La Union Colleges of Science and Technology
Central West, Bauang, La Union
FOURTH QUARTER EXAMINATION
ENTREPRENEURSHIP 12
SY: 2018-2019
(Hades)
Name: ________________________________________ Date: ________
Grade/Section: _______________________________ Score: _______
GENERAL: ERASURES MEANS WRONG!
I.MULTIPLE CHOICE: Circle the letter that corresponds to the BEST answer. There is only one BEST answer for
each question. (20pts)
1. Which one of the following would be considered in Final Choice of Location?
A. Activity Hubs B. Future Area Development C. Industry Traffic Flow D. Growth
Development
2. Black Glory Corp. has sales revenue of 150,000, sales discounts of 12, 000, sales returns and allowances of
24,000 and costs of goods sold of 60, 000. What would be net income of Black Glory Corp.?
A. 102, 000 B. 54, 000 C. 114, 000 D.
125,000
3. This is vested with own legal personality quite distinct and separate from its individual members.
A. Corporation B. Sole Proprietorship C. Partnership D. Co-operative
4. Albany Corporation holds cash of 5, 000 and owes 28, 000 on accounts payable. Albany has accounts receivable
of 49, 000, inventory of 36, 000 and land that cost 60, 000. How much are Albany’s total assets and liabilities?
A. 150,000 assets, 64,000 liabilities B. 150, 000 assets, 28, 000 liabilities C. 90,000 assets, 88,000 liabilities
D. 90,000 assets, 50,000 liabilities
5. Young Company had total assets of 215,000 and total stockholder’s equity of 78,000 at the beginning of the year.
During the year, assets increased by 38,000 and liabilities increased by 7,000. Stockholder’s equity at the end of the
year is ____________.
A. 116,000 B. 123,000 C. 109,000 D. 130,000
6. Quartz Instruments had retained earnings of 350,000 at Dec. 31, 2014. Net income for 2015 totalled 200, 000 and
dividends for 2015 were 60, 000. How much retained earnings should Quartz report at Dec. 31?
A. 550,000 B. 410,000 C.490, 000 D. 510,000
7. Entrepreneurships require financial backing in order to get started in the business world. Which of the following is
NOT one of the methods commonly utilized to obtain the financial resources needed?
A. Commercial loans B. Equity C. Personal finances provided by friend D. Bank Loans
8. The following are reported in the statement of financial position (Balance Sheet), EXCEPT.
A. Cost of Sale B. Assets C. Liabilities D. Owner’s Equity
9. Remington provided the following information about its balance sheet.
Cash $ 100
Accounts receivable $ 500
Stockholders' equity $ 700
Accounts payable $ 200
Bank loans $1,000
Based on the information provided, how much are Remington's liabilities?
A. 200 B. 900 C. 1500 D. 1700
10. Gerald had beginning total stockholders' equity of $160,000. During the year, total assets increased by $240,000
and total liabilities increased by $120,000. Gerald's net income was$180,000. No additional investments were made;
however, dividends did occur during the year. How much were the dividends?
A. 20,000 B. 60,000 C. 140,000 D. 220,000
11. Marketing stimuli consist of the seven Ps. Which is NOT one of these?
A. Politics B. Product C. Promotion D. Place
12. _____________ is the process of finding small but profitable market segments and designing custom made
products for them.
A. Niche marketing B. One to one marketing C. Industrial marketing D. relationship
marketing
13. Which of the following would be included in the value package that customers might consider in buying a car?
A. Price, Package, Guarantee B. Brand name, Service, Speed of delivery C. Buyers, Age, Sex and
Income.
D. A & B
14. A name, symbol, or design (or combination thereof) that identifies the goods or services and distinguishes them
from those of the competitors is called:
A. A Brand B .A Niche C. A Trademark D. A Patent
15. In business markets, advertising can play a role, but a stronger role may be played by the sales force, ________,
and the company’s reputation for reliability and quality.
A. Brand image B. Distribution C. Promotion D. Price
16. The ________ concept holds that consumers will favor those products that offer the most quality, performance, or
innovative features.
A. Product B. Marketing C. Production D. Selling
17. The ________ process consists of analyzing marketing opportunities, selecting target markets, designing
marketing strategies, developing marketing programs and managing the marketing effort.
