Republic of the

Philippines
Department of Education
REGION V-BICOL
SCHOOLS DIVISION OF SORSOGON PROVINCE
ABUCAY NATIONAL HIGH SCHOOL
ABUCAY, PILAR, SORSOGON

FIRST QUARTER EXAMINATION

Entrepreneurship
S.Y. 2025 – 2026

Name: _____________________________ Grade & Strand: __________ _ Score: ________

Read each test item very carefully. Shade/blacken the circle that corresponds to the correct answer.
1. What is the primary purpose of a business plan?
A. To attract customers
B. To secure funding
C. To increase product range
D. To reduce competition

2. Which section of a business plan outlines the company’s mission and goals?
A. Executive Summary
B. Market Analysis
C. Financial Plan
D. Operations Plan

3. What is market segmentation?

A. Dividing a market into distinct groups of buyers
B. Increasing market share
C. Reducing product prices
D. Merging with competitors

4. Which of the following is NOT a type of market segmentation?

A. Geographic
B. Demographic
C. Psychological
D. Behavioral

5. What is a SWOT analysis used for in business planning?

A. To assess the financial viability
B. To analyze strengths, weaknesses, opportunities, and threats
C. To create marketing strategies
D. To evaluate employee performance

6. Which of the following is considered a direct competitor?

A. A company offering similar products
B. A company in a different industry
C. A company with a different target market
D. A company operating in a different country

7. What is the primary benefit of understanding your competitors?

A. To copy their business model
B. To improve customer loyalty
C. To identify market opportunities
D. To reduce operational costs

8. What is the role of a marketing plan in a business plan?

A. To outline financial objectives
B. To describe the sales strategy
C. To define the organizational structure
D. To assess the competitive landscape
9. Which element is NOT part of the marketing mix?
A. Price
B. Product
C. Profit
D. Promotion

10. What is the purpose of a financial plan in a business plan?

A. To attract customers
B. To outline financial projections and funding needs
C. To describe the product features
D. To evaluate market trends

11. Which of the following best describes a niche market?

A. A small, specialized segment of the market
B. A large, general market
C. A market with no competition
D. A market that is declining

12. What is the significance of a unique selling proposition (USP)?

A. It guarantees business success
B. It differentiates a product from its competitors
C. It lowers production costs
D. It increases advertising expenses

13. What is the first step in developing a business plan?

A. Conducting a SWOT analysis
B. Writing the executive summary
C. Setting business objectives
D. Conducting market research

14. Which of the following is a qualitative research method?

A. Surveys
B. Focus groups
C. Financial analysis
D. Customer database analysis

15. What is the main advantage of a sole proprietorship?

A. Limited liability
B. Easy and inexpensive to form
C. Access to more resources
D. Shared decision-making

16. Which of the following is an example of a fixed cost?

A. Raw materials
B. Utility bills
C. Rent
D. Sales commissions

17. What is the purpose of a break-even analysis?

A. To determine the profitability of a product
B. To calculate the return on investment
C. To find the point at which total revenue equals total costs
D. To assess market demand

18. What is a target market?

A. The largest group of potential customers
B. A specific group of consumers a business aims to reach
C. The most profitable market segment
D. A market with no competition

19. Which of the following is a benefit of conducting a competitor analysis?

A. It increases marketing costs
B. It helps identify gaps in the market
C. It reduces the need for advertising
D. It guarantees a larger market share
20. What does the term "value proposition" refer to?
A. The price of a product
B. The benefits and value a company promises to deliver to customers
C. The cost of production
D. The company's marketing strategy

21. Which factor is NOT typically considered in a PEST analysis?

A. Political
B. Economic
C. Social
D. Technological

22. What is the main goal of a promotional strategy?

A. To increase product prices
B. To reduce production costs
C. To generate customer interest and sales
D. To expand the product line

23. What is the advantage of having a business plan?

A. It ensures business success
B. It helps secure financing and guide business growth
C. It guarantees a large customer base
D. It eliminates competition

24. What is the main focus of a market analysis?

A. Evaluating the internal capabilities of a business
B. Understanding the external market environment and customer needs
C. Developing product features
D. Managing business operations

