Republic of the Philippines

Province of Cebu
City of Talisay
TALISAY CITY COLLEGE
Poblacion, Talisay City, Cebu

FINAL EXAMINATION
THC 9 - Entrepreneurial in Tourism and Hospitality

I. MULTIPLE CHOICE. Read and analyze each item and circle the letter of your choice.
1. Which of the following activities is an example of preparing before attempting to sell an
idea:
A. Explaining solutions to audience needs
B. Determining the details of your idea
C. Overcoming objections from the audience
D. Affirming the audience's decision to "buy"
2. Managers are more likely to be able to persuade employees to follow new procedures if
the managers have
A. organizational skills.
B. credibility.
C. enthusiasm.
D. self-motivation.
3. Ali wants to negotiate with her boss to take on more job responsibilities. Before
approaching her boss, Ali needs to determine her boss's position and
A. abilities.
B. interests.
C. standards.
D. procedures.
4. After writing your personal vision, what must you do to achieve it?
A. Commit to your vision through hard work and dedication.
B. Put your vision in a safe space and look at it again in five years.
C. Get the highest-paying job that you can find out of high school.
D. Spend all of your free time working on self-improvement.
5. Ryan keeps a list of his goals to remind himself of what he's working toward. Which tip for
smart goal setting is Ryan following?
A. Putting goals in writing
B. Tying goals to a timetable
C. Making goals specific
D. Making goals difficult but possible
6. The future that you desire to create is known as a
A. mission statement.
B. goal.
C. prediction.
D. vision.
7. The entrepreneurial discovery process that involves finding a way to meet an existing
demand by inventing new products from available resources is based on
A. science.
B. medicine.
C. psychology.
D. physics.

8. Dan is in the process of determining the types of computer software and telephone
service that will best suit his new business and get it up and running. Dan is considering his
business's
A. financial constraints.
B. technical needs.
C. competitive advantage.
D. staffing requirements.

9. Which of the following statements is true about business startup requirements:

A. New business owners usually need to register for patent protection.
B. The financial needs to start a new business depend on the nature of the venture.
C. Purchasing a franchise is usually easy and inexpensive for startup business owners.
D. Equipment is the least expensive requirement for a startup business.

10. Why is it important for entrepreneurs to talk with industry experts when developing new
business concepts?
A. The industry experts usually improve your management skills.
B. The industry experts typically provide useful information.
C. The industry experts commonly enhance your confidence.
D. The industry experts frequently offer financial support.

11. If an entrepreneur obtains a commercial bank loan to finance a new venture, s/he is often
required to
A. provide collateral.
B. close savings accounts.
C. relinquish contracts.
D. charge the prime-interest rate.

12. To determine their human resource needs, new business owners often find it helpful to
A. list all the tasks involved in operating the business.
B. ask a technical recruiter for advice.
C. hire consultants or freelancers.
D. allocate funds for additional payroll taxes.

13. The type of capital resources that a startup business needs to begin operating usually
depends on the
A. vendors' lead time.
B. location.
C. owner's preferences.
D. industry.

14. Which of the following statements is true about new venture risk-taking:
A. When an entrepreneur seeks a high profit, the risk is usually higher.
B. When the entrepreneur seeks to limit risk, the reward tends to increase.
C. An entrepreneur's financial risk is not closely related to rewards.
D. The entrepreneur who does not care about profit is a high risk-taker.
15. Small-business owners develop and use operating procedures so that everyday tasks are
performed in
a(n) __________ way.
A. innovative
B. imprecise
C. diverse
D. standard
16. To develop repeat business and customer loyalty, a business owner might
A. update equipment.
B. increase prices.
C. ridicule the competition.
D. offer a new service.
17. By joining a community organization, such as the local chamber of commerce, an
entrepreneur can network with others to
A. evaluate personal skills and abilities.
B. obtain selling experience.
C. identify new venture opportunities.
D. improve goods and services.
18. Determine if the following statement is true or false: When developing an exit strategy
for an entrepreneurial venture, the most important consideration is finding a suitable buyer.
A. False, there are many factors to consider, such as company valuation and personal goals.
B. True, if the buyer is inexperienced, the business risks monetary losses and long-term
failure.
C. False, the most important factor that an entrepreneur should consider is profitability.
D. True, the valuation of a business is dependent on the buyer's financial resources.
19. Which of the following is an example of an intangible asset:
A. Equipment
B. Inventory
C. Office building
D. Accounts receivable
20. Which of the following is a characteristic of a profit-and-loss statement:
A. Is the same as a balance sheet
B. Summarizes expenses and revenue from sales
C. Shows the owner's financial position
D. Lists assets and liabilities
21. In managerial accounting, the number of hours that a business runs its machinery during
the production process is classified as a(n)
A. production output.
B. cost driver.
C. unexpected expense.
D. inflexible transaction.

