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  • 1. What is opportunity cost?
A) Going with the easiest option
B) Going with the first option
C) Choosing the best alternative
D) Choosing with the advantage
  • 2. This economy is about personal choice.
    individuals decide what, how, and for whom
    products and services are produced?
A) Market
B) Operations
C) Strategy
D) Command
  • 3. Outlines personal history of the principals
    and show how their work experiences
    relates to the ventures and state the duties
    and responsibilities as well as the
    compensation outline.
A) The Market
B) Labor
C) Management
D) The business
  • 4. The following are the positive characteristics
    of a good business plan EXCEPT:
A) Always consider pitfalls
B) Emphasize the target market
C) Capture the customers interest
D) Prepare an objectively long plan
  • 5. All of the following are important parts of
    the marketing plan EXCEPT:
A) Pricing
B) Distribution
C) Cost control
D) Advertising and promotion
  • 6. Refers to actions which satisfy a particular
    need or solve a particular problem.
A) New relationships
B) Improved service
C) New product
D) New service
  • 7. This means offering additional service
    element to the product.
A) New service
B) New means of production
C) New relationships
D) Improved service
  • 8. Which of the following statement about
    Entrepreneurship is TRUE?
A) An Entrepreneurs need bosses to motivate them.
B) Entrepreneurs requires specific know how in the ventures day to day operations.
C) Entrepreneurs des by creating and managing organizations to give long term benefits to the investors
D) Entrepreneurs must take divided control and direct the venture towards a maximum position.
  • 9. One of the part of business plan wherein the
    venture can achieve the sales indicated in
    the financial forecast.
A) The management
B) The market
C) The business
D) The industry
  • 10. To an Entrepreneur, relevant competitive
    strategy generally falls into three categories
    EXCEPT:
A) Countering the competition
B) Meeting the competition
C) Assessing the competition
D) Beating the competition
  • 11. A group of products that have similar
    characteristics and uses.
A) Product strategy
B) Product mix
C) Product line
D) Product segmentation
  • 12. Despite all the benefits, there are a number
    of disadvantages to franchise such as:
A) The time consumed by the management training and support the franchisor provides
B) The cost of national advertising
C) Territory limitations
D) Strict adherence to standardized operations
  • 13. The success of Franchising is largely due to:
A) More job hunters choose to work for franchise firm rather that big corporations
B) The mutual benefits it provides to the franchisor and franchisee
C) None of these
D) The economic growth in the commercially developed market
  • 14. The word "Franchising" derived from the
    French word that means:
A) Free from standardization
B) Free from government
C) Free from independent business
D) Free from competition
  • 15. The following are the advantages when an
    Entrepreneur engages in Franchising
    EXCEPT:
A) Controlled operations
B) Low risk
C) Customer loyalty and preference
D) Less advertising cost
  • 16. A type of franchising whereby the
    wholesaler is the franchisor that grants the
    retailer the right to retail the product but use the wholesaler's name, trademark, logo, and other identifying marks.
A) Manufacturer-Wholesaler Franchise
B) Retailer-Wholesaler Franchise
C) Manufacturer-Retailer Franchise
D) Wholesaler-Retailer Franchise
  • 17. All of the following are the benefits of Franchiser EXCEPT:
A) Lower operating cost
B) Guarantees faster expansion
C) Wider brand recognition and promotion
D) Greater market penetration
  • 18. All of the following are the basic steps in
    determining your market EXCEPT:
A) Estimate the sales
B) Assess the competition
C) Determine the competitive products
D) Identify your customer profile
  • 19. Which component of the business plan requires considerable time and external research?
A) Product analysis
B) Market analysis
C) SWOT analysis
D) Strategic analysis
  • 20. XYZ Company is interested in developing,
    producing, and selling a new product. Before
    it does so, the company spends six months conducting marketing research. What are the primary advantages of this course of action?
A) To discover customer comfort
B) To determine customer mindset
C) To determine customer preferences and  minimize losses
D) None of the above
  • 21. What is one reason that it is easier than ever for small businesses to engage in
    international trade?
A) Integrated marketing mix
B) Lower tariffs
C) Free trade
D) Technological advances
  • 22. Why are all small businesses important to a country's economy? EXCEPT
A) They can influence the market prices and trends
B) They can be innovators of new products and services
C) They can provide specialist support to larger companies
D) They give an outlet for Entrepreneurs
  • 23. Which of the following is the reason for business failure?

