- 1. A group of entrepreneurs notices that many students in a university frequently complain about the lack of affordable meals during evening classes. However, several inexpensive food stalls already operate near the campus.
Which approach would BEST help the entrepreneurs determine whether a genuine business opportunity exists?
A) Conduct market research to determine unmet needs, willingness to pay, and gaps in existing offerings
B) Assume that frequent complaints automatically indicate a profitable business opportunity
C) Immediately establish a food stall offering lower prices than competitors
D) Copy the most popular food stall and offer additional menu choices
- 2. Maria observes that small neighborhood stores in rural areas frequently run out of fast-moving products because suppliers deliver only once every two weeks. She considers developing a mobile ordering and delivery service. What MOST strongly indicates that Maria has identified a business opportunity rather than merely an idea?
A) The concept is technologically advanced
B) Maria personally believes that the service will become popular
C) The service is different from existing businesses
D) A specific customer problem exists and customers are willing to pay for a solution
- 3. An entrepreneur notices that many employees are increasingly working remotely.
Instead of simply selling office furniture, she investigates difficulties employees experience with productivity, workspace limitations, and work-life boundaries. Which entrepreneurial behavior is BEST demonstrated?
A) Product imitation through competitive benchmarking
B) Cost minimization through product standardization
C) Opportunity recognition through observation of changing conditions
D) Risk avoidance through market restriction
- 4. A business owner sees a sudden increase in demand for eco-friendly packaging.
He immediately invests most of his capital in manufacturing biodegradable containers
without determining whether customers are willing to pay a premium. Which critical step in opportunity evaluation did he MOST clearly neglect?
A) Protecting the business from competitors
B) Assessing market feasibility and custome willingness to pay
C) Identifying personal entrepreneurial traits
D) Increasing product variety
- 5. A student entrepreneur identifies three potential opportunities:
• Opportunity A: A product that many people want but few can afford
• Opportunity B: A service addressing a frequent
problem with customers
willing to pay
• Opportunity C: A highly creative product
with no clearly identified
customer
Which opportunity should receive the HIGHEST priority during initial evaluation?
A) OPPORTUNITY C
B) OPPORTUNITY B
C) OPPORTUNITY A
D) All three should receive equal priority
- 6. During a brainstorming session,
one member proposes an apparently impractical idea. Another member immediately criticizes it, causing other participants to stop sharing suggestions.
Which principle of effective brainstorming was violated?
A) Only technically feasible ideas should be presented
B) Judgment should be deferred during idea generation
C) Ideas should be generated rapidly and evaluated immediately
- 7. A team wants to redesign an ordinary reusable water bottle. Instead of asking, "How can we make this bottle better?" the facilitator asks, "How might we make hydration more convenient for commuters?" Why is the second question more useful for ideation?
A) It reframes the problem around the customer's underlying need
B) It eliminates the need for market research
C) It restricts creativity to one predetermined product
D) It guarantees that the resulting idea will be profitable
- 8. A student develops four possible business concepts from one observation: commuters frequently experience long waiting times for public transportation. Which activity BEST demonstrates effective ideation?
A) Generating multiple alternative solutions before evaluating them
B) Rejecting ideas that do not already have competitors
C) Choosing the idea that requires the largest amount of capital
D) Selecting the first idea because it was generated quickly
- 9. An entrepreneur combines an online
ordering system, neighborhood delivery, and group purchasing into one service after
observing that customers struggle with
minimum-order requirements.
This approach is BEST described as:
A) Product standardization
B) Random guessing
C) Market withdrawal
D) Idea combination and recombination
- 10. During ideation, a team produces 80
possible business ideas but later discovers that most do not address a significant customer problem. What is the BEST lesson from this situations
A) Quantity of ideas is always more important than quality
B) Creativity is useless without technical expertise
C) Entrepreneurs should avoid generating numerous ideas
D) Idea generation should eventually be followed by systematic screening and validation
- 11. A bakery owner faces declining sales.
Instead of simply reducing prices, she asks employees to imagine completely different uses for the bakery's existing facilities and equipment. The team eventually proposes weekend baking workshops. Which creative process is MOST evident?
