APPLIED ECONOMICS

SUMMATIVE TEST No. 3

FOURTH QUARTER – For the Month of June 2022

Name of Student:____________________________ Score:_________________

I. Directions: Read carefully the questions. Write the letter of the BEST answer from
the given choices before the given number.
____1. It is an analysis that we do to determine the viability of an idea. What study is this?
A. Feasibility Study B. Social Study C. SWOT Analysis D. Social Economics
____2. Feasibility study provides information based from what principle?
A. Information is challenge B. Information is knowledge C. Information is data D. Information is precious
_____3. How many chapters does a feasibility study have?
A. Chapter I to IV B. Chapter I to V C. Chapter I to VI D. Chapter I to VII
_____4. What chapter of the feasibility study covers the introduction, statement of the problem, scope and delimitation
of the study?
A. Chapter I B. Chapter II C. Chapter III D. Chapter IV
_____5. What chapter of the feasibility study covers the Marketing Aspect that contains the macro and micro
environmental analysis of the paper?
A. Chapter I B. Chapter II C. Chapter III D. Chapter IV
_____6. What analysis is best recommended to use in Chapter II in determining the strength and weaknesses of the
proposed study?
A. Porter’ Five Forces B. TOWS Matrix C. SWOT Analysis D. PESTLE/PESTEL
_____7. The Management Aspect of the study deals with the organization as whole. What part of the feasibility study
covers the management of the business?
A. Chapter I B. Chapter II C. Chapter III D. Chapter IV
____8. What job analysis refers to the list of jobs that will be performed by the person holding the position?
A. Job analysis B. Job structure C. Job specification D. Job description
____9. Job analysis that refers to the qualities of the person holding the position, is referred to as?
A. Job analysis B. Job structure C. Job specification D. Job description
____10. The calendar of activities specifying the different events or happenings for each day is known as what?
A. Economic chart B. Calendar of activities C. Chart of activities D. Gantt chart
_____11. What is the process of determining whether an entrepreneur’s idea is viable foundation for creating a
successful business?
A. Business plan B. Feasibility study C. Industry analysis D. Strategic analysis
_____12. What is a systematic analysis of all factors that influence the probability of success of a specific
undertaking?
A. Business plan B. Feasibility study C. Industry analysis D. Strategic analysis
____13. What part of the feasibility study refers to the Technical soundness of the business and gives all the details
necessary to operate the business?
A. Chapter I B. Chapter III C. Chapter IV D. Chapter V
____14. Chapter V contains the different financial reports of the study. What aspect of the feasibility study pertains to
chapter V?
A. Marketing Aspect B. Technical Aspect C. Management Aspect D. Financial Aspect
____15. What principle states that it is better to expect losses than income?
A. Conservatism Principle B. accrual Basis C. Economic Principle D. Technological Principle
____16. What principle states that income is earned once rendered regardless of payment?
A. Conservatism Principle B. Accrual Basis C. Economic Principle D. Technological Principle
____17. What chapter of the feasibility study covers the social and economic impact of the study to the people and
community?
A. Chapter II B. Chapter III C. Chapter V D. Chapter VI
____18. What is the part of the feasibility study that contains the “scope and delimitation”?
A. Chapter I B. Chapter II C. Chapter III D. Chapter IV
____19. Which of the following is NOT part of a macro environmental analysis?
A. Demographics B. Technological advancement C. Pricing Regulations D. Company’s Strength
____20. What type of industry do banks, hotels, airlines, law firms and insurance companies belong?
A. Business Sector B. Government Sector C. Manufacturing Sector D. Private Non- Profit Sector
____21. Which is NOT a content of the Marketing Aspect of the feasibility study?
A. Project Schedule B. Micro environment analysis C. Macro environment analysis D. Supply and Demand Analysis
____22. Which of the following is NOT part of a micro-environment of the business?
A. Department heads B. Employees C. Management D. Labor Union
____23. One of the forms of business organization is Partnership. Which is an example of a partnership among the
business name given?
A. ABC Company, Ltd. B. Albert’s Merchandising C. Fernando Amorsolo Co. Inc. D. San Esteban Development Corp.
____24. The Socio-economic aspect of the feasibility study shows the business impact of the proposed business to
the people and the community. Which statement below can be considered as a positive sign of the business to be
viable?
A. The business proposal is tax exempt.
B. The business proposal will pollute the environment.
C. The business proposal can only pay the minimum wage.
D. The business proposal cannot afford to extend legal benefits of its workforce.
____25. Evaluate the correctness of the given general statements in relation to the Financial aspect of the Feasibility
Study?
A. The Statement of Cash Flow is the accrual basis income statement.
B. The Statement of Financial Condition is prepared as of a certain date.
C. The Statement of Comprehensive Income is a cash basis financial statement.
D. The Statement of Comprehensive Income shows the difference of cash beginning and cash balance ending.