Republic of the

Philippines Department
of Education Region I
Ilocos Region
Division of Pangasinan II
LIPIT NATIONAL HIGH SCHOOL
Lipit, Manaoag, Pangasinan

DIAGNOSTIC TEST IN ENTREPRENEURSHIP –

Grade 12

DIRECTIONS: Read the follow ing questions carefully. Choose the best answer from the given choices. Write the
answers on your answer sheet.

1. Entrepreneurs are innovative opportunity seekers. Essential to an entrepreneur’s opportunity seeking are
the entrepreneurial attitude. Which of the following attitude allows the entrepreneur to see things in a very
positive and optimistic light in the midst difficult situation?
A. Entrepreneurial mind frame C. Entrepreneurial passion
B. Entrepreneurial heart flame D. Entrepreneurial gut game
2. Entrepreneurs may have different sources of opportunity. There are five categories of macro
environmental sources of opportunities in doing business. Which of the following categories includes
the demographics and cultural dimensions of bigger consumer population?
A. Economic environment C. Socio-cultural environment
B. Political environment D. Technological environment
3. Which of the following corporate trends have contributed to the growth of entrepreneurship?
A. The acquisition and merging of mega corporations
B. The idea that “small is beautiful” in large companies, resulting in less hierarchy and layers of
management
C. The flood of venture capital being made available to small businesses
D. The downturn in international markets forcing a focus on the domestic market
4. Researchers who study entrepreneurs have discovered that:
A. Successful entrepreneurs start with an idea, resources, and a small management team.
B. There is one key set of traits that mark a successful entrepreneur.
C. entrepreneurs desire responsibility and are willing to take moderate risks.
D. the most successful entrepreneurs are willing to take extreme risks and bet the farm to succeed.
5. Dirk wants to be in control. He’s tired of taking orders from others and wants to feel a sense of accountability
for the outcome of his work. Dirk displays the entrepreneurial characteristic of:
A. The desire for immediate feedback C. Confidence in his ability to succeed
B. A desire for responsibility D. A high energy levels
6. Entrepreneurs seem to be characterized by:
A. A desire for money
B. An inability to organize but strong conceptual skills
C. A desire to work alone because of weak management skills and a need for control
D. A high energy level
7. Entrepreneurs start businesses for several reasons including:
A. An opportunity to make a difference.
B. Hang to deal with less government regulation than as an execute of a large company.
C. A much lower risk of career failure due to layoff or acquisition than working for a large company.
D. The opportunity to get rich much quicker than if they work for a large company.
8. A significant benefit of starting your own company is:
A. More leisure time because there is less of a need to punch a time clock.
B. Contributing to society and being recognized for your efforts.
C. To be able to choose whom you work with or don't work with.
D. More job security than working for a large corporation.
For numbers 9-13, examples of other potential sources of opportunities were given below. Choose the statement
the best describes each example.
 A. The longer the customer wants to use the product, the greater the chances of creating lasting loyalty.
B. People’s tastes in clothes, music, shoes, entertainment, dance, sports, hobbies, and even careers
have evolved over the years.
C. Customer preferences change over time.
D. Determining personal preferences and competencies lay the foundation for a new business venture.

9. Example: The mushrooming of culinary schools indicates the booming interest of students in pursuing their
love for cooking and/or baking. One of the career tracks offered by these culinary schools is enabling the
students to put up their own restaurant or pastry shop.
10. Example: The prevalence of sugar-free products is now becoming the new normal, particularly to products
that used to be sugar-full like soft drinks and desserts.

