Pretest

Entrepreneurship

Name: Score:

Section: Date:

Multiple Choice: Encircle the letter of the correct answer.

1. What is an entrepreneurship?
a. Someone who invest time and money to start a business.
b. Someone who make a lot of money
c. Someone who takes a risk to make a profit
d. Both A and C
2. Define free Enterprise
a. A business taking a risk to take a profit
b. A program administered by the Government
c. People in business trying to make a profit
d. A business adventure or undertaking
3. Capital is:
a. Money available to invest
b. Prohibitive cost of entry.
c. A guarantee that a company will be successful
d. A & B
4. The following are included in a business plan
a. Financial information, production plans, personnel policies
b. Goals of the business and how they will be achieve
c. All the above
5. Quality Control is defined as :
a. How many & what types of people are shopping at a store.
b. Tells you what the customer will buy
c. Tells you how much the customer will pay the product.
d. All the above
6. A market survey is important because it tells you:
a. How many & what types of people are shopping at a store .
b. Tells you what the customer will buy
c. Tells you how much the customer will buy .
d. Tells you how much the customer will pay for the product.
e. All the of the above .
7. Making a purchase you had not planned is called:
a. Consumer shopping
 b. A warranty
c. Impulse buying
d. Comparison shopping
8. Product planning tells you.
a. Where you will produce your product
b. Cost to produce your product
c. Your Net profit
d. Total revenues

9. Cost per serving means:

A. How much it will cost to produce one recipe
B. How much it will cost to produce what you sell in one day.
C. How much it will cost to make “One.”
D. How much it will cost to make one batch.
10. What makes a good advertisement? (Choose the best combination)
A. Color, Attracts attention, ingredients in product.
B. Name of product, price, location, attractive.
C. Easy to read, price, color, location, why customers should buy it.
D. Nutritional information, price, color, where to buy it, easy to read.
11. What things could you change to adjust your profit?
A. Price.
B. Number.
C. Less expensive supply sources.
D. All of the above

12. When counting change back to a customer, you should always give the ____________amount of
coins possible.

A. best B. least C. most D. correct

13. Gross profit is the
a. Amount of money you get for profit lab.
b. Amount of money collected from selling products
c. Amount of money your product costs to produce
d. Has nothing to do with money.
15. Net profit is the:
a. Amount of money you get for profit lab.
b. Amount of money collected from selling products.
c. Amount of money your product costs to produce.
d. Has nothing to do with money.
16. To figure the Gross Profit:
a. Add up the ticket sales from selling day.
b. Add up the ticket sales from selling day and subtract the cost of the ingredients
c. Add up cost to produce the product and subtract the total sales.
d. Add the cost to produce the product and add the total sales.
17. To figure the Net Profit:
a. Add up the ticket sales from selling day.
b. Add up the ticket sales from selling day and subtract the cost of the ingredients.
 c. Add up cost to produc3 the product and subtract the total sales.
d. Add the cost to produce the product and add the total sales.

18. This helps in the modern production since it becomes more efficient and economical.
a. Markets
b. Machine
c. Methods
d. Motivation
19. . It is used to acquire materials and machines which is essential in putting up a business.
a. Machine
b. Methods
c. Money
d. Markets

20. It deals with the importance of human element because of the needed understanding which can
effectively work towards achieving the demands of clients.
a. Money
b. Markets
c. Motivation
d. Methods
21. It encompasses buying, selling, marketing and merchandising which are directly involved in the
transfer of goods.
a. Commerce
b. Genetic Industry
c. Manufacturing Industry
d. Professional Services
22.
Commerce refers to the transfer or exchange of goods and services with the movement of goods from
point of production to point of consumption. On the other hand, industry is mainly concerned on
production and considered as the application of labor on raw materials.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.
c. Both statements are incorrect.
d. Both statements are correct.