A) Reducing product differentiation
B) Copying competitors' successful strategies
C) Reframing existing resources to generate new possibilities
D) Eliminating all forms of business risk
- 12. Two entrepreneurs are given the same problem: "How can we reduce food waste?" Entrepreneur A produces one solution and immediately implements it. Entrepreneur B generates several unrelated possibilities, combines concepts, and develops an unconventional solution.
Which entrepreneurial characteristic is
MORE strongly demonstrated by Entrepreneur B?
A) Administrative efficiency
B) Creativity through divergent thinking
C) Risk avoidance through delayed action
D) Financial conservatism
- 13. A company encourages employees to
question long-standing assumptions such as "customers must visit our store to purchase the product." The employees
eventually develop a home-delivery model. Which creative thinking technique is MOST evident?
A) Increasing organizational hierarchy
B) Eliminating customer feedback
C) Challenging assumptions
D) Reducing market segmentation
- 14. A designer creates a school bag that can be converted into a small study desk for children living in areas with limited furniture. The idea originated by combining two previously separate functions into one product. Which creative capability is MOST clearly demonstrated?
A) Combination of existing concepts
B) Functional fixation
C) Competitive imitation
D) Market saturation
- 15. A company develops a new product using advanced technology, but customers find it too complicated and refuse to purchase it. Which conclusion is MOST appropriate?
A) Customers generally resist all forms of innovation
B) Innovation should create meaningful value for users, not merely introduce new technology
C) Any technologically advanced product is automatically innovated
D) Innovation requires novelty alone, regardless of customer value
- 16. A traditional grocery store introduces an online ordering platform, digital payments, and same-day delivery. The products themselves remain largely unchanged, but the way customers purchase them is transformed. This is BEST classified as:
A) Product imitation
B) Creative failure
C) Market elimination
D) Process or business-model innovation
- 17. A startup develops a highly innovative service. However, after six months, the founders discover that customers do not consider the problem serious enough to pay for the solution. Which statement BEST explains what went wrong?
A) Innovation does not require customer acceptance
B) The market was automatically unsuitable for entrepreneurship
C) The founders demonstrated too much creativity
D) The innovation was insufficiently connected to validated customer needs
- 18. A small business cannot afford to develop an entirely new product. Instead, it modifies an existing product by improving its packaging, simplifying its use, and adding a feature specifically requested by customers. This is an example of:
A) Destructive innovation
B) Radical innovation
C) Non-creative imitation
D) Incremental innovation
- 19. An entrepreneur notices that elderly customers have difficulty using conventional online shopping applications. She interviews potential users and discovers that they primarily struggle with complicated interfaces and payment procedures. She then develops a simplified shopping platform and tests it with a small group before launching it broadly.
Which sequence BEST represents
the entrepreneurial process demonstrated?
A) Market expansion → product imitation → creativity → opportunity recognition
B) Innovation → imitation → creativity → opportunity abandonment
C) Opportunity recognition → customer validation → ideation → innovation/testing
D) Creativity → mass production → opportunity recognition → market research
- 20. A team proposes a business idea that is highly creative, technically feasible, and environmentally beneficial. However, marke research reveals that customers have little interest in the product and are unwilling to pay for it. What is the MOST defensible entrepreneurial decision?
A) Reconsider or modify the idea because feasibility and creativity alone do not establish market opportunity
B) Increase the price to create the perception that the product has greater value
C) Proceed because environmental benefits eliminate the need for customer demand
D) Launch the product immediately because creativity guarantees success
- 21. Which of the statement is FALSE
A) A benefit is the value of a product feature to a customer.
B) It is a good idea for small businesses to compete solely in price.
C) Market segmentation is a useful process for small businesses to undertake.
D) It is a good essentially a matching process
- 22. The purpose of all good small business
strategy is
A) To increase turnover
B) To achieve stated objectives
C) To achieve competitive advantage
D) To increase profitability
- 23. 3. According to Joseph Schumpeter (an
Economist), innovative Entrepreneurs would:
A) Thrive in the market
B) Not survive and disappear from the market
C) Get absorb within larger innovative businesses
D) Get absorb within non-innovative businesses
- 24. Which of these statements best describes the context of Entrepreneurship?
A) Entrepreneurship takes place in small businesses.
B) Entrepreneurship takes place in a wide variety of contexts.
C) Entrepreneurship does not take place in social enterprises.
D) Entrepreneurship takes place in large businesses.
