- 1. A group of entrepreneurs notices that many students in a university frequently complain about the lack of affordable meals during evening classes. However, several inexpensive food stalls already operate near the campus.
Which approach would BEST help the entrepreneurs determine whether a genuine business opportunity exists?
A) Immediately establish a food stall offering lower prices than competitors
B) Conduct market research to determine unmet needs, willingness to pay, and gaps in existing offerings
C) Copy the most popular food stall and offer additional menu choices
D) Assume that frequent complaints automatically indicate a profitable business opportunity
- 2. Maria observes that small neighborhood stores in rural areas frequently run out of fast-moving products because suppliers deliver only once every two weeks. She considers developing a mobile ordering and delivery service. What MOST strongly indicates that Maria has identified a business opportunity rather than merely an idea?
A) The concept is technologically advanced
B) A specific customer problem exists and customers are willing to pay for a solution
C) Maria personally believes that the service will become popular
D) The service is different from existing businesses
- 3. An entrepreneur notices that many employees are increasingly working remotely.
Instead of simply selling office furniture, she investigates difficulties employees experience with productivity, workspace limitations, and work-life boundaries. Which entrepreneurial behavior is BEST demonstrated?
A) Opportunity recognition through observation of changing conditions
B) Risk avoidance through market restriction
C) Cost minimization through product standardization
D) Product imitation through competitive benchmarking
- 4. A business owner sees a sudden increase in demand for eco-friendly packaging.
He immediately invests most of his capital in manufacturing biodegradable containers
without determining whether customers are willing to pay a premium. Which critical step in opportunity evaluation did he MOST clearly neglect?
A) Protecting the business from competitors
B) Increasing product variety
C) Assessing market feasibility and custome willingness to pay
D) Identifying personal entrepreneurial traits
- 5. A student entrepreneur identifies three potential opportunities:
• Opportunity A: A product that many people want but few can afford
• Opportunity B: A service addressing a frequent
problem with customers
willing to pay
• Opportunity C: A highly creative product
with no clearly identified
customer
Which opportunity should receive the HIGHEST priority during initial evaluation?
A) All three should receive equal priority
B) OPPORTUNITY C
C) OPPORTUNITY A
D) OPPORTUNITY B
- 6. During a brainstorming session,
one member proposes an apparently impractical idea. Another member immediately criticizes it, causing other participants to stop sharing suggestions.
Which principle of effective brainstorming was violated?
A) Judgment should be deferred during idea generation
B) Ideas should be generated rapidly and evaluated immediately
C) Only technically feasible ideas should be presented
- 7. A team wants to redesign an ordinary reusable water bottle. Instead of asking, "How can we make this bottle better?" the facilitator asks, "How might we make hydration more convenient for commuters?" Why is the second question more useful for ideation?
A) It eliminates the need for market research
B) It guarantees that the resulting idea will be profitable
C) It restricts creativity to one predetermined product
D) It reframes the problem around the customer's underlying need
- 8. A student develops four possible business concepts from one observation: commuters frequently experience long waiting times for public transportation. Which activity BEST demonstrates effective ideation?
A) Choosing the idea that requires the largest amount of capital
B) Rejecting ideas that do not already have competitors
C) Selecting the first idea because it was generated quickly
D) Generating multiple alternative solutions before evaluating them
- 9. An entrepreneur combines an online
ordering system, neighborhood delivery, and group purchasing into one service after
observing that customers struggle with
minimum-order requirements.
This approach is BEST described as:
A) Random guessing
B) Product standardization
C) Market withdrawal
D) Idea combination and recombination
- 10. During ideation, a team produces 80
possible business ideas but later discovers that most do not address a significant customer problem. What is the BEST lesson from this situations
A) Entrepreneurs should avoid generating numerous ideas
B) Idea generation should eventually be followed by systematic screening and validation
C) Quantity of ideas is always more important than quality
D) Creativity is useless without technical expertise
- 11. A bakery owner faces declining sales.
Instead of simply reducing prices, she asks employees to imagine completely different uses for the bakery's existing facilities and equipment. The team eventually proposes weekend baking workshops. Which creative process is MOST evident?
