WorksheetsEntrepreneurship Midterm Exam
Total questions: 40
Worksheet time: 20mins
An entrepreneur decides to start a business without a clear vision or mission. Which long-term consequence is most likely?
The business will easily adapt to market changes
The business may lack direction and fail to grow
The business will automatically attract investors
The business will have fewer legal requirements
If an entrepreneur relies solely on personal funds for capital, what potential risk could arise compared to seeking external financing?
Reduced financial independence
Limited scalability of the business
Higher interest rates
Increased government regulation
A company has strong networks with suppliers, but weak customer connections. Which strategic action would best balance this weakness?
Increase reliance on imported raw materials
Invest in marketing and customer engagement
Focus only on legal compliance
Reduce research and development spending
Why is strict compliance with legal requirements considered a critical factor in starting a business?
It guarantees immediate profitability
It ensures continuous operation without penalties
It reduces the need for innovation
It eliminates all risks
An entrepreneur notices that competitors are lowering prices due to new technology. Which best decision would maximize opportunity?
Ignore the trend and maintain current pricing
Invest in innovation to differentiate products
Reduce marketing expenses to save capital
Focus only on legal permits
If raw materials become scarce, which factor should the entrepreneur evaluate first to sustain operations?
Availability of alternative suppliers
The company’s mission statement
The legal permits already secured
The number of employees hired
An entrepreneur identifies a new market due to demographic changes. Which reasoning best explains why this is an opportunity?
Demographic shifts create new customer needs
Demographics reduce the need for capital
Demographics eliminate competition
Demographics guarantee government support
During the opportunity recognition process, which source of opportunity is most relevant when a product fails unexpectedly but reveals unmet customer needs?
The incongruous
The unexpected
New knowledge
Demographics
An entrepreneur wants to innovate by using old technology in a new way. Which environmental trend does this reflect?
Economic factors
Social factors
Technological advances
Political changes
If an entrepreneur has strong creativity but weak financial planning, which outcome is most likely?
The business will succeed due to innovation alone
The business may struggle with sustainability despite good ideas
The business will automatically attract skilled workers
The business will avoid risks entirely
Which enterprise has assets not exceeding P50,000 ?
Cottage
Micro
Small
Medium
Main risk of single proprietorship?
Unlimited liability
Shared profits
Bureaucracy
Easy setup
Why can partnerships be unstable?
Too much capital
Partner conflicts
Limited liability
Easy registration
Who governs large enterprises?
Owner alone
Board of Directors
Family members
Suppliers
What is the purpose of microfinance?
Avoid loan sharks
Increase taxes
Reduce marketing
Eliminate training
Agency for trade fairs?
BETP
CITEM
BIR
DOLE
Registering with SSS means?
You have 0 or 1 employee
No worker at all
You have 1 or more employee
all of the above
TESDA training helps SMEs by?
Tax exemption
Better skills
Free loans
Avoid permits
Agency for product design?
PRDC
PDDCP
SEC
DOLE
Why register with multiple agencies?
Ensure compliance
Increase profits
Avoid competition
Reduce marketing
Why is a good product the foundation of marketing success?
It reduces the need for promotion activities
It directly meets customer needs and expectations
It guarantees lower prices for all customers
It eliminates the presence of competitors entirely
What is the main risk of setting prices too low?
Significantly reduced profit margins leading to potential losses
Automatically increased brand loyalty across all segments
Guaranteed market dominance regardless of competitors
Immediate elimination of competitors from the market
When are promotion strategies most effective for a business?
When the product has no existing competitors
When they match customer needs and behavior
When they replace the need for strong branding
When they eliminate the importance of place
Why are employees considered critical in the 7 Ps framework?
They determine the product pricing and costs
Their service and attitude affect satisfaction
They reduce the need for physical evidence
They guarantee compliance with legal rules
What is the benefit of a smooth and consistent process?
It lowers production costs for the company
It ensures reliable customer experiences
It eliminates the need for promotion work
It guarantees higher profits immediately
Why is physical evidence important in marketing services?
It builds customer trust and confidence
It reduces the need for trained employees
It guarantees cheaper prices for products
It eliminates the presence of competition
How does market research reduce risks in new products?
It guarantees immediate profit for the firm
It aligns strategies with customer needs
It eliminates the need for promotion work
It lowers production costs for the company
Why is knowing your audience essential in research?
It ensures compliance with legal permits
It identifies who is most likely to buy
It reduces the need for branding efforts
It guarantees monopoly in the market
When are Focus Group Discussions most useful?
Exploring general attitudes and perceptions
Setting product prices and distribution
Registering with government agencies
Eliminating competitors in the market
Why are personal interviews better than FGDs sometimes?
When the topic is sensitive or confidential
When the product is already successful
When the company wants to cut promotion
When the business has no employees
A company chooses a brand name that is long and difficult to pronounce. What is the most likely impact on customer perception?
Customers will find it unique and memorable
Customers may struggle to recall and recommend it
Customers will associate it with high quality
Customers will ignore competitors’ simpler names
If a brand mark is legally protected by a trademark, what strategic advantage does this provide?
It guarantees higher sales
It prevents competitors from copying the logo
It eliminates the need for advertising
It reduces production costs
An entrepreneur notices that competitors are offering similar products at lower prices. Which branding strategy would best maintain customer loyalty?
Focus on building trust and identity through branding
Reduce product quality to match competitor prices
Stop advertising to save costs
Copy competitor logos to confuse customers
Why is analyzing competitors considered a critical marketing management practice?
It ensures legal compliance
It helps identify differentiation opportunities
It reduces the need for branding
It guarantees immediate profit
A company sets a very high price for a low-quality product. Which outcome is most likely?
Customers will perceive it as premium
Customers may reject the product due to mismatch of value
Government will subsidize the product
Competitors will stop selling similar items
Why is putting price tags on products considered both a customer service and legal practice?
It makes products look more attractive
It ensures transparency and fairness in pricing
It reduces the need for promotion
It guarantees higher profits
A business invests heavily in online promotion but ignores customer complaints. Which long-term risk is most likely?
Increased brand loyalty
Negative reputation despite strong advertising
Reduced need for official receipts
Higher government support
If a company issues official receipts consistently, what dual benefit does it achieve?
Legal compliance and accurate sales tracking
Reduced marketing costs and higher profits
Customer loyalty and reduced competition
Elimination of branding needs
A brand name is legally available but has a negative meaning in another language. What should the entrepreneur do?
Use the name since it is legally available
Avoid the name to prevent negative customer perception
Trademark the name immediately
Focus only on local markets
Which promotional practice would be most effective for a new fashion brand targeting young consumers?
House-to-house selling
Newspaper advertisements
Social media campaigns and product sampling
Issuing official receipts
