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ENTREP PRELIM
Contributed by: Banog
  • 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) Routine business management
B) Employment substitution
C) Operational efficiency
D) Opportunity recognition as a core entrepreneurial function
  • 2. Which statement BEST explains the relationship between tourism and hospitality?
A) Tourism is a subset of hospitality
B) Tourism creates demand, while hospitality provides the services that meet that demand
C) Tourism and hospitality operate independently
D) Hospitality exists without tourism
  • 3. A rise in tourist arrivals leads to the opening of restaurants, homestays, and transport services. This demonstrates entrepreneurships:
A) Elimination of competition
B) Dependence on government subsidies
C) Economic role in job creation and enterprise development
D) Focus on corporate monopolies
  • 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 restaurant meals consumed
B) The resort employees' work
C) The resort services provided
D) The act of traveling to Palawan for leisure
  • 6. Hospitality is BEST described as:
A) The management of transportation systems
B) The promotion of tourist destinations
C) The provision of accommodation, food, and guest services that enhance visitor experience
D) The act of traveling for leisure or business
  • 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) Corporate tourism outsourcing
C) Social entrepreneurship within tourism
D) Industrial tourism expansion
  • 8. Which of the following is a major reason tourism and hospitality are ideal industries for entrepreneurs?
A) They are service-oriented industries that value creativity and innovation
B) They are unaffected by external changes
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 tourist visiting a destination
D) A resort owner introducing eco-friendly lodging to attract sustainability-focused tourists
  • 10. Entrepreneurship is BEST defined as a process that involves
A) Managing existing businesses with minimal risk
B) Identifying opportunities, organizing resources, and taking calculated risks to create value
C) Maximizing profits without innovation
D) Following traditional employment structures
  • 11. Which statement BEST defines creativity in entrepreneurship within tourism and hospitality?
A) The replication of successful tourism businesses in different locations
B) The use of artistic talent unrelated to business operations
C) The act of inventing completely new products that never existed before
D) The ability to generate novel or improved solutions to enhance customer experiences
  • 12. In entrepreneurship, opportunity recognition mainly involves:
A) Implementing ideas based on intuition alone
B) Identifying problems or gaps that can be transformed into viable business ventures
C) Developing creative skills without evaluating customer needs
  • 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) Copying existing hospitality services without modification
C) Reliance on traditional tourism practices
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) Innovation based purely on technology adoption
B) Creative thinking without strategic direction
C) Opportunity recognition derived from customer feedback
D) Risk avoidance through service elimination
  • 15. A resort owner redesigns standard accommodations to include local cultural themes and eco-friendly features. This action primarily demonstrates:
A) Risk avoidance through operational standardization
B) Creative application of existing services to add unique value
C) Opportunity recognition driven by technological innovation alone
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 product created without considering feasibility or profit
C) A business concept based on the owner's personal preference
D) A business concept based on the owner's personal preference
  • 17. Which of the following BEST explains why creativity is essential in tourism and hospitality entrepreneurship?
A) Hospitality services remain unaffected by competition
B) The industry relies heavily on delivering unique and memorable customer experiences
C) Tourism businesses focus only on physical products
D) Customer expectations are fixed and predictable
  • 18. A student entrepreneur designs a community-based tour using local guides and traditions to attract visitors. This example BEST reflects:
A) Innovation limited to financial investment
B) The integration of creativity and opportunity recognition using local resources
C) Opportunity recognition without creative input
D) Business planning focused solely on cost reduction
  • 19. Which statement correctly explains the relationship between creativity and opportunity recognition?
A) Creativity and opportunity recognition operate independently
B) Opportunity recognition limits creative thinking
C) Creativity replaces opportunity recognition in business planning
D) Creativity designs solutions, while opportunity recognition identifies market needs
  • 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) Designing the survey questionnaire format
C) Data interpretation and decision-making after analysis
D) Selecting an appropriate business location
  • 21. Which of the following BEST explains the main objective of market research in entrepreneurship?