22. Businesses often obtain cash to produce and sell goods by borrowing against their
 A. current liabilities.
B. accounts receivable.
C. operating expenses.
D. promissory notes.
23. When determining financing needs, what factor should businesses consider that will help
decide whether they can repay the debt?
A. Liquidity
B. Depreciation
C. Equity
D. Inventory
24. Which of the following is a risk a business might face if it obtains a long-term loan from a
financial institution and pays off the loan before it is due:
A. Being charged a penalty
B. Losing interest on the account
C. Paying a processing fee
D. Receiving a variable rate
25. Why do lending institutions carefully evaluate how well a business meets certain criteria
before making a loan?
A. To improve relations
B. To provide service
C. To prevent theft
D. To reduce risk
26. Which of the following payback periods in a cost/benefit analysis would businesses
prefer if all other things were equal:
A. 2 years
B. 1 year
C. 3 years
D. 4 years
27. An example of an internal change that could affect a business's sales forecast is a change
in the
A. length of a national recession.
B. number of competitors in the market.
C. size of the sales force.
D. levels of consumer spending.
28. Ethan is developing common-size financial statements so that he can compare financial
performance across several different companies. Ethan is conducting __________ analysis.
A. horizontal
B. vertical
C. ratio
D. trend
29. Jana noticed a problem while reviewing her company's monthly income statement. She
verified that the total revenue was $4,590 and the total expenses were $1,452. However, the
income statement showed a net income total of $1,383. Which of the following reflects the
correct net income:
A. $3,381
B. $5,973
C. $3,138
D. $1,833
30. Why do interviewers usually focus on asking questions that are related to a job
applicant's performance?
A. To understand complaints
B. To take remedial action
C. To determine qualifications
D. To plan future training
31. If employees are fired because their conduct is in serious violation of company policies,
they are being terminated for
A. incompetence.
B. performance.
C. resigning.
D. cause.
32. Why is it often necessary to provide employees with additional training?
A. To increase socialization
B. To improve performance
C. To analyze diversity
D. To identify sensitivity

33. When a supervisor evaluates an employee's performance, the evaluation should be

based on the __________ standards.
A. organization's
B. supervisor's
C. competition's
D. employee's

34. Which of the following is one way that businesses use marketing information:
A. To predict change
B. To analyze data
C. To develop surveys
D. To conduct research

35. Which of the following is a characteristic of the data collection step in marketing
research:
A. The least expensive step in marketing research
B. The least tedious step in marketing research
C. The step in which the most mistakes are made
D. The step that is most interesting to researchers

Test II. TRUE OR FALSE. Write the word true if the statement is correct while false if the
statement is incorrect.

1. A written business plan is a tangible motivator for the entrepreneur.

2. There is a single widely-accepted standard format for the business plan.
3. If you are using an online proofreading service for your business plan, it is an advantage to
choose a Canadian service.
4. Business plan templates automatically perform most calculations and formatting
functions.
5. The recent trend has been for business plans to become shorter.
6. The maximum reasonable length for a business plan is 35 pages.
7. Most banks provide free business plan templates via their websites.
8. The business plan is a document that explains the structure and functioning of a business.
9. The business plan is a logical series of decisions an entrepreneur makes in starting a new
venture.
10. A reasonable business plan should be a minimum of 50 pages in length.
11. When using the business plan as a "process" the steps can be followed in any order.
12. The business plan as a process involves looping back and revising previous decisions.
13. In the business plan process, "Organizing the Operations" comes before "Creating a
Marketing Strategy."
14. The first stage in the business plan process is "Defining the Business Concept."
15. The last stage in the business planning process is "Arranging the Finances."

1. t
2. f
3. t
4. f
5. t
6. f
7. t
8. t
9. f
10. f
11. f
12. t
13. f
14. t
15. t