DEPARTMENT OF EDUCATION

PHILIPPINE COLLEGE OF ADVANCED ARTS AND

TECHNOLOGY
ACADEMIC DIVISION
HIGH SCHOOL DEPARTMENT

BUSINESS ENTERPRISE SIMULATION

GRADE 12
SY: 2022-2023
DIAGNOSTIC EXAMINATION
Name
Section: Date:
Teacher:
GENERAL INSTRUCTIONS:
1. Read carefully and understand the direction before answering the questions.
2. Avoid any erasures and keep the test papers clean.

1. It consists of factors in the company’s immediate environment that affects the performance of the company.
a. Micro-environment
b. PESTEL Analysis
c. Macro-environment
d. Benchmarking

2. It includes larger factors such as economic, demographic, technological, political, natural, and cultural
factors.
a. Macro-environment
b. Porter’s Analysis
c. Micro-Environment
d. SWOT Analysis

3. In the PESTEL Tool, “T” stands for what?

a. Techniques
b. Technological
c. Time
d. Trends

4. It is the process that requires members of an organization to look externally and identify prominent lessons,
trends, opportunities, or threats that can adversely affect the company.
a. Environmental Scanning
b. Marketing Plan
c. Marketing Scanning
d. Market Segmentation

5. It is the process of continually and actively monitoring the external environment in order to identify
customer needs, anticipate competitive actions, and identify technological changes which will provide new
market opportunities or market disruptions.
a. Environmental Scanning
b. Marketing Plan
c. Market Scanning
d. Market Segmentation

6. Which of the following refers to the identification of the consumer segment that shares common
characteristics that are needed to understand the demand?
a. Listen to your customer
 b. Conduct environmental scanning
c. Consumer segmentation identification
d. Finds opportunities in your own communities

7. Which of the following statement is TRUE?

a. Market scanning provides fake information.
b. Market scanning constantly analyzes the external market environment.
c. The result of effective market scanning is environmental scanning.
d. The most important factor in a market scan is the advocacy.

8. The framework that helps analyze the level of competition within a certain industry. It is especially useful
when starting a new business or when entering a new industry sector.
a. SWOT Analysis
b. PESTEL Analysis
c. Porter’s Analysis
d. Benchmarking
9. The process of measuring or comparing one’s own products, services, and practices with those of
recognized industry leaders in order to identify areas for improvement.
a. Micro-environment
b. PESTEL Analysis
c. Macro-environment
d. Benchmarking

10. Which of the following is false regarding why a SWOT Analysis is used?
a. To build on the strengths of a business
b. To minimize the weaknesses of a business
c. To reduce opportunities available to a business
d. To counteract threats to a business

11. In conducting environmental scanning, one important developmental process that will help your company
prepare for future uncertainties is by doing Porter’s Five Forces. Which of the Porter’s Five Forces focuses
on when buyers can join to put pressure on a supplier?
a. Competitive rivalry
b. Threat of new entrants
c. Bargaining power of customers
d. Threat of substitute products
12. Constructing Porter's Five Forces, you will identify that each force plays a vital role in helping a business to
become more successful in the future. Which force has the greatest influence on whether an industry would
be profitable?
a. Competitive rivalry
b. Threat of new entrants
c. Bargaining power of customers
d. Threat of substitute products
13. Which of the PESTEL ANALYSIS focuses on the shift in consumer taste and away from the firm's product?
a. Political factor
b. Social factor
c. Economic factor
d. Technological factor

14. What do you think is the best way to maintain a good relationship with your suppliers?
a. Pay your liabilities on time
b. Share some of your plans with your suppliers
c. Buy in Bulk if possible
d. All of the above
15. When a marketing slogan proved to be ineffective, should you change your branding right away?
a. Yes, it is better to be proactive than to be reactive.
b. No, both the slogan and the branding must not be changed.
c. Yes, both the slogan and the branding must be changed.
d. No, the slogan must be changed.

16. Mr. Dela Cruz, the owner of Minahan Mining Corporation, was forced by the mayor to close his business.
Was the action of the mayor valid?
a. No, that is against his will.
b. No, everyone deserves to mine.
c. Yes, if the place has some local ordinance.
d. Yes, if it can destroy the environment.

17. It must have been hard to pursue a business when almost everyone has no purchasing power. What should
be the basis of this statement?
a. Income Statement
b. Inflation Rate
c. Exchange Rate
d. Demand

18. There are several reasons why a business might fail. One of the reasons is the lack of demand. Create the
best strategy.
a. Expand your market share by diversification
b. Expand your market share by backward integration
c. Expand your market share by forward integration
d. Expand your market share by introducing a new advertisement

19. Should you evaluate your competitors’ strengths by not focusing on your weaknesses?
a. Yes, strength must be aligned with your weaknesses.
b. No, focusing on threats is much more important.
c. Yes, my business has its own strength.
d. No, I need benchmarking.

20. Strategy/Policy is about________ .

a. What seems to be happening?
b. What might we need to do?
c. What will we do?
d. What could happen?

