ENTREPRENEURIAL MANAGEMENT 1

FINALS EXAMINATION

1. It is an arrangement of tasks required to implement a strategy as

well as work relationships.
 ORGANIZATIONAL STRUCTURE

2. This is a diagrammatical representation of an organization

structure.
 ORGANIZATION CHART/ORGANIZATIONAL CHART

3. It is the most elementary form of structure and is appropriate for

an organization that is owned and managed by one person.
 FLAT STRUCTURE

4. The most complex organization designs which require both vertical and
horizontal flows of authority and communication.
 MATRIX/MATRIX STRUCTURE

5. These are written statements describing duties, responsibilities,

qualifications, and reporting relationships of a particular job.
 JOB DESCRIPTIONS

6. It refers to the rules about how entrepreneurs ought to behave.

 BUSINESS ETHICS/ETHICS

7. Customers are served their right to be informed when these are

advertised or printed on product labels.
 INFORMATION

8. It refers to the place which will bring the highest possible benefits
to the firm.
 RIGHT LOCATION

9. This criteria for selecting the right location requires that the
business be situated near suppliers and customers.
 PROXIMITY

10. This community is characterized by favorable situations of economy,

competition, and population.
SPECIFIC
TRADE IN
VIABILITY
PROFITABLE

11. An area classified as primary, secondary, and fringe area.

SPECIFIC
 ALL OF THESE
CENTRAL BUSINESS DISTRICT
TRADING

12. This site is either identified as a central business district,

shopping center, or free-standing.
TRADING
NONE OF THESE
SPECIFIC
BEHAVIORAL

13. It exists in areas where customer satisfaction is weak or

incomplete.
 BUSINESS OPPORTUNITY/OPPORTUNITY/OPPORTUNITIES/BUSINESS
OPPORTUNITIES

14. This refers to any form of wealth employed to produce more wealth.
 CAPITAL

15. It is used to purchase a company’s permanent assets.

 FIXED CAPITAL

16. This represents the firm’s temporary funds and is used to support
the firm’s normal short-term operations.
 WORKING CAPITAL

17. This finances expansion or purchase of new buildings, hiring

additional workforce, or increasing inventory.
 GROWTH CAPITAL

18. It is the beginning of a business endeavor: new or innovative ideas.

 IDEATION

19. These are considered unique products and that satisfy needs that
have not been satisfied at the time they were introduced.
 INNOVATIVE PRODUCTS/INNOVATIVE

20. A product/service that must be available when social distancing

specially lockdown is imposed.
 REPLACEMENT PRODUCT/REPLACEMENT PRODUCT/SERVICE

21. It outlines the type of market as well as the market strategies the
firm intends to implement.
 MARKETING PLAN
22. It is shown to provide information relative to work assignments and
relationships in the organization.
ALL OF THESE
ORGANIZATIONAL STRUCTURE
ORGANIZATIONAL CHART
MATRIX STRUCTURE

23. They are private investors who not only invest money in small
companies but also offer valuable advice and counsel to them.
ANGEL INVESTORS
COMMERCIAL BANKS
FINANCE COMPANIES

23. They are private investors who not only invest money in small
companies but also offer valuable advice and counsel to them.
ANGEL INVESTORS
COMMERCIAL BANKS
FINANCE COMPANIES
NONE OF THESE

24. The most common loans extended to small businesses for operations
or purchase of an existing business.
COMMERCIAL LOANS
CAPITALISTS
ANGEL INVESTORS
FINANCE COMPANIES

25. They are usually corporations handing out funds to start a business
in exchange for a share in the company.
FINANCE COMPANIES
ANGEL INVESTORS
CAPITALIST
NONE OF THESE

26. This refers to the advancement of a product or service through the

stages which provide entrepreneur business opportunities to sustain a
business.
INVENTORY CYCLE
BUSINESS CYCLE
 NONE OF THESE
PRODUCT LIFE CYCLE
27. It gives the inventor exclusive rights to exclude anyone else from
engaging in business relating to the invention during its lifespan.
 PATENT

