Entrepreneurship

Philip Reymond Sta Cruz, LPT

Practice Test
• 1) In the entrepreneurial world, new ideas and opportunities are
evolving. What is the ability to create new things, invest in new
enterprises and expand business?
• a. Creativity
• b. Entrepreneurship
• c. Manufacturing
• d. Producing
• 2. Alvin has transferred to a new locality. He observed that there is an
opportunity for him to put up his own business since he has enough
capital and very much interested to the idea. Which of these factors
must he possess so that he will not rely on the services of the
employees?
• a. Markets
• b. Manpower
• c. Supply of resources
• d. Knowledge/Skills
• 3) Management functions and principles play a very critical role in
running a business. What principle of planning specifies that the
objectives of an entrepreneur should match the needs of the society?
• a. must be realistic
• b. must be based on felt needs
• c. must focus on dealing with a crisis
• d. must start with a simple project
• 4. The site of the business enterprise is one of the requirements of
entrepreneurship. Which of the following is the most important in
choosing the best location for the business?
• a. access to supplies and raw materials
• b. clean, decent and peaceful environment
• c. less competitors in the area
• d. enough capital to pay space rental
• 5. Which one is not included in planning a business?
• a. how and when to do it
• b. how to increase profits
• c. what to expect in the future
• d. what to do
• 6. What is the benefit of business planning wherein the entrepreneur
determines whether the business is profitable or not?
• a. minimize cost production
• b. detect the weakness of the business
• c. eliminate business risk
• d. estimate sales
• 7. What is thinking ahead of objectives, strategies, financing,
production, marketing, profit proposal and growth facilities?
• a. forecasting
• b. managing
• c. planning
• d. projecting
• 8. Who among the following is the principal actor of the production?
• a. Entrepreneur
• b. Customer
• c. Production manager
• d. Worker
• 9. Which method of establishing a business starts from scratch?
• a. buy-out
• b. franchising
• c. loan
• d. start-up
• 10. Which of the following skills are NOT needed by an entrepreneur?
• a. Technical skills
• b. Personal entrepreneurial skills
• c. Working skills
• d. Business management skills
• 11. Which of the following statement is INAPPROPRIATE in starting a
business?
• a. Study the concepts and principles of entrepreneurial skills.
• b. Cope with failures of the business.
• c. Undergo training on entrepreneurial skills.
• d. Know what characteristics are needed to become an entrepreneur.
• 12. Which of the following is NOT a source of fund for Mr. Fajardo's
future business?
• a. Seek assistance from Central Bank of the Philippines.
• b. Borrow money from friends and relatives.
• c. Avail of the government program on financing micro-macro business.
• d. Use part of her retirement benefit.
• 13. If her business idea is a boutique, what quality of a future
entrepreneur is INAPPROPRIATE?
• a. Relaxed
• b. Hard worker
• c. Risk taker
• d. Innovative
• 14. Which of the following is NOT a characteristic of an entrepreneur?
• a. Coping with failure
• b. Irritated
• c. Opportunity seeker
• d. Persistent
• 15. Which among these characteristics of an entrepreneur is
UNDESIRABLE?
• a. Opportunity seeker
• b. Goal setter
• c. Futuristic
• d. Impassive
• 16. Which of these traits gets an entrepreneur off of his feet and puts
him into action, turning daydream into reality?
• a. Perseverance
• b. Ambition
• c. Creativity
• d. Enthusiasm
• 17. Which entrepreneurial trait gives an entrepreneur a positive outlook
in life which gives the energy to pursue his endeavors?
• a. Perseverance
• b. Ambition
• c. Creativity
• d. Enthusiasm
• 18. Which trait is an entrepreneur able to withstand the troubles that
come with a starting business?
• a. Perseverance
• b. Ambition
• c. Creativity
• d. Enthusiasm
• 19. From a social viewpoint, which of the following statements about
marketing objective is NOT true?
• a. Assist in the efficient allocation of resources.
• b. Create wealth and promote economic growth.
• c. Improve income distribution among different sectors of the
economy.
• d. Maintain instability of supply and demand for marketed goods.
• 20. What type of financial statement summarizes the information
concerning the cash inflows and outflows during a particular period?
• a. Balance sheet
• b. Statement cash flows
• c. Income statement
• d. Statement of retained earning
BLEPT Competencies
• Identify the characteristics of entrepreneurs and their entrepreneurial
competencies
• Analyze production and marketing process in an enterprise
• Develop a simple business feasibility study
Entrepreneurship
• Entrepreneur- one who bears uncertainty, buys labor and materials,
sells product at uncertain prices ( Canutillo )
Characteristics of Entrepreneurs
Ambition
• Entrepreneurs ambition is often the key ingredient that gets him off his
chair and puts him into action, turning daydream into reality
Enthusiasm
• Ambition is the key to ignition, enthusiasm is the gas
• Positive outlook giving him the energy to pursue his endeavors
Prudence
• Allows you to make calculated risk
• Safety net, making you question every move you make so as to avoid
any serious problems
Creativity
• Discover ways to turn roadblocks into opportunities
• Makes them men of ideas
Decision-Making
• Ensure that the best possible measure will be enforced
• Makes them men in action
Perseverance
• Ability to withstand the troubles that come with starting a business
What is Business?
• Business is an undertaking or
venture for the primary
purpose of making a gain or
profit
Common Types of
Businesses
• Service Business
• Trading or Merchandising Business
• Manufacturing Business
• Investment or Finance Business
Service Business
• Type of business whose principal
undertaking is the selling of one’s
service

• Ex. Repair shop, barber shop, tailoring

shop, beauty shop, security service
Trading or
Merchandising
• Type of business that buys and sells
an article in the same form

• Ex. Bookstore, grocery store,

hardware, electronic store,
department store
Manufacturing Business
• A type of business that buys an article
and converts the same into another form
of article

• Shoes manufacturing, furniture

manufacturing, canned goods
manufacturing
Investment or Finance
• Business that invents or lends
money and collecting the same
with interest

• Ex. Banks, insurance companies

Forms of Business
Organizations
Single Proprietorship
• Business organization owned by
only one person
Partnership
• Business organization owned by two
or more persons who contribute
property or services into a common
fund
Corporation
• Business organization whose common
fund or capital is divided into shares or
stock. The owners are called corporators
or stockholders