Republic of the Philippines

Department of Education
Ormoc City Division
Rustico Capahi Sr. Memorial National High School

MIDTERM EXAMINATION in ENTREPRENEURSHIP 11

NAME: _________________________________________________ GRADE & SECTION: _____________________

Test I. Multiple Choice: Encircle the letter that corresponds to the correct answer.

1. Which of the following below is NOT an advantage of Entrepreneurship?

a. Can choose a business of interest b. You can be creative
c. Make a lot of money d. You will make decisions alone
2. If you own your own business, you will need to know how to calculate your profit. Which one is a calculation of profit?
a. sales - months in a year b. monthly sales x expenses c. Sales – expenses
3. TRICKY, a small jewelry store with three locations, designs and manufacturers much of its own jewelry while its competitors
(many of them large department stores) sell standard “off the shell” jewelry. As a result, many customers see, TRICKY as the
place to go for unique pieces of jewelry. TRICKY’s reputation for selling unique and custom designed jewelry is a(n) _________.
a. strength b. weakness c. opportunity d. threat
4. Successful marketing requires a business owner to do the following statements below except one.
a. understand what her target customer’s needs, demands and wants after her competitors can.
b. offer customer products and services that will satisfy their needs, demands and wants.
c. provide customers with service, convenience and vale tso that they will keep coming back.
5. Owned by an individual who starts the business, for which he has full responsibility.
a. partnership b. corporation c. sole proprietorship d. company
6. This type of ownership typically requires consent of partners in relation to their transferability of ownership.
a. partnership b. corporation c. sole proprietorship
7. These refers to everything that the business owns that can be used to create value.
a. Stockholders Equity b. Liabilities c. Assets d. Sales Projections
8. These are everything that the business owes to bank and other creditors.
a. Assets b. Finance c. Stockholder’s Equity d. Liabilities
9. Which of the following statements below holds true regarding sole proprietorship.
a. Owners are liable to the amount of their investment
b. Depends on partners’ investments and on agreement of partners
c. Owner receives all profits and carries all losses
10. In this type of ownership, owner’s death dissolves the business itself.
a. Sole Proprietorship b. Corporation c. Partnership d. Company
11. Manpower refers to the ___________ of the business.
a. Persons involved in the business b. Equipment used
c. Things used to make the product d. Strategies used in a business
12. Under the 6M’s of Operation, ____________ ensure that the physical facilities are set up, employees are hired and
operating systems are bought and installed.
a. Method b. Manpower c. Materials d. Money
13. These are input that must be converted to the final output.
a. Management b. Money c. Machines d. Materials
14. This M should come ahead of the other M’s in order to design and develop the transformation process.
a. Management b. Machines c. Methods d. Manpower
15. Customer’s wants and desires are classified into outcome expectations which are listed below except one.
a. Quality Expectation b. Delivery Expectation
c. Product Expectation d. Price Expectation
16. It is the transformation process where input is converted into output.
a. Input b. Output c. Throughput d. Outcome
17. In case of goods, the output must then be _______________.
a. marketed to the customers
b. Experienced by customers
c. marketed and experienced by the customers.
18. The 6 M’s of Operation are under the resources to be mobilized which is also called as the _____________.
a. Outcome b. Output c. Throughput d. Input
19. All increases in liabilities and all decreases in assets are ________________.
a. source of fund b. use of fund c. debit
20. All decreases in liabilities and all increases in assets are ________________.
a. source of fund b. credit c. use of fund.
21. Sales will be recorded as source of funds while cost and expenses will be recorded as uses of funds under _____________.
a. Assets b. Liabilities c. Stockholder’s Equity
22. A business is carried by two individuals, each of them shared 50,000 pesos from their own accounts for the business. From
its first month of implementing, the business gain a profit of 10,000 pesos. How would the two individual divide the business’
profit?
a. The individual who carried the business should get the higher amount of the profit.
b. The individual who created the business plan must have the higher amount.
c. The sharing of profits must be done accordingly through its agreement.
d. The individual who have planned the idea must have the greater amount of the profit.
23. Based on the problem above, how much should each individual must get from their 10,000 pesos business gain?
a. Person 1 must get 4,000 and the other is 6,000
b. Person 1 must get 4,500 and the other is 5,500
c. Each of them must get 5,000.
24. If one of the owner wants to transfer the ownership to another person, can that owner do it by his/her own will?
a. Yes because he is part of the business and shares equal amount from the other owner. ‘
b. No, because despite of him being part of the ownership from the business, consent from the other partner is still
needed.
c. Yes, since no one should tell the owner to whom she/he would like to transfer the ownership of his/her share
from the business.
d. No, because the other owner has the greater right to decide since he/she did the planning and it’s his /her idea.
25. If the agreements of the above problem states that “Owner A should carry a share of 60% since it is his idea that the
business have created and the Owner B must have a 40% for his cooperation and shared amount of money for the business.”
What should be the sharing of the two owners if they gained a profit of 15,000 pesos?
a. Owner A=7,500, Owner B-7,500 b. Owner A-5,000, Owner B-10,000
b. Owner A=7,000, Owner B-8,000 d Owner A-9,000, Owner B= 6,000
26. During the month of July, sales at Shoe Mart totalled 50,000. The cost of the shoes was 20,000. The owner paid 20,000 for
supplies, rent and utilities during the month. The 10,000 left represents the owners?
a. Sales b. Operating Expenses c. Non-operating expenses d. Profit
27. Why is it often to provide employees with additional training?
a. to increase socialization b. to improve performance c. to identify sensitivity
28. What is often the role of management under the 6M’s of operation in the operation and in the achievement of quality in a
business?
a. to assign blame b. to judge the staff c to lead the effort
29. To develop repeat business and customer loyalty, a business owner might ____________.
a. increase prices b. offer a new service c. make an insult on your competition
30. Ethan noticed a problem while reviewing her small business’ monthly income statement. He verified that the total revenue
was 4,590 and the total expenses were 1,452. However, the income statement showed a net income total of 1,383. Which of the
following reflects the correct net income.
a. 3,381 b. 5,973 c. 3,138 d, 1,833

Test II. TRUE or FALSE. Write TRUE if the statement is correct and FALSE if not.
________31. The right side of each container in a T-Account is a source of funds while the left side is a use of finds.
________32. Each T-account is closed at the end of an accounting period.
________33. From the T-accounts, the items that enter the Income Statement are found at the bottom of the Supplier’s Credit.
________34. To construct a balance sheet, all entries on the left side are subtracted from the right side under the Liabilities
section.
________35. Items the business owned are called liabilities and the items owed are called the assets.
________36. The business plan has two essential function in the implementation of the business: it helps the entrepreneur
determine if the business will succeed and it helps the entrepreneur in managing his/her business.
________37. It takes much less money and time to attract new customers than it does to keep existing ones.
________38. QDP expectations of customers are the same from order to order.
________39. Setting High and unrealistic standards of excellence will be a good goal for a business.
________40. The entrepreneur should have a good idea of who the customer or target market will be.