URDANETA CITY UNIVERSITY

COLLEGE OF ACCOUNTACY AND BUSINESS ADMINISTRATION

San Vicente West, Urdaneta City

Entrep 1
Final Examination

Name: _________________________________________ Rating: __________

Course/Yr./Blk/Time: _______________________________ Score: __________

PART I - Multiple choice. Shade the letter of the correct answer in a provided answer sheet.
1. This group is interested in the best deal for a product they are commonly called as Praktikal and A B C D
price conscious.
a. Brand – Loyal Customers c. Service or Feature shoppers
b. Status Seekers d. Price Shoppers
2. This group believes that their present brands are superior to others and are willing to pay fair prices A B C D
for products just to acquire it.
a. Brand – Loyal Customers c. Service or Feature shoppers
b. Status Seekers d. Price Shoppers
3. This is under one of five steps in developing a price strategy in which the firm is interested in sales A B C D
growth and maximizing market share. The concern of the company is to increase sales by offering
new product design, product lines and promotional items.
a. Sales based c. Price based
b. Status Quo Based d. Profit based
4. The firm is interested in maximizing profit, earning a satisfactory profit, optimizing the return on A B C D
investment and securing an early recovery of cash. The company’s thrust is to satisfy the investors
and stockholders by providing them immediate return of investment.
a. Sales based c. Price based
b. Status Quo Based d. Profit based
5. It uses low price to capture or attract the larger and mass market for a product or service. The A B C D
preference of the mass majority of the market will be the basis on the price set.
a. Penetration Pricing c. Cost – based Price Strategy
b. Skimming Pricing d. Demand – based price strategy
6. The firm sets by computing merchandise, services, and overhead costs then adds the desired profit A B C D
to those figures. After combining all the expenses incurred during the production of the product, the
seller must also decide the best profit as part of the price of a product.
a. Penetration Pricing c. Cost – based Price Strategy
b. Skimming Pricing d. Demand – based price strategy
7. One price is maintained over an extended period of time. Normally the price of the product will not be A B C D
easily changed. The entrepreneur must consider the law of demand and supply.
a. Customary pricing c. One price policy
b. Variable pricing d. Flexible pricing
8. Price responds to costs fluctuations or differences in demand. A B C D
a. Customary pricing c. One price policy
b. Variable pricing d. Flexible pricing
9. One price is charged to all customers buying the product or service under similar conditions. A B C D
a. Customary pricing c. One price policy
b. Variable pricing d. Flexible pricing
10. Pricing is based on customer’s ability to negotiate or it’s based on the buying power of the customer. A B C D
a. Customary pricing c. One price policy
b. Variable pricing d. Flexible pricing
11. Customers set price floors and will not buy at prices below those floors. A B C D
a. Leader pricing c. Prestige pricing
b. Price lining d. Price Bundling
12. _______are regularly quoted prices to customers as in catalogue, price, tags, and purchase orders. A B C D
a. List prices c. Surcharge
b. Escalator Clauses d. Mark – ups
13. Clauses in the contract which allow for price increase after the sale is concluded but before delivery A B C D
is made.
a. List prices c. Surcharge
b. Escalator Clauses d. Mark – ups
14. Raise regular selling price because demand is unexpectedly high or costs are rising. A B C D
a. List prices c. Surcharge
b. Escalator Clauses d. Mark – ups
15. These are the ways on how to transfer the finished goods from the producer and manufacturer to the A B C D
ultimate buyer and consumer.
a. Transportation c. Customer transaction
b. Inventory Management d. Channel of Distribution
16. These are the process of keeping the product safe and maintaining its stocks to avoid shortage of A B C D
supply.
a. Transportation c. Customer transaction
b. Inventory Management d. Channel of Distribution
17. It describes follow – ups on customers including the feedback and satisfactory level after buying the A B C D
product.
a. Transportation c. Customer transaction
b. Inventory Management d. Channel of Distribution
18. They are the makers or producers of a final product. A B C D
a. Manufacturers c. Retailers
b. Wholesalers d. Marketing Specialist
19. They are the one who provides intangibles product to gain satisfaction from the customers. A B C D
a. Consumers c. Service Providers
b. Marketing Specialist d. Wholesalers
20. It is a transfer or movements of goods and services from manufacturer to final user (customer) A B C D
without the intervention of independent middleman.
a. Direct channel distribution c. Dual channel distribution
b. Indirect channel distribution d. Intensive distribution
21. Uses a combination of the above to appeal to different market segments by selling through two or A B C D
more different channels.
a. Direct channel distribution c. Dual channel distribution
b. Indirect channel distribution d. Intensive distribution
22. The ability of the organization to satisfy the customer to its maximum level. A B C D
a. Customer Service c. Shipping
b. Inventory Control d. Receiving Materials Handling
23. The ability to properly manage the materials for the final production. A B C D
a. Customer Service c. Shipping
b. Inventory Control d. Receiving Materials Handling
24. The ability to make the product presentable before the physical appearance including its taste, color, A B C D
size, weight, and shape.
a. Packaging c. Shipping
b. Warehousing d. Inventory Control
25. Food store that is located along passersby with a long hours, products are needed mostly by the A B C D
consumer but with limited items.
a. Convenience Store c. Superstore
b. Conventional Store d. Specialty Store
26. Food store with a wide range of product items and related products with affordable prices, self – A B C D
service and one stop grocery shopping for customer.
a. Convenience Store c. Superstore
b. Conventional Store d. Specialty Store
27. Provides one service line of line of goods to attract same line of customers. It can easily distinguish A B C D
the specific market in one particular product line.
a. Convenience Store c. Superstore
b. Conventional Store d. Specialty Store
