Republic of the Philippines

Department of Education
Region III – Central Luzon
SCHOOLS DIVISION OFFICE OF PAMPANGA
High School Blvd. Brgy. Lourdes, City of San Fernando
THIRD QUARTERLY EXAMINATION IN BUSINESS SIMULATION
School Year 2022-2023
Name: Score:
Section:
Multiple Choice: Choose the letter which corresponds to the correct answer.

1. What is the process of continually and actively monitoring the external environment, in order to
identify customer needs, anticipate competitive actions, and identify technological changes which
will provide new market opportunities or market disruptions?
A. Business Scanning
B. Industry Scanning
C. Firm Scanning
D. Market Scanning
2. Alice is selecting between two potential business ideas. Which of the following factors should be
least considered?
A. How much capital is needed
B. Is the business in line with Alice’s interest and expertise
C. Is there a big demand for the product and continue to need it for a long time
D. Will the business make Alice known worldwide
3. Cardo is an owner of a food stall that sells home cooked meals. During the COVID-19 pandemic,
he observed that the rise of food delivery has become a major trend among consumers and
started to adapt it for his business to survive. Which of the following ways to create a business
idea was used?
A. Examine the existing goods and services
B. Examine the present and future needs
C. Examine how the needs are being satisfied
D. Examine the available resources around you
4. Which of the following is NOT included in the economic factors in market scanning?
A. Inflation rates
B. Gross Domestic Product
C. National and local policies
D. Income of potential customers in your area
5. What is the process of gathering, analyzing, and dispensing information for tactical or strategic
purposes?
A. Business Scanning
B. Environmental Scanning
C. Industry Scanning
D. Market Scanning
6. Which of the following is an analytical framework that can help a business meet its challenges
and identify new markets?
A. Business Analysis
B. PESTLE Analysis
C. Porter’s Five Forces Analysis
D. SWOT Analysis
7. There are three competitors in the Mango Graham Shake business in Diane’s area. She decided
to offer other products such as burgers and fries. Which among the Porter’s five forces is being
illustrated in this situation?
A. Buyer Power
B. Number of Competitors
C. Possibility of New Entrants
D. Supplier Power
8. Which of the following consists of the demographic characteristics, attitudes, beliefs, customs,
lifestyles, general behavior and values that describe the society in which the company operates?
A. Economic
B. Natural
C. Politico-Legal
D. Socio-Cultural
9. What research provides relevant data to help solve marketing challenges that a business will
most likely face an integral part of the business planning process?
A. Business Research
B. Market Research
C. Qualitative Research
D. Quantitative Research
10. Eunice observes the customers ordering in a fast-food chain. She conducts an observational
research What kind of data is she generating?
A. Initial
B. Primary
C. Secondary
D. Tertiary
11. John is a market researcher who selects from a list of the population every 18th person. Which of
the following sampling techniques did she use?
A. Convenience Sampling
B. Judgement Sampling
C. Simple Random Sampling
D. Systematic Sampling
12. Which of the following about data that should NOT be considered when giving conclusions and
recommendations for your business?
A. Analyzed
B. Generated
C. Guessed
D. Processed
13. A manager from the company is considered to be good when it comes to decision making,
especially when it comes to emergency situations. One day a machine is down and needs to be
repaired quickly to continue the operation. Tom, the manager, failed to respond to the problem
quickly, which took a week to repair a single machine. What would be the effect of this on the
company?
A. The operation will continue and this will not even affect any part of the business
B. Production volume will be decreased and workers time will be wasted due to defective machine
C. The workers will be happy because they will do nothing in one week and no effect on
production volume
D. Workers’ time will be wasted and the manager will work also as production worker to pay
for the wasted time
14. Carla and her friends will close their business but have to pay their outstanding obligations
with their creditors and suppliers. Which of the following is the best solution to their problem?
A. Apply for a bank loan
B. Borrow money from friends
C. Close the business and ran away
D. Sell the assets that they don’t need and use the cash to pay debts
15. What is the process of documenting and establishing a direction for your small business by
assessing where you are and where you’re going?
A. Business Planning
B. Financial Planning
C. Market Planning
D. Strategic Planning
16. Which of the following is NOT a benefit of Strategic Planning?
A. Develops a sense of ownership of the plan
B. Allows organizations to be reactive rather than proactive
C. Communicates goals/objectives to organization’s constituents
D. Ensures effective use of organization’s resources by focusing on key priorities
17. “Jollibee aims to serve great tasting food, bringing the joy of eating to everyone.” Which of the
following parts of the strategic plan is this?
A. Goal
B. Objective
C. Mission
D. Vision
18. Long-term goals are the milestones a company sets to guide operations toward their far-reaching
objectives. Which of the following is NOT an example of a long-term goal?
A. Increase profits
B. Attracts customers
C. Expand its operations and sales
D. Strengthen its hold on the local market
19. Which of the following is an example of a company’s strength?
