Republic of the Philippines

Department of Education
REGION X - NORTHERN MINDANAO

ENTREPRENEURSHIP
GRADE11/12
SENIOR HIGH SCHOOL

Directions: Read and understand the questions. Tick the letter of the correct answer on the
screen.

1. What is the primary objective of entrepreneurship?

A. To maintain existing business practices

[Link] create a business and scale it to generate a profit
[Link] follow a predetermined career path
[Link] work within an established framework

2. Which of the following sets of characteristics best defines an entrepreneur and

contributes to their success in creating and sustaining a business?

A. Cautious decision-making, reliance on external guidance, adherence to

established methods, and preference for stability.
[Link], risk-taking, initiative, and the ability to anticipate market
needs.
C. Routine task execution, aversion to risk, strict following of established
procedures, and resistance to change.
D. Focus on maintaining existing business models, avoiding risk, and
waiting for market conditions to stabilize before making decisions.

3. Which of the following statements best compares the roles of entrepreneurs in

economic growth and innovation with the roles typically found in traditional
employment structures?

A. Entrepreneurs primarily focus on maintaining existing business

practices, while traditional employees are responsible for creating new
businesses and introducing innovations.
B. Entrepreneurs drive economic growth by creating new businesses and
introducing innovative ideas, whereas traditional employees typically
work within an existing framework, contributing to the stability of the
economy.
[Link] entrepreneurs and traditional employees have equal roles in
generating new jobs and driving innovation within the economy.
[Link] employees play a key role in economic growth by creating
new businesses and assuming most of the risks associated with them,
while entrepreneurs focus on working within established companies.
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Department of Education
REGION X - NORTHERN MINDANAO

4. Considering the information provided, how would you design a government

program to support entrepreneurship in a developing country? Include elements
that address the unique challenges faced by entrepreneurs in such economies.

A. Strict regulatory barriers, limited access to funding, minimal

education, and focus on maintaining traditional markets.
B. Access to funding, education and training, mentorship, networking
opportunities, infrastructure, legal support, and market access.
[Link] on large corporations, high taxation for small businesses, and
limited government involvement in entrepreneurial activities.
D. Emphasis on import restrictions, minimal infrastructure development,
and reliance on foreign investment for business growth.

5. Which of the following best defines the Potential Market?

A. The Potential Market is the entire market demand for a product or

service, including all possible customers, regardless of their current
purchasing behavior.
B. The Potential Market is the portion of the market that a business can
realistically target and capture in the future, considering factors like
current capabilities and market opportunities.
C. The Potential Market is the subset of the market already served by
existing products and services, reflecting the demand that is currently
being met.
D. The Potential Market is the total revenue a company expects to
generate from all customers who have shown interest in a product or
service.

6. What is the primary benefit of identifying potential markets?

A. It helps in identifying existing customer complaints.

B. It provides a way to explore all possible customers globally.
C. It ensures future growth and the ability to attract new customers.
D. It defines the current market size.

7. What is one specific benefit of identifying new potential markets?

A. Increased revenue.
B. Better understanding of current customer needs.
C. Identification of marketing channels.
D. Improved customer service.

8. Which of the following factors should be considered when identifying potential markets?

A. Current customer demographics.

B. Potential new customer needs.
C. Existing market competition.
D. All of the above.
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Department of Education
REGION X - NORTHERN MINDANAO

9. How does identifying potential markets contribute to a business’s future growth?

A. By focusing solely on increasing current market share.

B. By showing the potential of the business to investors and

collaborators.
C. By creating a plan B that addresses only economic downturns.
D. By defining the current market size more accurately.

10. How can a business leverage the understanding of both TAM and potential
markets to optimize its growth strategy?

A. By investing only in existing market segments with proven demand.

B. By using TAM to estimate overall market potential and the potential
market to focus on achievable targets.
C. By solely concentrating on the most profitable market segments
without considering new opportunities.
D. By analyzing competitors’ market share to determine investment
levels.

11. A student knows that businesses often start from opportunities, but they are
unsure where these opportunities come from. Which of the following best
describes this student's level of understanding?

