Which of the following perform the function of harnessing the potentials of any or all of the

various elements and the like? - Entrepreneurs

Which will be enjoyed by the entrepreneurs as a reward if he succeeds? - Profits

Statement 1: Innovation must reduce costs or improve the quality of products offered for sale.
Statement 2: The profits accruing to the entrepreneur are limited only by his skill.

Statement 1 is TRUE but statement 2 is FALSE. (di ko sure, ang naa sa handout man gud
kay nay sumpay pa ang statement 2 sa last. So either both statements are true or s1 is true and
s2 is false)

This is the effective and efficient utilization of the various resource elements. - Economic
Growth

Rent is the compensation of whom? - Owners of the Land

It means that ownership is by a private individual, a partnership, or a corporation.

-Independently owned

The income of the employees is certain while that of the SBO is: - Uncertain

Statement 1: A manufacturing business is a business involved in the conversion of raw materials

into products needed by the owner.
Statement 2: Retailing refers to all activities involved in the sale of goods or services to the final
supplier.
Statements 1 and 2 are FALSE.

Examples of this are bakeries, shops, restaurants, furniture shops, and others. - Manufacturing

Which is not an option to improve a person’s economic lot? - Be an employer

What do the dates of manufacture and expiry on labels intended to? - Information

If a code of ethics is not sufficient, what system must be instituted? - Reward and Punishment
System

Statement 1: Commission is a group of persons who provide advice to the entrepreneur and his
staff concerning sensitive ethical issues.
Statement 2: Preventing sexual harassment in the workplace is one of the responsibilities of the
entrepreneur to employees.
Statement 2 is TRUE but statement 1 is FALSE.

Which is not a factor influencing ethical behavior? - Reward and Punishment system

Which is a way of encouraging ethical behavior? - Provision of training in ethics for employees

The factors that determine success or failure in entrepreneurship. - Environment and

personality of the entrepreneur

This person who enjoys verbal activities to influence others has a personality type classified as:
- Enterprising

This trait pushes the entrepreneur to pursue his chosen course without relenting even in the
face of adversity: - Drive

The entrepreneur’s ability to understand and be understood is a trait referred to as: Ability to
communicate
A person who can see through a maze of information (or disinformation) brought before him is
regarded as one with: - Superior thinking ability

Entrepreneurs are expected to be reasonable risk-takers because: - They are not conservative
but also not gamblers

A person who is self-confident is one who: - Believes in his ability

The desire for high financial rewards motivate a person to become: - An entrepreneur

In new ventures, business ideas are fully emphasized during: - Start-up stage

In a new venture, the manager becomes fully involved in that particular stage called: - Later
growth stage

When a product like a chair that can carry more weight than the previous model is introduced
in the market, the improvement referred to is about: - Performance

When a Filipino movie producer made “Darna,” it was a business idea that took the form of: -
An old type of business that was professionalized

When a neighbor suggests a business idea, the entrepreneur has just benefited from an
unanticipated means that is: - His acquaintances

When stable and sufficient demand is under consideration, the business idea is screened under
the criteria of: - Market feasibility

When practicable, the fastest means to solicit market information is through: - Advertisements
incorporating feedback mechanisms

When the small business operator cannot produce sufficient capital to operate the business,
the business idea should be screened out for failing the criteria on: - Financing feasibility

When innovation thrives in an organization, it means the organization is characterized by:

a. Encouragement of creativity and risk-taking
b. Rewards for creativity
c. Open communication
d. Allowance for errors
(all correct)

When the creative employee is allowed to engage in creative activities on hours most
convenient to him and to the company, the firm has adapted as a matter of policy: - Flexibility

When an employee develops a business idea as a result of direct contact with customers, this
unanticipated means is due to: - The person’s work

The projected cash flow statement shows: - The planned or expected cash sales and/or
purchases

Which is an organized method of assessing a firm’s strengths and weaknesses and the
opportunities and threats in the external environment that confront or will confront the firm?
- SWOT Analysis

These are specific performance targets that the firm hopes to accomplish. - Strategic
Objectives

Statement 1: The aim of strategic planning is to be able to deploy the right quality and quantity
of resources.
Statement 2: A threat is a challenge posed by an unfavorable trend in the external
environment.
Statement 2 is TRUE but statement 1 is FALSE.

Which of the following is not a strategy applicable to small business? - Think small

It refers to the process of determining the primary objectives of the firm and then adapting
courses of action and allocating resources to achieve those objectives. - Strategic Planning

Which will be enjoyed by the entrepreneurs as a reward if he succeeds? - Profits

Statement 1: Innovation must reduce costs or improve the quality of products offered for sale.
Statement 2: The profits accruing to the entrepreneur are limited only by his skill.