25. Which of the following best describes a business model?

A. A detailed business plan
B. A company's plan for making a profit
C. A description of the company's products
D. A marketing strategy

26. What is the role of customer feedback in product development?

A. To reduce production costs
B. To improve product features and meet customer needs
C. To increase sales prices
D. To eliminate competitors

27. Which of the following is an external factor that can impact a business?
A. Employee productivity
B. Economic conditions
C. Company policies
D. Management decisions

28. What is the benefit of understanding customer demographics?

A. It helps reduce operational costs
B. It aids in targeting marketing efforts
C. It guarantees increased sales
D. It eliminates the need for advertising

29. What is a competitive advantage?

A. A high production cost
B. A unique feature that sets a business apart from its competitors
C. A large customer base
D. A comprehensive marketing plan

30. Which of the following is a characteristic of a successful entrepreneur?

A. Risk aversion
B. Inflexibility
C. Strong leadership skills
D. Dependence on others
31. What is the importance of a mission statement?
A. It outlines the company's financial goals
B. It defines the company's purpose and direction
C. It describes the company's product line
D. It evaluates the competition

32. What is a key component of a sales forecast?

A. Employee salaries
B. Projected sales revenue
C. Market share analysis
D. Competitor pricing

33. What is the primary focus of a product strategy?

A. To expand the business into new markets
B. To define the features and benefits of a product
C. To reduce production costs
D. To increase advertising expenditure

34. What is an example of a variable cost?

A. Rent
B. Salaries
C. Raw materials
D. Insurance

35. What is a key characteristic of a market leader?

A. Highest pricing in the industry
B. Largest market share
C. Most product variety
D. Oldest company in the market

36. Which element is part of a competitive analysis?

A. Employee turnover
B. Competitor strengths and weaknesses
C. Internal business processes
D. Historical financial data

37. What is the purpose of a positioning statement?

A. To describe a product's features
B. To define how a brand wants to be perceived by consumers
C. To outline the company's financial goals
D. To summarize the business plan

38. What is the role of technology in modern business strategies?

A. To increase manual labor
B. To enhance efficiency and innovation
C. To reduce product quality
D. To limit market reach

39. What is a key outcome of effective market research?

A. Increased production costs
B. Improved product development and customer satisfaction
C. Reduced need for marketing
D. Guaranteed market dominance

40. What is the significance of a cash flow statement in a business plan?

A. It shows the company's profitability
B. It provides insight into the business's cash inflow and outflow
C. It outlines the company's marketing strategy
D. It describes the company's organizational structure

41. What is the primary goal of a pricing strategy?

A. To maximize profits while considering customer value
B. To undercut competitors
C. To increase production costs
D. To simplify the product line
42. What is a common challenge faced by start-up businesses?
A. Excessive market share
B. Limited access to capital
C. Overabundance of resources
D. Minimal competition

43. What is a benefit of using social media in marketing?

A. Limited reach
B. High advertising costs
C. Direct engagement with customers
D. Decreased brand visibility

44. What is the first step in conducting a competitor analysis?

A. Identifying direct and indirect competitors
B. Evaluating financial performance
C. Developing marketing strategies
D. Setting product prices

45. What is the impact of globalization on businesses?

A. Reduced competition
B. Increased market opportunities and competition
C. Limited access to international markets
D. Decreased innovation

46. What is the role of a distribution channel in marketing?

A. To increase production costs
B. To reduce product availability
C. To deliver products to consumers efficiently
D. To limit market reach

47. What is an essential factor in building brand loyalty?

A. High pricing
B. Consistent quality and customer satisfaction
C. Limited product offerings
D. Minimal advertising

48. What is a key consideration in product differentiation?

A. Reducing production costs
B. Offering unique features that appeal to the target market
C. Increasing product similarity
D. Limiting market research

49. What is the importance of a contingency plan in business?

A. To ensure financial success
B. To prepare for unexpected events and minimize risks
C. To eliminate competition
D. To guarantee market leadership

50. What is a common trait of innovative companies?

A. Resistance to change
B. Focus on traditional methods
C. Emphasis on creativity and new ideas
D. Dependence on established practices

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