A. The student can identify multiple sources of opportunities and how

they are connected.
B. The student is aware of opportunities but cannot identify specific
sources.
C. The student can identify one specific source of opportunities but not
others.
D. The student understands the connections between different sources of
opportunities.

12. Which of the following is NOT considered a source of business opportunities

according to the given framework?

[Link] in the environment

[Link] discovery and advancement
[Link] opinions and beliefs
[Link]'s thrust, programs, and policies

13. A student is able to identify that business opportunities can arise from
changes in the environment but struggles to recognize other sources of
opportunities. Which of the following best describes this student's level of
understanding?

A. The student understands the connections between different sources of

opportunities.
B. The student can identify multiple sources of opportunities but sees
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Department of Education
REGION X - NORTHERN MINDANAO

them as unrelated factors.

C. The student can identify one source of opportunities but does not
understand the connections between different sources.
D. The student is aware that opportunities exist but cannot identify
specific sources.

14. A student is able to identify that business opportunities can arise from
changes in the environment, technological advancements, and government
policies. However, the student sees these sources as unrelated factors. Which of
the following best describes this student's level of understanding?

A. The student understands the connections between different sources of

opportunities and how they influence each other.
B. The student can identify multiple sources of opportunities but sees
them as unrelated factors.
C. The student can identify one source of opportunities but does not
understand the connections between different sources.
D. The student is aware that opportunities exist but cannot identify
specific sources.

15. A student explains that changes in the environment might lead to

technological advancements, which in turn create new business opportunities.
The student also notes that government policies can support these opportunities.
Which of the following best describes this student's level of understanding?

A. The student can identify multiple sources of opportunities but sees

them as unrelated factors.
B. The student can identify one source of opportunities but does not
understand the connections between different sources.
C. The student understands the connections between different sources of
opportunities and how they can influence each other.
D. The student is aware that opportunities exist but cannot identify
specific sources.

16. A student states that by analyzing emerging trends in societal and

technological environments, they can predict future business opportunities that
may arise from climate change or new government initiatives. Which of the
following best describes this student's level of understanding?

A. The student can identify multiple sources of opportunities but sees

them as unrelated factors.
B. The student understands the connections between different sources of
opportunities and how they can influence each other.
C. The student can generalize their understanding of sources of
opportunities to new contexts and predict potential opportunities in
different scenarios.
[Link] student can identify one source of opportunities but does not
understand the connections between different sources.
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Department of Education
REGION X - NORTHERN MINDANAO

17. A company that manufactures ergonomic office chairs wants to expand its
market reach. Which of the following best describes the potential market for this
company?

A. The total number of office workers currently using any type of chair.
B. The total number of office workers who have shown interest in
ergonomic office chairs.
C. The total demand for office chairs in all countries worldwide.
D. The number of people currently using ergonomic office chairs.

18. A company that specializes in eco-friendly cleaning products wants to identify

new potential markets. Which approach would be most effective for the company?

A. Expanding its marketing efforts to all existing customers.

B. Researching demographic groups who are environmentally conscious
and may not yet be customers.
C. Focusing solely on increasing sales to current customers.
D. Analyzing competitors’ sales figures to identify new markets.

19. What is one of the main benefits of identifying potential markets for a
business?

A. It allows the company to reduce its market research costs.

B. It helps in creating a plan B for unforeseen market changes.
C. It ensures that the company will not need to invest in product
development.
D. It guarantees immediate revenue increase.

20. A business wants to target a new market segment for its premium fitness
equipment. What should be considered when reaching out to this new potential
market?

A. The demographic details and purchasing preferences of the new

segment.
B. The existing market share of competitors in the fitness equipment
sector.
C. The overall size of the fitness equipment market worldwide.
D. The historical sales data of the company's existing products.

21. A company is evaluating whether to invest in a new product line. How should
the company use the concept of potential market to make its decision?

A. By focusing on the current sales figures of similar products.

B. By assessing the size of the potential market to gauge future
investment needs.
C. By considering the immediate profitability of the new product line.
D. By analyzing the historical performance of the company's previous
products.
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Department of Education
REGION X - NORTHERN MINDANAO

22. A student knows they need to choose a product to sell but does not
understand why this choice is important for entrepreneurial success. Which of
the following best describes this student's level of understanding?

