DIAGNOSTIC TEST - ENTREPRENEURSHIP

SY 2021-2022

Name: JECEL M. LAYNES Score: ____________________

Grade/Section: ABM 12-A Date: 09 – 20 – 2021

I. Multiple Choice. On your answer sheet darken the letter of the correct answer.

Directions: Read and analyze the questions carefully. Choose the letter of the BEST
answer Tick the letter of your answer. Avoid erasures.

1. As many organizations have pointed out, their employees are their most valuable
resource. What M’s of operation does this statement refer to?
A. Machine
B. Manpower
C. Materials

D. Money

2. What do you call a tangible item that can be acquired and satisfies a need or want in
exchange for money or something else in value?
A. Brand
B. Item
C. Product

D. Service

3. The industry of ceramics and vases in the Philippines became popular in the market.
This opportunity comes in because _____.
A. seminars and trainings in making ceramics and vases were given for free.
B. the crisis due to the eruption of Mt. Pinatubo leads us to making ceramics and vases
out of the volcano’s ashes.
C. many Filipinos are very artistic in making ceramics and vases.
D. Chinese people influenced the Filipinos in making and selling ceramics and vases.

4. What common practices are you going to use before launching a product?
A. Invite well-known personalities and post it on social media.
B. Invite government officials for a free taste of your products.
C. Invite potential buyers for a free taste of your products.
D. Invite a celebrity to endorse your products.
5. Which of the following refers to a group of people or organizations for which an
enterprise designs, implements and maintains a marketing mix intended to meet the
needs of the said group, resulting in mutually satisfying exchanges?
A. Target market
B. Total market
C. Target enterprise

D. Total enterprise

6. Why do some entrepreneurs use the market-penetration pricing strategy in the

business?
A. Competitors should not be able to enter the market easily.
B. It sets a low initial price to quickly attract a large number of buyers.
C. Low prices must keep competition out of the market.
D. Costs of producing the product in small volumes should not cancel the advantage of
higher prices

7. Camera, bike, and televisions are examples of _____.

A. convenience product
B. shopping products
C. specialty products
D. unsought products

8. An entrepreneur’s work does not end after the company releases its product in the
market. Instead, they will conduct rigorous research and development to improve the
product. Which of the following characteristics best describe an entrepreneur based on
the statement above?
A. Inquisitive when pursuing improvements
B. Keen eye for details
C. Questioning the status quo

D. Winning attitude

9. Which of the following non-store retailing technique was employed by companies

such as Avon and Natasha?
A. Direct selling
B. Home shopping
C. Online retailing

D. Telemarketing
10. Which of the following pertains to the lifeblood of the business enterprise?
A. Financial capital
B. Financial expenditures
C. Financial operations
D. Financial transactions

11. Which strategy is applicable on your business operations if all the industries
including your business is already in existence today on your marketplace?
A. Blue ocean strategy
B. Green ocean strategy
C. Red ocean strategy
D. Yellow ocean strategy

12. Which of the following competencies describe an entrepreneur as having a clear

sense of values and beliefs that underpin the creative and business decisions that they
make?
A. Conceptual thinking
B. Strategic thinking
C. Integrity
D. Decisiveness

13. One of the market problems encountered by an entrepreneur is the price of their
product. What will you do to reduce prices to reward customer responses?
A. Apply the optional-product pricing strategy.
B. Apply the price sensitive market strategy.
C. Apply the market-penetration pricing strategy.
D. Apply the discount and allowance pricing strategy.

14. Which of the following refers to the sum of all the values that consumers give up to
gain the benefits of using a product or service?
A. Packaging
B. Place
C. Price
D. Promotion

15. Which strategy falls on choosing two or more well-designed market segments and
developing a distinct marketing mix for each?
A. Concentrated
B. Multi-segment targeting
C. Positioning
D. Undifferentiated

16. How do entrepreneurs apply the competency of having customer sensitivity?

A. An entrepreneur values the best in others.
B. An entrepreneur regularly exceeds customer expectation.
C. An entrepreneur shared his/her vision and values with the customers.
D. An entrepreneur expresses willingness to do things differently for his customer.

17. Why is it important to start your venture with simple projects?

A. According to feasibility study, resources required are not that much.
B. Many entrepreneurs started with a simple business.
C. It provides new entrepreneurs with a good training ground on business operations.
D. Government encourages people to start with small and medium enterprises.

18. Which of the following helps you analyze and understand the events happening
outside your business organization?
A. Strategic analysis
B. Strategic choice
C. Strategic implementation
D. Strategic management

19. The following are promotional elements except ____.

A. Advertising
B. Direct Marketing
C. Personal Selling

D. Telemarketing

20. Which is usually used by some public and private institutions to record, sort, and
interpret volumes of data in real time?
A. Money
B. Minutes
C. Methods
D. Machine

21. Food is a product that meets hunger needs of a customer. What market need does
this example refer to?
A. Emotional needs
B. Functional needs
C. Intangible needs
D. Tangible needs
22. What is the best way to validate the customer-related concerns?
A. Collecting feedback
B. Promoting the product
C. Through direct selling
D. Through telemarketing

23. Which of the following marketing mix refers to the steps, procedures and flow of
activities in delivering a service?
A. Profit
B. Processes
C. Promotion
D. Production

24. The rags-to-riches story of Manuel “Manny” Villar Jr. is an example of which
competencies of an entrepreneur?
A. Resourceful
B. Success-oriented
C. Passionate
D. Networker
25. Why is it needed for your business to be registered in the Securities and Exchange
Commission?
A. For taxation purposes
B. For protection
C. For health and sanitation
D. For legal purposes

26. Which pricing strategy is being used by Jollibee on their value meals?
A. Captive-product pricing
B. Discount and allowance pricing
C. Market-penetration pricing

D. Product bundle pricing

27. An entrepreneur is said to be a war freaks in a business world because they are
confident on their strengths. It means that they____.
A. are goal oriented.
B. have keen understanding on smaller details
C. finds opportunity on crisis
D. are excited to compete
28. Which of the following best describes a job opportunity for an entrepreneur?
A. An entrepreneur turns crisis as an avenue to start an income-generating venture.
B. Entrepreneurs goal is earning and maximizing profits.
C. An entrepreneur delegates task.
D. An entrepreneur is always in control/understands what is going on with his business.

