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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) Operational efficiency
B) Opportunity recognition as a core entrepreneurial function
C) Employment substitution
D) Routine business management
  • 2. Which statement BEST explains the relationship between tourism and hospitality?
A) Hospitality exists without tourism
B) Tourism is a subset of hospitality
C) Tourism creates demand, while hospitality provides the services that meet that demand
D) Tourism and hospitality operate independently
  • 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) Focus on corporate monopolies
D) Economic role in job creation and enterprise development
  • 4. Tourism differs from hospitality primarily because tourism:
A) Requires permanent relocation
B) Focuses solely on food and accommodation services
C) Involves the movement of people outside their usual environment for temporary purposes
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 provision of accommodation, food, and guest services that enhance visitor experience
B) The promotion of tourist destinations
C) The act of traveling for leisure or business
D) The management of transportation systems
  • 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) Industrial tourism expansion
C) Mass tourism development
D) Social entrepreneurship within tourism
  • 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 resort owner introducing eco-friendly lodging to attract sustainability-focused tourists
B) A tourist visiting a destination
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) Maximizing profits without innovation
B) Managing existing businesses with minimal risk
C) Identifying opportunities, organizing resources, and taking calculated risks to create value
D) Following traditional employment structures
  • 11. Which statement BEST defines creativity in entrepreneurship within tourism and hospitality?
A) The use of artistic talent unrelated to business operations
B) The replication of successful tourism businesses in different locations
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) Identifying problems or gaps that can be transformed into viable business ventures
B) Implementing ideas based on intuition alone
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) Reliance on traditional tourism practices
B) Random experimentation without market analysis
C) Copying existing hospitality services without modification
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) Innovation based purely on technology adoption
C) Creative thinking without strategic direction
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) Market entry strategy based on competitor imitation
D) Opportunity recognition driven by technological innovation alone
  • 16. Which situation BEST distinguishes an opportunity from a mere business idea?
A) A business concept based on the owner's personal preference
B) A product created without considering feasibility or profit
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) Customer expectations are fixed and predictable
C) Hospitality services remain unaffected by competition
D) The industry relies heavily on delivering unique and memorable customer experiences
  • 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) Opportunity recognition without creative input
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 and opportunity recognition operate independently
B) Creativity replaces opportunity recognition in business planning
C) Creativity designs solutions, while opportunity recognition identifies market needs
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) 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 replace the need for strategic planning in business operations
C) To guarantee profit regardless of market conditions
D) To reduce uncertainty by collecting and analyzing relevant market information
  • 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) Replace quantitative data with financial estimates
D) Test competitor reactions to environmental practices
  • 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) Interpreting statistical findings for final decisions
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) Eliminate the need for competitive analysis
B) Guarantee investor approval without further evaluation
C) Serve as a substitute for financial planning and budgeting
D) Provide a systematic framework for validating a proposed business concept
  • 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) Adjusting operational plans without analyzing results
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) Immediate business launch based on projected demand assumptions
B) The use of market research to validate pricing strategy before business implementation
C) Operational planning focused solely on cost management
D) Creative service design without examining market feasibility
  • 27. Why is market research particularly important in tourism and hospitality entrepreneurship?
A) Because hospitality businesses operate independently of consumer trends
B) Because tourism markets remain constant across different seasons
C) Because customer preferences and travel patterns frequently change due to external influences
D) Because operational efficiency alone determines success
  • 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) Primary research through direct customer interviews
C) Secondary research using existing industry data
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) 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) Cost-Plus Pricing
B) Competitive 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) Premium Pricing
B) Loss-leader Pricing
C) Penetration 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) Penetration Pricing
B) Skimming Pricing
C) High-Low Pricing
D) Dynamic 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) Penetration Pricing
C) Pristige Pricing
D) Bundle 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) Dynamic Pricing
C) Bundle 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) Geographic Pricing
B) Product-Line (Price Lining) Pricing
C) Psychological 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) Psychological Pricing
B) Cost-Oriented Pricing
C) Skimming Pricing
D) Geographic 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) Cost-Plus Pricing
C) Loss-Leader Pricing
D) Value-Based Pricing
  • 39. Which BEST represents the social role of entrepreneurship in tourism?
A) Maximizing shareholder dividends
B) Reducing taxation burdens
C) Enhancing local employment and community participation
D) Increasing product differentiation
  • 40. An entrepreneur introduces a farm-stay program combining accommodation and agricultural immersion. This illustrates:
A) Pure replication of established tourism formats
B) Risk avoidance through traditional hospitality models
C) Creative recombination of existing services into unique experiences
D) Market entry without industry awareness
  • 41. Which BEST explains the importance of analyzing trends before launching tourism ventures?
A) Trends replace financial planning
B) Trends eliminate competition
C) Trends guarantee immediate profitability
D) Trends reveal evolving customer preferences and demand patterns
  • 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) 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) Uncertainty accepted when pursuing opportunities with calculated analysis
C) Guaranteed financial loss
D) Equal to operational error
  • 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) Brand positioning strategy
D) Recognition of operational inefficiency
  • 45. Which scenario BEST shows entrepreneurial mindset in tourism?
