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) Employment substitution
C) Opportunity recognition as a core entrepreneurial function
D) Routine business management
  • 2. Which statement BEST explains the relationship between tourism and hospitality?
A) Hospitality exists without tourism
B) Tourism is a subset of hospitality
C) Tourism creates demand, while hospitality provides the services that meet that demand
D) Tourism and hospitality operate independently
  • 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) Elimination of competition
D) Dependence on government subsidies
  • 4. Tourism differs from hospitality primarily because tourism:
A) Involves the movement of people outside their usual environment for temporary purposes
B) Focuses solely on food and accommodation services
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 act of traveling to Palawan for leisure
B) The resort employees' work
C) The resort services provided
D) The restaurant meals consumed
  • 6. Hospitality is BEST described as:
A) The act of traveling for leisure or business
B) The management of transportation systems
C) The provision of accommodation, food, and guest services that enhance visitor experience
D) The promotion of tourist destinations
  • 7. A community in Bukidnon develops farm-stay experiences that provide income to local families while preserving culture. This BEST illustrates:
A) Corporate tourism outsourcing
B) Industrial tourism expansion
C) Social entrepreneurship within tourism
D) Mass tourism development
  • 8. Which of the following is a major reason tourism and hospitality are ideal industries for entrepreneurs?
A) They guarantee immediate profits
B) They require no capital investment
C) They are unaffected by external changes
D) They are service-oriented industries that value creativity and innovation
  • 9. Which scenario BEST represents entrepreneurship in the tourism and hospitality industry?
A) A tourist visiting a destination
B) A resort owner introducing eco-friendly lodging to attract sustainability-focused tourists
C) A hotel employee following standard check-in procedures
D) A government office issuing tourism permits
  • 10. Entrepreneurship is BEST defined as a process that involves
A) Managing existing businesses with minimal risk
B) Following traditional employment structures
C) Maximizing profits without innovation
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 replication of successful tourism businesses in different locations
D) The use of artistic talent unrelated to business operations
  • 12. In entrepreneurship, opportunity recognition mainly involves:
A) Implementing ideas based on intuition alone
B) Developing creative skills without evaluating customer needs
C) Identifying problems or gaps that can be transformed into viable business ventures
  • 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) Random experimentation without market analysis
B) Copying existing hospitality services without modification
C) Observing industry trends and changing customer preferences
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) Innovation based purely on technology adoption
B) Opportunity recognition derived from customer feedback
C) Risk avoidance through service elimination
D) Creative thinking without strategic direction
  • 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) Creative application of existing services to add unique value
D) Market entry strategy based on competitor imitation
  • 16. Which situation BEST distinguishes an opportunity from a mere business idea?
A) A business concept based on the owner's personal preference
B) A travel service designed to address a specific tourist problem with clear demand
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) Tourism businesses focus only on physical products
C) Hospitality services remain unaffected by competition
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) Opportunity recognition without creative input
C) Business planning focused solely on cost reduction
D) Innovation limited to financial investment
  • 19. Which statement correctly explains the relationship between creativity and opportunity recognition?
A) Creativity replaces opportunity recognition in business planning
B) Creativity designs solutions, while opportunity recognition identifies market needs
C) Creativity and opportunity recognition operate independently
D) Opportunity recognition limits creative thinking
  • 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) Identifying potential tourism trends
B) Selecting an appropriate business location
C) Data interpretation and decision-making after analysis
D) Designing the survey questionnaire format
  • 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 reduce uncertainty by collecting and analyzing relevant market information
C) To eliminate all forms of entrepreneurial risk permanently
D) To replace the need for strategic planning in business operations
  • 22. A proposed eco-lodge conducts interviews to understand tourists' sustainability expectations.
    The primary purpose of this qualitative method is to:
A) Test competitor reactions to environmental practices
B) Increase promotional exposure through public interaction
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) Collecting primary data relevant to the research objective
B) Promoting services to potential respondents
C) Identifying macro-environmental business factors
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) Guarantee investor approval without further evaluation
D) Serve as a substitute for financial planning and budgeting
  • 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) Adjusting operational plans without analyzing results
C) Finalizing pricing strategies prior to research
D) Formulating a specific research objective before collecting data
  • 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) Immediate business launch based on projected demand assumptions
B) Operational planning focused solely on cost management
C) Creative service design without examining market feasibility
D) The use of market research to validate pricing strategy before business implementation
  • 27. Why is market research particularly important in tourism and hospitality entrepreneurship?