A. Costly set-up
B. Entry of new competitors
C. Low capital requirements
D. Opposition from residents in the community
20. Tactics are smaller, focused action plans that support the overall strategy of the business. Which
of the following plans is NOT an example of a tactic?
A. Give incentives to deserving employees
B. Expand its operations in the international market
C. Provide workshops to enhance employees’ skills and abilities
D. Conduct employee trainings on how to give excellent customer service
21. What is the plan prepared by a component of an organization which clearly defines actions it will
take to support the strategic objectives and plans of upper management?
A. Financial Plan
B. Marketing Plan
C. Operational Plan
D. Production Plan
22. Which of the following is an example of a business under service?
A. Car dealerships
B. Livestock
C. Recruitment agencies
D. Supermarket
23. If Matt paid Php 60 to buy one roll of ribbon, Php 50 for the gift wrapper and another Php 40 for
labor, what is the total cost of wrapping one gift box?
A. Php 100
B. Php 110
C. Php 120
D. Php 150
24. What do you call the type of materials that are directly related to the production of the product or
the raw materials you used in making the product?
A. Direct materials
B. Indirect materials
C. Indigenous materials
D. Localized materials
25. What types of materials are paper, ink and notebook that are used for recording sales?
A. Direct materials
B. Indirect materials
C. Indigenous materials
D. Localized materials
26. Which of the following costs regardless of the extent of the production or operation that needs to
be paid regularly such as monthly rent, internet connection and salaries?
A. Direct costs
B. Fixed costs
C. Variable costs
D. Total costs
27. If the Liability is Php 450,000 and Owner’s Equity is Php 220,000, what is the Total
Assets? A. Php 220,000 B.Php230,000 C.Php450,000
D.Php670,000
28. How do you compute the cost of sale or merchandise sold in a trading or retailing type of
business such as a sari-sari store?
A. Cost of Merchandise Sold + Beginning Inventory + New Purchases - Ending Inventory
B. Cost of Merchandise Sold - Beginning Inventory + New Purchases - Ending Inventory
C. Cost of Merchandise Sold - Beginning Inventory - New Purchases - Ending Inventory
D. Cost of Merchandise Sold - Beginning Inventory - New Purchases + Ending Inventory
29. What profit does the business make after deducting all the direct costs?
A. Gross Profit
B. Net Income
C. Revenue
D. Sales
30. Which of the following conveys your business goals, the strategies you will use to meet them,
potential problems that may confront your business and ways to solve them, the organizational
structure and the amount of capital required to finance your venture and keep it going until it
breaks even?
A. Business Plan
B. Financial Plan
C. Marketing Plan
D. Operating Plan
31. Who among the following does NOT need a business plan?
A. Established firm seeking help
B. An entrepreneur seeking funds
C. An employee aiming for a promotion
D. Anybody beginning or extending a venture
32. Anna and her friends plan to establish a small grocery store in their subdivision? Which of the
following business permits do they have to get first?
A. Barangay Permit
B. Mayor’s Permit
C. DTI Registration
D. SEC Registration
33. What part of the business plan contains the income and cash flow statement, balance sheet and
break- even analysis?
A. Business Section
B. Marketing Section
C. Marketplace Section
D. Financial Section
34. What government agency gives permits to operate and sell goods or services?
A. Department of Trade and Industry (DTI)
B. Department of Labor and Employment (DOLE)
C. Social Security System (SSS)
D. Government Service Insurance System (GSIS)
35. Which part of the business plan describes and analyzes potential customers, who and where they
are, what makes them buy and the strategies?
A. Business Section
B. Management Section
C. Marketplace Section
D. Operations Section
36. SM priced its products lower than a whole number such as a shirt that costs P299.75. What
pricing strategy does SM use?
A. Competition-based Pricing
B. Cost-plus Pricing
C. Psychological Pricing
D. Standard Markup Pricing
37. Lobbying, publicity, special events, internal publications, and media are examples of what
promotion strategy?
A. Personal Selling
B. Public Relations
C. Sales Promotion
D. Traditional Advertising
38. What do you call the documented steps that you need to take to successfully complete the
implementation activities of the business plan?
A. Management Plan
B. Marketing Plan
C. Operational Plan
D. Implementation Plan
39. What business enterprise simulation activity model are you going to follow if you choose a
community outside your school and practice business planning skills?
A. Model A
B. Model B
C. Model C
D. Model D
40. Teacher Lena designates an area within the school premises where her students can run their
business. The students can put up a small stall or kiosk on the school grounds. Which of the
following models does the teacher adopt?
A. Model A
B. Model B
C. Model C
D. Model D
41. A lockdown is being implemented in the community because of the COVID-19 pandemic. The
teacher informs her students that they can have an online selling or online business simulation to
market and sell their products. What model does Teacher Shaira implement?
A. Model A C.Model C
B. Model B D.Model D
42. Why is it important to honestly record your financial transactions in operating your business?
A. To conceal the losses
B. To show transparency
C. To monitor sales and profits
D. To brag your sales and profits
43. Based on the table shown below, what is the Net Income of Martha’s Ice Cream Store for the
month of August 20XX?
August 20XX