A. The student understands how product selection is connected to

entrepreneurial success.
B. The student knows they need to choose a product but does not
understand the importance of this decision.
C. The student can identify several factors that influence product
selection but sees them as unrelated.
[Link] student can generalize product selection principles to new market
contexts.

23. A student believes they should sell products that they personally like or use
but does not consider other factors in product selection. Which of the following
best describes this student's level of understanding?

A. The student can identify multiple factors in product selection but sees
them as unrelated.
B. The student understands the connections between different factors in
product selection.
C. The student can identify one aspect of product selection but does not
consider other factors.
D. The student can generalize product selection principles to different
market contexts.

24. A student considers factors like personal interest, market needs, and
customer preferences when choosing a product to sell, but sees these factors as
separate and unrelated. Which of the following best describes this student's level
of understanding?

A. The student can identify several factors that influence product

selection but sees them as unrelated.
B. The student understands how different factors in product selection are
connected.
C. The student knows they need to choose a product but does not
understand the importance of this decision.
D. The student can generalize product selection principles to different
market scenarios.
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Department of Education
REGION X - NORTHERN MINDANAO

25. A student explains that their personal interest, customer needs, and market
competition all interact to determine the success of a product they choose to sell.
Which of the following best describes this student's level of understanding?

A. The student can identify one aspect of product selection but does not
consider other factors.
B. The student can identify several factors in product selection but sees
them as unrelated.
C. The student understands how different factors in product selection are
connected and influence success.
[Link] student can generalize product selection principles to new market
contexts.

26. A student analyzes trends in customer behavior and market competition to

predict which products will succeed in new markets. Which of the following best
describes this student's level of understanding?

[Link] student can identify several factors that influence product

selection but sees them as unrelated.
B. The student understands how different factors in product selection are
connected and influence success.
C. The student knows they need to choose a product but does not
understand the importance of this decision.
[Link] student can generalize their understanding of product selection to
predict success in new market scenarios.

Here's a table illustrating the practical example of a Grade 11 student

creating a business selling handmade jewelry, focusing on viability and
profitability:

Aspect Viability Profitability

Objective Assess the long-term Determine if the
potential of the business can generate
business. more revenue than costs
and be financially
successful.
Key Activities 1. Market Research: 1. Cost Analysis:
Check if there is Calculate the cost of
demand for handmade materials and
jewelry in the production.
community.
2. Business Model: Plan 2. Pricing Strategy: Set
how to produce and sell a selling price for the
the jewelry. jewelry.
3. Sustainability: 3. Profit Calculation:
Ensure the business Subtract costs from
can sustain operations selling price to
and grow over time. determine profit.
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Practical Example Market Demand: Cost of Materials: P 550

Research if people in the to make each piece of
community are jewelry. Selling Price:
interested in buying P1,100 per piece. Profit:
handmade jewelry. P 550 per piece.
Production Plan: Decide Profitability Check: With
on methods and sources each piece sold for
for making the jewelry, P1,100 and costing
such as materials and P550 to make, the profit
tools. is P 550 per piece.
Growth Potential:
Financial Success:
Evaluate if there are
Determine if the profit
opportunities for
margin is sufficient to
expanding the business
cover other expenses
or introducing new
and support growth.
products.

This table helps to clarify the steps involved in evaluating both the viability and
profitability of a business venture in a practical context.

27.A Grade 11 student is evaluating a business idea for selling handmade jewelry.
They want to determine if their business will be profitable. Which of the following
actions is most relevant for assessing profitability?

A. Researching if there is a high demand for handmade jewelry in the

community.
B. Calculating the cost of materials and determining the selling price of
each piece of jewelry.
C. Creating a detailed business plan for the production and sale of the
jewelry.
D. Assessing how the business could grow over time and expand its
product line.

28. A Grade 11 student is evaluating a business idea for selling handmade

jewelry. They recognize the importance of both market research and cost analysis
but do not see how these aspects are connected. Which of the following best
explains how market research and cost analysis can be related in evaluating the
business idea?