A) Eliminating all forms of business risk
B) Reducing product differentiation
C) Reframing existing resources to generate new possibilities
D) Copying competitors' successful strategies
- 12. Two entrepreneurs are given the same problem: "How can we reduce food waste?" Entrepreneur A produces one solution and immediately implements it. Entrepreneur B generates several unrelated possibilities, combines concepts, and develops an unconventional solution.
Which entrepreneurial characteristic is
MORE strongly demonstrated by Entrepreneur B?
A) Administrative efficiency
B) Risk avoidance through delayed action
C) Creativity through divergent thinking
D) Financial conservatism
- 13. A company encourages employees to
question long-standing assumptions such as "customers must visit our store to purchase the product." The employees
eventually develop a home-delivery model. Which creative thinking technique is MOST evident?
A) Challenging assumptions
B) Reducing market segmentation
C) Increasing organizational hierarchy
D) Eliminating customer feedback
- 14. A designer creates a school bag that can be converted into a small study desk for children living in areas with limited furniture. The idea originated by combining two previously separate functions into one product. Which creative capability is MOST clearly demonstrated?
A) Functional fixation
B) Market saturation
C) Combination of existing concepts
D) Competitive imitation
- 15. A company develops a new product using advanced technology, but customers find it too complicated and refuse to purchase it. Which conclusion is MOST appropriate?
A) Innovation should create meaningful value for users, not merely introduce new technology
B) Customers generally resist all forms of innovation
C) Innovation requires novelty alone, regardless of customer value
D) Any technologically advanced product is automatically innovated
- 16. A traditional grocery store introduces an online ordering platform, digital payments, and same-day delivery. The products themselves remain largely unchanged, but the way customers purchase them is transformed. This is BEST classified as:
A) Creative failure
B) Market elimination
C) Process or business-model innovation
D) Product imitation
- 17. A startup develops a highly innovative service. However, after six months, the founders discover that customers do not consider the problem serious enough to pay for the solution. Which statement BEST explains what went wrong?
A) The innovation was insufficiently connected to validated customer needs
B) The market was automatically unsuitable for entrepreneurship
C) Innovation does not require customer acceptance
D) The founders demonstrated too much creativity
- 18. A small business cannot afford to develop an entirely new product. Instead, it modifies an existing product by improving its packaging, simplifying its use, and adding a feature specifically requested by customers. This is an example of:
A) Incremental innovation
B) Destructive innovation
C) Non-creative imitation
D) Radical innovation
- 19. An entrepreneur notices that elderly customers have difficulty using conventional online shopping applications. She interviews potential users and discovers that they primarily struggle with complicated interfaces and payment procedures. She then develops a simplified shopping platform and tests it with a small group before launching it broadly.
Which sequence BEST represents
the entrepreneurial process demonstrated?
A) Innovation → imitation → creativity → opportunity abandonment
B) Opportunity recognition → customer validation → ideation → innovation/testing
C) Creativity → mass production → opportunity recognition → market research
D) Market expansion → product imitation → creativity → opportunity recognition
- 20. A team proposes a business idea that is highly creative, technically feasible, and environmentally beneficial. However, marke research reveals that customers have little interest in the product and are unwilling to pay for it. What is the MOST defensible entrepreneurial decision?
A) Proceed because environmental benefits eliminate the need for customer demand
B) Reconsider or modify the idea because feasibility and creativity alone do not establish market opportunity
C) Increase the price to create the perception that the product has greater value
D) Launch the product immediately because creativity guarantees success
- 21. Which of the statement is FALSE
A) It is a good idea for small businesses to compete solely in price.
B) Market segmentation is a useful process for small businesses to undertake.
C) It is a good essentially a matching process
D) A benefit is the value of a product feature to a customer.
- 22. The purpose of all good small business
strategy is
A) To achieve stated objectives
B) To increase turnover
C) To achieve competitive advantage
D) To increase profitability
- 23. 3. According to Joseph Schumpeter (an
Economist), innovative Entrepreneurs would:
A) Not survive and disappear from the market
B) Get absorb within non-innovative businesses
C) Get absorb within larger innovative businesses
D) Thrive in the market
- 24. Which of these statements best describes the context of Entrepreneurship?
A) Entrepreneurship takes place in a wide variety of contexts.
B) Entrepreneurship takes place in large businesses.
C) Entrepreneurship takes place in small businesses.
D) Entrepreneurship does not take place in social enterprises.