Statement 1 is TRUE but statement 2 is FALSE. (di ko sure, ang naa sa handout man gud
kay nay sumpay pa ang statement 2 sa last. So either both statements are true or s1 is true and
s2 is false)

Which is a way of encouraging ethical behavior? - Provision of training in ethics for employees

In a new venture, the manager becomes fully involved in that particular stage called: - Later
growth stage

A document that helps the SBO determine what resources are needed to achieve the objectives
of the firm, and the like: - business plan

The part of the business plan that indicates the name of the business, the names of the
proponents, address, and others: - title page and contents

The part of the business plan which contains information on the capital needs of the business,
how the money will be spent, what benefits will be derived by the business from the loan or
investment, among others: - executive summary

When the SBO is determining which part of the total potential market will be served by the
firm, he is actually developing a market strategy referred to as: - definition of the market

When the SBO wants to know what the customers really want to buy from the firm, he is
starting to develop a: - positioning strategy

A method of pricing where the firm sets prices based on buyer desires: - demand pricing

They sell directly to customers: - retailers

This portion of the promotion strategy is a detailed presentation of the public strategy of the
firm: - public relations

That portion of the business plan that contains the organizational structure, operating
expenses, capital requirements, and cost of goods sold: - operations and management

The financial statement that shows the financial condition of the business as of a given date -
balance sheet

The term used when jobs are grouped into working units: - departmentalization

The term referred to when a furniture company organized itself into divisions, namely: cabinet
division, table division, and bed division: - functional departmentalization
When minor decisions are assigned to subordinates, the SBO is practicing: - delegation of
authority

This organizational structure is based on the direct flow of authority from the chief executive to
the subordinate: - line type

A disadvantage of this type of organization is that sometimes departmental concerns tend to

override basic business concerns: - functional type

This function of communication provides subordinates with an outlet for self-expression:

-emotive function

In communication, he is the one who interprets the message: - decoder

This is a tool for directing which concerned with redirecting the efforts of concerned
employees: - providing counseling services

This is the first stage in disciplining, where the employee is told about his behavior: - verbal
warning

In this particular stage in the growth of a small firm, simple accounting records and personal
supervision are control tools that are appropriate: - start-up stage

Statement 1: The firm can start to exist after the sole owner has resolved to start operating and
after getting the required permit and license. Statement 2: The output of market strategy
planning is the firm's marketing strategy.
Statements 1 and 2 are TRUE.

Statement 1: The sole proprietorship has the disadvantage of limited liability. Statement 2:
Market strategy planning is a plan for getting products and services into the hands of the
customers in a timely, cost-effective, and appropriate manner.
Statement 2 is TRUE but statement 1 is FALSE.

Statement 1: Hiring new employees is one area for potential conflict between partners.
Statement 2: Marketing mix refers to the set of marketing tools that the firm uses to avoid its
marketing objectives in the target market.
Statement 1 is TRUE but statement 2 is FALSE.

Statement 1: The possible sources of secondary data are government agencies, libraries, and
business plans. Statement 2: A stockholder may terminate his ownership status by withdrawing
his shares to another person.
Statement 2 is TRUE but statement 1 is FALSE.

Statement 1: A corporation may start operation after the Securities and Exchange Commission
has issued a certificate of incorporation. Statement 2: Target market is the particular market
segment the firm wishes to serve.
Statements 1 and 2 are TRUE.

It refers to that place which will bring the highest possible benefits to the firm. - Right Location

If the SBO is considering as a location for his tomato sauce factory a tomato producing
province, he is concerned with the location factor of: - Proximity to supply of raw materials

Incentives for small business like tax holidays, lower fees, minimum restrictions, and the like,
indicate a positive location factor called - Labor supply

It is the geographic area from which a business draws its customers. - Trading Area
It refers to the unplanned shopping area around the geographic point at which all public
transportation systems converge. - Central Business District

It refers to activities including, advertising, personal selling, sales promotion, public relations,
and direct marketing used to persuade prospective customers to buy the company’s products
or services. - Promotion

Newly created demand is also sometimes referred to as - Customer Demand

It is that type of advertising designed to create a favorable image for a firm. - Institutional
advertising

It is that method of promotion that is direct, personal, and often face-to-face interchange
between the company’s salesperson and the consumer. - Advertising

It is that type of salesperson who locates prospects and converts these buyers. - New-business
salesperson

It is a type of publicity that refers to detailed stories about the firm or its offerings, most often
appearing in business magazines. - Business feature articles

It is a method of promotion wherein people are encouraged to tell other people products or
services they have enjoyed. - Word-of-Mouth

It will materialize even without using promotion. - Customer demand

Those made by manufacturers to motivate wholesalers and retailers to carry their products. -
Trade advertising

One who travels to customers to and from their places, orders are taken. - Field order taker

Usually employed by a manufacturer who wants to establish presence in a certain area.

-Missionary salesperson

One based on news releases prepared and distributed by the small business on a regular basis.
- Planned news publicity

Offers the return of money based on proof of purchase. - Rebates

A special incentive in the form of a gift that is made available to customers who buy certain
products. – Premium

Items used by sellers to attract attention, inform, and persuade prospective customers to buy. -
Point-of-purchase display