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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) Opportunity recognition as a core entrepreneurial function
B) Operational efficiency
C) Routine business management
D) Employment substitution
  • 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) Economic role in job creation and enterprise development
B) Elimination of competition
C) Focus on corporate monopolies
D) Dependence on government subsidies
  • 4. Tourism differs from hospitality primarily because tourism:
A) Requires permanent relocation
B) Involves the movement of people outside their usual environment for temporary purposes
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 act of traveling to Palawan for leisure
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 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) Corporate tourism outsourcing
B) Social entrepreneurship within tourism
C) Mass tourism development
D) Industrial tourism expansion
  • 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 guarantee immediate profits
C) They are service-oriented industries that value creativity and innovation
D) They require no capital investment
  • 9. Which scenario BEST represents entrepreneurship in the tourism and hospitality industry?
A) A tourist visiting a destination
B) A resort owner introducing eco-friendly lodging to attract sustainability-focused tourists
C) A hotel employee following standard check-in procedures
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) Managing existing businesses with minimal risk
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 act of inventing completely new products that never existed before
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) Implementing ideas based on intuition alone
B) Developing creative skills without evaluating customer needs
C) Identifying problems or gaps that can be transformed into viable business ventures
  • 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) Random experimentation without market analysis
D) Copying existing hospitality services without modification
  • 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) 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 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) The industry relies heavily on delivering unique and memorable customer experiences
B) Hospitality services remain unaffected by competition
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) Business planning focused solely on cost reduction
C) The integration of creativity and opportunity recognition using local resources
D) Opportunity recognition without creative input
  • 19. Which statement correctly explains the relationship between creativity and opportunity recognition?
A) Creativity and opportunity recognition operate independently
B) Creativity designs solutions, while opportunity recognition identifies market needs
C) Creativity replaces opportunity recognition in business planning
D) Opportunity recognition limits creative thinking
  • 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) Designing the survey questionnaire format
B) Selecting an appropriate business location
C) Identifying potential tourism trends
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 reduce uncertainty by collecting and analyzing relevant market information
B) To guarantee profit regardless of market conditions
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) Obtain in-depth insights to guide service development decisions
B) Replace quantitative data with financial estimates
C) Test competitor reactions to environmental practices
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) Identifying macro-environmental business factors
B) Collecting primary data relevant to the research objective
C) Promoting services to potential respondents
D) Interpreting statistical findings for final decisions
  • 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) Eliminate the need for competitive analysis
C) Guarantee investor approval without further evaluation
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) Formulating a specific research objective before collecting data
B) Finalizing pricing strategies prior to research
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) Operational planning focused solely on cost management
B) Creative service design without examining market feasibility
C) Immediate business launch based on projected demand assumptions
D) The use of market research to validate pricing strategy before business implementation
  • 27. Why is market research particularly important in tourism and hospitality entrepreneurship?
A) Because operational efficiency alone determines success
B) Because customer preferences and travel patterns frequently change due to external influences
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) Secondary research using existing industry data
C) Primary research through direct customer interviews
D) Experimental research focused on service testing
  • 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) Penetration Pricing
B) Value-Based 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) Competitive Pricing
B) Cost-Plus Pricing
C) Prestige (Premium) 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) Price Skimming
B) Premium Pricing
C) Loss-leader Pricing
D) Penetration 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) Skimming Pricing
B) Dynamic Pricing
C) Penetration Pricing
D) High-Low 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) Pristige Pricing
C) Bundle 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) Bundle Pricing
B) Economy Pricing
C) Dynamic Pricing
D) Cost-Plus 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) Psychological Pricing
C) Geographic 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) Cost-Oriented Pricing
B) Geographic Pricing
C) Skimming 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) 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) Premium Pricing
B) Value-Based Pricing
C) Loss-Leader Pricing
D) Cost-Plus Pricing
  • 39. Which BEST represents the social role of entrepreneurship in tourism?
A) Maximizing shareholder dividends
B) Enhancing local employment and community participation
C) Increasing product differentiation
D) Reducing taxation burdens
  • 40. An entrepreneur introduces a farm-stay program combining accommodation and agricultural immersion. This illustrates:
A) Market entry without industry awareness
B) Risk avoidance through traditional hospitality models
C) Creative recombination of existing services into unique experiences
D) Pure replication of established tourism formats
  • 41. Which BEST explains the importance of analyzing trends before launching tourism ventures?
A) Trends eliminate competition
B) Trends replace financial planning
C) Trends reveal evolving customer preferences and demand patterns
D) Trends guarantee immediate profitability
  • 42. Which BEST describes the relationship between market research and opportunity recognition?
A) Opportunity recognition eliminates the need for research
B) Both operate independently
C) Research replaces entrepreneurial creativity
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) Guaranteed financial loss
D) Uncertainty accepted when pursuing opportunities with calculated analysis
  • 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) Recognition of operational inefficiency
C) Brand positioning strategy
D) Diversification without analysis
  • 45. Which scenario BEST shows entrepreneurial mindset in tourism?
A) Avoiding risks to maintain financial safety
B) Maintaining traditional services without innovation
C) Viewing seasonal tourist decline as a chance to design alternative packages
D) Waiting for government tourism programs before acting
  • 46. Which BEST reflects primary research in tourism entrepreneurship?
A) Observing seasonal occupancy trends from reports
B) Reviewing government tourism
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) Creating employment and stimulating local income circulation
D) Reducing operational inefficiencies in private firms
  • 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) Opportunity recognition based on identifying unmet visitor needs
C) Creative imitation of existing commercial establishments
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) Provide clear direction and measurable focus for the study
C) Reduce research expenses
D) Avoid statistical analysis
  • 50. Which BEST represents data-driven entrepreneurship?
