Diagnostic Test for Entrepreneurship (G12)

Put a check mark (√) on the blank before the letter of your choice to indicate your answer.

ENTREPNEURIAL PERSONALITY
1. The factors that determine success or failure in entrepreneurship:
_____ a. education and training of the entrepreneur
_____ b. capital and business location
_____ c. technical skill and popularity of the entrepreneur
_____ d. environment and personality of the entrepreneur
2. This person who enjoys verbal activities to influence others has a personality type classified as:
_____ a. social
_____ b. enterprising
_____ c. realistic
_____ d. conventional
3. This trait pushes the entrepreneur to pursue his chosen course without relenting even in the face of adversity:
_____ a. drive
_____ b. thinking ability
_____ c. self-confidence
_____ d. reasonable risk-taker
4. The restaurant entrepreneur must at least be familiar with and possess some ________ about how the various tasks are
performed.
_____ a. thinking ability
_____ b. technical knowledge
_____ c. reasonable risk-taker
_____ d. goal setter
5. A person cannot achieve much unless he has sufficient confidence in himself.
_____ a. desire to be one’s own boss
_____ b. accountable
_____ c. self-confident
_____ d. technical knowledge
6. The entrepreneur’s ability to understand and de understood is a trait referred to as:
_____ a. human relations ability
_____ b. ability to communicate
_____ c. accountable
_____ d. innovative
7. A person who can see through a maze of information (or disinformation) brought before him is regarded as one with:
_____ a. good communication skills
_____ b. sufficient technical knowledge
_____ c. superior thinking ability
_____ d. excellent human relations ability
8. Entrepreneurs are expected to be reasonable risk takers because:
_____ a. they seize every available opportunity to make profits
_____ b. they believe that the best place to put their money is in the bank
_____ c. they find it difficult to trust people
_____ d. they are not conservation but also not gamblers
9. A person who is self-confident is one who:
_____ a. thinks he is better than anyone
_____ b. believes in his ability
_____ c. thinks he cannot fail
_____ d. never stop pursuing his goal
10. The desire for high financial rewards motivate a person to become:
_____ a. an officer of a business firm
_____ b. an employee
_____ c. a professional
_____ d. an entrepreneur
11. In new ventures, business ideas are fully emphasized during:
_____ a. prestart-up stage

“Ut In Omnibus Gloricefetur Deus”

 Diagnostic Test for Entrepreneurship (G12)

_____ b. start-up stage

_____ c. early growth stage
_____ d. later growth stage
12. In new venture, the manager becomes fully involved in that particular stage called:
_____ a. start-up stage
_____ b. early growth stage
_____ c. later growth stage
_____ d. stable enterprise
13. In terms of Entrepreneurship, What does “personality” means?
_____ a. perfect fit
_____ b. unfit
_____ c. moderate fit
_____ d. all of the above
14. In your own opinion and idea, What motivates people to become entrepreneurs
_____ a. desire to be one’s own boss
_____ b. desire for financial rewards
_____ c. desire to create one’s own job security
_____ d. desire to improve one’s quality of life.
15. Which refers to the discovery or devising of new products and processes;
_____ a. Innovation
_____ b. Development
_____ c. Invention
_____ d. None of the above
16. A type of small business which involved in the conversation of raw materials into products needed by society.
_____ a. Service
_____ b. Manufacturing
_____ c. Wholesaling
_____ d. Retailing
17. General Construction Firms refers to;
_____ a. involved in the sale of goods and / or services to the final consumers.
_____ b. to the activities of persons or establishments w/c sell to retailers and other merchants.
_____ c. those engaged in the construction of buildings whether for private individuals firms, or for government.
_____ d. involved in the conversation of raw materials into products needed by society.

THE SEARCH FOR A SOUND BUSINESS IDEA

Put a check mark (√) on the blank before the letter of your choice to indicate your answer.
18. When a product like a chair that can carry more weight than the previous model is introduced in the market, the
improvement referred to is about:
_____ a. performance
_____ b. maintenance cost
_____ c. acquisition cost
_____ d. salvage value
19. When a Filipino movie producer made “Drama,” it was a business idea that took the form of:
_____ a. an old type of business that was professionalized
_____ b. a standard product that was customized
_____ c. an adaption of new technology to manufacture an old product
_____ d. a local product replacing an imported product
20. When a neighbor suggests a business idea, the entrepreneur has just benefited from an unanticipated means that is:
_____ a. his work
_____ b. his hobbies
_____ c. his acquaintances
_____ d. a chance event encountered by him
21. When stable and sufficient demand is under consideration, the business idea is screened under the criteria of:
_____ a. market feasibility
_____ b. technical feasibility
_____ c. financing feasibility
_____ d. financial feasibility