- 25. If an entrepreneur takes decisions on behalf of their enterprise, it is known as:
A) Strategic decision
B) Organizational decisions
C) Routine decisions
D) Personal decision
- 26. Goods and services reach the market place through:
A) Marketing channels
B) Marketing strategies
C) Market segmentation
D) Marketing networks
- 27. Why firm's Vision Statement is important? EXCEPT:
A) Help motivate employees to work toward shared goals
B) Helps to prioritize tasks, focus energy, and maximize impact on target customers
C) Help motivate employees to work toward shared goals
D) Serves as a strategic plan for success
- 28. Refers to a plan that shows whether the business is economically feasible or not.
A) Marketing Plan
B) Business Plan
C) Strategic Plan
D) Financial Plan
- 29. Which of the following is NOT a characteristic of a marketing plan?
A) It should provide for the use of existing resources
B) It should be simple and short
C) It should provide strategy to accomplish company's mission
D) It should be Rigid
- 30. The term Entrepreneur came from:
A) French
B) Chinese
C) English
D) Latin
- 31. The term Entrepreneur is translated as:
A) Between-taker
B) Giver
C) Receiver
D) Between-giver
- 32. In an international perspective, which of the following decisions are not covered under strategic planning of an entrepreneur?
A) What the company's major strengths and weaknesses?
B) What are unique characteristics of each market?
C) Who should be involved in marketing decisions?
D) What customer benefits are provided by the products?
- 33. Refers to an individual who creates
something for the first time and a highly
driven individual motivated by his/her
own work and personal ideas.
A) Inventor
B) Investor
C) Businessman
D) Salesman
- 34. One of the advantages to businesses of training staff is that it tends to increase
A) Employee satisfaction
B) Sales and profits
C) Career development
D) Attract and retain more customers
- 35. Refers to the marketing system based
on a legal agreement where the one party is given the right handle the business as an independent owner but is required to abide by the terms and conditions specified by the other party.
A) Franchising contract
B) Franchise
C) Franchise buyer
D) Franchising
- 36. This theory explains that the government should play the key role in economic development.
A) Keynesian Theory
B) Ricardian Theory
C) Kaldor Theory
D) Laissez_Faire Theory
- 37. To an Entrepreneur, relevant competitive strategy generally falls into three categories EXCEPT:
A) Beating the competition
B) Countering the competition
C) Assessing the competition
D) Meeting the competition
- 38. This means possibility of creating new value:
A) Gain
B) Innovation
C) Perception
D) Opportunity
- 39. Which of the following statement about
Entrepreneurship is TRUE?
A) Entrepreneurs must take divided control and direct the venture towards a maximum position.
B) An entrepreneurs need bosses to motivate them.
C) Entrepreneurs does by creating and managing organizations to give long term benefits to the investors.
D) Entrepreneurs requires specific know how in the venture's day to day operations.
- 40. The following are the positive characteristics of a good business plan
EXCEPT:
A) Always consider pitfalls
B) Capture the customer's interest
C) Emphasize the target market
D) Prepare an objectively long plan
- 41. Filipinos are generally adventurous. It is common for us to see people coming from different provinces migrating to urban places. If you ask them why they decided to migrate, their common answer is they want to try their luck in the city. What Filipino trait that they portraying?
A) Risk taker
B) Destiny
C) Bahala na attitude
D) Braver
- 42. Filipinos like to be in good harmony with other and excellent human relations. Thus, a lot of Entrepreneurs nowadays lack the ability to build rapport with the people around them. What Filipino trait that Entrepreneurs disregard at this time?
A) Pakikisama
B) Bayanihan
C) Smooth Interpersonal Relationship or SIR
D) Delicadeza
- 43. This economy is about personal choice. individuals decide what, how, and for whom products and services are produced?
A) Strategy
B) Market
C) Operations
D) Command
- 44. What is opportunity cost?
A) Going with the first option
B) Going with the easiest option
C) Choosing the best alternative
D) Choosing with the advantage
- 45. XYZ company is interested in developing, producing, and selling a new product. Before it does so, the company spends six months conducting research. What are the primary advantages of this course of action?
A) NONE OF THE ABOVE
B) TO DETERMINE CUSTOMERS PREFERENCES AND MINIMIZE LOSSES
C) To determine customer mindset
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