11.Example: The 1980s could be best described as the era that gave birth to music television or MTV. This era
was all about image that went with the popular artists such as Michael Jackson and Madonna.
12. Example: Hip hop, new wave, and hair metal were the musical genre that emerged.
13. Example: Among Filipinos, there is the adage of “nakasanayan na” especially when it comes to
loyalty to certain products. This is true in the case of Jollibee, which has captured the hearts of the
Filipinos.
14.The challenging part in investing business is that the entrepreneur needs to determine how much
money is needed to start the business opportunity. There are three investments that need to be
funded. Which of the best describes pre-operating costs?
A. Costs related to the preparation for launch of the business
B. Long-term investment for the actual business establishment
C. Investment needed to operationalize the business, composed of cash accounts receivable
and inventories
D. Operating expenses include employee salaries, wages, and benefits
15. Which of the following criteria of opportunity screening is described as determining the sales potential
of the products or services an entrepreneur wants to offer?
A. Revenues B. Responsiveness C. Reach D. Range
16. Which of the following criteria of opportunity screening focus on customer needs and
wants?
A. Revenues B. Responsiveness C. Reach D. Range
17. Which of the following criteria of opportunity screening shows opportunities that have good chances of
expanding through branches, distributorships, dealerships, or franchise outlets to attain rapid growth?
A. Revenues B. Responsiveness C. Reach D. Range
18. Which of the following statements best describes reinforcement of entrepreneurial interests in opportunity
screening criteria?
A. It is aligned to vision, mission, and objectives of entrepreneur
B. The opportunity must match the values and desired virtues
C. It resonates with the entrepreneur’s personal interests, talents, and skills
D. Opportunities requiring fewer resources
19. Which of the following statements best describes revolutionary impact in opportunity screening criteria?
A. Opportunities requiring fewer resources
B. Opportunity matching values and desired virtues
C. Align with vision, mission, and objective
D. Opportunity most likely be the “next big thing” or game-changer
20. As an entrepreneur, trimming down the opportunities into most detailed way using a matrix of criteria is a
technique in opportunity screening. Which of the following techniques is also done to ascertain the viability of
the opportunities?
A. Action research B. Pre-feasibility study C. Feasibility study D. Assets and Liabilities
21. Which of the following best describes segmenting the market in pre-feasibility study?
A. Using set of demographics
B. Estimated number of possible customers who might avail of the product or service
C. Number of establishments supplying and serving the target customer
D. Evaluate the relative strength of the various suppliers or competitors in the marketplace
22. Market research will able an entrepreneur to determine customer needs and wants. Which of the
following market research methodologies are one of the best ways of gathering data about customers
in their natural setting without having interact or talk to them?
 A. Sales data mining C. Observation technique
B. Focus group discussion D. Survey research
23. Which of the following methods of customer profiling defines the customer’s motivations,
perceptions, preferences, and lifestyle?
A. Demographics C. Technographics
B. Psychographics D. Market segmentation
24. Which of the following is the tangible good or the intangible service that enterprise offers to its customers to
satisfy their needs?
A. Place B. Product C. Promotion D. Packaging
25. What type of product offers completely new performance benefits and more convenient to use?
A. Breakthrough B. Differentiated C. Copycat D. Niche
For numbers 26-29, choose which type of product is described in the following
statements.
A. Breakthrough B. Differentiated C. Copycat D. Niche
26. Nowadays, new vaccines are available in the market to prevent the spread of diseases that
cause death to human.
27. Eyeglasses vary in function such as reading glass, correction glass and sunglass.
28. Beer na beer brand of Asia Brewery pitted against San Miguel Pale Pilsen.
29. Dan Eric’s ice cream has lower reach, lower visibility, and lower price available in smaller market segment.