21. Which generation comes first?

a. Baby boomers
b. Centennials
c. Generation Y
d. Generation X

22. It can be defined as a plan prepared by a component of an organization that clearly defines actions it
will take to support the strategic objectives and plans of upper management.
a. Operational plan
b. Financial plan
c. Management plan
d. Marketing plan

23. In applying your understanding of business, how many categories an operational plan can be
subdivided?
a. four (4)
b. three (3)
c. two (2)
d. five (5)
24. The business focuses on this description that involves the design of the good and/or service and its
quality standards.
a. Target market description
b. Cost description
c. Product/service description
d. Supplier-partner description

25. This includes the process, supply chain, and inventory management tasks for the owner-proprietor
and operations teams.
a. Target market description
b. Cost description
c. Product/service description
d. Supplier-partner description

26. The cost of a product or service includes expenses for the following; rental of shop or outlet,
renovation or construction of facilities, salaries, wages, utilities expense, etc.
a. Target market description
b. Cost description
c. Product/service description
d. Supplier-partner description

27. An operational plan can be defined as a plan prepared by a component of an organization that clearly
defines actions it will take to support the strategic objectives and plans of __________________
management.
a. Upper
b. Lower
c. Middle
d. Lower-middle

28. It can be subdivided into two categories.

a. Management plan
b. Financial plan
c. Operational plan
d. Marketing plan

29. The product/service description involves the design of the good and/or service and its
________________ standards.
a. Quantity
b. Below quality
c. Quality
d. Above-quality

30. This includes the process, supply chain, and inventory management tasks for the owner-proprietor
and operations teams.
a. Target market description
b. Cost description
c. Product/service description
d. Supplier-partner description

31. It projects how much start-up capital is needed, sources of capital, returns on investment, and other financial
considerations.
A. Operational plan
B. Financial plan
C. Management plan
D. Marketing plan

32. It refers to the number of employees x wage rate per period x period covered.
 A. Materials expenses
B. Supplies expenses
C. Salaries and wages
D. Utilities expenses

33. It measures the gain or return on the owner’s equity or investment.

a. Profitability
b. Ratio Analysis
c. Vertical Analysis
d. Horizontal Analysis

34. It is also called the profit and loss statement.

a. Balance sheet
b. Statement of Cash Flow
c. Statement of Retained Earnings
d. Income Statement

35. It refers to the left to right comparison of performance for comparative periods.
a. Profitability
b. Ratio Analysis
c. Vertical Analysis
d. Horizontal Analysis

36. A financial plan projects how much __________________ is needed, sources of capital, returns on
investment, and other financial considerations.
a. Start-up expenses
b. Start-up capital
c. Periodic capital
d. Periodic expenses

37. It refers to the gas expense, vehicle hire, and/or vehicle fares.
a. Materials expenses
b. Supplies expenses
c. Transportation expenses
d. Utilities expenses

38. It refers to limited to profitability ratios which measure the capability of the enterprise to earn profits from
its operations.

a. Ratio Analysis C. Vertical Analysis

b. Leverage Analysis D. Horizontal Analysis

39. It is also called the profit and loss statement

a. Balance sheet
b. Statement of Cash Flow
c. Statement of Retained Earnings
d. Income Statement

40. These are negative internal factors that inhibit a company’s ability to accomplish its mission, goals, and
objectives.
a. Strengths
b. Weakness
c. Threats
d. Opportunities

41. The following statements below explain the five basic tasks of strategy-making, and strategy-executing
process among those five basic tasks, which one is NOT?

a. Developing a strategic vision of where the company needs to head and what its future business
makeup will be.
 b. Setting objectives to convert the strategic vision into specific strategic and financial performance
outcomes for the company to achieve.
c. Crafting a strategy to achieve the objectives and get the company where it wants to go.
d. Developing a profitable business model.

42. A company's strategic plan:

a. maps out the company's history.

b. links the company's financial targets to control mechanisms.
c. outlines the competitive moves and approaches to be used in achieving the desired business results.
d. challenges the company to maintain invariable objectives.

43. Which of the following tasks of the strategy-making, strategy-execution managerial process make up the
company's strategic plan?

a. Developing a strategic vision, mission, and core values.

b. Executing the strategy.
c. Monitoring developments, evaluating performance, and initiating corrective adjustments.
d. All of these.

44. Which of the following is an integral part of the managerial process of crafting and executing strategy?

a. Developing a proven business model.

b. Deciding how much of the company's resources to employ in the pursuit of sustainable competitive
advantage.
c. Setting objectives and using them as yardsticks for measuring the company's performance and
progress.
d. Communicating the company's values and code of conduct to all employees.

45. It provides relevant data to help solve marketing challenges that a business will most likely face.

a. Market research
b. Market plan
c. Market Analysis
d. Market scanning

46. It is a process used in statistical analysis in which a predetermined number of observations are taken from a
larger population

a. Regression
b. Sampling
c. Parameter
d. Statistic

47. It is a plan that is intended to achieve a particular purpose.

a. External factors
b. Goals
c. Internal factors
d. Strategy

48. It is a plan describing how a firm will adapt to take advantage of opportunities in its constantly changing
environment, in order to maintain a strategic fit between the firm's goals and capabilities and these market
opportunities.
a. External factors
b. Goals
c. Internal factors
d. Strategic planning
 49. Which marketing mix has something to do with the setting of the service providers and their accessibility?
a. People
b. Place
c. Product
d. Promotion
50. Which of the following marketing mix includes various methods of publicizing the product or services of
the enterprise?
a. People
b. Place
c. Product
d. Promotion

ANSWER KEYS:
1. A 26. B
2. A 27. A
3. B 28. C
4. A 29. C
5. C 30. D
6. B 31. B
7. C 32. C
8. A 33. A
9. D 34. D
10. C 35. D
11. C 36. B
12. B 37. C
13. B 38. A
14. D 39. D
15. D 40. B
16. C 41. D
17. B 42. C
18. A 43. A
19. D 44. C
20. C 45. A
21. A 46. B
22. A 47. D
23. C 48. D
24. C 49. C
25. D 50. D
51.