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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) 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 and hospitality operate independently
B) Hospitality exists without tourism
C) Tourism is a subset of hospitality
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) 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 act of traveling to Palawan for leisure
B) The resort services provided
C) The resort employees' work
D) The restaurant meals consumed
  • 6. Hospitality is BEST described as:
A) The management of transportation systems
B) The provision of accommodation, food, and guest services that enhance visitor experience
C) The promotion of tourist destinations
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) Industrial tourism expansion
B) Mass tourism development
C) Corporate tourism outsourcing
D) Social entrepreneurship within tourism
  • 8. Which of the following is a major reason tourism and hospitality are ideal industries for entrepreneurs?
A) They guarantee immediate profits
B) They are service-oriented industries that value creativity and innovation
C) They require no capital investment
D) They are unaffected by external changes
  • 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) Identifying opportunities, organizing resources, and taking calculated risks to create value
B) Maximizing profits without innovation
C) Following traditional employment structures
D) Managing existing businesses with minimal risk
  • 11. Which statement BEST defines creativity in entrepreneurship within tourism and hospitality?
A) The use of artistic talent unrelated to business operations
B) The act of inventing completely new products that never existed before
C) The replication of successful tourism businesses in different locations
D) The ability to generate novel or improved solutions to enhance customer experiences
  • 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) Copying existing hospitality services without modification
B) Random experimentation without market analysis
C) Reliance on traditional tourism practices
D) Observing industry trends and changing customer preferences
  • 14. A tourism entrepreneur uses customer complaints as the basis for developing a new service. This approach demonstrates:
A) Opportunity recognition derived from customer feedback
B) Risk avoidance through service elimination
C) Creative thinking without strategic direction
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) Creative application of existing services to add unique value
B) Opportunity recognition driven by technological innovation alone
C) Risk avoidance through operational standardization
D) Market entry strategy based on competitor imitation
  • 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 travel service designed to address a specific tourist problem with clear demand
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) Tourism businesses focus only on physical products
B) The industry relies heavily on delivering unique and memorable customer experiences
C) Customer expectations are fixed and predictable
D) Hospitality services remain unaffected by competition
  • 18. A student entrepreneur designs a community-based tour using local guides and traditions to attract visitors. This example BEST reflects:
A) Opportunity recognition without creative input
B) Innovation limited to financial investment
C) Business planning focused solely on cost reduction
D) The integration of creativity and opportunity recognition using local resources
  • 19. Which statement correctly explains the relationship between creativity and opportunity recognition?
A) Creativity replaces opportunity recognition in business planning
B) Opportunity recognition limits creative thinking
C) Creativity designs solutions, while opportunity recognition identifies market needs
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) Data interpretation and decision-making after analysis
B) Designing the survey questionnaire format
C) Selecting an appropriate business location
D) Identifying potential tourism trends
  • 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 replace the need for strategic planning in business operations
D) To guarantee profit regardless of market conditions
  • 22. A proposed eco-lodge conducts interviews to understand tourists' sustainability expectations.
    The primary purpose of this qualitative method is to:
A) Increase promotional exposure through public interaction
B) Obtain in-depth insights to guide service development decisions
C) Test competitor reactions to environmental practices
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) Identifying macro-environmental business factors
C) Interpreting statistical findings for final decisions
D) Promoting services to potential respondents
  • 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) Serve as a substitute for financial planning and budgeting
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) Finalizing pricing strategies prior to research
B) Formulating a specific research objective before collecting data
C) Implementing marketing campaigns during data gathering
D) Adjusting operational plans without analyzing results
  • 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) Creative service design without examining market feasibility
D) Immediate business launch based on projected demand assumptions
  • 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 hospitality businesses operate independently of consumer trends
D) Because tourism markets remain constant across different seasons
  • 28. A hospitality startup collects tourist arrival data from the Department of Tourism to analyze seasonal demand patterns. This is an example of:
A) Informal observation without structured analysis
B) Experimental research focused on service testing
C) Primary research through direct customer interviews
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) Competitive Pricing
B) Value-Based 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) Cost-Plus Pricing
B) Prestige (Premium) Pricing
C) Competitive 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) Premium Pricing
C) Loss-leader 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) 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) Pristige Pricing
B) Bundle Pricing
C) High-Low 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) Economy Pricing
B) Cost-Plus Pricing
C) Dynamic Pricing
D) Bundle 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) Geographic Pricing
B) Skimming 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) Penetration Pricing
B) Price skimming
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) Premium Pricing
D) Cost-Plus Pricing
  • 39. Which BEST represents the social role of entrepreneurship in tourism?
A) Increasing product differentiation
B) Reducing taxation burdens
C) Enhancing local employment and community participation
D) Maximizing shareholder dividends
  • 40. An entrepreneur introduces a farm-stay program combining accommodation and agricultural immersion. This illustrates:
A) Pure replication of established tourism formats
B) Creative recombination of existing services into unique experiences
C) Risk avoidance through traditional hospitality models
D) Market entry without industry awareness
  • 41. Which BEST explains the importance of analyzing trends before launching tourism ventures?
A) Trends reveal evolving customer preferences and demand patterns
B) Trends eliminate competition
C) Trends replace financial planning
D) Trends guarantee immediate profitability
  • 42. Which BEST describes the relationship between market research and opportunity recognition?
