LIBERTAD NATIONAL VOCATIONAL SCHOOL

Libertad, Antique
SECOND QUARTER – 2nd SUMMATIVE TEST IN ENTREPRENEURSHIP 9

Direction: Read and understand the items being described below. Choose the letter of
the correct answer. Write your answer in a 1 whole sheet of paper.

1. The most basic management function of an entrepreneur which tells you where you are
going and how to get there?
a. controlling
b. organizing
c. planning
d. staffing
2. Plans are categorized in different ways. Which plan is used repeatedly as it covers
policies, procedures, and rules in management functions?
a. organizational plans
b. staffing plans
c. standing plans
d. single-purpose plans
3. This plan is essentially non-repetitious. Since it is usually used within a short period of
time. It comprises programs, projects and budgets
a. improvement plan
b. organizational plan
c. single purpose plan
d. standing plan
4. A management function that clusters the activities into departments or job positions, and
designating the personnel to head and compose each department is called ______.
a. directing
b. organizing
c. planning
d. staffing
5. A diagram that shows the relationships of the position and their corresponding authority,
responsibility, and accountability is ______.
a. functional type organization
b. line and staff organization
c. line organization
d. organizational chart
6. Directing is a challenging task. The principal concern of directing as a management
function is to ______.
a. assess the skills, strengths, weaknesses and potentials of personnel
b. discover the problem in quantity or quality of skills of personnel
c. influence subordinate to contribute to the attainment of the firm objectives
d. make sure that what is done in the enterprise conforms with what had
been planned
7. Which among the choices below is the management function that is necessary to
determine how often you should measure performance in the controlling process?
a. compare performance with standards and analyze deviations
` b. establish standards
c. measure actual performance
e. set performance measurements
8. A type of organization chart where officers have staffs to assists them but who do not
have any authority over line personnel is .
a. line and staff organization
b. line organization
c. functional staff organization
 d. organizational chart
9. Assessing the skills, strengths, weaknesses and potentials of your personnel will tell
you whether_______.
a. your company has just the right quantity and quality of men
b. you have an excess in quantity but are short in quality
c. both quantity and quality of skills of your personnel are insufficient
d. a b & c
10. If you find out that there is a problem in quantity and quality of skills among your present
personnel, what solution should you adopt to solve the problem?
a. consider recruiting from inside or outside the organization
b. undertake training and skills development
c. advise the person to look for another job
d. a & b
11. When entrepreneurial activities slow down, what goes up?
a. Tax revenue
b. Inflation rate
c. Business profits
d. Unemployment rate
12. An entrepreneur is aware of
a. his family’s activities
b. his business competitors
c. his relations to people in his community
d. the present demand for certain products or services in his community.
13. The term legal form refers to the type of business ownership. Which type of business
ownership is the simplest and most common?
a. Corporation
b. Cooperative
c. Partnership
d. Sole proprietorship
14. Partnership is a business form owned by two or more persons. Which among the
choices below is NOT an advantage of partnership
a. Partners have to be consulted each time a decision and action is made.
b. No income tax is levied on the partnership itself but on the owners as
individuals.
c. Partners decide as to who shall pay debts in case the business is unable to
pay its liabilities.
d. If one partner commits mistake, the other has to suffer the consequences.
15. Which of the following is NOT an advantage of corporation?
a. Corporation continues to exist for a maximum of 50 years
b. Continuity of existence is not affected by death of a stockholder
c. Each stockholder shares in the ownership of the company, together with the
incorporators.
d. Subject to a more government control.