Entre 1 - Midterm Exam
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________ refers to the person who undertakes entrepreneurial activities.
About This Quiz
This midterm exam tests knowledge on entrepreneurship, including definitions, roles, and classifications of business sizes as per R. A. 6977.
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- 2.
An entrepreneur creates an idea and turns it into a ________.
Explanation
An entrepreneur creates an idea and turns it into a business. This means that they take their innovative concept and develop it into a functioning entity that offers goods or services in exchange for profit. By establishing a business, the entrepreneur aims to bring their idea to life, generate revenue, and contribute to the market economy. This involves various activities such as planning, organizing, financing, marketing, and managing the operations of the business. Ultimately, the entrepreneur's goal is to create a sustainable and successful venture that meets the needs and demands of customers.Rate this question:
- 3.
One of the Consumer Rights is the "Right to Redress".
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True
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False
Correct Answer
A. TrueExplanation
The "Right to Redress" is indeed one of the Consumer Rights. This right ensures that consumers have the ability to seek compensation or resolution for any issues or grievances they may have with a product or service. It allows consumers to hold businesses accountable for any harm or dissatisfaction caused and seek appropriate remedies, such as refunds, repairs, or replacements. This right is essential in protecting consumers and ensuring fair and satisfactory transactions in the marketplace.Rate this question:
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- 4.
The "Right to Representation" provides the consumer with the right to input consumer interest or concern in governmental policies.
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True
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False
Correct Answer
A. TrueExplanation
The "Right to Representation" refers to the consumer's right to express their interests and concerns regarding governmental policies. This means that consumers have the opportunity to provide input and have their voices heard in the decision-making process. This helps ensure that policies are not only beneficial for businesses but also take into consideration the needs and preferences of consumers. Therefore, the statement is true.Rate this question:
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- 5.
IDENTIFY WHAT FACTOR THAT INFLUENCE ETHICAL BEHAVIOR: A firm that behaves ethically during prosperous times may act unethically in times of financial hardships. Example: During CoViD-19, businesses were forced to stop their operation. To cope with the financial crisis, some businesses ventured into smuggling over-priced alcohols.
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Individual differences
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Situation
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Reward system
Correct Answer
A. SituationExplanation
The explanation for the given correct answer is that the situation can influence ethical behavior. In this case, the financial hardships caused by the CoViD-19 pandemic created a situation where businesses were struggling to survive. This situation may have led some businesses to engage in unethical behavior, such as smuggling over-priced alcohols, as a means of coping with the financial crisis. The external circumstances and pressures of the situation can sometimes override an individual's ethical principles and lead to unethical behavior.Rate this question:
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- 6.
Retail drugstores, fast-food shops and appliance stores are considered as:
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Wholesaling business
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Retailing business
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None of the above
Correct Answer
A. Retailing businessExplanation
Retail drugstores, fast-food shops, and appliance stores are considered as retailing businesses because they directly sell products to individual consumers. These businesses typically operate in physical locations accessible to the general public and offer a wide range of products for personal use. Unlike wholesaling businesses that sell products in bulk to other businesses, retailing businesses focus on catering to the needs and preferences of individual customers. Therefore, the correct answer is "retailing business."Rate this question:
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- 7.
Total Assets Approach is one having total assets that fall within a certain bracket.
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True
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False
Correct Answer
A. TrueExplanation
The Total Assets Approach refers to a method or approach that considers only those entities or individuals whose total assets fall within a specific range or bracket. In other words, it focuses on a particular segment of the population based on their total assets. Therefore, the statement "Total Assets Approach is one having total assets that fall within a certain bracket" is true.Rate this question:
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- 8.
There is a big difference between an entrepreneur and a business man.