28. A word, name, symbol, or device used by manufacturers on merchants

to identify their goods and distinguish them from others sold in the
market.
 TRADEMARK/TRADE NAME

29. The easiest form of intellectual property protecting the creative

works of composers, authors, writers, and artist
 COPYRIGHT

30. This is critical to the success of a business plan.

ASSET
FINANCIAL PLAN
ALL OF THESE
SALES

31. This is a snapshot of the business at any point.

 BALANCE SHEET

32. It is an essential part of innovativeness, the starting point of a

process, which is skillfully managed and brings an idea into an
innovation.
 CREATIVITY

33. A written document that describes all the relevant

external/internal elements involved in a new venture.
 BUSINESS PLAN

34. These are specifically sought by customers.

MANUFACTURING PLANTS
MARKETS
NONE OF THESE
SERVICE FIRMS

35. Information on where the target customers want to be served can be

derived from this process.
MARKET RESEARCH
INDUSTRY OVERVIEW
COMPETETIVE ANALYSIS
 SERVICE FIRMS

36. This criterion satisfies the presence of cheap fuel, power and
water, skilled and financing facilities.
NONE OF THESE
AVAILABILITY
COSTS
PROXIMITY

37. It includes limitations to choosing a location arising from laws

or ordinances.
OPPORTUNITY

AVAILABILITY
PROXIMITY
RESTRICTIONS

38. This section assesses the customer segments that the company seeks
to serve.
INDUSTRY OVERVIEW
ALL OF THESE
MARKET ANALYSIS
DEMAND ANALYSIS

39. An investigation of direct and indirect competitors with an

assessment of their competitive advantage.
INDUSTRY OVERVIEW
PRODUCT ANALYSIS
NONE OF THESE
DEMAND ANALYSIS

40. This outlines the business’ legal structure and management

resources.
MARKETING PLAN
NONE OF THESE
OPERATIONAL PLAN
MANAGEMENT PLAN

41. A description of the business’ physical location, facilities and

equipment, kinds of employees needed, inventory requirements, suppliers,
and operating plans
 MARKETING PLAN
ALL OF THESE
ORGANIZATIONAL PLAN
OPERATIONAL PLAN

42. This provides descriptions of funding requirements, financial data,

and financial statement analysis.
FINANCIAL PLAN
MARKETING PLAN
ORGANIZATIONAL PLAN
ALL OF THESE

43. It is a legitimacy requirement of being listed with appropriate

government agencies to obtain permits and or secure intellectual
properties.
BUSINESS REGISTRATION
BUISINESS INCUBATION
BUSINESS PLANNING
ALL OF THESE

44. This local government requirement authorizes owners to operate a

business.
BUSINESS INCUBATION
NONE OF THESE
BUISNESS NAME
BUSINESS PERMIT

45. It is required of a business to ensure that workers and workplaces

are safe not to contaminate clients or food prepared for consumption.
BUSINESS PERMIT
TRADE REGISTRATION
ALL OF THESE
SANITARY PERMIT

46. This registration is required of all business institutions with the

Department of Trade and Industry.
ALL OF THESE
SANITATION PERMIT
TRADE NAME REGISTRATION
 BUSINESS PERMIT

47. These are uncertainties, mostly unpredictable and uncontrollable

but losses associated with it may be abated when business is carefully
planned and executed.
 RISKS

48. One of the following is not considered a business risk.

UNCERTAINTY
REDUCED TAX RATES
OBSOLENSCENCE
RISKS

49. This risk associated with products renders the product out of
fashion or no longer used because of fast development.
ALL OF THESE
UNCERTAINTY
RISKS
OBSOLESCENCE

50. It reflects the firm's willingness and commitment to promote and

support community, national and global goals.
CORPORATE SOCIAL RESPONSIBILITY
CORPORATE PHILANTHROPY
CAUSE MARKETING
NONE OF THESE

51. This refers to the corporate act of donating some of their profits,
or resources to the community.
CAUSE MARKETING
CORPORATE SOCIAL RESPONSIBILITY
ALL OF THESE
CORPORATE PHILANTHROPY

