Republic of the Philippines

Department of Education
MIMAROPA REGION
SCHOOLS DIVISION OF CALAPAN CITY
PEDRO V. PANALIGAN MEMORIAL NATIONAL HIGH SCHOOL
COMUNAL, CALAPAN CITY

ENTREPRENEURSHIP
Summative Examination
Name: ______________________________________ Date: ____________________
Grade and Section: _________________________ Score: ___________________

Direction: MULTIPLE CHOICE. Read the questions carefully. Write the letter of your answer on the space
provided before the number.

Demonstrate understanding of the 4 Ms of operations

_____1. Which of the 4 Ms of operations ensures that workers are skilled and properly trained for their roles?
A. Materials B. Manpower C. Method D. Machine
_____2. What does 'Materials' refer to in the 4 Ms of operations?
A. The equipment and tools needed for production
B. The raw resources required for manufacturing
C. The process of organizing work
D. The people involved in the production process
Describe the 4Ms (Manpower, Method, Machine, Materials) of operations in relation to the business
opportunity.
_____3. A new bakery wants to improve its production process. Which of the 4Ms would involve developing a step-
by-step process for baking and packaging bread?
A. Materials B. Manpower C. Method D. Machine
_____4. A clothing manufacturer is evaluating whether to use advanced sewing machines or manual stitching. Which
of the 4Ms is being considered?
A. Materials B. Manpower C. Method D. Machine
_____5. A café wants to ensure it has enough coffee beans and milk to meet customer demand. Which of the 4Ms
does this decision focus on?
A. Materials B. Manpower C. Method D. Machine
Develop a product description.
_____6. You are tasked with developing a product description for a new organic soap. Which of the following best
demonstrates a well-crafted description?
A. A soap that cleans.
B. A premium organic soap made from natural ingredients, gentle on sensitive skin, and infused with
essential oils for a refreshing fragrance.
C. A soap made in different sizes and colors.
D. A product that everyone can use for cleaning.
Create a prototype of the product.
_____7. Which of the following best describes the process of creating a prototype for a new beverage?
A. Listing the ingredients for the beverage on paper
B. Designing a promotional poster for the beverage
C. Preparing a small batch of the beverage to test its flavor, packaging, and customer feedback
D. Selling the beverage without testing its quality
Test the product prototype.
_____8. Which of the following is the most effective way to gather feedback when testing a product prototype?
A. Asking a small group of target customers to use the prototype and provide detailed feedback
B. Releasing the prototype to the general public without any guidelines
C. Comparing the prototype to competitors' final products without involving users
D. Sharing the prototype with friends and family only
_____9. What is the primary purpose of testing a product prototype?
A. To finalize the product design without customer input
B. To identify strengths and weaknesses based on actual usage and customer insights
C. To showcase the product in advertisements
D. To increase sales immediately after launch
_____10. When testing a food product prototype, which of the following steps should be included?
A. Measuring its shelf life, evaluating taste preferences, and ensuring compliance with safety standards
B. Releasing the product to stores without testing its quality
C. Only comparing its price with competitors' products
D. Asking for feedback from employees without involving customers
Validate the service description of the product with potential customers to determine its market
acceptability.
_____11. Which of the following is the best way to validate a service description with potential customers?
A. Conducting surveys or interviews to gather feedback on the service description
B. Launching the product immediately without testing customer reactions
C. Comparing the service description with competitor advertisements only
D. Asking friends and family if they like the product
_____12. What should be the primary focus when validating a service description with potential customers?
A. Ensuring the service description aligns with customer needs and preferences
B. Verifying if the service description uses complex technical terms
 C. Ensuring the service description is visually appealing regardless of content
D. Making the service description as brief as possible without considering customer understanding
Select/pinpoint potential suppliers of raw materials and other inputs necessary for the production of
the product or service.
_____13. Which of the following is the best approach to selecting potential suppliers for raw materials needed in
production?
A. Choosing suppliers based solely on their proximity to the business
B. Evaluating suppliers based on quality, reliability, and cost-effectiveness
C. Selecting the cheapest supplier without reviewing their track record
D. Relying on recommendations without conducting any further research
Discuss the value/supply chain in relation to the business enterprise.
_____14. What is the first step in creating a value/supply chain for a business enterprise?
A. Identifying key activities that add value to the product or service
B. Focusing solely on the final product delivery
C. Eliminating all non-core business operations
D. Selecting random suppliers and distributors
_____15. How can a business ensure its supply chain adds maximum value to its enterprise?
A. By selecting partners who align with its goals and maintaining efficient processes
B. By prioritizing cost-cutting measures at all stages of the chain
C. By relying only on long-term suppliers regardless of their performance
D. By ignoring customer feedback during supply chain evaluation
_____16. When discussing the value chain, what is a primary factor to consider in ensuring success?
A. Integrating activities that improve efficiency and customer satisfaction
B. Focusing only on the manufacturing stage
C. Ignoring supplier relationships and prioritizing marketing
D. Conducting value chain analysis only after launching the product
Discuss the value/supply chain in relation to the business enterprise.
_____17. Which of the following is an essential first step in recruiting qualified people for a business enterprise?
A. Offering the highest salary possible to attract employees
B. Creating a job description with clear qualifications and responsibilities
C. Hiring friends and family members to reduce training costs
D. Relying on social media posts to fill vacancies without detailed criteria