28. It is a careful combination of the different tools to accomplish an organization’s promotion objectives. A B C D
a. Advertising c. Promotion mix
b. Publicity d. Personal Selling
29. It is a paid, non – personal communication that captures the mass majority of customers about good, A B C D
services, organizations, people, places and ideas that is transmitted through various media with an
identified in the advertising message as the sponsor.
a. Advertising c. Promotion mix
b. Publicity d. Personal Selling
30. Involves paid marketing and non personal communication which activities are to stimulate consumer A B C D
purchases by offering incentives after buying or using the product.
a. Sales promotion c. Publicity
b. Personal selling d. Advertising
31. One of the hierarchies – of – effect Model in which it can be gained through the ability to capture the A B C D
interest of the customers.
a. Awareness c. Liking
b. Knowledge d. Purchase
32. It can be measured through customer’s inquiry regarding the benefits and other information regarding A B C D
the product.
a. Awareness c. Liking
b. Knowledge d. Purchase
33. One of the fie alternative techniques for setting a total promotion budget in which the firm allocates A B C D
funds for every element such as in product development, setting pricing strategies, and distributing
the product except promotion and everything that is left is for the promotion budget.
a. All you can afford technique c. Competitive parity technique
b. Incremental technique d. Percentage of sales technique
34. In order to decide for promotional budget for the year, the percentage is added or subtracted from A B C D
last year’s budget to determine this year’s budget.
a. All you can afford technique c. Competitive parity technique
b. Incremental technique d. Percentage of sales technique
35. It focuses on the retailer’s ability to advertise the manufacturer’s product. A B C D
a. Cooperative advertising c. Competitive product advertising
b. Pioneering product advertising d. Comparative advertising
36. The main consideration is to introduce new product and teach the potential buyer how to use it. A B C D
a. Cooperative advertising c. Competitive product advertising
b. Pioneering product advertising d. Comparative advertising
37. It compares the primary brand from its rival brands. A B C D
a. Cooperative advertising c. Competitive product advertising
b. Pioneering product advertising d. Comparative advertising
38. One of the types of publicity in which it deals with events of national, regional or local interest is A B C D
public.
a. Business feature article c. News publicity
b. Finance releases d. finance releases
39. It refers to special media releases regarding disasters or serious problems in the community. A B C D
a. Emergency publicity c. Background editorial releases
b. Product releases d. Business feature article
40. It refers to illustrations or picture distributed to media. A B C D
a. Product releases c. Finance releases
b. Pictorial releases d. Background editorial releases
41. One of the characteristics in dealing with various stakeholders in which it is the intellectual and A B C D
personal moral behavior of an entrepreneur. The capacity to recognize the situations that call for
business decision making that stand for what is right according to the accepted moral values of the
group.
a. Conscience c. Wisdom
b. Justice d. Temperance
42. Another characteristic that relates to wisdom of intellectual control in the face adversities or A B C D
problems. It is seeing the issue in the wider perspective and clear senses.
a. Conscience c. Wisdom
b. Justice d. temperance
43. It relates with those employees who work that generate profit for the organization. It is an activity for A B C D
those who supply the necessary input of production and to those who buy the goods and services.
a. Entrepreneurship is an activity of human relationship
b. The entrepreneurship should look at the mutual benefit of the stakeholders
c. The entrepreneur needs human, technical, and financial resources in his operation
d. The entrepreneur has social responsibility
44. The entrepreneur must use his resources effectively and efficiently. Generation of profit is the first A B C D
incentive
a. Entrepreneurship is an activity of human relationship
b. The entrepreneurship should look at the mutual benefit of the stakeholders
c. The entrepreneur needs human, technical, and financial resources in his operation
d. The entrepreneur has social responsibility
45. It is the respect for the right of others. It is fairness in business dealings. Fairness with the A B C D
employees that make and help him runs the enterprise.
a. Conscience c. Wisdom
b. Justice d. temperance
46. It relates to man’s intellectual development which he acquires through training and experience. It A B C D
must e anchored on selflessness and humility and void of arrogance.
a. Conscience c. Wisdom
b. Justice d. temperance
47. Human resources being the vital component in the successful operation need to be treated with A B C D
personal dignity and provided with a working environment conducive to human living.
a. Entrepreneurship is an activity of human relationship
b. The entrepreneurship should look at the mutual benefit of the stakeholders
c. The entrepreneur needs human, technical, and financial resources in his operation
d. The entrepreneur has social responsibility
48. The stockholders are the owners and the top management. The suppliers, the customer, the A B C D
contractors, and the general public are stakeholders. They depend on the entrepreneur for the
necessary services and are therefore entitled to receive their proper worth of attention and fair
treatment.
a. Entrepreneurship is an activity of human relationship
b. The entrepreneurship should look at the mutual benefit of the stakeholders
c. The entrepreneur needs human, technical, and financial resources in his operation
c. The entrepreneur has social responsibility
49. On of the type of planned shopping center that sells mostly shopping goods to a dispersed and A B C D
various customers. Normally it will take about half an hour to reach regional center.
a. Community c. Regional
b. Neighborhood d. Province
50. A shopping center that sells mostly convenience goods and services with a large supermarket and A B C D
drugstore and several smaller stores that will cater to the overall needs of the people in one vicinity.
a. Community c. Regional
b. Neighborhood d. Province