A) Because tourism markets remain constant across different seasons
B) Because customer preferences and travel patterns frequently change due to external influences
C) Because operational efficiency alone determines success
D) Because hospitality businesses operate independently of consumer trends
  • 28. A hospitality startup collects tourist arrival data from the Department of Tourism to analyze seasonal demand patterns. This is an example of:
A) Secondary research using existing industry data
B) Experimental research focused on service testing
C) Informal observation without structured analysis
D) Primary research through direct customer interviews
  • 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) Competitive Pricing
D) Value-Based 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) Penetration Pricing
B) Loss-leader Pricing
C) Price Skimming
D) Premium 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) Penetration Pricing
B) Dynamic Pricing
C) High-Low 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) Bundle Pricing
B) Penetration Pricing
C) Pristige 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) Economy Pricing
B) Bundle Pricing
C) Dynamic Pricing
D) Cost-Plus 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) Geographic Pricing
C) Product-Line (Price Lining) Pricing
D) Skimming 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) Geographic Pricing
C) Cost-Oriented Pricing
D) Psychological 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) Price skimming
B) Penetration Pricing
C) Promotional Pricing
D) Loss-Leader 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) Value-Based Pricing
B) Loss-Leader Pricing
C) Cost-Plus 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) Maximizing shareholder dividends
D) Increasing product differentiation
  • 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) Market entry without industry awareness
D) Pure replication of established tourism formats
  • 41. Which BEST explains the importance of analyzing trends before launching tourism ventures?
A) Trends eliminate competition
B) Trends replace financial planning
C) Trends reveal evolving customer preferences and demand patterns
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) Research replaces entrepreneurial creativity
D) Opportunity recognition eliminates the need for research
  • 43. Entrepreneurial risk is best described as
A) Avoidable through tradition
B) Uncertainty accepted when pursuing opportunities with calculated analysis
C) Guaranteed financial loss
D) Equal to operational error
  • 44. An entrepreneur observes tourists struggling with transportation between attractions. Turning this into a shuttle service reflects
A) Recognition of operational inefficiency
B) Brand positioning strategy
C) Diversification without analysis
D) Opportunity recognition derived from customer problems
  • 45. Which scenario BEST shows entrepreneurial mindset in tourism?
A) Waiting for government tourism programs before acting
B) Maintaining traditional services without innovation
C) Viewing seasonal tourist decline as a chance to design alternative packages
D) Avoiding risks to maintain financial safety
  • 46. Which BEST reflects primary research in tourism entrepreneurship?
A) Conducting structured interviews with potential tourists
B) Analyzing competitor brochures
C) Observing seasonal occupancy trends from reports
D) Reviewing government tourism
  • 47. Which situation BEST reflects the economic role of entrepreneurship in tourism
A) Creating employment and stimulating local income circulation
B) Reducing operational inefficiencies in private firms
C) Increasing visitor experience through aesthetic improvements
D) Providing personal income to the business owner
  • 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) Business expansion through unrelated diversification
C) Entrepreneurship focused on profit generation only
D) Opportunity recognition based on identifying unmet visitor needs
  • 49. The primary purpose of identifying a research objective before collecting data is to
A) Accelerate promotional planning
B) Reduce research expenses
C) Provide clear direction and measurable focus for the study
D) Avoid statistical analysis
  • 50. Which BEST represents data-driven entrepreneurship?
A) Ignoring seasonal demand
B) Launching services based on personal intuition
C) Adjusting pricing after survey findings show high price sensitivity
D) Copying competitors directly
  • 51. Which BEST differentiates an idea from a business opportunity?
A) An opportunity has verified demand and feasibility potential
B) An idea guarantees profitability
C) An idea is always innovative
D) An opportunity requires no research
  • 52. A poorly defined research objective often results in
A) Reduced marketing costs
B) Irrelevant or unfocused data collection outcomes
C) Accurate segmentation
D) Clear analytical conclusions
  • 53. A tourism business fails due to mismatch between service and target market. This indicates weakness in:
A) Market segmentation and research validation processes
B) Financial accounting
C) Government compliance
D) Creative design
  • 54. The process of analyzing collected survey responses primarily ensures
A) Increased promotional exposure
B) Faster product launch timelines
C) Elimination of operational risk
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) A manager owns the firm, while the entrepreneur performs daily operations
C) Both roles are identical in tourism enterprises
D) An entrepreneur supervises staff, while a manager avoids financial risk
  • 56. A hospitality student segments respondents by age and travel purpose before survey distribution.
    This primarily reflects:
A) Financial forecasting strategy
B) Proper identification of a target market for accurate data collection
C) Creative design of promotional materials
D) Organizational restructuring
  • 57. Which scenario demonstrates secondary research?