    I. Lack of market research

    II. Poor financial control

    III. Poor management
A) Both I and III
B) Both II and III
C) Both I and II
D) Both I, II and III
  • 24. Which of the following statements is FALSE?
A) Market segmentation is a useful process for small businesses to undertake.
B) A benefit is the value of a product feature to a customer.
C) It is a good idea for small businesses to compete solely in price.
D) Selling is essentially a matching process.
  • 25. Which is NOT a disadvantage of
    Entrepreneurship?
A) Work long hours
B) Risk taker
C) You are the boss
D) Uncertain income
  • 26. According to Joseph Schumpeter (an Economist), innovative Entrepreneurs would:
A) Get absorb within larger innovative businesses
B) Get absorb within non-innovative businesse
C) Not survive and disappear from the market
D) Thrive in the market
  • 27. Which of the following is the least likely to influence the timing of new business births?
A) Government policies
B) Weather conditions
C) Consumer expenditures
D) Profitability
  • 28. A new venture's business plan is important because:
A) It helps to persuade others to commit funding to the venture
B) Provide a guide for business activities by defining objectives
C) All of these
D) Can help demonstrate the viability of the venture
  • 29. Why firm's Vision Statement is important?
    EXCEPT
A) Helps to prioritize tasks, focus energy, and maximize impact on target customers
B) Help motivate employees to work toward shared goals
C) Serves as a strategic plan for success
D) Building a strong organizational culture
  • 30. This is refers to the lists of general tasks, functions and responsibilities of a position.
A) Job specifications
B) Job catalogue
C) Job descriptions
D) Job requirements
  • 31. The idea and actions that explain how a firm will make its profits refers to:
A) Mission
B) Objective
C) Goal
D) Strategy
  • 32. Which of the following is NOT recognized as important component to organizational vision?
A) The vision should be built on a foundation of the organization's core values and beliefs
B) The vision should specify detailed and short-term goals
C) The vision should elaborate a purpose for the organization
D) The vision should include a brief summary of what the organization does
  • 33. All of the following are recognized as criticism of planning EXCEPT:
A) Planning may create rigidity
B) Planning focuses Entrepreneur's attention on tomorrow's survival but not today's competition
C) Planning can't be developed for a dynamic environment
D) Planning reinforces success, which may lead to failure
  • 34. Personal characteristics to be a successful entrepreneur includes the following EXCEPT:
A) Encourage open discussion
B) Creating management options
C) Understanding environment
D) When synergy is present
  • 35. The Entrepreneur is concerned about the
    same basic issues EXCEPT
A) Sales
B) Profits
C) Costs
D) Turnover
  • 36. XYZ Company is interested in developing,
    producing, and selling a new product. Before it does so, the company spends six months conducting marketing research. What are the primary advantages of this course of action?
A) To discover customer comfort
B) None of these
C) To determine customer preferences and minimize losses
D) To determine customer mindset
  • 37. Refers to the marketing system based on a
    legal agreement wherein 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
B) Franchise
C) Franchise buyer
D) Franchising contract
  • 38. All of the following are the benefits of Franchiser EXCEPT:
A) Greater market penetration
B) Guarantees faster expansion
C) Wider brand recognition and promotion
D) Lower operating cost
  • 39. The following are the advantages when an Entrepreneur engages in Franchising EXCEPT:
A) Controlled operations
B) Low risk
C) Customer loyalty and preference
D) Less advertising cost
  • 40. Who is the renowned French Economist coined the concept of Entrepreneurship?
A) French Mutiny
B) French Revolution
C) French Rebellion
D) French Economic Age
  • 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) Bahala na attitude
B) Bravery
C) Risk taker
D) Destiny
  • 42. 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) Investor
B) Salesman
C) Inventor
D) Businessman
  • 43. Who is the renowned French Economist coined the concept of Entrepreneurship?
A) Tony Mayer
B) Jean Baptiste Say
C) Adam Smith
D) Joseph Schumpeter
  • 44. An individual who starts, creates, and manages a new business can be called:
A) An Entrepreneur
B) A Professional
C) A Leader
D) A Manager
  • 45. If an Entrepreneur takes decisions on behalf of their enterprise, it is known as:
A) Personal decisions
B) Routine decisions
C) Organizational decisions
D) Strategic decisions
  • 46. Which of these is the first activity of a new business?
A) Departure point
B) None of the above
C) Goal orientation
D) Business skill development
  • 47. Refers to a plan that shows whether the business is economically feasible or not.
A) Strategic Plan
B) Financial Plan
C) Business Plan
D) Marketing Plan
  • 48. The term Entrepreneur came from:
A) Chinese
B) French
C) Latin
D) English
  • 49. One of the advantages to businesses of training staff is that it tends to increase
A) Sales and profits
B) Career development
C) Employee satisfaction
D) Attract and retain more customers
  • 50. 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) Bayanihan
B) Smooth Interpersonal Relationship or SIR
C) Pakikisama
D) Delicadeza
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