PART IIA - Definition of terms (3 pts. each), Use your test book to answer the following terms. Use
ball pen only.

a. Discounts
b. Distribution planning
c. Promotion
d. Ethic
e. Courage
PART IIB. Essay: Explain the following. “Avoid erasures” (35 points)

When her youngest son, Mat, graduated Magna Cum Laude in Horticulture at the
University of Philippines on Los Banos, Mrs. Tumangan was very much elated. Her husband was happy
that they are now finally relieved of education their children. She may now proceed with her dream of
expanding her business a flower shop in a garden and resort.
Mrs. Tumangan is now 60 years old and about retires from government service and sooner
will be getting money from the retirement.
There are several possible places to put up a business:
1. Location A – accessible to customers but not to the suppliers.
2. Location B – accessible to the suppliers but not to the market.
3. Location C – accessible both to the market and supplier but with high rental
fee.
The bank is willing to lend money for this business and other member of the family just to
sustain for the realization of Mrs. Tumangan’s dream.

a. What will be your strategy when it comes to the price of your product to attract
consumers?
b. Choose one possible place from the choices above to put up your business? And Why?
c. After choosing the possible place to put up your business, what will be the unique way
to promote your business considering the competition in the area?

Prepared by:

EDMON M. FERNANDEZ
Instructor

Recommending Approval:

REMEDIOS A. PALAGANAS, CPA, MBA

College Dean

Approved:

JOSEPHINE S. LAMBINICIO, ED. D.

VP for Academic Affairs
 URDANETA CITY UNIVERSITY
COLLEGE OF ACCOUNTACY AND BUSINESS ADMINISTRATION
San Vicente West, Urdaneta City

Entrep 1
Final Examination

KEY ANSWER

Part I – multiple choices

1.d 11.c 21.c 31.a 41.a

2.a 12.a 22.a 32.c 42.d
3.a 13.b 23.d 33.a 43.a
4.d 14.d 24.a 34.b 44.d
5.a 15.a 25.a 35.a 45.b
6.d 16.b 26.b 36.b 46.c
7.a 17.b 27.d 37.d 47.c
8.b 18.a 28.c 38.c 48.b
9.c 19.c 29.a 39.a 49.c
10.d 20.a 30.a 40.b 50.b

Part II

A. Definition of terms (23pts each)

a. Discounts – are reduction in the selling price given to the customers for varying reasons on
paying in cash, performing certain duties, buying in large quantities or in bulk, and off –
season buying.
b. Distribution planning – is systematic decision making regarding the physical transfer of
goods and services from the manufacturer to the final user.
c. Promotion – is any form of verbal or written communication used to inform, persuade and
remind people about an organization’s or individual’s goods, services, image, ideas,
community involvement, or impact on the society by providing satisfaction.
d. Ethic – deals with how a man should live in this planet according to the accepted moral
standards of the society.
e. Courage – it refers to the entrepreneur’s determination to stand for what is right and just
according to the standard of moral values and ethics.
B. Essay (35 points)

Prepared by:

Edmon M. Fernandez