Develop the business model.
_____18. What is the primary purpose of developing a business model?
A. To identify competitors in the market
B. To establish a clear plan for how the business will create, deliver, and capture value
C. To determine the best marketing strategies for the business
D. To decide on the location and layout of the office
Forecast the revenues of the business.
_____19. When forecasting the revenues of a business, which of the following factors should be considered?
A. Only the price of the product or service
B. Customer demand, pricing strategy, and market trends
C. The overall economy, but not market competition
D. Estimating revenue based on last year’s profits without adjustments
Forecast the costs to be incurred.
_____20. Which of the following methods would be most effective when forecasting the costs to be incurred by a
business?
A. Estimating costs based on competitors’ expenses alone
B. Creating a detailed breakdown of both fixed and variable costs specific to the business operations
C. Ignoring future changes in raw material prices
D. Focusing only on marketing expenses without considering production costs
Compute for profits.
_____21. To compute profits, which of the following steps is crucial?
A. Subtracting the total revenues from the total costs incurred
B. Comparing only revenue numbers from previous years
C. Considering only the fixed costs, excluding variable costs
D. Ignoring taxes and other deductions
Manifest understanding of starting and operating a simple business.
______22. Which of the following is the most important first step when starting a simple business?
A. Hiring employees
B. Conducting market research to identify a target audience
C. Designing the business logo
D. Developing a pricing strategy
_____23. What is a critical factor in creating a business plan for a simple business?
A. Setting long-term goals that the business will achieve in 10 years
B. Focusing only on financial goals and disregarding operational plans
C. Listing competitors without analyzing their market share
D. Identifying the business's mission, vision, and goals, and outlining strategies to achieve them
_____24. When developing the operations for a small business, which of the following should be considered?
A. The business’s location and how it impacts customer reach
B. Only the cost of production and delivery
C. Ignoring customer feedback in the process
D. Focusing only on sales and marketing strategies
_____25. Which of the following steps is crucial for managing the finances of a small business?
A. Estimating profits without tracking expenses
B. Relying on personal savings without considering external funding options
 C. Creating a budget that includes both expected income and necessary expenses
D. Ignoring taxes and legal expenses until the end of the year
_____26. What is the most effective way to build a customer base for a small business?
A. Offering discounts without considering long-term sustainability
B. Developing relationships through quality service, word of mouth, and targeted marketing
C. Ignoring customer complaints and focusing only on new sales
D. Offering the same product to everyone without considering specific customer needs
_____27. How can an entrepreneur demonstrate innovation in a simple business?
A. By strictly following competitors’ strategies without any changes
B. By developing new products or services that address gaps in the market
C. By maintaining the same processes without looking for improvements
D. By focusing only on short-term profits without considering customer satisfaction
Implement the business plan.
_____28. When implementing a business plan, which of the following is a key step in ensuring successful execution?
A. Delegating tasks to team members based on their strengths and expertise
B. Ignoring budget constraints to expand operations rapidly
C. Focusing only on marketing without considering production needs
D. Avoiding regular check-ins on the business's financial health
_____29. How should a business owner handle unforeseen challenges during the implementation of the business
plan?
A. By sticking rigidly to the original plan without considering necessary adjustments
B. By evaluating the problem, assessing the potential solutions, and making adjustments as needed
C. By abandoning the plan entirely and starting from scratch
D. By ignoring customer feedback and focusing only on internal processes
_____30. To ensure smooth implementation of a business plan, what should the business owner regularly monitor?
A. Only the sales numbers without considering other factors
B. Financial performance, operational efficiency, and customer satisfaction
C. The personal growth of employees without any connection to business goals
D. The success of competitors rather than focusing on their own business needs
Identify the reasons for keeping business records.
_____31. Why is it important for a business to maintain accurate records of its transactions?
A. To impress competitors with the volume of activities
B. To avoid using accounting software
C. To have a detailed history of products sold for no specific reason
D. To ensure financial transparency and facilitate tax reporting
_____32. How does keeping business records help in decision-making?
A. By providing accurate data to analyze financial health and make informed decisions
B. By allowing the business owner to store random information unrelated to operations
C. By ensuring no changes are made to the business's operations over time
D. By allowing the business owner to store random information unrelated to operations
_____33. What is one of the primary reasons businesses need to maintain records for inventory?
A. To track the performance of employees
B. To track which social media platforms are most popular
C. To know how much time employees spend on the sales floor
D. To ensure products are restocked in a timely manner and avoid shortages
_____34. Sarah runs a small bakery. She has recently started to experience rapid growth in sales and is noticing
some discrepancies between her expected profits and actual earnings. She wants to ensure that her
business stays on track and that she is complying with tax laws. Why is it important for Sarah to keep
detailed records of her business transactions?
A. To ensure the bakery is prepared for an unexpected audit and to track the business’s profitability
B. To show her suppliers how much she spends on ingredients
C. To compare her bakery’s performance with those of other businesses
D. To prove to her customers that her bakery has been in business for many years

