FINAL EXAMINATION IN ENTREPRENEURIAL MANAGEMENT

Name:_____________________________________________ Date: _________________________

Yr. and Course: ______________________________________ Subject: ________________________

Test I. Write the letter of the correct answer.

1. Any patents, trademarks, copyright or trade secrets held by entrepreneur is known as ___________.
a. Disclosure document
b. Patent
c. Intellectual property
d. None of the above
2. Licensing arrangements have ________________.
a. Low risk process involved
b. Easy way to generate incremental income
c. Several pitfalls
d. All of the above
3. A business where an individual is both the owner and conductor of the business affairs is called __________.
a. Sole proprietorship
b. Partnership
c. Corporation
d. None of the given options
4. _____________ are the lists of the general tasks, or functions, and responsibilities of a position.
a. Job specifications
b. Job descriptions
c. Job requirements
d. Jobholder
5. __________ involves an interest-bearing instrument, usually a loan, the payment which is only indirectly related to sales and
profit.
a. Equity Financing
b. Internal or External funds
c. Banking funds
d. Debt Financing
6. _______________ is what the "W" in the SWOT analysis stands for.
a. Wedge
b. Work
c. Worth of Business
d. Weakness
7. These are the most important production resources.
a. Material resources
b. Financial resources
c. Human resources
d. Informational resources
8. One of the theories of management that conducted three experiments in 1927-1932 by Elton Mayo at the Hawthorne plant
of Western Electric Company in Chicago.
a. Maslow's Hierarchy of needs
b. Theory X and Theory Y
c. The Hawthorne Studies
d. Scientific management of Taylor
9. ____________ is known as the process of production.
a. Machines
b. Management
c. Technology
d. Information
10. This is the time that elapses between placement of an order and receipt of such order.
a. Scheduling
b. lead time
c. inventory
d. reliability
11. _____________ is the creation of goods and services to satisfy human wants -- both biological and psychological.
a. Input
b. Output
c. Production
d. Supply
12. ________ is the value of a product or service expressed in money.
a. Price
b. Capital
c. Money
d. Fund
13. New products or services frequently enter the market.
a. Franchising
b. New-New approach
c. New-old approach
d. None of the above
14. Purchaser of the franchise
 a. Franchise
b. Franchisee
c. Franchisor
d. Owner
15. The excess of current assets over current liabilities.
a. Owner’s equity
b. Working Capital
c. Profit
d. Net worth
16. In an income statement, subtracting the cost of goods sold from the net sales provides the ____________.
a. Revenue
b. Net operating income
c. Gross profit
d. Net income
17. A balance sheet includes __________________________________.
a. Assets
b. Liabilities
c. Owner’s equity
d. All of the above
18. The amount owned by business to its supplier for credit purchases is called ______________.
a. Accounts receivable
b. Accounts payable
c. Merchandise payable
d. Purchase on account
19. ___________ refers to physical resources like machines, buildings, equipment etc.
a. Capital
b. Production
c. Process
d. None of the above
20. ___________ is a process of insuring that the goods and services are produced in accordance with their designs and
specifications.
a. Quality circle
b. Quality assurance
c. Quality control
d. Inspection
21. A method that discounts future cash flows at a rate that makes the net present value of the project equal to zero is known as
the ___________.
 a. Internal Return Rate
b. Payback Method
c. Net Present Value
d. Break-even Analysis
22. “Piggybacking” one’s way into business involves using a ___________ approach.
a. New-new
b. Old-new
c. New-old
d. Old-old
23. A market is people with___________.
a. Needs to satisfy
b. Money to spend
c. Willingness to buy
d. All of the above
24. It measures short-term paying ability without regard to the liquidity of the current assets.
a. Quick ratio
b. Current ratio
c. Asset turnover
d. Debt-to-equity ratio
25. A ___________ is the written document that details the proposed venture.
a. Marketing Plan
b. Advertising Plan
c. Business Plan
d. None of the above

Test II. Answer the following questions.

26. Rules of production (3 pts.)
27. How many units must be sold in order to break-even? Show your solutions. (3 pts.)
FC= Php 5 million, USP= Php 8,000, UVC= Php 7,000
28. Major Marketing Functions (3 pts.)
29. Criteria for selecting good suppliers. (3 pts.)
30. Forms of Business (3 pts.)

Test III. Case Study (10 pts.)