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 is a subset of hospitality
B) Hospitality exists without tourism
C) Tourism and hospitality operate independently
D) Tourism creates demand, while hospitality provides the services that meet that demand
  • 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) Elimination of competition
C) Economic role in job creation and enterprise development
D) Focus on corporate monopolies
  • 4. Tourism differs from hospitality primarily because tourism:
A) Involves the movement of people outside their usual environment for temporary purposes
B) Requires permanent relocation
C) Refers only to leisure travel
D) Focuses solely on food and accommodation services
  • 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 services provided
B) The resort employees' work
C) The act of traveling to Palawan for leisure
D) The restaurant meals consumed
  • 6. Hospitality is BEST described as:
A) The provision of accommodation, food, and guest services that enhance visitor experience
B) The management of transportation systems
C) The act of traveling for leisure or business
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) Mass tourism development
B) Industrial tourism expansion
C) Social entrepreneurship within tourism
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 are service-oriented industries that value creativity and innovation
C) They guarantee immediate profits
D) They require no capital investment
  • 9. Which scenario BEST represents entrepreneurship in the tourism and hospitality industry?
A) A hotel employee following standard check-in procedures
B) A resort owner introducing eco-friendly lodging to attract sustainability-focused tourists
C) A tourist visiting a destination
D) A government office issuing tourism permits
  • 10. Entrepreneurship is BEST defined as a process that involves
A) Following traditional employment structures
B) Identifying opportunities, organizing resources, and taking calculated risks to create value
C) Managing existing businesses with minimal risk
D) Maximizing profits without innovation
  • 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 replication of successful tourism businesses in different locations
C) The ability to generate novel or improved solutions to enhance customer experiences
D) The use of artistic talent unrelated to business operations
  • 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) Reliance on traditional tourism practices
C) Copying existing hospitality services without modification
D) Random experimentation without market analysis
  • 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) Opportunity recognition derived from customer feedback
C) Risk avoidance through service elimination
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) Market entry strategy based on competitor imitation
B) Opportunity recognition driven by technological innovation alone
C) Risk avoidance through operational standardization
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) The industry relies heavily on delivering unique and memorable customer experiences
B) Customer expectations are fixed and predictable
C) Hospitality services remain unaffected by competition
D) Tourism businesses focus only on physical products
  • 18. A student entrepreneur designs a community-based tour using local guides and traditions to attract visitors. This example BEST reflects:
A) Business planning focused solely on cost reduction
B) Opportunity recognition without creative input
C) The integration of creativity and opportunity recognition using local resources
D) Innovation limited to financial investment
  • 19. Which statement correctly explains the relationship between creativity and opportunity recognition?
A) Creativity designs solutions, while opportunity recognition identifies market needs
B) Creativity replaces opportunity recognition in business planning
C) Opportunity recognition limits creative thinking
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) Selecting an appropriate business location
B) Identifying potential tourism trends
C) Designing the survey questionnaire format
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 reduce uncertainty by collecting and analyzing relevant market information
C) To replace the need for strategic planning in business operations
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) Increase promotional exposure through public interaction
C) Obtain in-depth insights to guide service development decisions
D) Test competitor reactions to environmental practices
  • 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) Interpreting statistical findings for final decisions
B) Collecting primary data relevant to the research objective
C) Promoting services to potential respondents
D) Identifying macro-environmental business factors
  • 24. A well-structured market research proposal includes objectives, target respondents, methodology, and expected outcomes. Its primary function is to:
A) Provide a systematic framework for validating a proposed business concept
B) Serve as a substitute for financial planning and budgeting
C) Guarantee investor approval without further evaluation
D) Eliminate the need for competitive analysis
  • 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 customer preferences and travel patterns frequently change due to external influences
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) Primary research through direct customer interviews
B) Secondary research using existing industry data
C) Experimental research focused on service testing
D) Informal observation without structured analysis
  • 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) Value-Based Pricing
B) Competitive Pricing
C) Penetration Pricing
D) Economy 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) Economy Pricing
B) Competitive 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) Penetration Pricing
B) Loss-leader Pricing
C) Premium 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) 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) Penetration Pricing
B) Bundle Pricing
C) High-Low Pricing
D) Pristige 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) Cost-Plus Pricing
B) Bundle Pricing
C) Dynamic Pricing
D) Economy 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) Product-Line (Price Lining) Pricing
B) Geographic Pricing
C) Skimming Pricing
D) Psychological 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) 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) Cost-Plus Pricing
B) Value-Based Pricing
C) Premium Pricing
D) Loss-Leader Pricing
  • 39. Which BEST represents the social role of entrepreneurship in tourism?
A) Enhancing local employment and community participation
B) Increasing product differentiation
C) Reducing taxation burdens
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) Pure replication of established tourism formats
C) Creative recombination of existing services into unique experiences
D) Risk avoidance through traditional hospitality models
  • 41. Which BEST explains the importance of analyzing trends before launching tourism ventures?