_____35. Tom is the owner of a local hardware store. He is considering expanding his business by offering new
products and services. Before making any decisions, he wants to assess his store’s financial
performance over the past year to make sure the expansion is a viable option. Why should Tom keep
accurate records of his store’s financial transactions?
A. To understand the store’s financial health and forecast future business performance
B. To focus on storing customer complaints and feedback
C. To keep track of every promotional item given out to customers
D. To simplify the process of designing new advertisements for the store
Perform key bookkeeping tasks.
______36. Which of the following is a crucial first step when performing key bookkeeping tasks for a business?
A. Ignoring small transactions as they do not affect the financial outcome
B. Only tracking expenses and ignoring income
C. Categorizing all transactions properly in the general ledger
D. Focusing solely on cash flow without recording non-cash transactions
_____37. When preparing financial statements, which of the following should be verified first?
A. The company’s marketing strategy
B. The feedback from customers
C. The accuracy and completeness of the recorded transactions

D. The color and layout of the financial report

_____38. What is the purpose of reconciling the business’s bank statements with the general ledger?
A. To calculate employee bonuses
 B. To ensure that recorded financial data matches the bank’s records, and to detect errors or fraud
C. To review the company’s website traffic
D. To reduce the number of sales transactions
Identify where there is a profit or loss for a business.
______39. Mang Ariel sells bottled water in a nearby public bus terminal, every day he can sell 70 pieces of bottled
water at P20.00 pesos each. How much is his daily revenue?
A. P1,400.00 B. P1,700.00 C. P1,800.00 D. P1,450.00
(Nos. 40-43). The following are financial records of Lex Luther Corp.
Service Income, Customer 1 –P50,000.00 Salaries Paid to Clerk – P5,000.00
Rent Expense – P3,000.00 Utilities Expense – P2,000.00
Service Income, Customer 2(not yet received) – P 25,000.00 Salaries Paid to Manager P9,000.00
______40. How much is the total expenses?
A. P19,000.00 B. P10,000.00 C. P18,000.00 D. P9,000.00
______41. How much is the net income?
A. P59,000.00 B. P50,000.00 C. P 31,000.00 D. P56,000.00
______42. How much is the total revenue?
A. P59,000.00 B. P50,000.00 C. P31,000.00 D. P75,000.00
______43. How much is the amount still collectible?
A. P25,000.00 B. P50,000.00 C. P31,000.00 D. P75,000.00
Generate an overall report on the activity.
_____44. When generating an overall report on an entrepreneurial activity, what should be the first section to
include?
A. Detailed financial statements
B. A list of the team members involved
C. A clear summary of the activity’s objectives and goals
D. The challenges faced during the activity
_____45. What is the key component of the analysis section of the report?
A. An overview of the competition in the market
B. A review of the company’s organizational
C. structure A comparison of projected goals versus actual outcomes
D. Personal reflections on the team’s performance
_____46. What should be included in the conclusion of the report to make it valuable for future activities?
A. A detailed description of every product sold during the activity
B. An assessment of the activity’s impact on business growth and customer satisfaction
C. A list of tasks completed by each team member
D. A description of the physical resources used
_____47. In the recommendations section, which of the following is most effective?
A. Providing vague suggestions without data to support them
B. Ignoring the business’s long-term strategy in the recommendations
C. Focusing only on what went wrong without considering improvements
D. Offering specific and actionable recommendations based on the analysis of the activity
_____48. You’ve just completed an entrepreneurial activity. Which of the following would be the most effective way
to present the results in your report?
A. Focus only on the financial outcomes, leaving out the goals and challenges.
B. Summarize the key objectives of the activity, then provide detailed financial, operational, and
customer satisfaction data.
C. List all the team members and their contributions in detail, without mentioning the results of the
activity.
D. Only discuss the challenges you faced during the activity without explaining how they were
overcome.
_____49. During the report analysis, you realize that your sales did not meet the expected targets. What should you
focus on in the report to address this issue?
A. Blame external factors for not meeting sales targets.
B. Ignore the issue and focus only on positive outcomes in the report.
C. Provide an honest analysis of why the sales targets were not met and offer solutions for future
improvement.
D. Highlight that you need more team members to achieve better results next time.
_____50. You are concluding your report on an entrepreneurial activity. What should you include to make your
conclusion meaningful?
A. A description of the products or services you offered during the activity.
B. An assessment of how the activity aligned with your business objectives and its potential for growth.
C. A detailed list of customer complaints.
D. A summary of what went wrong without suggesting any solutions.

"Success is the sum of small efforts, repeated day in and day out."
– Robert Collier
Congratulations on completing your exam! Your dedication and perseverance will always lead you to greater
heights. Keep striving