A) To eliminate all forms of entrepreneurial risk permanently
B) To reduce uncertainty by collecting and analyzing relevant market information
C) To guarantee profit regardless of market conditions
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) Obtain in-depth insights to guide service development decisions
B) Test competitor reactions to environmental practices
C) Replace quantitative data with financial estimates
D) Increase promotional exposure through public interaction
  • 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) Guarantee investor approval without further evaluation
B) Provide a systematic framework for validating a proposed business concept
C) Eliminate the need for competitive analysis
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) Adjusting operational plans without analyzing results
B) Finalizing pricing strategies prior to research
C) Implementing marketing campaigns during data gathering
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) The use of market research to validate pricing strategy before business implementation
B) Operational planning focused solely on cost management
C) Immediate business launch based on projected demand assumptions
D) Creative service design without examining market feasibility
  • 27. Why is market research particularly important in tourism and hospitality entrepreneurship?
A) Because customer preferences and travel patterns frequently change due to external influences
B) Because operational efficiency alone determines success
C) Because tourism markets remain constant across different seasons
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) Informal observation without structured analysis
C) Experimental research focused on service testing
D) Secondary research using existing industry data
  • 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) Penetration Pricing
C) Economy 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) Economy Pricing
B) Prestige (Premium) Pricing
C) Cost-Plus Pricing
D) Competitive 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) Price Skimming
C) Loss-leader Pricing
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) Dynamic Pricing
B) Skimming Pricing
C) High-Low 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) Bundle Pricing
C) Pristige Pricing
D) Penetration 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) Geographic Pricing
B) Product-Line (Price Lining) 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) Psychological Pricing
B) Geographic Pricing
C) Cost-Oriented Pricing
D) Skimming 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) Promotional Pricing
C) Loss-Leader Pricing
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) Premium Pricing
B) Value-Based Pricing
C) Cost-Plus 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) Maximizing shareholder dividends
D) Reducing taxation burdens
  • 40. An entrepreneur introduces a farm-stay program combining accommodation and agricultural immersion. This illustrates:
A) Pure replication of established tourism formats
B) Market entry without industry awareness
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 guarantee immediate profitability
B) Trends replace financial planning
C) Trends reveal evolving customer preferences and demand patterns
D) Trends eliminate competition
  • 42. Which BEST describes the relationship between market research and opportunity recognition?
A) Both operate independently
B) Research replaces entrepreneurial creativity
C) Opportunity recognition eliminates the need for research
D) Market research confirms whether identified opportunities are viable in the target market
  • 43. Entrepreneurial risk is best described as
A) Avoidable through tradition
B) Equal to operational error
C) Uncertainty accepted when pursuing opportunities with calculated analysis
D) Guaranteed financial loss
  • 44. An entrepreneur observes tourists struggling with transportation between attractions. Turning this into a shuttle service reflects
A) Opportunity recognition derived from customer problems
B) Diversification without analysis
C) Recognition of operational inefficiency
D) Brand positioning strategy
  • 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) Conducting structured interviews with potential tourists
B) Reviewing government tourism
C) Analyzing competitor brochures
D) Observing seasonal occupancy trends from reports
  • 47. Which situation BEST reflects the economic role of entrepreneurship in tourism
A) Providing personal income to the business owner
B) Reducing operational inefficiencies in private firms
C) Creating employment and stimulating local income circulation
D) Increasing visitor experience through aesthetic improvements
  • 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) Opportunity recognition based on identifying unmet visitor needs
D) Entrepreneurship focused on profit generation only
  • 49. The primary purpose of identifying a research objective before collecting data is to
A) Accelerate promotional planning
B) Avoid statistical analysis
C) Provide clear direction and measurable focus for the study
D) Reduce research expenses
  • 50. Which BEST represents data-driven entrepreneurship?
A) Copying competitors directly
B) Launching services based on personal intuition
C) Adjusting pricing after survey findings show high price sensitivity
D) Ignoring seasonal demand
  • 51. Which BEST differentiates an idea from a business opportunity?
A) An idea guarantees profitability
B) An opportunity has verified demand and feasibility potential
C) An opportunity requires no research
D) An idea is always innovative
  • 52. A poorly defined research objective often results in
A) Reduced marketing costs
B) Clear analytical conclusions
C) Irrelevant or unfocused data collection outcomes
D) Accurate segmentation
  • 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) 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) Faster product launch timelines
C) Increased promotional exposure
D) Elimination of operational risk
  • 55. Which statement BEST distinguishes an entrepreneur from a manager?
