Summative Test 1 in Entrepreneurship

Directions: Read the following questions carefully. Identify what is asked or described in each item. Write your answers in
the space provided before each number.
B 1. It is an art of observing correct practices in managing and operating a self-owned wealth creating venture by
providing goods and services to customers.
A. Entrepreneur C. Small Business
B. Entrepreneurship D. Ordinary Small Business

A 2. It refers to an enterprise that correctly adopts and practice the principles of entrepreneurship.
A. Entrepreneur C. Small Business
B. Entrepreneurship D. Ordinary Small Business

C 3. What do you call the type of business that owned by one person with a limited workforce of not more than 20
persons without practicing the concepts of entrepreneurship?
A. Entrepreneur C. Small Business
B. Entrepreneurship D. Ordinary Small Business

A 4. This refers to a person who strongly advocates and correctly practices the concepts and principles of
entrepreneurship.
A. Entrepreneur C. Businessperson
B. Manager D. Intrapreneur

D 5. It pertains to a business enterprise managed and operated by an owner who is not an advocate of and does not
practice the concepts and principles of entrepreneurship.
A. Small Business C. Large Business
B. Medium Business D. Ordinary Small Business

A 6. Claire focuses on creative marketing, new ideas, building a team, and connecting to people when it comes to
business. On the other hand, Hannah focuses on numbers, profit, cashflow, deliverables and follows the trend when it
comes to business. Which of the terms below correctly describes Claire?
A. Entrepreneur C. Manager
B. Businessperson D. Owner

A 7. It differentiates an entrepreneur from an ordinary small businessperson through transforming feasible new ideas into
an entrepreneurial venture.
A. Creativity C. Profit
B. Wealth D. Risk

B 8. It is created when the value of the business has increased abundantly, and the life of its owner has improved
considerably.
A. Creativity C. Profit

B. Wealth D. Risk

A 9. It is an important principle in management. It refers to the process of setting the goals of the business.
A. Planning C. Creating
B. Managing D. Designing

C 10. Businesses that are being managed by others for the benefit of the owners are operating under the concept of
_____________.
A. Entrepreneurship C. Intrapreneurship
B. Business Management D. Marketing

B 11. This is a feature of entrepreneurship that is inherent in an entrepreneurial venture. It cannot be detached from any
entrepreneurial venture and the only way to remove it is to close the venture.
A. Wealth B. Risk C. Value D. Art

B 12. This theory put so much emphasis on the role of the government in entrepreneurial and economic development,
most especially when the economy was experiencing depression.
A. Innovation Theory C. Alfred Marshall Theory
B. Keynesian Theory D. Kaldor’s Technological Theory

D 13. This theory gives importance to the advancement of technology as an element of production.
A. Innovation Theory C. Alfred Marshall Theory
B. Keynesian Theory D. Kaldor’s Technological Theory
C 14. Joy’s primary goal is making the business as a source of livelihood. What type of person is joy?
A. Manager C. Businessperson
B. Entrepreneur D. Intrapreneur

A 15. In connection to number one question, what area of difference in entrepreneurship and ordinary small businesses
is being manifested?
A. Motive in opening a business
B. Perception of risk in the business
C. Reactions to changes in the environment
D. View on competition

A 16. This cluster of entrepreneurial characteristics includes a set of character traits that reflect the degree of the
interpersonal relations maintained by successful entrepreneurs in the community.
A. Achievement Cluster C. Power Cluster
B. Planning Cluster D. Interpersonal Cluster

A 17. This entrepreneurial characteristic describes entrepreneur as a person who possess the ability to identify with great
ease the most appropriate entrepreneurial opportunities.
A. Opportunity Seeker C. Persistent
B. Committed D. Risk-taker

D 18. Based on the studies conducted by the Small Enterprise Research and Development Foundation (SERDF) of the
Development of Trade and Industry (DTI), there are ten entrepreneurial characteristics grouped into three major clusters.
Which of the following is NOT included among the three major clusters?
A. Achievement Cluster C. Power Cluster
B. Planning Cluster D. Interpersonal Cluster

D 19. This entrepreneurial characteristic describes an entrepreneur as someone who constantly make decisions based
not on their whims and caprices but on specific and relevant, economic, financial, and industry data.
A. Goal-setter C. Risk-taker
B. Information-seeker D. Persuasive and Positive Networker

A 20. This cluster of entrepreneurial characteristics includes a set of character traits that are directly related to the
entrepreneur’s desire to be an achiever in the field of entrepreneurship.
A. Achievement Cluster C. Power Cluster
B. Planning Cluster D. Interpersonal Cluster

B 21. This is considered as the personal abilities to do things well. It is acquired and developed by a person through
constant and correct practice.
A. Talent C. Competency
B. Skills D. Knowledge

A 22. It refers to the mental ability of the entrepreneur to learn new things, generate new ideas, and express knowledge in
both oral and written forms.
A. Cognitive Skills C. Problem-solving Skills
B. Technical Skills D. Entrepreneurial Skills

D 23. These are basically about the relationship and interaction of the entrepreneur with the workers, suppliers, creditors,
prospective customers, and other members of the business community.
A. Cognitive Skills C. Problem-solving Skills
B. Technical Skills D. Interpersonal Skills

B 24. A successful entrepreneur does all these things EXCEPT one. Which of the following below is NOT a duty of an
entrepreneur?
A. Understand fully the concepts and principles of entrepreneurship
B. Internalize and live out the character traits that are common among successful entrepreneurs
C. Takes business-risk in all instances without considering the consequences
D. Acquire, develop, sharpen, and focus entrepreneurial skills

D 25. It refers to the set of cognitive, technical, and interpersonal skills required in the practice of entrepreneurship.
A. Cognitive Skills C. Problem-solving Skills
B. Technical Skills D. Entrepreneurial Skills