10_L2_Q1_PRETEST-Environment and Market-ADVANCED

1. What are the two main categories of factors to consider when setting up a business environment?

• a) Local and International
• b) Tangible and Intangible
• c) Physical and Digital
• d) Legal and Social

2. Which factor refers to the actual physical location of a business?

• a) Demography
• b) Natural and Physical environment
• c) Government regulations
• d) Economy

3. What does the demography factor in business planning refer to?

• a) The legal status of the business
• b) The cultural practices of the community
• c) The population and socio-economic diversity of the potential market
• d) The economic policies in place

4. Why is it important to consider government regulations when setting up a business?

• a) To minimize the cost of operations
• b) To ensure the business complies with all legal requirements
• c) To choose the best physical location
• d) To understand cultural differences

5. Which economic indicator reflects the general price level increase of goods and services?

• a) Gross Domestic Product (GDP)
• b) Inflation
• c) Unemployment Rate
• d) Market Demand

6. What is one method suggested for generating business ideas for an animation business?

• a) Copying existing products
• b) Reading articles and news on new trends
• c) Ignoring customer feedback
• d) Avoiding competitor analysis

7. What is the term for the marketing practice of creating a name, symbol, or design that identifies and differentiates a product?

• a) Branding
• b) SWOT Analysis
• c) Market Research
• d) Product Development

8. Which of the following is a key concept of selecting a business idea?

• a) Developing a tagline
• b) Assessing the availability of resources
• c) Designing a logo
• d) Choosing between different colors for the brand

9. Which step in the business idea selection process involves narrowing down choices to about two options?

• a) Initial Screening
• b) SWOT Analysis
• c) Final Decision
• d) Market Research

10. Why is consistency important in branding?

• a) It helps to reduce costs
• b) It ensures the business meets legal requirements
• c) It makes the brand reliable and trustworthy to customers
• d) It increases production efficiency