A) Ignoring seasonal demand
B) Launching services based on personal intuition
C) Adjusting pricing after survey findings show high price sensitivity
D) Copying competitors directly
  • 51. Which BEST differentiates an idea from a business opportunity?
A) An opportunity requires no research
B) An idea is always innovative
C) An idea guarantees profitability
D) An opportunity has verified demand and feasibility potential
  • 52. A poorly defined research objective often results in
A) Irrelevant or unfocused data collection outcomes
B) Clear analytical conclusions
C) Accurate segmentation
D) Reduced marketing costs
  • 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) Creative design
C) Government compliance
D) Financial accounting
  • 54. The process of analyzing collected survey responses primarily ensures
A) Faster product launch timelines
B) Increased promotional exposure
C) Elimination of operational risk
D) Interpretation of findings to guide strategic business decisions
  • 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) Organizational restructuring
B) Creative design of promotional materials
C) Proper identification of a target market for accurate data collection
D) Financial forecasting strategy
  • 57. Which scenario demonstrates secondary research?
A) Reviewing Department of Tourism arrival data for demand trends
B) Interviewing hotel guests personally
C) Observing tourists at attractions
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) Cost-cutting independent of customer data
C) Data-driven decision making aligned with market research findings
D) Random service modification
  • 59. Opportunity recognition differs from creativity because
A) Creativity guarantees demand automatically
B) Both terms mean identical processes
C) Creativity produces ideas, while opportunity recognition evaluates market feasibility
D) Opportunity recognition replaces innovation entirely
  • 60. A tour operator analyzes online reviews to identify recurring complaints. This is an example of
A) Financial feasibility analysis
B) Secondary research utilizing documented customer feedback
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) Copying international models
B) Recombining existing services to produce unique customer experiences
C) Increasing fixed assets
D) Eliminating operational costs
  • 63. An entrepreneur who adapts services during off-peak season demonstrates
A) Creative adjustment aligned with entrepreneurial mindset principles
B) Cost minimization alone
C) Operational stagnation
D) Market withdrawal strategy
  • 64. A tourism entrepreneur launches a service solely because it is trendy without assessing demand. This shows lack of
A) Creative capacity
B) Risk tolerance
C) Industry knowledge
D) Market research validation and feasibility assessment
  • 65. Which BEST describes the relationship between market research and opportunity recognition?
A) Both operate independently
B) Research replaces entrepreneurial creativity
C) Market research confirms whether identified opportunities are viable in the target market
D) Opportunity recognition eliminates the need for research
  • 66. Add a fixed markup to the unit cost (materials + labor overhead) to set selling price. Simple and common for retailers, manufacturers, contractors
A) Cost-plus pricing
B) Penetration pricing
C) Vue-based pricing
D) Price Skimming
  • 67. Set price primarily based on competitors' prices rather than costs or value. Good in saturated markets.
A) Competitive pricing
B) Penetration 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) Product line pricing
B) Value-based pricing
C) Price Skimming
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) High-low pricing
C) Price Skimming
D) Penetration 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) Premium/prestige pricing
C) Price Skimming
D) Psychological pricing
  • 71. Use price points that influence perception (e.g., P99.75 or 199.99) or "prestige" round numbers.
A) Cost plus pricing
B) Psychological pricing
C) Loss-leader pricing
D) Value-based pricing
  • 72. Sell several products together at a price lower than buying each separately (mixed or pure bundling).
A) Dynamic pricing
B) Penetration pricing
C) Bundle/Combo pricing
D) High-low pricing
  • 73. Set high price to signal high quality/status. Works for luxury goods or strong brands
A) Premium/prestige pricing
B) Price Skimming
C) Dynamic pricing
D) Economy pricing
  • 74. Lowest possible price with minimal marketing and service target price-sensitive customers
A) Economy pricing
B) Penetration pricing
C) Price skimming
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) Value-based pricing
B) Loss-leader/promotional pricing
C) High-low (seasonal/promotional) pricing
D) Dynamic/surge pricing (real-time)
  • 76. Set initial high price then frequently discount in promotions-common in fashion and electronics
A) Price skimming
B) Dynamic pricing
C) Competitive pricing
D) High-low 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) Dynamic pricing
C) Penetration pricing
D) Product line pricing
  • 78. Offer a free basic version and charge for premium features; or charge recurring subscription fees for ongoing access.
A) Penetration pricing
B) Cost-plus pricing
C) Freemium/trial/subscription models
D) Product line pricing
  • 79. Offer multiple versions of a product at different price points to capture different segments (good/better/best).
A) Cost-plus pricing
B) Value-based pricing
C) Price Skimming
D) Product-line pricing / versioning (price lining
  • 80. Different prices for different locations due to costs, taxes, purchasing power, or competition.
A) High-low pricing
B) Penetration pricing
C) Economy pricing
D) Geographic/regional pricing
  • 81. Time-limited discounts, coupons, rebates to spur short-term demand or clear inventory.
A) Competitive pricing
B) Promotional/discount & coupon pricing
C) High-low (seasonal/promotional) pricing
D) Dynamic 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) Knowing customers
C) Cuetomer driven
  • 84. Reduces business risk through informed decisions
A) Marketing
B) Sales talking
C) Market research
  • 85. Design Solution
A) Creativity
B) Opportunity Recognition
C) Market research
  • 86. Identifies problems
A) Customer driven
B) Opportunity recognition
C) Creativity
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