- 25. If an entrepreneur takes decisions on behalf of their enterprise, it is known as:
A) Strategic decision
B) Routine decisions
C) Personal decision
D) Organizational decisions
- 26. Goods and services reach the market place through:
A) Marketing strategies
B) Marketing networks
C) Marketing channels
D) Market segmentation
- 27. Why firm's Vision Statement is important? EXCEPT:
A) Help motivate employees to work toward shared goals
B) Serves as a strategic plan for success
C) Helps to prioritize tasks, focus energy, and maximize impact on target customers
D) Help motivate employees to work toward shared goals
- 28. Refers to a plan that shows whether the business is economically feasible or not.
A) Strategic Plan
B) Business Plan
C) Marketing Plan
D) Financial Plan
- 29. Which of the following is NOT a characteristic of a marketing plan?
A) It should be simple and short
B) It should provide for the use of existing resources
C) It should be Rigid
D) It should provide strategy to accomplish company's mission
- 30. The term Entrepreneur came from:
A) Latin
B) Chinese
C) French
D) English
- 31. The term Entrepreneur is translated as:
A) Between-giver
B) Giver
C) Between-taker
D) Receiver
- 32. In an international perspective, which of the following decisions are not covered under strategic planning of an entrepreneur?
A) What customer benefits are provided by the products?
B) What the company's major strengths and weaknesses?
C) Who should be involved in marketing decisions?
D) What are unique characteristics of each market?
- 33. Refers to an individual who creates
something for the first time and a highly
driven individual motivated by his/her
own work and personal ideas.
A) Salesman
B) Businessman
C) Inventor
D) Investor
- 34. One of the advantages to businesses of training staff is that it tends to increase
A) Employee satisfaction
B) Career development
C) Sales and profits
D) Attract and retain more customers
- 35. Refers to the marketing system based
on a legal agreement where the one party is given the right handle the business as an independent owner but is required to abide by the terms and conditions specified by the other party.
A) Franchising contract
B) Franchise buyer
C) Franchising
D) Franchise
- 36. This theory explains that the government should play the key role in economic development.
A) Laissez_Faire Theory
B) Keynesian Theory
C) Ricardian Theory
D) Kaldor Theory
- 37. To an Entrepreneur, relevant competitive strategy generally falls into three categories EXCEPT:
A) Beating the competition
B) Countering the competition
C) Meeting the competition
D) Assessing the competition
- 38. This means possibility of creating new value:
A) Gain
B) Perception
C) Opportunity
D) Innovation
- 39. Which of the following statement about
Entrepreneurship is TRUE?
A) Entrepreneurs requires specific know how in the venture's day to day operations.
B) Entrepreneurs does by creating and managing organizations to give long term benefits to the investors.
C) An entrepreneurs need bosses to motivate them.
D) Entrepreneurs must take divided control and direct the venture towards a maximum position.
- 40. The following are the positive characteristics of a good business plan
EXCEPT:
A) Prepare an objectively long plan
B) Capture the customer's interest
C) Always consider pitfalls
D) Emphasize the target market
- 41. Filipinos are generally adventurous. It is common for us to see people coming from different provinces migrating to urban places. If you ask them why they decided to migrate, their common answer is they want to try their luck in the city. What Filipino trait that they portraying?
A) Destiny
B) Bahala na attitude
C) Risk taker
D) Braver
- 42. Filipinos like to be in good harmony with other and excellent human relations. Thus, a lot of Entrepreneurs nowadays lack the ability to build rapport with the people around them. What Filipino trait that Entrepreneurs disregard at this time?
A) Delicadeza
B) Pakikisama
C) Smooth Interpersonal Relationship or SIR
D) Bayanihan
- 43. This economy is about personal choice. individuals decide what, how, and for whom products and services are produced?
A) Strategy
B) Operations
C) Command
D) Market
- 44. What is opportunity cost?
A) Going with the easiest option
B) Choosing with the advantage
C) Choosing the best alternative
D) Going with the first option
- 45. XYZ company is interested in developing, producing, and selling a new product. Before it does so, the company spends six months conducting research. What are the primary advantages of this course of action?
A) TO DETERMINE CUSTOMERS PREFERENCES AND MINIMIZE LOSSES
B) NONE OF THE ABOVE
C) To determine customer mindset
|