23. It caters to the personal needs of the public in general on a community. Buying, selling, manufacturing
of goods and products are not involved.
a. Commerce
b. Industry
c. Services
d. Production
24. It refers to the goods from natural resources which are drawn from nature, mining, lumbering, hunting
and fishing.
a. Genetic Industries
b. Extractive Industries
c. Manufacturing Industries
d. Constructive Industries
25. It alters a material's form to increase its usefulness and combine into new products.
a. Genetic Industries
b. Extractive Industries
c. Manufacturing Industries
d. Constructive Industries
26. This kind of service includes motion pictures production, distribution, theaters for drama and stage
presentations as well as television.
a. Recreational Services
b. Personal Services
c. Professional Services
d. Manufacturing Services
27. This kind of service includes businesses such as restaurants, hotels, laundry shops, and beauty
salons.
a. Recreational Services
b. Personal Services
c. Professional Services
d. Manufacturing Services
28. It refers to the process of continuing the work which individuals or groups have to perform with the
faculties necessary for its execution.
a. Business
b. Business Organization
c. Organization
d. Business Organizational Ethics

29. It is the oldest and simplest form of business organization which are prevalent in small businesses.
a. Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperatives
24. There are two types of partnership, general and limited: A general partner's liability extends up to his
personal properties. On the other hand, a limited general partner's liability is up to his contributions only.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.
c. Both statements are incorrect.
d. Both statements are correct.
30. It refers to an artificial being created by operation of law with the right of succession.
a. Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperatives
31. It refers to a non-profit enterprise formed by member-patrons for the purpose of carrying on a
business activity that benefits its members.
a. Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperatives
32. Partnership is easy to organize or form and has an unlimited liability. On the other hand, it is very
difficult to organize a corporation, but it is easy to raise capital.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.
c. Both statements are incorrect.
d. Both statements are correct.
33. In sole proprietorship, all profits belong to the business owner and has limited liability. In partnership,
partners get all profits but the investment is idle.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.
c. Both statements are incorrect.
d. Both statements are correct.
34. The following are the types of cooperatives, EXCEPT
a. Credit
b. Consumer
c. Multi-Purpose
d. Union
35. In a corporation, it is strictly supervised and regulated by the government. On the other hand, in sole
proprietorship, there is management disagreement.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.
c. Both statements are incorrect.
d. Both statements are correct.
36. In a partnership, there is better knowledge of skills but still lacks stability. On the other hand, in sole
proprietorship, there is limited knowledge and skills and also lacks stability.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.

37. A business' territory or location may lead to growth or expansion. Location or territory of a business
increases operation expense.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.
c. Both statements are incorrect.
d. Both statements are correct.
38. The development of plans depends on the clear understanding of objectives. If we clearly know the
objectives, we will also know the nature of business which will determine the main function.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.
c. Both statements are incorrect.
d. Both statements are correct.
39. In forming an organization, it is more important to know the functions of the people in the organization
than the nature of the business. Function determines the nature of the business.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.
c. Both statements are incorrect.
d. Both statements are correct.
40. It refers to a normal or characteristic way of doing a task.
a. Analysis
b. Function
c. Responsibility
d. Departmentation
41. All goals and objectives MUST have uniformity. When there is contradiction among different levels of
goals desired, goals can’t be achieved, therefore, unity of objectives is necessary.
a. Statement 1 is correct while Statement 2 is incorrect.
b. Statement 1 is incorrect while Statement 2 is correct.

42. Which of the following is the objective of most businesses?

a. To maximize profit
b. To provide different array of products
c. To provide employment and other economic benefits to the people, government and society
d. To provide service to the community

43. Which of the following shows the financial position of the company by indicating the resources that it
owns, the debts that it owes and the amount of the investment in the business?
a. Balance Sheet
b. Income Statement
c. Statement of Cash Flows
d. Statement of Owner's Equity

44. Which of the following financial statement shows the results of business operations over a span of
time so it is important that it covers a specific period of time?
a. Balance Sheet
b. Income Statement
c. Statement of Cash Flow
d. Statement of Changes in Owner's Equity

45. Net Income and Net Loss are presented in which of the following financial Statements?
a. Balance Sheet
b. Income Statement
c. Statement of Cash Flows
d. Statement of Changes in Owner's Equity
46. Anything that can be offered to a market for attention acquisition used or consumption that may
satisfied a want or need is called;
a.demand b. Idea c. Product d. Services

47. Newsletter, catalogues and invitation to organization sponsored events are most closely associated
with the marketing mix activityof
a. Distribution b. Pricing c. Product development D. Promotion

48. Is an important P of marketing which affect the execution of its service such as job queing or query
handling
a. process b. People c. Physical evidence d. consumer
49. Define as the employees that execute the service chiefly concerned the matter and skill which they do
so..
a. process b. people c. Physical evidence d. Consumer
50. Shows that the service was formed, such as the delivery of the packaging for the item delivery by a
delivery service , or a scar left by a surgeon?
a.process b, Physical evidence c. people q. Consumer