30. Which of the following statements is true about packaging?

A. Packaging can even more important than the product itself.
B. Packaging does not identify the product.
C. Packaging shortens the life span and usefulness of the product.
D. Packaging is never become an environmental issue.
31. Which of the following statements is taken into consideration in finding a good location?
A. The number of customers residing or working in the area.
B. The buying habits of costumers and how frequent they buy.
C. The access routes to alternative locations and their traffic count.
D. All the above
32. A good planner and programmer must make several important choices to achieve the desired result. Which
of the following is the third choice an entrepreneur must consider?
A. To choose the correct technology that would produce the output that would meet the
quality specifications of customers.
B. To choose the right people who can perform the technical and managerial functions
C. To design the operating workflow that would assure the effective, economical, and efficient
production of the output
D. To specify the systems and procedures that would govern the enterprise, motivate and
discipline the work force, and satisfy the customers
33. Which of the following is the second choice an entrepreneur must consider achieving good implementation?
A. To choose the correct technology that would produce the output that would meet the
quality specifications of customers.
B. To choose the right people who can perform the technical and managerial functions
C. To design the operating workflow that would assure the effective, economical, and efficient
production of the output
D. To specify the systems and procedures that would govern the enterprise, motivate and
discipline the work force, and satisfy the customers
34. Which of the following methods of customer profiling defines the customer’s motivations, perceptions,
preferences, and lifestyle?
C. Demographics B. Technographics C. Psychographics D. Market segmentation
35. Which of the following methods of customer profiling categorize customers’ age, income, social classes,
ethnic backgrounds, etc.?
A. Demographics B. Technographics C. Psychographics D. Market segmentation
36. Which of the following customer profiling is described as classifying people according to their level of
expertise in using product or service?
A. Demographics B. Technographics C. Psychographics D. Market segmentation
37. Which of the following category in demographics affect the cultural beliefs of people such as the food they eat,
how they save and how they spend and the level of conservatism and progressiveness?
 A. Ethnic backgrounds B. Social classes C. Occupations D. Domiciles
38. An entrepreneur made a profile of customers on the habitats or areas of residence and environmental
surroundings. Which method of customer profiling did the entrepreneur used?
A. Demographics B. Techno graphics C. Psychographics D. Market segmentation
39. Which of the following category in demographics often dictate what acceptable or unacceptable behavior is?
A. Ethnic backgrounds B. Social classes C. Occupations D. Domiciles
40. One method of customer profiling is psychographics which includes customer’s motivation, perceptions,
preferences, and lifestyle. Which of the following statements best describes perception?
A. It is the habitats or areas of residence and environmental surroundings
B. It is the way a person chooses to receive or interpret information from the external world
C. It goes to the roots of customer’s needs and wants
D. It often dictates what acceptable or unacceptable behavior is
41. One method of customer profiling is psychographics which includes customer’s motivation,
perceptions, preferences, and lifestyle. Which of the following statements best describes
motivation?
A. It is the habitats or areas of residence and environmental surroundings
B. It is the way a person chooses to receive or interpret information from the external world
C. It goes to the roots of customer’s needs and wants
D. It often dictates what acceptable or unacceptable behavior is
42. Which of the following terms is described as grouping the customers with similar needs and wants and
similar willingness and ability to pay?
A. Market segmentation B. Market aggregation C. Market mapping D. Technographics
43. Which of the following refers to grouping customers and products according to certain market variables?
A. Market segmentation B. Market aggregation C. Market mapping D. Technographics
44. Market research will able an entrepreneur to determine customer needs and wants. Which of the following market
research methodologies are one of the best ways of gathering data about customers in their natural setting without having
interact or talk to them?
A. Sales data mining B. Observation technique C. Focus group discussion D. Survey research
45. In sales data mining, the data can logically be arranged chronologically and can be further grouped by interval.
What do you call this arrangement?
A. Data array B. Frequency distribution C. Cross-tabulation D. Histogram
46. Which of the following market research methodologies is effective in extracting consumer and non-
consumer experiences regarding products, places, and programs?
A. Sales data mining B. Observation technique C. Focus group discussion D. Survey research
47. Which of the following serves as guide for entrepreneurs who plan to enter any business endeavors?
A. Action research B. Asset and liabilities C. Business plan D. Feasibility study
48. A business plan must have a specific audience and what important questions do this audience want
answered. Which part of a business plan is a formula on how the enterprise exactly plans to make money out
of the business?
A. Business concept and business model C. Executive summary
B. Business Goals D. Product and service offerings
49. Which of the following statements best describes the fourth section of the business plan (Target Customers
and the Main Value Proposition)?
A. It contains a description, evolution, and justification of the product/service offerings.
B. It is a strategy to map the competitive landscape, location, and competitors.
C. It must be very precise about the target audience considering the size, paying capacity, and
interest to purchase the products offered.
D. It is the market demand and supply, the industry dynamics, and the macro environmental
forces affecting the business enterprise.
50. Which of the following is a type of financial statement that measures an enterprise’s performance in
terms of revenue and expenses over a certain period?
A. Income statement C. Balance sheet
B. Cash flow statement D. Funds flow statement

Prepared by: Checked by: Approved by:

KIM P. MORALIDAD MEILANI IRMA F. SALES, EdD VIOLETA C. SAGUN

SHS TEACHER – II Head Teacher III Principal III