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True
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False
Correct Answer
A. TrueExplanation
The statement is true because there is indeed a significant difference between an entrepreneur and a businessman. While a businessman focuses on managing and operating an existing business, an entrepreneur is someone who identifies opportunities, takes risks, and creates new ventures. Entrepreneurs are known for their innovative thinking and ability to bring new ideas to life, while businessmen typically work within established structures. Therefore, it is accurate to say that there is a big difference between the two.Rate this question:
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- 9.
This guarantees survival, adequate food, clothing, shelter, health care, education, and sanitation to everyone.
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The right to basic needs
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The right to choose
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The right to safety
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The right to a healthy environment
Correct Answer
A. The right to basic needsExplanation
The correct answer is the right to basic needs. This guarantees that everyone has access to survival necessities such as food, clothing, shelter, healthcare, education, and sanitation. It ensures that no one is deprived of essential resources essential for their well-being and quality of life.Rate this question:
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- 10.
________ refers to the economic activity of a person who starts, manages, and assumes the risk of a business enterprise.
Correct Answer
EntrepreneurshipExplanation
Entrepreneurship refers to the economic activity of a person who starts, manages, and assumes the risk of a business enterprise. It involves the process of identifying opportunities, gathering resources, and taking calculated risks to create and grow a successful business. Entrepreneurs are individuals who are willing to take initiative, innovate, and adapt to changing market conditions. They play a crucial role in driving economic growth, creating jobs, and fostering innovation in society.Rate this question:
- 11.
THE MAGNA CARTA FOR SMALL ENTERPRISES (R.A. 6977) indicates that the firm must have total assets valued at above P1.5 million to P15 million to be considered ________ business.
Correct Answer
smallExplanation
The Magna Carta for Small Enterprises (R.A. 6977) states that a firm must have total assets valued between P1.5 million to P15 million in order to be considered a small business.Rate this question:
- 12.
IDENTIFY WHAT ENTREPRENEURIAL TASK IS THIS: An entrepreneur calls the shot on the number of products that must be produced according to his predictions and forecast.
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To decide on the rate of output, in the light of his expectation about demand
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To supply the necessary capital
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To bear the risk inherent to the venture
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To organize production by buying and combining inputs like materials and labor
Correct Answer
A. To decide on the rate of output, in the light of his expectation about demandExplanation
The correct answer is "to decide on the rate of output, in the light of his expectation about demand." This task involves the entrepreneur making decisions about how many products should be produced based on their predictions and forecasts of demand. They need to consider factors such as market trends, customer preferences, and potential sales in order to determine the appropriate rate of output.Rate this question:
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- 13.
IDENTIFY WHAT FACTOR THAT INFLUENCE ETHICAL BEHAVIOR: An expectation of high rewards for committing unethical behavior motivates a person to do it. For instance, a person who is considering adulterating his products to increase his profits will be more inclined to do it especially if the community does not strongly condemn such acts.
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Situation
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Reward system
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Individual differences
Correct Answer
A. Reward systemExplanation
The explanation for the answer "reward system" is that an expectation of high rewards for committing unethical behavior can influence a person's ethical behavior. When there is a reward system in place that incentivizes unethical actions, individuals may be more motivated to engage in such behavior, as they see the potential benefits outweighing the potential consequences. In the given example, the person is more inclined to adulterate their products for increased profits, as the expectation of higher financial rewards outweighs any ethical concerns they may have.Rate this question:
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- 14.
IDENTIFY WHAT FACTOR THAT INFLUENCE ETHICAL BEHAVIOR: People are different from one another and that includes differences in reacting to specific situations. For instance, a trader may think that selling food products which had already expired is not bad. Another person would think differently and would not want to operate in such activity.
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Situation
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Reward system
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Individual differences
Correct Answer
A. Individual differencesExplanation
Individual differences can influence ethical behavior because people have different values, beliefs, and moral principles. What one person considers ethical, another person may not. In the given example, the trader's belief that selling expired food products is not bad is a reflection of their individual differences in ethical judgment. Each person's unique upbringing, experiences, and personality traits can shape their perception of what is right or wrong, leading to variations in ethical behavior.Rate this question:
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- 15.