A. Market research helps identify the demand for the jewelry, which can
influence how much to charge for it. Cost analysis then determines if the
chosen price will cover production costs and generate profit.
B. Market research focuses on customer preferences, while cost analysis is
only concerned with the expenses of making the jewelry. They do not
affect each other.
C. Cost analysis helps to set the selling price of the jewelry, and market
research determines if customers will buy it. Both aspects operate
independently of each other.
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D. Market research and cost analysis are both part of assessing

profitability but do not interact with each other in evaluating the overall
business idea.

29. A Grade 11 student is considering starting a business selling handmade

jewelry. They want to assess both the viability and profitability of their venture.
Which of the following best describes the process of evaluating both aspects?

A. The student should focus solely on setting a selling price for the jewelry
to ensure profitability, without considering if there is a demand for the
product.
B. The student should conduct market research to determine if there is a
demand for handmade jewelry and calculate the cost of materials and profit
margin to ensure both viability and profitability.
C. The student should only assess the production methods and tools
needed to make the jewelry, ignoring market demand and cost analysis.
D. The student should evaluate the growth potential of the business
without calculating the cost of materials or understanding market demand.

30. Which of the following statements about customer requirements are true?

I. Service requirements include on-time delivery and easy payment.

II. Output requirements are intangible aspects of a product or service.
III. Market size refers to the number of potential customers in a
specific area.
IV. The clarity of a phone speaker is an example of an output

requirement.

A) I and II only
B) I and IV only
C) II and III only
D) I, III, and IV only

31. Which of the following correctly identifies and connects customer service and
output requirements?

I. On-time delivery (service requirement) and product specifications

(output requirement) are both necessary for customer satisfaction.
II. Service requirements are more important than output
requirements in determining customer satisfaction.
III. The process of buying a product (service requirement) and the
product's durability (output requirement) are related in fulfilling
customer needs.
IV. Output requirements do not influence the service requirements a
customer expects.
A) I and III only
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Department of Education
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B) I and IV only
C) II and IV only
D) III and IV only

32. Which of the following statements best reflect a relational understanding of

customer requirements?

I. On-time delivery (service requirement) is connected to customer

satisfaction and can influence how customers perceive the output
requirements of a product.
II. Customers only care about output requirements, not service
requirements.
III. Service and output requirements work together to fulfill customer
expectations.
IV. A customer who values a product's durability (output requirement) may
also expect reliable after-sales support (service requirement).

A) I and III only

B) II and IV only
C) I, III, and IV only
D) I, II, and III only

33. In the context of entrepreneurship, which of the following statements best

illustrates the need to balance both the selection of products or services and
understanding customer needs?

I. "To succeed as an entrepreneur, focus solely on creating the best product

without considering customer needs."
II. "To succeed as an entrepreneur, ensure that the product or service
aligns with customer needs and preferences, and develop a strategy for
selecting and offering it in a competitive market."
III. "To succeed as an entrepreneur, concentrate only on customer needs
without worrying about the quality of the product or service."
IV. "To succeed as an entrepreneur, always prioritize having the lowest
production costs, regardless of the market demand or customer needs."

A. I and II only

B. I and III only

C. II only

D. I, II, III and IV

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Department of Education
REGION X - NORTHERN MINDANAO

Alex is considering starting a new business and wants to choose between selling a
tangible product and offering an intangible service. After some market research,
Alex identifies two potential options:

1. Option A: A high-quality, ergonomic office chair that enhances comfort and

productivity for professionals.
2. Option B: Personalized online coaching sessions to improve time management
and productivity skills.

34. Which of the following factors should Alex consider most critically to
determine which option might be more successful in addressing customer needs
and achieving business success?

A. The initial cost of acquiring inventory for the office chairs compared to
the cost of setting up the online coaching platform.

B. The ability to assess the quality of the office chairs by physically

inspecting them versus the difficulty in evaluating the effectiveness of the
online coaching sessions before purchase.

C. The tangible benefits of the office chairs compared to the intangible

benefits of the online coaching sessions.

D. The perishable nature of the online coaching sessions compared to the

imperishable nature of the office chairs.

Carlos is planning to open a bookstore in his neighborhood, where there are

already two established bookstores. He has decided that his bookstore will stay
open until midnight, while the other bookstores close at 7 PM.