A) Viewing seasonal tourist decline as a chance to design alternative packages
B) Maintaining traditional services without innovation
C) Avoiding risks to maintain financial safety
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) Reducing operational inefficiencies in private firms
B) Providing personal income to the business owner
C) Increasing visitor experience through aesthetic improvements
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) Opportunity recognition based on identifying unmet visitor needs
C) Creative imitation of existing commercial establishments
D) Business expansion through unrelated diversification
  • 49. The primary purpose of identifying a research objective before collecting data is to
A) Reduce research expenses
B) Provide clear direction and measurable focus for the study
C) Avoid statistical analysis
D) Accelerate promotional planning
  • 50. Which BEST represents data-driven entrepreneurship?
A) Launching services based on personal intuition
B) Adjusting pricing after survey findings show high price sensitivity
C) Ignoring seasonal demand
D) Copying competitors directly
  • 51. Which BEST differentiates an idea from a business opportunity?
A) An opportunity has verified demand and feasibility potential
B) An idea guarantees profitability
C) An opportunity requires no research
D) An idea is always innovative
  • 52. A poorly defined research objective often results in
A) Accurate segmentation
B) Reduced marketing costs
C) Irrelevant or unfocused data collection outcomes
D) Clear analytical conclusions
  • 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) Government compliance
C) Financial accounting
D) Creative design
  • 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) A manager organizes operations, while an entrepreneur identifies and pursues opportunities under uncertainty
B) An entrepreneur supervises staff, while a manager avoids financial risk
C) Both roles are identical in tourism enterprises
D) A manager owns the firm, while the entrepreneur performs daily operations
  • 56. A hospitality student segments respondents by age and travel purpose before survey distribution.
    This primarily reflects:
A) Creative design of promotional materials
B) Financial forecasting strategy
C) Proper identification of a target market for accurate data collection
D) Organizational restructuring
  • 57. Which scenario demonstrates secondary research?
A) Conducting focus group discussions
B) Interviewing hotel guests personally
C) Reviewing Department of Tourism arrival data for demand trends
D) Observing tourists at attractions
  • 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) Creative intuition without analytical support
C) Cost-cutting independent of customer data
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) Direct field experimentation
B) Financial feasibility analysis
C) Secondary research utilizing documented customer feedback
D) Promotional market testing
  • 61. Which BEST summarizes Weeks 1-5 integration?
A) Successful tourism entrepreneurship combines mindset, creativity, opportunity recognition, and systematic market research
B) Market research is unnecessary for small firms
C) Innovation is optional in hospitality
D) Profit generation alone ensures sustainability
  • 62. Creativity in tourism most often involves:
A) Increasing fixed assets
B) Copying international models
C) Eliminating operational costs
D) Recombining existing services to produce unique customer experiences
  • 63. An entrepreneur who adapts services during off-peak season demonstrates
A) Cost minimization alone
B) Market withdrawal strategy
C) Creative adjustment aligned with entrepreneurial mindset principles
D) Operational stagnation
  • 64. A tourism entrepreneur launches a service solely because it is trendy without assessing demand. This shows lack of
A) Market research validation and feasibility assessment
B) Industry knowledge
C) Creative capacity
D) Risk tolerance
  • 65. Which BEST describes the relationship between market research and opportunity recognition?
A) Research replaces entrepreneurial creativity
B) Opportunity recognition eliminates the need for research
C) Both operate independently
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) 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) 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) Value-based pricing
B) Penetration pricing
C) Product line pricing
D) Price Skimming
  • 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) High-low pricing
C) Penetration 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) Bundle / combo pricing
C) Psychological pricing
D) Premium/prestige 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) Dynamic pricing
B) High-low pricing
C) Bundle/Combo pricing
D) Penetration pricing
  • 73. Set high price to signal high quality/status. Works for luxury goods or strong brands
A) Economy pricing
B) Price Skimming
C) Dynamic pricing
D) Premium/prestige pricing
  • 74. Lowest possible price with minimal marketing and service target price-sensitive customers
A) Economy pricing
B) Loss-leader pricing
C) Price skimming
D) Penetration 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) High-low (seasonal/promotional) pricing
B) Dynamic/surge pricing (real-time)
C) Value-based pricing
D) Loss-leader/promotional pricing
  • 76. Set initial high price then frequently discount in promotions-common in fashion and electronics
A) Dynamic pricing
B) Competitive pricing
C) High-low pricing
D) Price skimming
  • 77. Price changes in real-time based on demand, inventory, customer profile, or time (airline fares, ride-hail surge pricing).
A) Dynamic pricing
B) Penetration pricing
C) Promotional/discount & coupon 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) Product line pricing
B) Freemium/trial/subscription models
C) Penetration pricing
D) Cost-plus pricing
  • 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) Economy pricing
D) Penetration pricing
  • 81. Time-limited discounts, coupons, rebates to spur short-term demand or clear inventory.
A) Dynamic pricing
B) High-low (seasonal/promotional) pricing
C) Promotional/discount & coupon pricing
D) Competitive pricing
  • 82. Systematic collection and analysis of market information
A) Maybe
B) No
C) Yes
D) Market research
  • 83. Identifies customer needs and preferences
A) Market research
B) Knowing customers
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) Customer driven
B) Creativity
C) Opportunity recognition
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