APPLIED ECONOMICS
rd
3 SUMMATIVE TEST- Chapter 3
(35-item test)
I. Answer the following:
1. It is an analytical framework that can help a company meet its challenges and identify new markets. This
framework can help identify the business’s risks and rewards.
2. These are external factors in your business environment that are likely to contribute to your success.
3. It is considered as a small portion of an industry.
4. These are forces that affect a company, an organization, an individual, and those outside their control.
5. These are negative factors that detract from your strengths. These are the things that you might need to improve
on to be competitive.
6. It is the owner’s main objective of the business.
7-10. Meaning of SWOT.
11. These are internal, positive attributes of your company. These are the things that are within your control.
12. These are external factors that you have no control over and this could damage the scope in attaining your
objectives.
13. It is the aggregation of the different businesses engaged in the same line of undertaking.
14. It was developed in 1979 by Michael E. Porter of Harvard Business School as a framework or a guide for
assessing and evaluating the competitive strength and position of a business organization.
15-16. These are considered as the internal factors and these are also the resources and experiences readily
available to the business proponent.
17-20. Enumerate the 4 ways to form a business.
21. When are you going to know if the business is considered as large scale?
22-26. Enumerate the five forces that help in identifying if new products or services are potentially profitable.
27-28. Give at least 2 situations/reasons wherein the supplier has the ability to drive up prices.
29-30. Give at least 2 situations/reasons wherein the buyer has the ability to drive down prices.
31-35. Discuss the Importance of Porter’s Five Forces Analysis
APPLIED ECONOMICS
3rd SUMMATIVE TEST- Chapter 3
(35-item test)
I. Answer the following:
1. It is an analytical framework that can help a company meet its challenges and identify new markets. This
framework can help identify the business’s risks and rewards.
2. These are external factors in your business environment that are likely to contribute to your success.
3. It is considered as a small portion of an industry.
4. These are forces that affect a company, an organization, an individual, and those outside their control.
5. These are negative factors that detract from your strengths. These are the things that you might need to improve
on to be competitive.
6. It is the owner’s main objective of the business.
7-10. Meaning of SWOT.
11. These are internal, positive attributes of your company. These are the things that are within your control.
12. These are external factors that you have no control over and this could damage the scope in attaining your
objectives.
13. It is the aggregation of the different businesses engaged in the same line of undertaking.
14. It was developed in 1979 by Michael E. Porter of Harvard Business School as a framework or a guide for
assessing and evaluating the competitive strength and position of a business organization.
15-16. These are considered as the internal factors and these are also the resources and experiences readily
available to the business proponent.
17-20. Enumerate the 4 ways to form a business.
21. When are you going to know if the business is considered as large scale?
22-26. Enumerate the five forces that help in identifying if new products or services are potentially profitable.
27-28. Give at least 2 situations/reasons wherein the supplier has the ability to drive up prices.
29-30. Give at least 2 situations/reasons wherein the buyer has the ability to drive down prices.
31-35. Discuss the Importance of Porter’s Five Forces Analysis