52. A campaign waged at the checkout line at grocery stores or other

retail values.
RED CAMPAIGN
LICENSING
PURCHASE PLUS
 PUBLIC SERVICE

53. It involves the use of marketing principles and techniques to

encourage behavior change in a particular audience.
ALL OF THESE
PURCHASE PLUS
RED CAMPAIGN
PUBLIC SERVICE

54. A business format of licensing and established brand to restrict

its use.
COPROATION
FRANCHISING
ALL OF THESE
JOINT VENTURE

55. It is a percentage of income collected by the franchisor from the

franchisee aside from the franchise fees.
 ROYALTY INCOME/ROYALTY

56. Franchising agreement seldom allows a retailer through an outlet to

distribute goods or services.
FALSE
TRUE

57. Franchising is nonrestrictive though many rules need to be followed.

FALSE
TRUE

58. The franchisor looks for a trade identity and communication system.
FALSE
TRUE

59. Typically, the franchisee merely sells the franchisor’s products.

However, this type of franchise will also include some form of
integration of the business activities.
PRODUCT DISTRIBUTION
BUSINESS FORMAT
NONE OF THESE
MANAGEMENT FRANCHISE
60. The type of franchise where the franchisee not only distributes the
franchisor’s products and services under the franchisor’s trademark but
also implements the franchisor’s format and procedure of conducting the
business.
DISTRIBTUTION
BUSINESS FORMAT
MANAGEMENT
NONE OF THESE

61. The management franchisee provides the management expertise, format,

and/or procedure for conducting the business.
FALSE
TRUE

62. In a franchise there are at least two sides but there can not be
more than one franchisee.
TRUE
FALSE

63. The franchiser owns a brand or trademark and allows the franchisee
to use it in a specific area under a license although the franchisee may
have an exclusive right to the brand.
FALSE
TRUE

64. The franchisee pays a regular license fee which may be an agreed
percentage of sales or profits.
FALSE
TRUE

65. The franchisor initially sets up the business to be run by the

franchisee.
TRUE
FALSE

66. The franchisor gives an undertaking not to carry on any competing

business and not to disclose confidential information regarding the
franchise.
FALSE
TRUE

67. The wrong location is one which will bring the most disadvantages
to the small business.
 TRUE
FALSE

68. Different types of small businesses need to use generic sets of

criteria in determining the right business location.
FALSE
TRUE

69. Some regions like National Capital Region have higher rates of
population growth and average family income.
FALSE
TRUE

70. In a given region, a province may be identified as more promising

for a small business than other provinces.
TRUE
FALSE

71. The following factors must be considered when identifying which

province the small business will be located:
PROXIMITY TO SUPPLIERS
ALL OF THESE
BUSINESS CLIMATE
ACCESSIBILITY OF UTILITIES

72. In choosing a specific city or town, the following must be

considered:
POPULATION TRENDS
LOCAL LEGISLATIONS
ALL OF THESE
COMPETITION

73. In choosing a specific city or town, the following must be

considered:
LOCAL REPUTATION
PUBLIC SERVICES
ALL OF THESE
TRANPOSRTATION

74. Factors affecting location choice as to consumer shopping situations

do not include:
 COMPARISON SHOPPING
SPECIALTY SHOPPING
NONE OF THESE
CONVENIENCE SHOPPING

75. Comparison shopping tend to minimize the customer’s effort to get

the product or service by locating store close to where customers are
located.
FALSE
TRUE

76. Customers have a good idea of what type of product they want but
don’t have a strong preference for brand, model, or retailer in a
specialty shopping situation.
FALSE
TRUE

77. Since consumers can see almost all brands and models in one store,
retailers adopt category specialist stores.
TRUE
FALSE

78. Zoning laws implemented in small cities are more restrictive than
those imposed by small towns.
TRUE
FALSE

79. The choice of a location for service firms will depend on the traits
of the target customer.
FALSE
TRUE