“Ut In Omnibus Gloricefetur Deus”

 Diagnostic Test for Entrepreneurship (G12)

22. When practicable, the fastest means to solicit market information is through:
_____ a. mail questionnaires
_____ b. advertisements incorporating feedback mechanisms
_____ c. phone interviews
_____ d. personal interviews
23. When the small business operator cannot produce sufficient capital to operate the business, the business should be
screened out for failing the criteria on:
_____ a. market feasibility
_____ b. technical feasibility
_____ c. financing feasibility
_____ d. financial feasibility
24. When innovation thrives in an organization, it means the organization is characterized by:
_____ a. encouragement of creativity and risk-taking
_____ b. rewards for creativity
_____ c. open communication
_____ d. allowance for errors
25. When the creative employee is allowed to engage in creative activities on hours most convenient to him and to the
company, the firm has adapted as a matter of policy:
_____ a. flexibility
_____ b. a climate of participation
_____ c. allowance for errors
_____ d. open communications
26. When an employee develops a business idea as a result of direct contact with customers, this unanticipated means due to:
_____ a. the person’s work
_____ b. the person’s hobbies
_____ c. the person’s acquaintances
_____ d. a chance event encountered by the person
27. The projected cash flow statements shows:
_____ a. the planned or expected cash sales and/or purchases
_____ b. the summery of the firm’s planned or expected financial performance in terms of revenues, expenses, and profits over a
given time period
_____ c. the planned or expected financial position of the firm on a particular date
_____ d. the sources and uses of funds during a given period
28. The forecast of something which will happen in the future is referred to as a;
_____ a. projected income statement
_____ b. projected financial statement
_____ c. projected balance sheet
_____ d. projected cash flow statement
29. The free-flowing exchange of ideas between the members of an organizing is referred to as _____;
_____a. Allowance for errors
_____ b. A climate of participation
_____ c. Flexibility
_____ d. Open Communication

STRATEGIC PLANNING FOR SMALL BUSINESS

30. Refers to the process of determining the primary objectives of the firm and then adapting courses of action and allocating
resources to achieve those objectives.
_____ a. determinations of objectives
_____ b. adoption of course of actions
_____ c. strategic planning
_____ d. allocation of resources
31. How the entrepreneur intends to use his resources and others.
_____ a. mission statement
_____ b. strategic objectives
_____ c. strategy
_____ d. adoption of course of actions
32. To be able to deploy the right quality and quantity of resources

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 Diagnostic Test for Entrepreneurship (G12)

_____ a. aim of strategic planning

_____ b. new business
_____ c. SWOT
_____d. strategic planning
33. One of the mission statement concern is
_____ a. expand production capacity by 50% within 2 years
_____ b. establish branches in strategic
_____ c. how the entrepreneur intends to use his resources
_____ d. forecast of future sales performance
34. This gives sufficient reason to disregard the benefits of strategic planning.
_____ a. Lack of expertise
_____ b. Resource poverty
_____ c. Failure to realize the importance of strategic planning
_____ d. Focus on daily operations
35. Refers to the chance offered by the external environment to improve the firm’s situation significantly.
_____ a. weakness
_____ b. threats
_____ c. opportunity
_____ d. strength

THE BUSINESS PLAN

Put a check mark (√) on the blank before the letter of your choice to indicate your answer.
36. A document that helps the SBO determine what resources are needed to achieve the objectives of the firm, and the like:
_____ a. financial plan
_____ b. marketing plan
_____ c. human resources plan
_____ d. business plan
37. The part of the business plan that indicates the name of the business, the names of the proponents, address, and others:
_____ a. title page and contents
_____ b. executive summary
_____ c. description of the business
_____ d. description of the product of service
38. The part of the business plan which contains information on the capital needs of the business how the money will spent,
what benefits will be derived by the business from the loan or investment, among others:
_____ a. executive summary
_____ b. description of the business
_____ c. description of the product of service
_____ d. market strategies
39. When the SBO is determining which part of the total potential market will be served by the firm, he is actually developing a
market strategy referred to as:
_____ a. definition of the market
_____ b. determination of the market share
_____ c. position strategy
_____ d. pricing strategy
40. When the SBO wants to know what the customers really want to buy from the firm, he is starting to develop a:
_____ a. pricing strategy
_____ b. positioning strategy
_____ c. distribution strategy
_____ d. promotion strategy
41. A method of pricing where the firm sets prices based on buyer desires:
_____ a. cost plus pricing
_____ b. demand pricing
_____ c. competitive pricing
_____ d. markup pricing
42. They sell directly to consumers:
_____ a. brokers
_____ b. wholesalers