A) Observing tourists at attractions
B) Reviewing Department of Tourism arrival data for demand trends
C) Interviewing hotel guests personally
D) Conducting focus group discussions
  • 58. A resort owner redesigns packages after survey results show tourists prefer shorter stays. This action demonstrates:
A) Creative intuition without analytical support
B) Cost-cutting independent of customer data
C) Random service modification
D) Data-driven decision making aligned with market research findings
  • 59. Opportunity recognition differs from creativity because
A) Both terms mean identical processes
B) Creativity produces ideas, while opportunity recognition evaluates market feasibility
C) Opportunity recognition replaces innovation entirely
D) Creativity guarantees demand automatically
  • 60. A tour operator analyzes online reviews to identify recurring complaints. This is an example of
A) Secondary research utilizing documented customer feedback
B) Financial feasibility analysis
C) Direct field experimentation
D) Promotional market testing
  • 61. Which BEST summarizes Weeks 1-5 integration?
A) Innovation is optional in hospitality
B) Market research is unnecessary for small firms
C) Profit generation alone ensures sustainability
D) Successful tourism entrepreneurship combines mindset, creativity, opportunity recognition, and systematic market research
  • 62. Creativity in tourism most often involves:
A) Eliminating operational costs
B) Copying international models
C) Increasing fixed assets
D) Recombining existing services to produce unique customer experiences
  • 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) Market research validation and feasibility assessment
B) Industry knowledge
C) Creative capacity
D) Risk tolerance
  • 65. Which BEST describes the relationship between market research and opportunity recognition?
A) Market research confirms whether identified opportunities are viable in the target market
B) Opportunity recognition eliminates the need for research
C) Both operate independently
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) Vue-based pricing
B) Penetration pricing
C) Cost-plus pricing
D) Price Skimming
  • 67. Set price primarily based on competitors' prices rather than costs or value. Good in saturated markets.
A) Penetration pricing
B) Loss-leader pricing
C) Premium/pristige pricing
D) Competitive pricing
  • 68. Price based on the perceived value to the customer, not on cost. Works well for differentiated products/services
A) Price Skimming
B) Value-based pricing
C) Penetration pricing
D) Product line pricing
  • 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) High-low pricing
B) Dynamic pricing
C) Penetration pricing
D) Price Skimming
  • 70. Launch at a high price targeted at early adopters, then gradually lower price to access more price-sensitive segments.
A) Price Skimming
B) Psychological pricing
C) Premium/prestige pricing
D) Bundle / combo pricing
  • 71. Use price points that influence perception (e.g., P99.75 or 199.99) or "prestige" round numbers.
A) Loss-leader pricing
B) Psychological pricing
C) Value-based pricing
D) Cost plus pricing
  • 72. Sell several products together at a price lower than buying each separately (mixed or pure bundling).
A) Dynamic pricing
B) Bundle/Combo pricing
C) High-low pricing
D) Penetration pricing
  • 73. Set high price to signal high quality/status. Works for luxury goods or strong brands
A) Premium/prestige pricing
B) Price Skimming
C) Economy pricing
D) Dynamic pricing
  • 74. Lowest possible price with minimal marketing and service target price-sensitive customers
A) Loss-leader pricing
B) Price skimming
C) Penetration pricing
D) Economy 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) Loss-leader/promotional pricing
B) High-low (seasonal/promotional) pricing
C) Dynamic/surge pricing (real-time)
D) Value-based pricing
  • 76. Set initial high price then frequently discount in promotions-common in fashion and electronics
A) High-low pricing
B) Dynamic pricing
C) Price skimming
D) Competitive pricing
  • 77. Price changes in real-time based on demand, inventory, customer profile, or time (airline fares, ride-hail surge pricing).
A) Promotional/discount & coupon pricing
B) Penetration pricing
C) Dynamic pricing
D) Product line 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) Cost-plus pricing
C) Freemium/trial/subscription models
D) Penetration pricing
  • 79. Offer multiple versions of a product at different price points to capture different segments (good/better/best).
A) Price Skimming
B) Cost-plus pricing
C) Value-based pricing
D) Product-line pricing / versioning (price lining
  • 80. Different prices for different locations due to costs, taxes, purchasing power, or competition.
A) Geographic/regional pricing
B) High-low pricing
C) Economy pricing
D) Penetration 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) Competitive pricing
D) Dynamic pricing
  • 82. Systematic collection and analysis of market information
A) No
B) Market research
C) Yes
D) Maybe
  • 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) Marketing
C) Sales talking
  • 85. Design Solution
A) Opportunity Recognition
B) Market research
C) Creativity
  • 86. Identifies problems
A) Customer driven
B) Opportunity recognition
C) Creativity
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