ENTREPRENEURIAL MANAGEMENT 1

Midterm Examination

1. They are referred to as any business enterprise engaged in

industry, commerce, agribusiness and/or services with any form or
business ownership.
A. Business
B. Small Business
C. Micro Business
D. SME
2. This indicates the firm’s resource capabilities that can be used
for developing a competitive advantage.

 Strengths
3. An external environmental factor expected to work favorably towards
company operations.

 Opportunities
4. It refers to qualities that put the firm at a disadvantage or have
a detrimental effect on its operations.

 Weaknesses
5. In terms of capitalization, an enterprise with a capital that is
more than 3M but not more than 15M is categorized as:

 Small Business
6. This category of an enterprise is comprised of 500 employees and
above.

 Large Enterprise
7. This is the main benefit derived from using a product that is why
it is emphasized in marketing communication.

 Core Benefit/Core
8. According to him, an entrepreneur is a factor of production who
creates something new.

 Joseph A. Schumpeter
9. It is the beginning of a business endeavor: new or innovative
ideas.

 Ideation
10. These are considered as unique products and that satisfy needs
that have not been satisfied at the time they were introduced.

 Innovative Products
11. A product assigned when the current items become temporarily or
permanently unavailable.

 Replacement Products
12. These products are new to the company but not new entirely new to
the market.

 Imitative Products
13. These accounts for the largest share of Philippine entrepreneurs

 Small Medium Enterprises

14. It is the ability of the individual to determine and properly
combine resources available in his environment and transform this into
an output of either goods or services, and obtain a fair profit.

 Entrepreneurship
15. Customers are served their right to be informed when these are
advertised or printed on product labels.

 Information
16. It refers to the number of prospective buyers, competitors, the
price, and the quality of goods and services to be analyzed.

 Market/Target Market
17. It gives the inventor exclusive rights to exclude anyone else from
engaging in business relating to the invention during its lifespan.

 Patents
18. A word, name, symbol, or device used by manufacturers on merchants
to identify their good and distinguishing them from others sold in the
market.

 Trademarks/Trade name
19. The easiest form of intellectual property protecting the creative
works of composers, authors, writers and artist.

 Copyrights
20. It is an essential part of innovativeness, the starting point of
in process, which is skillfully managed and brings an idea into an
innovation.
  Creativity
21. A sense of urgency that is internationally generated from the
competition as a personal sense of challenge.

 Pressure/Challenge
22. This section assesses the customer segments that the company seeks
to serve.
A. Demand Analysis
B. SWOT Analysis
C. All of these
D. Competitive Analysis
23. An investigation of direct and indirect business rivals with an
assessment of their advantage in order to design a fit strategy.
A. Competitive Analysis
B. Demand Analysis
C. Market Analysis
D. None of these
24. A business entity with two or more individuals sharing the risk
and benefits of a business.
A. None of these
B. Sole Proprietorship
C. Cooperative
D. Corporation
25. It is a legitimacy requirements of being listed with appropriate
government agencies to obtain permits to engage in business and or
secure intellectual properties.
A. Tax Mapping
B. Business Registration
C. Business Permit
D. All of these
26. It is required of a business to ensure that workers and workplaces
are safe not to contaminate climate or food prepared for consumption.
A. All of these
B. Sanitary Permit
C. Business Permit
D. Trade Name
27. This entrepreneurial role is exercised when entrepreneurs hire
workers and consume resources.
A. None of these
B. Provide Jobs
 C. Provide Choices
D. Optimism
28. Tutorials, parlors and restaurants are considered:
A. All of these
B. Personal Service Business
C. Business Service
D. Wellness Business
29. This refers to activities of persons or establishments which sell
to retailers and other merchants.
A. None of these
B. Wholesaling
C. Merchandising
D. Retailing
30. It describes where the goal setters want to position themselves in
the future.
A. Purpose
B. Objective
C. Strategy
D. All of these
31. An object, process, or technique which displays an element of
novelty and can be patented.
A. Patent
B. Invention
C. Innovation
D. Property Rights
32. A small business is low in capital but high in this.
A. Large Enterprise
B. Capital Intensive
C. Multinational Enterprise
D. Labor Intensive
33. The University of Baguio’s online enrollment system which is easy
to navigate is considered as.
A. All of these
B. Opportunity
C. Strength
D. Threat
34. A firm’s lousy services manifests like inadequate change returned
by the cashier manifest what?
A. Weaknesses
 B. All of these
C. Corporate Image
D. Threat
35. An increasing number of graduates from universities indicates this
for industries.
A. Strength
B. Threat
C. None of these
D. Weakness
36. A firm’s high satisfaction rating from customers implies:
A. None of these
B. Opportunity
C. Weakness
D. Strength
37. The competitor’s proximity and quicker response to customers
manifest:
A. Both of these
B. None of these
C. Threat
D. Weakness
38. Increasing foot traffic in species areas indicates:
A. Opportunity
B. Strength
C. Location
D. Threat
39. Potential investors are likely to consider investing in a new
venture until the business plan has been completed.

 True
 False
40. Customers use planning and organizing to outline goals and define
how the organization will accomplish business.