29. How do convenience stores differ from other product lines?

A. Most of this product lines are open 24/7.
B. These stores are larger than supermarkets.
C. These are big stores that carry mostly grocery and household items.
D. Most of this product line are single-line or limited line stores.

30. How can we say that an entrepreneur is a visionary? He/she is _______ .

A. driven by their goal.
B. know where they are going.
C. never stops learning.
D. always value time.

31. For a continuous production of goods and eventually their sale to end users, a
company must ensure that there are ___.
A. Quality materials
B. Manpower
C. Significant fund
D. State-of-the art machines
32. Which of the following pricing strategy is used to attract customers during certain
seasons or periods?
A. Dynamic pricing
B. Promotional pricing
C. Segmented pricing
D. Special event pricing

33. Which activity pertains to the estimation or prediction of the future business
performance?
A. Forecasting
B. Performing
C. Reciting
D. Reporting
34. Marikina enterprise is an entrepreneurial business that actually produces the
product they sell. What is the type of entrepreneurial business does this enterprise
offer?
A. Manufacturing
B. Retailing
C. Service
D. Wholesaling

35. Why is an entrepreneur considered as a jack of all trades?

A. Because they love networking and connecting with different people.
B. Because they want to learn as much as possible so they do not have to depend on
anyone.
C. Because they always see the glass as half full rather than half empty.
D. Because they keep on innovating and creating to ensure the continuity of their
success

36. In order to achieve excellence which distinguishes it from its competition that leads
to a higher demand of the products in the market, an entrepreneur must _____ .
A. be creative and innovative
B. boldly takes calculated risks
C. demand quality results

D. be excited to compete

37. What does the following statement refer to: “To create a good impression of the
company, they must ensure that the environment is appealing to the customers.”
A. People
B. Physical Evidence
C. Processes

D. Product

38. What does a company usually do in a value-based pricing approach?

A. It sets the price by determining the cost of a product.
B. It determines the cost of production and add mark up to it.
C. It looks on how customer perceives the benefits of the product.
D. It identifies the cost and value on a product.

39. The costs of production incurred affect the ability and willingness of entrepreneurs to
produce more. As an entrepreneur what would be the move in order to lower the cost of
production? An entrepreneur must _____ .
A. Choose resources that are wholesale.
B. Ensure that goods and services are accordance with their designs and specifications.
C. Focus on labor or use the machinery.
D. Produce a product which is new in the market.

40. Why is it important to identify the target audience?

A. It will allow you to better understand their behavior and plan everything.
B. The audience should know the credible client who are knowledgeable about the
topic.
C. For the company to identify its clientele who are prospective buyer or give referrals.
D. To know how to convince the clients that the product is better than others in the
market.

41. Resources, needs, and economic conditions change. In developing a business

model, _____.
A. Planning must be realistic
B. Planning must be based on felt needs
C. Planning must be flexible
D. Planning must start with simple projects

42. What is the difference between creative and innovative?

A. Creating something fresh versus innovation on generating new ideas.
B. Producing something new versus putting into use that new creation.
C. Improving what is already in the market versus creating what is needed in the market.
D. Thinking of new ideas versus searching for new ideas.

43. Who sets the vision, mission, and objectives of the organization?
A. Employees
B. Legal officers
C. Managers
D. Supervisors

44. What is the best reason why entrepreneurs in SME’s usually display a sample of
their products?
A. It can give an enterprise a competitive edge.
B. It can help to respond to a change in customer demands.
C. It generates interest among customers for specific product.
D. It shows the product’s edge over those offered by competitors.

45. Which of the following steps is the first to consider in developing a brand name?
A. Business registration and securing permit to operate.
B. Produce business cards/brochures and create social network accounts.
C. Trade business name and register it with the Department of Trade and industry.
D. Choose a business name appropriate to your product.

46. Why do business proponents need to clearly identify first the segment-target
position they will use before the implementation stage?
A. To concentrate on understanding the needs, motives and market satisfaction.
B. To avoid business complexities and undefined markets.
C. To have an assumption that individual customers have similar needs.
D. To influence potential customers overall perception of a brand.

47. How does an entrepreneur measure his commercial aptitude? By ______ .

A. keeping up to date with developments in the sector
B. pursuing goals despite obstacles and setbacks
C. resolving issues as they arise
D. thinking and planning over a significant timescale

48. An entrepreneur started his own ticketing service business intended for people who
wants to travel abroad for vacation and leisure. Which of the following level in Maslow’s
hierarchy of needs does the business wants to meet?
A. love needs
B. physiological needs
C. self-fulfillment needs
D. safety needs

49. Which of the following best describes the personal selling element?
A. The use of publicity to influence people’s feelings, opinions or beliefs about the
company.
B. The use of telephone to sell products to customers.
C. This involves the use of digital marketing method to promote the product.
D. This involves face-to-face interaction with customers.

50. How does an entrepreneur creates a sound venture idea?

A. Carefully studying and evaluating potential retail locations.
B. Operating a home-based business enterprise.
C. Solving problem for potential customers.
D. Evaluating one’s capabilities, interests and potentials.