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 Diagnostic Test for Entrepreneurship (G12)

_____ c. retailers
_____ d. manufacturer’s representatives
43. This portion of the promotion strategy is a detailed presentation of the publicity strategy of the firm:
_____ a. advertising aspects
_____ b. packaging
_____ c. public relations
_____ d. sales promotions
44. That portion of the business plan that contains the organizational structure, operating expenses, capital requirements, and
cost of goods sold:
_____ a. market strategies
_____ b. analysis of the competition
_____ c. operations and management
_____ d. financial data
45. The financial statement that shows the financial condition of the business as of a given data:
_____ a. income statement
_____ b. cash flow statement
_____ c. balance sheet
_____ d. statement of planning premises
46. A part of balance sheet in order to liquidity from the most to the least liquid.
_____ a. The Assets
_____ b. The Liabilities
_____ c. The owner’s equity
47. Cash flow statement is also a very useful tool for business planners. This _____ is/are income collected from credit sales.
What type of Cash Flow Staement is it?
_____ a. Cash
_____ b. Receivables
_____ c. Cash Sales
_____ d. Other Incomes

FORMS OF SMALL BUSINESS OWNERSHIP

48. Is a business owned and operated by a single person.
_____ a. Corporate
_____ b. Partnership
_____ c. Sole Proprietorship
_____ d. Incorporated
49. This Authority is very important especially under critical moments of competition.
_____ a. Government Regulation
_____ b. Control of the Business
_____ c. Taxation
_____ d. Secrecy
50. Which of the following is not included with regards the advantages of partnership?
_____ a. Ease of Formation
_____ b. Unlimited Liability
_____ c. Tax Advantage
_____ d. More source of capital

MARKETING THE SMALL BUSINESS

51. Is that function concerned with planning and implementing the conceptions, pricing, promotion and distribution of
products or services that will satisfy the firm’s objectives.
_____ a. Market Strategy Planning
_____ b. Marketing
_____ c. Marketing Strategy
_____ d. Target Marketing
52. Aims to sell at two or more distinct market segments, is referring from which segments?
_____ a. Mass market company
_____ b. Market-segment company
_____ c. Multi-segment company

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 Diagnostic Test for Entrepreneurship (G12)

_____ d. All of the above

53. It includes the warranties and other conditions attached to the product.
_____ a. Product Offering
_____ b. Price
_____ c. Promotion
_____ d. Place
54. Consists of gathering data by interviewing people.
_____ a. observation method
_____ b. survey method
_____ c. experimental method
_____ d. market method
55. Is a method of forecasting sales that consists of obtaining opinions regarding future sales volume from one or more
executives?
_____ a. Survey of buyer intentions
_____ b. Test Marketing
_____ c. Past sales analysis
_____ d. Executive judgment
56. is a statistical method of forecasting sales over the long term by using regression analysis or over the short term using a
seasonal index of sales.
_____ a. Trend analysis
_____ b. Market-factor analysis
_____ c. Sales-force composite
_____ d. Executive judgment

PROMOTING THE SMALL BUSINESS

57. Is any paid form of non personal presentation and promotion of ideas, goods and services by an indentified sponsor?
_____ a. Newly created demand
_____ b. Promotion
_____ c. Established Demand
_____ d. Advertising
58. Is made by various retail stores such as grocery stores and bakeries to attract customers.
_____ a. Institutional Advertising
_____ b. Industrial Advertising
_____ c. Trade Advertising
_____ d. Retail Advertising
59. A type of advertising media which provide the small business advertiser with some advertising exposure, however, is
limited to persons with telephone.
_____ a. Television
_____ b. Radio
_____ c. Magazines
_____ d. Yellow Pages
60. Helps the company’s customers, especially retail stores, promote the product.
_____ a. Missionary Sales Person
_____ b. Trade Sales Person
_____ c. Technical Sales Person
_____ d. Sales Agent

“Ut In Omnibus Gloricefetur Deus”