Third Quarter Periodical Test

ENTREPRENEURSHIP
January 9 &10, 2020

Test I. Multiple choice: Read and analyze the each question properly and choose the best answer.
1. Which of the following is the main purpose for writing a business plan?
a. The plan helps the company develop a "road map" to follow.
b. The plan introduces potential investors and other stakeholders to the business opportunity.
c. Both A and B are equally important.
d. Neither A nor B captures the true purpose of a business plan.
2. The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing
and how it plans to pursue it is the:
a. business plan
b. feasibility analysis
c. opportunity analysis
d. industry analysis
3. Which of the following statements is incorrect regarding business plans?
a. A firm's business plan is typically the first aspect of a proposed venture that will be seen by an investor.
b. To make the best impression, a business plan should follow an unconventional structure, so it will stand out.
c. A business plan has both an external and an internal audience.
d. A company's business plan is typically written by its founders.
4. Financial management deals with two things raising money and:
a. operations management
b. inventory control
c. managing a company's finances
d. production management
5. A financial statement is a (n):
a. set of ratios which depict relationships between a firm's financial items
b. estimate of a firm's future income and expenses
c. hybrid statement of cash flows
d. written report that quantitatively describes a firm's financial health
6. ________ are itemized forecasts of a company's income, expenses, and capital needs and are also an important tool for financial planning and
control.
a. Profitability statements
b. Financial statements
c. Owners' equity statements
d. Budgets
7. The high failure rate among new ventures is due in part to the liability of newness, which refers to the fact that new companies often falter because:
a. They are underfunded and the founders of the firms don't move quickly enough to put together boards of directors and boards of
advisors that can provide them direction and advice
b. They underestimate the complexities involved with starting a new business and the firm lacks a "track record" with outside
buyers and sellers
c. The people who start the firms can't adjust quickly enough to their new roles and the firm lacks a "track record" with outside
buyers and sellers
d. The people who start the firms can't adjust quickly enough to their new roles and they are underfunded
8. The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target
markets in that industry. This process is called:
a. market positioning
b. market splitting
c. market targeting
d. market segmentation
9. One a firm has segmented the market, the next step is to:
a. decide on a position within the segment
b. select a critical market
c. select a target market
d. select a focal market
10. A product attribute map is used to help a firm determine if its:
a. if it is emphasizing benefits rather than features
b. branding strategy is appropriate
c. market segmentation is correct
d. positioning strategy is appropriate
11. Economic resources acquired through a transaction or event that can provide economic utility in future production or revenues.
a. assets b. liabilities c. revenue d. owner’s equity
12. Currency or cash items on hand. Includes checks, bank drafts, money orders, treasury warrants, etc
a. cash on hand b. cash in bank c. cash receivable d. accounts payable
13. Deposits in a bank which can be withdrawn or used for current operations without any restrictions
a. cash on hand b. cash in bank c. cash receivable d. accounts payable
14. Open accounts without any formal written promise to pay.
a. Accounts receivable b. cash in bank c. cash receivable d. accounts payable
15. In what phase of opportunity screening is when opportunities have a good chances of expanding through branches.
a. Responsiveness b. Reach c. Risks d. Range
16. What Opportunity screening that says, opportunities requiring fewer resources from the entrepreneur may be more favored that those requiring
more resources.
a. Responsiveness b. Reach c. Resources required d. Range
17. An opportunity that can also be intangible; meaning, they come in the form of high profile recognition or image projection.
a. Responsiveness b. Reach c. Risks d. Returns
18. The opportunity can potentially lead to a wide range of possible product or service offerings, thus, tapping many market segments of the industry.
a. Responsiveness b. Reach c. Risks d. Range
19. The following are examples of secondary data EXCEPT.
a. number or population b. Population c. Family size d. Preferences
20. Which of the following is not included in the classification of liabilities?
a. Accounts payable b. Notes payable c. Accounts receivable d. Unearned income
21. Obligations which are not expected to require the use of current assets or the creation of current liabilities within one year operating cycle.
a. Liabilities b. Asset c. Long term liabilities d. Equity
22. Which of the following is one of the classifications of asset?
a. Accounts payable b. Notes payable c. Accounts receivable d. Current assets
23. Entreprendre is a French word which means
a. to wrestle b. to learn c. to communicate d. to undertake
24. Developing of an existing product is
a. Creation b. Innovation c. Presentation d. Production
25. Which statement is a myth in entrepreneurship?
a. Entrepreneurs are willing to risk loss in order to make money
b. Entrepreneurship innovate products
c. Entrepreneurship generates income
d. Successful entrepreneurs have to be born, not made.
27. Which of the following best describes an ideal place for business?
a. It should be where your competitors are
b. Available from where your target consumer finds it easiest to shop
c. A place doesn’t affect much on the success of a business
d. None of the above
28. These are examples of innovation, which is not?
a. Increasing the storage capacity of a gaming personal computer.
b. converting electrical charging to solar charging.
c. Develop a product packaging into more reusable sort
d. Copying an existing features of a smartphone
29. Who was the famous 20th century Austrian economist who also defined entrepreneurship?
a. John Carl b. Carl Schumpeter c. John Schumpeter d. Joseph Schumpeter
29. A typical or preliminary model of a product.
a. Copy b. Counterfeit c. miniature d. Prototype
30. This is a requirement to respond to an opportunity.
a. Resources b. Capital c. Manpower d. Location
31. Which of these questions should be asked to an aspiring entrepreneur?
a. Are you ready to commit?
b. Do you have the skill for this business?
c. Are you ready to compete?
d. Were you born for business?
32. What could be the possible risks a business could encounter along the way?
a. Determining a product to offer to the market
b. Setting up vision and mission
c. Seeking the right location to put up a business
d. Strong competitors
33. An entrepreneur creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying …
a. Product b. People c. Opportunities d. Job
34. Which of the following is not a valid reason why a small businesses are important to a country’s economy?
a. They tend to keep salaries small
b. They can provide specialist support to larger companies
c. They can be innovators of new products
d. They provide competition to larger companies
35. An entrepreneur
a. manages a business for someone else
b. Owns controlling interest in the stock of a major corporation
c. manages a business that operates in more than one country
d. Accepts the risk of starting and running a business
Essay:
 Discuss the importance of 12 R’s of opportunity screening. (3 pts)
 Discuss the importance of Business Plan (3 pts)
 What is an "executive summary?" Why the executive summary is often called the most important part of a business plan? (3 pts)
 Define “Entrepreneurship”.(3 pts)
 As an aspiring entrepreneur how will you handle the presence of risks in the business? (3 pts)

“Wisdom is a principal thing: therefore get wisdom: and with all thy getting get understanding.” Proverbs 4:7