IDENTIFY WHAT ENTREPRENEURIAL TASK IS THIS: Getting resources to create the product and initiate production are roles taken seriously by an entrepreneur.
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To supply the necessary capital
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To organize production by buying and combining inputs like materials and labor
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To decide on the rate of output, in the light of his expectation about demand
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To bear the risk inherent to the venture
Correct Answer
A. To organize production by buying and combining inputs like materials and laborExplanation
The correct answer is to organize production by buying and combining inputs like materials and labor. This task involves the entrepreneur taking responsibility for acquiring the necessary resources, such as materials and labor, to create the product and start production. By organizing the production process, the entrepreneur ensures that the inputs are purchased and combined efficiently to meet the demand and produce the desired output. This task is crucial for the success of the venture as it directly impacts the quality and efficiency of the production process.Rate this question:
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- 16.
Who is John Gokongwei Jr.?
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The owner of SM
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The owner of Ayala malls
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The owner of Robinsons Malls
Correct Answer
A. The owner of Robinsons MallsExplanation
John Gokongwei Jr. is the owner of Robinsons Malls.Rate this question:
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- 17.
IDENTIFY WHAT CONSUMER RIGHT IS APPLIED: Medicines are to pass the standards set by the Bureau of Food & Drug Administration (BFAD) to ensure that it is safe to consume before being sold to consumers.
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Right to a healthy environment
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Right to safety
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Right to choose
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Right to information
Correct Answer
A. Right to safetyExplanation
The correct answer is "right to safety". This is because the statement mentions that medicines must pass the standards set by the Bureau of Food & Drug Administration (BFAD) to ensure that they are safe to consume before being sold to consumers. This implies that consumers have the right to expect that the products they purchase, in this case, medicines, are safe for their consumption.Rate this question:
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- 18.
IDENTIFY WHAT CONSUMER RIGHT IS APPLIED: Labeling products with manufacturing & expiry dates.
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Right to information
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Right to safety
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Right to a healthy environment
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Right to consumer education
Correct Answer
A. Right to informationExplanation
The correct answer is "right to information." This is because labeling products with manufacturing and expiry dates provides consumers with important information about the product, allowing them to make informed decisions about its quality, safety, and suitability for use. The right to information ensures that consumers have access to accurate and transparent information about the products they purchase.Rate this question:
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- 19.
"Independently owned” means ownership by a private individual, a partnership, or a corporation.
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True
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False
Correct Answer
A. TrueExplanation
The statement "Independently owned means ownership by a private individual, a partnership, or a corporation" is true. This means that when something is described as independently owned, it is owned by a private individual, a partnership, or a corporation, rather than being owned by the government or a public entity.Rate this question:
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- 20.
An entrepreneur only responds to an opportunity at hand in order to make money.
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True
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False
Correct Answer
A. FalseExplanation
An entrepreneur does not solely respond to an opportunity at hand in order to make money. While making money is often a motivation for entrepreneurs, it is not the only factor that drives them. Entrepreneurs are driven by various factors such as passion, creativity, problem-solving, and the desire to make a positive impact. They may also be motivated by personal fulfillment, the opportunity to create something new, or to contribute to society. Therefore, the statement that an entrepreneur only responds to an opportunity at hand in order to make money is false.Rate this question:
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- 21.
Which of the following is not an ethical ethical issue facing entrepreneurs?
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Between the company and the customers
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Between the company and its business associates
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Between the company and its personnel and employees
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Between the company and the government
Correct Answer
A. Between the company and the governmentExplanation
The given options list various relationships involving the company, its customers, business associates, personnel and employees, and the government. The question asks for the option that is not an ethical issue facing entrepreneurs. While ethical issues can arise in all the mentioned relationships, the relationship between the company and the government is not specifically mentioned as an ethical issue. Therefore, it can be inferred that the correct answer is "between the company and the government" as it is not an ethical issue facing entrepreneurs.Rate this question:
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- 22.