35. Which of the following Value Propositions could Carlos use that reflects his
decision to stay open late?

A. "Carlos’ Bookstore – The best selection of books in town."

B. "Carlos’ Bookstore – Your late-night book haven, open until

midnight."

C. "Carlos’ Bookstore – Friendly service with a smile."

D. "Carlos’ Bookstore – A quiet place to relax."

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REGION X - NORTHERN MINDANAO

Lena is opening a new café aimed at attracting students and young professionals
who need a place to study or work. She decides that her café will offer the
following features:

 High-speed Wi-Fi
 Comfortable seating
 Late-night hours until 2 AM
 A selection of organic, locally sourced snacks and drinks

36. Which of the following Value Propositions best reflects these features but
might lack coherence in fully addressing the target customer's needs?

A. "Lena’s Café – The best place for organic snacks with comfortable
seating."

B. "Lena’s Café – High-speed Wi-Fi and organic snacks, open until 2 AM."

C. "Lena’s Café – Study and work late with high-speed Wi-Fi, comfortable
seating, and organic snacks."

D. "Lena’s Café – A quiet spot for students and professionals to work, relax,
and enjoy organic snacks."

Sophie is opening a co-working space in a busy urban area. Her target customers
are freelancers, remote workers, and small business owners who need a productive
and comfortable place to work. Sophie decides to offer the following features:

 24/7 access to the workspace

 High-speed Wi-Fi
 Quiet, soundproof rooms for focused work
 Free coffee and healthy snacks
 Networking events every week

37. Which of the following Value Propositions best integrates these features into a
comprehensive statement that addresses the overall needs of Sophie’s target
customers?

A. "Sophie's Co-Working – A quiet space with high-speed Wi-Fi and free

coffee, open 24/7."

B. "Sophie's Co-Working – Your 24/7 workspace with high-speed Wi-Fi,

quiet rooms, and healthy snacks."

C. "Sophie's Co-Working – The ideal place for freelancers and remote

workers, offering 24/7 access, quiet rooms, high-speed Wi-Fi, and
networking opportunities."

D. "Sophie's Co-Working – Where freelancers find high-speed Wi-Fi, free

coffee, and soundproof rooms."
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Maria is planning to open a new café in her town. There are already several cafés
in the area, so she needs to create a strong Value Proposition to attract customers.
After some research, Maria identifies a few key elements that might help her stand
out:

1. Target Customer: Young professionals who work remotely and prefer a quiet,
comfortable place with reliable internet access.
2. Need/Opportunity: A café that stays open late, provides high-speed Wi-Fi,
and has quiet workspaces specifically designed for remote work.
3. Product Name: "Focus Café."
4. Enterprise/Company Name: "Focus Enterprises."

38. Based on this information, which of the following Value Propositions is the
most effective for Maria's new café?

A. "Focus Café – Where coffee meets comfort."

B. "Focus Café – Open late with the best coffee in town."

C. "Focus Café – Your quiet, comfortable workspace with high-speed Wi-Fi,

open late."

D. "Focus Café – The perfect spot for coffee lovers.

Maria is starting a new online clothing store that specializes in sustainable fashion.
Her goal is to target a specific market segment that values environmentally friendly
products and is willing to pay a premium for them. She wants to identify her target
customers and develop a marketing strategy that effectively reaches them. Maria
has considered the following factors:

1. Geographic Segmentation: She plans to target urban areas where people are
more likely to be aware of and concerned about environmental issues.
2. Demographic Segmentation: Maria aims to focus on young adults aged 18-35,
with a moderate to high income, as they are more likely to afford and value
sustainable fashion.
3. Psychological Segmentation: She wants to attract customers who prioritize
sustainability and have a lifestyle that aligns with ethical consumption.
4. Behavioral Segmentation: Maria is interested in customers who are loyal to
eco-friendly brands and are likely to recommend them to others.

39. Based on the scenario above, which of the following actions would best help
Maria define her target market and develop an effective marketing strategy?

A. Maria decides to focus only on young adults in urban areas, as they are
more likely to be aware of environmental issues.