A) A manager owns the firm, while the entrepreneur performs daily operations
B) A manager organizes operations, while an entrepreneur identifies and pursues opportunities under uncertainty
C) An entrepreneur supervises staff, while a manager avoids financial risk
D) Both roles are identical in tourism enterprises
  • 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) 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) 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) Promotional market testing
B) Secondary research utilizing documented customer feedback
C) Direct field experimentation
D) Financial feasibility analysis
  • 61. Which BEST summarizes Weeks 1-5 integration?
A) Profit generation alone ensures sustainability
B) Successful tourism entrepreneurship combines mindset, creativity, opportunity recognition, and systematic market research
C) Market research is unnecessary for small firms
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) Creative adjustment aligned with entrepreneurial mindset principles
B) Operational stagnation
C) Market withdrawal strategy
D) Cost minimization alone
  • 64. A tourism entrepreneur launches a service solely because it is trendy without assessing demand. This shows lack of
A) Industry knowledge
B) Creative capacity
C) Market research validation and feasibility assessment
D) Risk tolerance
  • 65. Which BEST describes the relationship between market research and opportunity recognition?
A) Both operate independently
B) Research replaces entrepreneurial creativity
C) Opportunity recognition eliminates the need for research
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) Price Skimming
B) Vue-based pricing
C) Cost-plus pricing
D) Penetration pricing
  • 67. Set price primarily based on competitors' prices rather than costs or value. Good in saturated markets.
A) Penetration pricing
B) Competitive pricing
C) Premium/pristige pricing
D) Loss-leader pricing
  • 68. Price based on the perceived value to the customer, not on cost. Works well for differentiated products/services
A) Price Skimming
B) Penetration pricing
C) Product line pricing
D) Value-based 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) Price Skimming
B) Penetration pricing
C) High-low pricing
D) Dynamic pricing
  • 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) Bundle / combo pricing
D) Premium/prestige pricing
  • 71. Use price points that influence perception (e.g., P99.75 or 199.99) or "prestige" round numbers.
A) Loss-leader pricing
B) Cost plus pricing
C) Psychological pricing
D) Value-based pricing
  • 72. Sell several products together at a price lower than buying each separately (mixed or pure bundling).
A) Bundle/Combo pricing
B) Dynamic 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) Price Skimming
B) Premium/prestige pricing
C) Economy pricing
D) Dynamic pricing
  • 74. Lowest possible price with minimal marketing and service target price-sensitive customers
A) Price skimming
B) Penetration pricing
C) Economy 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) Value-based pricing
C) Loss-leader/promotional pricing
D) High-low (seasonal/promotional) pricing
  • 76. Set initial high price then frequently discount in promotions-common in fashion and electronics
A) Competitive pricing
B) High-low pricing
C) Price skimming
D) Dynamic pricing
  • 77. Price changes in real-time based on demand, inventory, customer profile, or time (airline fares, ride-hail surge pricing).
A) Product line pricing
B) Penetration pricing
C) Promotional/discount & coupon pricing
D) Dynamic pricing
  • 78. Offer a free basic version and charge for premium features; or charge recurring subscription fees for ongoing access.
A) Cost-plus pricing
B) Freemium/trial/subscription models
C) Product line pricing
D) Penetration pricing
  • 79. Offer multiple versions of a product at different price points to capture different segments (good/better/best).
A) Value-based pricing
B) Price Skimming
C) Product-line pricing / versioning (price lining
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) Competitive pricing
B) High-low (seasonal/promotional) pricing
C) Dynamic pricing
D) Promotional/discount & coupon pricing
  • 82. Systematic collection and analysis of market information
A) Maybe
B) No
C) Market research
D) Yes
  • 83. Identifies customer needs and preferences
A) Cuetomer driven
B) Knowing customers
C) Market research
  • 84. Reduces business risk through informed decisions
A) Market research
B) Sales talking
C) Marketing
  • 85. Design Solution
A) Opportunity Recognition
B) Creativity
C) Market research
  • 86. Identifies problems
A) Customer driven
B) Creativity
C) Opportunity recognition
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