IDENTIFY WHAT CONSUMER RIGHT IS APPLIED IN THIS EXAMPLE: The food you ordered at a restaurant has a foul odor and seemed to be spoiled. You went to the counter and asked for a replacement.
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Right to a healthy environment
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Right to choose
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Right to safety
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Right to redress
Correct Answer
A. Right to redressExplanation
In this example, the consumer right that is applied is the right to redress. The consumer encountered a problem with the food they ordered, as it had a foul odor and seemed to be spoiled. To address this issue, the consumer went to the counter and asked for a replacement, exercising their right to redress by seeking a remedy or resolution for the problem they faced with the product.Rate this question:
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- 23.
IDENTIFY WHAT TYPE OF ENTREPRENEURIAL TYPE IS THIS: Entrepreneurs usually innovate products and do everything to make them sellable even when it costs much. He may incur losses in doing this but giving up is not an option.
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To supply the necessary capital
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To bear the risk inherent to the venture
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To organize production by buying and combining inputs like materials and labor
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To decide on the rate of output, in the light of his expectation about demand
Correct Answer
A. To bear the risk inherent to the ventureExplanation
The given answer suggests that the entrepreneurial type being identified is someone who is willing to take on the risks associated with their venture. This type of entrepreneur is not afraid of potential losses and is determined to make their products sellable, regardless of the costs. They are resilient and do not give up easily, showing a strong commitment to their business.Rate this question:
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- 24.
"Dominant” indicates that a small business does not control a sizeable share of its market.
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True
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False
Correct Answer
A. FalseExplanation
The statement is false because "dominant" actually means that a small business controls a sizeable share of its market.Rate this question:
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- 25.
IDENTIFY WHAT ENTREPRENEURIAL TASK IS THIS: An entrepreneur finds a way in order to finance his business venture.
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To supply the necessary capital
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To organize production by buying and combining inputs like materials and labor
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To bear the risk inherent to the venture
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To decide on the rate of output, in the light of his expectation about demand
Correct Answer
A. To supply the necessary capitalExplanation
The correct answer is "to supply the necessary capital." This task refers to the entrepreneur's responsibility to secure the funds needed to start or grow their business. This may involve seeking investments, loans, or personal savings to finance the venture. By supplying the necessary capital, the entrepreneur can ensure that they have the financial resources to support their business operations and achieve their goals.Rate this question:
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- 26.
Consumers are given the right to communicate their concerns to the management where they patronize.
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The right to representation
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The right to redress
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The right to a healthy environment
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The right to information
Correct Answer
A. The right to representationExplanation
This answer is correct because the statement mentions that consumers have the right to communicate their concerns to the management where they patronize. Representation refers to the act of speaking or acting on behalf of someone, and in this case, it means that consumers have the right to have their concerns heard and addressed by the management. This right ensures that consumers have a voice and can actively participate in decision-making processes that affect them.Rate this question:
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- 27.
The "Right to Information" is the consumers’ right to obtain the necessary knowledge and skills to be an informed customer.
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True
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False
Correct Answer
A. FalseExplanation
The statement is false because the "Right to Information" refers to a legal right that allows individuals to access information held by public authorities. It is not specifically related to consumers and their knowledge and skills as informed customers.Rate this question:
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- 28.
P1.5 million and below (total assets value) will be classified as ________.
Correct Answer
microenterprise, micro-enterpriseExplanation
Assets with a value of P1.5 million and below will be classified as microenterprises or micro-enterprises. This classification is based on the total assets value and indicates that these businesses are small in scale and have limited resources.Rate this question:
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Current Version
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May 15, 2023Quiz Edited by
ProProfs Editorial Team -
May 05, 2020Quiz Created by
Khatt Manilag
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