B. Maria targets young adults in urban areas who are interested in

sustainability and have a moderate to high income.
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C. Maria develops a marketing strategy that targets young adults aged 18-
35 in urban areas, who have a moderate to high income, prioritize
sustainability, and are loyal to eco-friendly brands.

D. Maria expands her strategy by including partnerships with local eco-

friendly organizations and creating community events to raise awareness
about sustainable fashion, in addition to targeting her selected market
segment.

Imagine you are an entrepreneur who wants to start a new milk tea
business in your local area. Before launching your product, you need to conduct
market research to gather information on potential customers. You plan to use
three different data collection methods: Surveys, Interviews, and Focus Group
Discussions (FGDs).

40. You want to determine which milk tea flavors are most popular among high
school students. Which data collection method would be the most effective for
gathering this information, and why?

A. Surveys - They allow you to gather a large amount of data quickly and
from a wide range of respondents.
B. Interviews - They provide in-depth, personalized insights into individual
preferences and can clarify specific details.
C. Focus Group Discussions (FGDs) - They encourage group interaction,
which can generate ideas and reveal common preferences among
participants.
D. All of the above - Each method has its advantages, and using a
combination will provide a comprehensive understanding of the market.

Scenario:
Imagine you are launching a new clothing brand focused on sustainable fashion.
You have conducted market research and gathered the following data:
 Urban areas with high-density
populations are more likely to
purchase sustainable fashion.
Geographic Segmentation  Regions with colder climates
show higher demand for
sustainable outerwear.

 Age: 25-40 years old.

 Gender: Predominantly female.
 Income: Middle to high income.
Demographic Segmentation  Education: College-educated.
 Occupation: Professionals and
creatives.

 Social class: Upper-middle

Psychological Segmentation
class.
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 Personality traits:
Environmentally conscious,
trendsetters.
 Lifestyle: Health-conscious,
active on social media.
 Brand concept: Values
sustainability and ethical
production.

 Loyalty: High loyalty to

sustainable brands.
 Knowledge: Well-informed
about environmental issues.
 Benefits sought: High-quality,
Behavioral Segmentation
eco-friendly materials.
 Responses: Positive reactions
to sustainable marketing
campaigns

41. Based on the data, which of the following regions would be the best target
market for your sustainable fashion brand?

A. A rural area with a low-density population and a hot climate.

B. A high-density urban area with a cold climate and a well-educated
population.
C. A region with a mixed population, predominantly middle-aged men with
lower income.
D. A suburban area with a temperate climate and a population of retirees.

42. Your competitor is targeting a similar market, focusing on urban areas with
high-density populations. They offer products at a slightly lower price point.
Considering the behavioral segmentation data, how could you differentiate your
brand to better capture market share?

A. Focus on price competition and lower your prices below the competitor's.
B. Emphasize the use of eco-friendly materials and the ethical production
process in your marketing.
[Link] a completely different demographic, such as retirees, to avoid
direct competition.
D. Reduce the quality of materials to match the competitor's price point.

43. A potential market is also called _____________

A. addressable market C. total market

B. market D. total addressable market
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44. What kind of relationship exists between investment and market size?

A. negative relationship C. penetrating relationship

B. positive relationship D. zero relationship

45. Which of the following does not belong to the group?

A. Focusing only on innovation and competition

B. Focusing only on customers
C. Focusing only on revenue
D. Focusing only on satisfaction

46. Which of the following refers to the functional needs, desires, and goals of a target
audience?

A. market C. market analysis

B. market need D. market segmentation

47. Which of the following refers to the process of defining the market needs of your
particular audience?

A. conduct interviews C. introspection

B. consider cultural components D. narrow your niche

48. What enable(s) fresh perspectives, challenge(s) conventional thinking, and help(s)
identify uncharted paths to success?

A. creativity C. creativity and innovation

B. innovation D. seeking and screening

49. Which of the following does not belong to the group?

A. cognitive biases C. organizational inertia

B. lack of resources D. proactive opportunity seeking

50. What mindset involves embracing lifelong learning, being open to new experiences,
and practicing resilience in the face of setbacks?

A. creative mindset C. opportunistic mindset

B. innovative mindset D. pessimistic mindset