A) Increase promotional exposure through public interaction
B) Test competitor reactions to environmental practices
C) Obtain in-depth insights to guide service development decisions
D) Replace quantitative data with financial estimates
  • 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) Identifying macro-environmental business factors
B) Promoting services to potential respondents
C) Interpreting statistical findings for final decisions
D) Collecting primary data relevant to the research objective
  • 24. A well-structured market research proposal includes objectives, target respondents, methodology, and expected outcomes. Its primary function is to:
A) Serve as a substitute for financial planning and budgeting
B) Eliminate the need for competitive analysis
C) Provide a systematic framework for validating a proposed business concept
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) Adjusting operational plans without analyzing results
B) Finalizing pricing strategies prior to research
C) Formulating a specific research objective before collecting data
D) Implementing marketing campaigns during data gathering
  • 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) The use of market research to validate pricing strategy before business implementation
B) Immediate business launch based on projected demand assumptions
C) Creative service design without examining market feasibility
D) Operational planning focused solely on cost management
  • 27. Why is market research particularly important in tourism and hospitality entrepreneurship?
A) Because operational efficiency alone determines success
B) Because tourism markets remain constant across different seasons
C) Because hospitality businesses operate independently of consumer trends
D) Because customer preferences and travel patterns frequently change due to external influences
  • 28. A hospitality startup collects tourist arrival data from the Department of Tourism to analyze seasonal demand patterns. This is an example of:
A) Informal observation without structured analysis
B) Primary research through direct customer interviews
C) Secondary research using existing industry data
D) Experimental research focused on service testing
  • 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) Penetration Pricing
B) Economy Pricing
C) Value-Based Pricing
D) Competitive 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) Cost-Plus Pricing
B) Competitive Pricing
C) Prestige (Premium) Pricing
D) Economy 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) Loss-leader Pricing
C) Penetration Pricing
D) Price Skimming
  • 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) Skimming Pricing
C) Dynamic Pricing
D) Penetration 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) High-Low Pricing
B) Penetration Pricing
C) Pristige Pricing
D) Bundle 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) Economy Pricing
B) Cost-Plus Pricing
C) Bundle 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) Skimming Pricing
B) Geographic Pricing
C) Psychological 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) Cost-Oriented Pricing
B) Psychological Pricing
C) Skimming 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) Promotional Pricing
B) Loss-Leader Pricing
C) Penetration Pricing
D) Price skimming
  • 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) Cost-Plus Pricing
B) Loss-Leader Pricing
C) Value-Based Pricing
D) Premium Pricing
  • 39. Which BEST represents the social role of entrepreneurship in tourism?
A) Reducing taxation burdens
B) Enhancing local employment and community participation
C) Increasing product differentiation
D) Maximizing shareholder dividends
  • 40. An entrepreneur introduces a farm-stay program combining accommodation and agricultural immersion. This illustrates:
A) Market entry without industry awareness
B) Risk avoidance through traditional hospitality models
C) Pure replication of established tourism formats
D) Creative recombination of existing services into unique experiences
  • 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 guarantee immediate profitability
D) Trends eliminate competition
  • 42. Which BEST describes the relationship between market research and opportunity recognition?
A) Research replaces entrepreneurial creativity
B) Both operate independently
C) Market research confirms whether identified opportunities are viable in the target market
D) Opportunity recognition eliminates the need for research
  • 43. Entrepreneurial risk is best described as
A) Uncertainty accepted when pursuing opportunities with calculated analysis
B) Equal to operational error
C) Guaranteed financial loss
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) Maintaining traditional services without innovation
C) Avoiding risks to maintain financial safety
D) Waiting for government tourism programs before acting
  • 46. Which BEST reflects primary research in tourism entrepreneurship?
A) Observing seasonal occupancy trends from reports
B) Analyzing competitor brochures
C) Reviewing government tourism
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) Increasing visitor experience through aesthetic improvements
C) Providing personal income to the business owner
D) Reducing operational inefficiencies in private firms
  • 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) Entrepreneurship focused on profit generation only
B) Opportunity recognition based on identifying unmet visitor needs
C) Business expansion through unrelated diversification
D) Creative imitation of existing commercial establishments
  • 49. The primary purpose of identifying a research objective before collecting data is to
A) Provide clear direction and measurable focus for the study
B) Avoid statistical analysis
C) Accelerate promotional planning
D) Reduce research expenses
  • 50. Which BEST represents data-driven entrepreneurship?
A) Copying competitors directly
B) Launching services based on personal intuition
C) Ignoring seasonal demand
D) Adjusting pricing after survey findings show high price sensitivity
  • 51. Which BEST differentiates an idea from a business opportunity?
A) An opportunity requires no research
B) An idea is always innovative
C) An idea guarantees profitability
D) An opportunity has verified demand and feasibility potential
  • 52. A poorly defined research objective often results in
A) Clear analytical conclusions
B) Accurate segmentation
C) Reduced marketing costs
D) Irrelevant or unfocused data collection outcomes
  • 53. A tourism business fails due to mismatch between service and target market. This indicates weakness in:
A) Government compliance
B) Market segmentation and research validation processes
C) Creative design
D) Financial accounting
  • 54. The process of analyzing collected survey responses primarily ensures
A) Elimination of operational risk
B) Faster product launch timelines
C) Interpretation of findings to guide strategic business decisions
D) Increased promotional exposure
  • 55. Which statement BEST distinguishes an entrepreneur from a manager?