A) Trends eliminate competition
B) Trends guarantee immediate profitability
C) Trends replace financial planning
D) Trends reveal evolving customer preferences and demand patterns
  • 42. 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) Research replaces entrepreneurial creativity
C) Both operate independently
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) Diversification without analysis
C) Brand positioning strategy
D) Opportunity recognition derived from customer problems
  • 45. Which scenario BEST shows entrepreneurial mindset in tourism?
A) Maintaining traditional services without innovation
B) Waiting for government tourism programs before acting
C) Avoiding risks to maintain financial safety
D) Viewing seasonal tourist decline as a chance to design alternative packages
  • 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) 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) Business expansion through unrelated diversification
B) Entrepreneurship focused on profit generation only
C) Creative imitation of existing commercial establishments
D) Opportunity recognition based on identifying unmet visitor needs
  • 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) Reduce research expenses
D) Accelerate promotional planning
  • 50. Which BEST represents data-driven entrepreneurship?
A) Ignoring seasonal demand
B) Adjusting pricing after survey findings show high price sensitivity
C) Launching services based on personal intuition
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 opportunity requires no research
C) An idea is always innovative
D) An idea guarantees profitability
  • 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) Financial accounting
B) Market segmentation and research validation processes
C) Creative design
D) Government compliance
  • 54. The process of analyzing collected survey responses primarily ensures
A) Interpretation of findings to guide strategic business decisions
B) Increased promotional exposure
C) Elimination of operational risk
D) Faster product launch timelines
  • 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) Proper identification of a target market for accurate data collection
B) Financial forecasting strategy
C) Creative design of promotional materials
D) Organizational restructuring
  • 57. Which scenario demonstrates secondary research?
A) Reviewing Department of Tourism arrival data for demand trends
B) Conducting focus group discussions
C) Observing tourists at attractions
D) Interviewing hotel guests personally
  • 58. A resort owner redesigns packages after survey results show tourists prefer shorter stays. This action demonstrates:
A) Creative intuition without analytical support
B) Random service modification
C) Data-driven decision making aligned with market research findings
D) Cost-cutting independent of customer data
  • 59. Opportunity recognition differs from creativity because
A) Creativity guarantees demand automatically
B) Creativity produces ideas, while opportunity recognition evaluates market feasibility
C) Both terms mean identical processes
D) Opportunity recognition replaces innovation entirely
  • 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) Market research is unnecessary for small firms
D) Successful tourism entrepreneurship combines mindset, creativity, opportunity recognition, and systematic market research
  • 62. Creativity in tourism most often involves:
A) Increasing fixed assets
B) Copying international models
C) Eliminating operational costs
D) Recombining existing services to produce unique customer experiences
  • 63. An entrepreneur who adapts services during off-peak season demonstrates
A) Cost minimization alone
B) Market withdrawal strategy
C) Operational stagnation
D) Creative adjustment aligned with entrepreneurial mindset principles
  • 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) Risk tolerance
C) Industry knowledge
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) Research replaces entrepreneurial creativity
D) Market research confirms whether identified opportunities are viable in the target market
  • 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) Cost-plus pricing
C) Price Skimming
D) Vue-based pricing
  • 67. Set price primarily based on competitors' prices rather than costs or value. Good in saturated markets.
A) Premium/pristige pricing
B) Penetration pricing
C) Loss-leader pricing
D) Competitive 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) Price Skimming
C) Value-based pricing
D) Penetration 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) Dynamic pricing
B) Price Skimming
C) Penetration 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) Psychological pricing
B) Price Skimming
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) Psychological pricing
B) Cost plus pricing
C) Value-based pricing
D) Loss-leader pricing
  • 72. Sell several products together at a price lower than buying each separately (mixed or pure bundling).
A) High-low pricing
B) Bundle/Combo pricing
C) Penetration pricing
D) Dynamic pricing
  • 73. Set high price to signal high quality/status. Works for luxury goods or strong brands
A) Economy pricing
B) Premium/prestige pricing
C) Dynamic pricing
D) Price Skimming
  • 74. Lowest possible price with minimal marketing and service target price-sensitive customers
A) Economy pricing
B) Price skimming
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) High-low (seasonal/promotional) pricing
C) Loss-leader/promotional pricing
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) Product line pricing
D) Dynamic 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) Product-line pricing / versioning (price lining
B) Price Skimming
C) Value-based pricing
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) Dynamic pricing
C) Competitive pricing
D) High-low (seasonal/promotional) pricing
  • 82. Systematic collection and analysis of market information
A) Market research
B) No
C) Yes
D) Maybe
  • 83. Identifies customer needs and preferences
A) Market research
B) Cuetomer driven
C) Knowing customers
  • 84. Reduces business risk through informed decisions
A) Marketing
B) Sales talking
C) Market research
  • 85. Design Solution
A) Opportunity Recognition
B) Market research
C) Creativity
  • 86. Identifies problems
A) Opportunity recognition
B) Customer driven
C) Creativity
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