Sales Php 30,000

Cost of Sales 10,000

Operating Expenses 10,000

Net Income Php

A. Php 10,000 B. Php 30,000 C. Php 40,000 D. Php 50,000

44. When operating a business, why is it important to have a good relationship with your customers?
A. To attract customers
B. To sustain the business
C. To promote your products
D. To increase customer attrition
45. What report summarizes what was done excellently and what needs to be improved if the
business is to be implemented again?
A. Business Capstone Report
B. Business Enterprise Report
C. Business Simulation Report
D. Business Enterprise Simulation Culminating Report
46. Why is it important to inform your customers about the closing of your business?
A. It creates last minute conflicts
B. It increases customer complaints
C. It gives less time for the customer to look for alternatives
D. It shows genuine concern for your customers and their needs
47. Which of the following steps is NOT included when winding up your business?
A. Settle your outstanding obligations with your creditors and suppliers
B. Ensure that the business transactions were properly recorded and posted
C. Inform your customers, creditors and suppliers that you are closing the business
D. Keep your business name with the DTI and your local business permit and licensing
48. Why is it important to keep the business transactions documents for about five years even if it is
about to close?
A. It is a required step to comply
B. It is memorabilia of your closed business
C. It provides evidence that a business transaction did not occur
D. It provides documents that will support your answers if future disputes happen
49. Why is it important to settle your outstanding obligations with your creditors and suppliers even
if you are winding up your business?
A. It is a requirement
B. It is your responsibility
C. It avoids being gossiped
D. It is not your accountability
50. Sarah is about to prepare her culminating report. Which of the following should NOT be included
in her report?
A. Personal problems and issues
B. Factors that helped her sell her products
C. Plans in the operation that did not materialize into sales and profits
D. General lessons she learned from the business enterprise simulation