A) Both operate independently
B) Opportunity recognition eliminates the need for research
C) Market research confirms whether identified opportunities are viable in the target market
D) Research replaces entrepreneurial creativity
  • 43. Entrepreneurial risk is best described as
A) Avoidable through tradition
B) Guaranteed financial loss
C) Uncertainty accepted when pursuing opportunities with calculated analysis
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) Reviewing government tourism
B) Observing seasonal occupancy trends from reports
C) Conducting structured interviews with potential tourists
D) Analyzing competitor brochures
  • 47. Which situation BEST reflects the economic role of entrepreneurship in tourism
A) Providing personal income to the business owner
B) Increasing visitor experience through aesthetic improvements
C) Reducing operational inefficiencies in private firms
D) Creating employment and stimulating local income circulation
  • 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) Entrepreneurship focused on profit generation only
B) Business expansion through unrelated diversification
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) Reduce research expenses
B) Accelerate promotional planning
C) Avoid statistical analysis
D) Provide clear direction and measurable focus for the study
  • 50. Which BEST represents data-driven entrepreneurship?
A) Ignoring seasonal demand
B) Copying competitors directly
C) Launching services based on personal intuition
D) Adjusting pricing after survey findings show high price sensitivity
  • 51. Which BEST differentiates an idea from a business opportunity?
A) An idea is always innovative
B) An opportunity requires no research
C) An opportunity has verified demand and feasibility potential
D) An idea guarantees profitability
  • 52. A poorly defined research objective often results in
A) Irrelevant or unfocused data collection outcomes
B) Reduced marketing costs
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) Government compliance
B) Market segmentation and research validation processes
C) Creative design
D) Financial accounting
  • 54. The process of analyzing collected survey responses primarily ensures
A) Increased promotional exposure
B) Interpretation of findings to guide strategic business decisions
C) Elimination of operational risk
D) Faster product launch timelines
  • 55. Which statement BEST distinguishes an entrepreneur from a manager?
A) An entrepreneur supervises staff, while a manager avoids financial risk
B) Both roles are identical in tourism enterprises
C) A manager owns the firm, while the entrepreneur performs daily operations
D) A manager organizes operations, while an entrepreneur identifies and pursues opportunities under uncertainty
  • 56. A hospitality student segments respondents by age and travel purpose before survey distribution.
    This primarily reflects:
A) Financial forecasting strategy
B) Creative design of promotional materials
C) Organizational restructuring
D) Proper identification of a target market for accurate data collection
  • 57. Which scenario demonstrates secondary research?
A) Observing tourists at attractions
B) Conducting focus group discussions
C) Interviewing hotel guests personally
D) Reviewing Department of Tourism arrival data for demand trends
  • 58. A resort owner redesigns packages after survey results show tourists prefer shorter stays. This action demonstrates:
A) Data-driven decision making aligned with market research findings
B) Cost-cutting independent of customer data
C) Random service modification
D) Creative intuition without analytical support
  • 59. Opportunity recognition differs from creativity because
A) Creativity produces ideas, while opportunity recognition evaluates market feasibility
B) Both terms mean identical processes
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) Promotional market testing
D) Direct field experimentation
  • 61. Which BEST summarizes Weeks 1-5 integration?
A) Successful tourism entrepreneurship combines mindset, creativity, opportunity recognition, and systematic market research
B) Innovation is optional in hospitality
C) Market research is unnecessary for small firms
D) Profit generation alone ensures sustainability
  • 62. Creativity in tourism most often involves:
A) Increasing fixed assets
B) Copying international models
C) Recombining existing services to produce unique customer experiences
D) Eliminating operational costs
  • 63. An entrepreneur who adapts services during off-peak season demonstrates
A) Creative adjustment aligned with entrepreneurial mindset principles
B) Market withdrawal strategy
C) Cost minimization alone
D) Operational stagnation
  • 64. A tourism entrepreneur launches a service solely because it is trendy without assessing demand. This shows lack of
A) Creative capacity
B) Market research validation and feasibility assessment
C) Industry knowledge
D) Risk tolerance
  • 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) Market research confirms whether identified opportunities are viable in the target market
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) Penetration pricing
B) Price Skimming
C) Cost-plus pricing
D) Vue-based pricing
  • 67. Set price primarily based on competitors' prices rather than costs or value. Good in saturated markets.
A) Competitive pricing
B) Premium/pristige pricing
C) Penetration 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) 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) Bundle / combo pricing
B) Price Skimming
C) Premium/prestige pricing
D) Psychological pricing
  • 71. Use price points that influence perception (e.g., P99.75 or 199.99) or "prestige" round numbers.
A) Psychological pricing
B) Value-based pricing
C) Loss-leader pricing
D) Cost plus 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) 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) Loss-leader pricing
B) Penetration pricing
C) Price skimming
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) 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) Price skimming
C) High-low pricing
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) Promotional/discount & coupon pricing
C) Penetration 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) Product line pricing
C) Penetration pricing
D) Freemium/trial/subscription models
  • 79. Offer multiple versions of a product at different price points to capture different segments (good/better/best).
A) Cost-plus pricing
B) Price Skimming
C) Product-line pricing / versioning (price lining
D) Value-based pricing
  • 80. Different prices for different locations due to costs, taxes, purchasing power, or competition.
A) High-low pricing
B) Geographic/regional pricing
C) Penetration pricing
D) Economy 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) No
B) Maybe
C) Yes
D) Market research
  • 83. Identifies customer needs and preferences
A) Knowing customers
B) Market research
C) Cuetomer driven
  • 84. Reduces business risk through informed decisions
A) Sales talking
B) Market research
C) Marketing
  • 85. Design Solution
A) Market research
B) Creativity
C) Opportunity Recognition
  • 86. Identifies problems
A) Creativity
B) Opportunity recognition
C) Customer driven
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