A) Both roles are identical in tourism enterprises
B) A manager owns the firm, while the entrepreneur performs daily operations
C) An entrepreneur supervises staff, while a manager avoids financial risk
D) A manager organizes operations, while an entrepreneur identifies and pursues opportunities under uncertainty
  • 56. A hospitality student segments respondents by age and travel purpose before survey distribution.
    This primarily reflects:
A) Proper identification of a target market for accurate data collection
B) Financial forecasting strategy
C) Organizational restructuring
D) Creative design of promotional materials
  • 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) Random service modification
B) Creative intuition without analytical support
C) Cost-cutting independent of customer data
D) Data-driven decision making aligned with market research findings
  • 59. Opportunity recognition differs from creativity because
A) Opportunity recognition replaces innovation entirely
B) Both terms mean identical processes
C) Creativity produces ideas, while opportunity recognition evaluates market feasibility
D) Creativity guarantees demand automatically
  • 60. A tour operator analyzes online reviews to identify recurring complaints. This is an example of
A) Direct field experimentation
B) Secondary research utilizing documented customer feedback
C) Promotional market testing
D) Financial feasibility analysis
  • 61. Which BEST summarizes Weeks 1-5 integration?
A) Market research is unnecessary for small firms
B) Successful tourism entrepreneurship combines mindset, creativity, opportunity recognition, and systematic market research
C) Profit generation alone ensures sustainability
D) Innovation is optional in hospitality
  • 62. Creativity in tourism most often involves:
A) Copying international models
B) Recombining existing services to produce unique customer experiences
C) Eliminating operational costs
D) Increasing fixed assets
  • 63. An entrepreneur who adapts services during off-peak season demonstrates
A) Operational stagnation
B) Market withdrawal strategy
C) Creative adjustment aligned with entrepreneurial mindset principles
D) Cost minimization alone
  • 64. A tourism entrepreneur launches a service solely because it is trendy without assessing demand. This shows lack of
A) Creative capacity
B) Risk tolerance
C) Market research validation and feasibility assessment
D) Industry knowledge
  • 65. Which BEST describes the relationship between market research and opportunity recognition?
A) Research replaces entrepreneurial creativity
B) Opportunity recognition eliminates the need for research
C) Market research confirms whether identified opportunities are viable in the target market
D) Both operate independently
  • 66. Add a fixed markup to the unit cost (materials + labor overhead) to set selling price. Simple and common for retailers, manufacturers, contractors
A) Price Skimming
B) Vue-based pricing
C) Penetration pricing
D) Cost-plus pricing
  • 67. Set price primarily based on competitors' prices rather than costs or value. Good in saturated markets.
A) Competitive pricing
B) Loss-leader pricing
C) Penetration pricing
D) Premium/pristige pricing
  • 68. Price based on the perceived value to the customer, not on cost. Works well for differentiated products/services
A) Product line pricing
B) Value-based 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) Price Skimming
B) Dynamic pricing
C) High-low pricing
D) Penetration pricing
  • 70. Launch at a high price targeted at early adopters, then gradually lower price to access more price-sensitive segments.
A) Premium/prestige pricing
B) Psychological pricing
C) Bundle / combo pricing
D) Price Skimming
  • 71. Use price points that influence perception (e.g., P99.75 or 199.99) or "prestige" round numbers.
A) Loss-leader pricing
B) Value-based pricing
C) Psychological pricing
D) Cost plus 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) Penetration pricing
D) Bundle/Combo pricing
  • 73. Set high price to signal high quality/status. Works for luxury goods or strong brands
A) Dynamic pricing
B) Premium/prestige pricing
C) Economy pricing
D) Price Skimming
  • 74. Lowest possible price with minimal marketing and service target price-sensitive customers
A) Penetration pricing
B) Economy pricing
C) Loss-leader pricing
D) Price skimming
  • 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) Value-based pricing
B) High-low (seasonal/promotional) pricing
C) Dynamic/surge pricing (real-time)
D) Loss-leader/promotional pricing
  • 76. Set initial high price then frequently discount in promotions-common in fashion and electronics
A) Competitive pricing
B) Price skimming
C) High-low pricing
D) Dynamic pricing
  • 77. Price changes in real-time based on demand, inventory, customer profile, or time (airline fares, ride-hail surge pricing).
A) Penetration pricing
B) Dynamic pricing
C) Product line pricing
D) Promotional/discount & coupon pricing
  • 78. Offer a free basic version and charge for premium features; or charge recurring subscription fees for ongoing access.
A) Freemium/trial/subscription models
B) Penetration pricing
C) Product line pricing
D) Cost-plus pricing
  • 79. Offer multiple versions of a product at different price points to capture different segments (good/better/best).
A) Value-based pricing
B) Product-line pricing / versioning (price lining
C) Price Skimming
D) Cost-plus pricing
  • 80. Different prices for different locations due to costs, taxes, purchasing power, or competition.
A) Penetration pricing
B) Economy pricing
C) Geographic/regional pricing
D) High-low pricing
  • 81. Time-limited discounts, coupons, rebates to spur short-term demand or clear inventory.
A) Promotional/discount & coupon pricing
B) Competitive pricing
C) Dynamic pricing
D) High-low (seasonal/promotional) pricing
  • 82. Systematic collection and analysis of market information
A) Maybe
B) Yes
C) No
D) Market research
  • 83. Identifies customer needs and preferences
A) Cuetomer driven
B) Market research
C) Knowing customers
  • 84. Reduces business risk through informed decisions
A) Market research
B) Sales talking
C) Marketing
  • 85. Design Solution
A) Creativity
B) Opportunity Recognition
C) Market research
  • 86. Identifies problems
A) Opportunity recognition
B) Customer driven
C) Creativity
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