 True
 False
41. Proper planning and organization management can help the business
remain fixed and adjust to changes in the economic environment.

 True
 False
42. A business plan is a written document prepared by the entrepreneur
that describes all the relevant external but not internal elements
involved in starting a new venture.

 False
 True
43. The internal purposes of planning do not include:
A. Defining a firm’s vision
B. Creating framework for analysis
C. Establishing firm’s strategy
D. None of these
44. When a business plan so provides the most complete source of
information for the valuation of the business, it is done for:
A. Internal purposes
B. All of these
C. External purposes
D. Owners only
45. In listing products and services, it should not stop by just
enumerating them, it should induce the descriptions and scope of the
products and services. This makes the business plan sound because it
is:
A. Detailed
B. Market Research Based
C. Comprehensive
D. All of these
46. By learning how competitors conduct their operations, tricks of
the trade in the business may be learned and entered to be used as a
basis to excel.

 True
 False
47. Business plan provides a valuable communication tool presented in
an organized, credible manner, which allows lenders, outside
directors, investors, banks, and employees to obtain a complex view of
the business.

 True
 False
48. A marketing plan gives an insight into the entrepreneur’s ability
to define and develop policies for the essential areas of the
business.

 False
  True
49. The elements of a business plan include the following, but not
limited to:
A. Executive summary
B. All of these
C. Marketing
D. Operations
50. Outlining the plan for the business is the first most vital point
once it has targeted its audience.

 True
 False
51. The section of the business plan describes the physical
necessities of your business’ operation: physical location, facilities
and equipment.
A. Financial Plan
B. None of these
C. Operational Plan
D. Marketing Plan
52. Depending on the kind of business, a financial plan may also
include information about inventory requirements, suppliers and a
description of the manufacturing process.

 True
 False
53. Operations timeline contains preparations, milestone events
showing when each operational activities are expected to occur.

 False
 True
54. It refers to the potential problems that may interfere with the
production process.

 Risks
55. A step-by-step description of how your product or service will be
made including identifying the problems that may occur in the
production process.
A. Risk
B. Production Process
C. All of these
D. Production Workflow
56. An explanation of who the suppliers are and their places, terms,
and conditions including alternative arrangements.
A. Quality Control
B. None of these
C. Process Flow
D. Supply Chain
57. This describes the type, site, and location of business premises.
If applicable, drawings or the building, copies of lease agreements,
and recent real estate appraisals are included.
A. All of these
B. Production Process
C. Production Workflow
D. Physical Plant
58. Besides describing the equipment necessary and how much is needed,
it’s worth and cost and any financing arrangements should be detailed
in the financial plan.

 True
 False
59. This must include utility needs, ventilation, drainage as well as
details on how these will be secured.
A. Product Plan
B. Production Process
C. Special Arrangements
D. None of these
60. Factors that may affect the time frame of production and a
description of how potential challenges such as rush orders will be
dealt with are included here.
A. Production Process
B. Production Workflow
C. All of these
D. Financial Plan
61. Details on how inventory should be tracked are presented in the
financial plan.

 True
 False
62. This is ensured by conducting product, price and prototype tests.
A. Profitability
B. Sustainability
C. Production
 D. Feasibility
63. Production plan is generated by determining.
A. All of these
B. Inventories
C. Units to Produce
D. Materials
64. Production plan may be transferred to the financial plan to
complete the income statement.

 True
 False
65. Financial plan is summarized by the financial ratio projections.

 True
 False
66. Cost of goods manufactured is decreased by the in-process
inventory at the end.

 True
 False
67. The statement of cash flow reflect the following sources of cash.
A. All of these
B. Investments
C. Financing
D. Operations
68. The account form of presenting the statement of financial position
lists all liabilities under the total assets.

 True
 False
69. The capital portion of a corporate entity uses this sub-heading.
A. Owner’s Equity
B. Stocholders’ Equity
C. Stockholder’s Equity
D. Corporate Equity
70. Amortization of pre-operating expenses is a non-cash outlay.

 True
 False
71. Financial plan is completed by the following:
A. Cash Flow Statement
 B. All of these
C. Income Statement
D. Balance Sheet
72. Cash flow from operations reflects the changes to the required
loan payment.

 False
 True
73. Cash flow projections will show the months in which the activities
shown on your fixed capital and working capital schedules will occur.

 True
 False
74. Units to produce are increased by the beginning inventory.

 True
 False
75-76. A firm intends to sell 4,000 units initially and maintain an
ending inventory of 400 units. How many units should be produced?
A. 4,400
B. Not enough reference
C. 4,000
D. 3,600
77-78. If the beginning cash balance of a firm is P10,000.00 and the
net cash inflow for the current period is P110,000.00, how much the
opening cash balance in the next operating period.
A. P100,000.00
B. P120,000.00
C. P110,000.00
D. Not enough reference
79-80. The previous year ending inventory is 3,000 units and the firm
sold a total of 27,000 units but has produced 28,000 units. Calculate
the current inventory level.
A. 1,000 units
B. 5,000 units
C. 3,000 units
D. 4,000 units