A. Marketing Plan B. Strategic Plan C. Market Research D. Opportunity
Analysis
18. How might the size of a business be best measured?
A. Number of employees and overall gross profit B. Number of outlets or business units and market
value C. Total revenue and capital investment D. All of the above
19. Strategic decision making can take place at various levels of an organisation, what are the three most common?
A. Operational, board, and industrially B. Governmental, locally, and individually C. Corporate,
Sole Proprietorship, and Partnership D. Board of Directors, Chief Executive, and Junior Management
20. Which of the following would be included in the types of package?
A. Beakthroagh & Copycat Products B. Nechi & Breakthrough Products C. Copycat & Niche
Products D. All of the above
II. For each of the following items, state whether it is an ASSETS (A), LIABILITIES (L), OWNER’s EQUITY (O),
REVENUES (R) and EXPENSE (E). Write your answer on the space provided before the number. (10pts)
________________1. Computer
________________2. Amounts that customers owe the company
________________3. Land
________________4. Owe on account
________________5. Accrued expenses
________________6. Retained earnings
________________7. Trademarks
________________8. Cost of goods to customers
________________9. Providing goods to customers
_______________10. Salaries to employees
III. IDENTIFICATION: Identify the following given statements. Write your answers on the space before the
numbers. (10pts)
______________ 1. This is the way the customers perceive the enterprise and its products or services in their minds.
______________ 2. It can mean the bundle of products or services that are put together to attract and delight
customers.
______________ 3. This is the explicit communication strategy adopted by an enterprise to elicit the patronage,
loyalty and support not only from its customers but also from its other significant
stakeholders.
______________ 4. It involves oral communication with one or more prospective the buyers my paid representatives
for the purpose of making select.
______________ 5. This refers to a specific state of mind which orientates human conduct towards entrepreneurial
activities and outcomes.
______________ 6. This is a major factor for the customer in buying a product it is not the only factor such as in the
case of buying premium products.
______________ 7. This is non-personal communication regarding goods, services, organization, people, places that
is transmitted through media.
______________ 8. This is the technology originator.
______________ 9. The product must be made shop-ready for commercial.
_____________ 10. It conceptualizes and designs a product that consumers find some use for it.
IV. PROBLEM SOLVING: Solve the problem and indicate the best answer. Please provide a sheet of paper for any
rough work.
1. Instruction: Prepare an income statement, statement of retained earnings, and a classified balance sheet for
AFLAC Incorporated for the year 2015. (20pts)
Problem 1:
The following items were taken from the accounting records of AFLAC Incorporated. The income statement account
balances are for the year ending December 31, 2015. The balance sheet account balances are the balances at
December 31, 2015 except for the retained earnings balance which is the balance at 1/1/2015:
Accounts Payable 52, 000 Account Receivables 7, 000
Equipment 65,000 Advertising Expense 28, 000
Cash 586,000 Common Stock 50, 000
Administrative Expense 10, 500 Dividends 10, 000
Insurance Expense 2, 500 Notes Payable (long term) 185,000
Prepaid Insurance 5, 500 Rent Expense 10, 000
Retained Earnings 95, 000 Salaries Expense 85, 000
Service Revenue 232, 000 Office Supplies 3, 000
Supplies Expense 1, 000 Salaries Payable 2, 500
Accumulated Depreciation 20,000 Additional Paid In Capital 198,200
Income Tax Rate 40%
2. Instruction: Prepare an income statement and a classified balance sheet for McKesson Incorporated for the year
2010. (20pts)
Problem 2:
The following items were taken from the accounting records of McKesson Incorporated. The income statement
account balances are for the year ending December 31, 2010. The balance sheet account balances are the balances
at December 31, 2010 except for the retained earnings balance which is the balance at 1/1/2010:
Accounts Payable 57, 000 Long Term Investments 35, 000
Accounts Receivable 32, 000 Trademarks 6, 000
Building 225, 000 Accrued Expenses 9, 000
Cash 15, 000 Short Term Notes Payable 35, 000
Equipment 76, 000 Common Stock 1, 000
Retained Earnings 411, 000 Inventory 82, 000
Prepaid Insurance 1 2, 000 Costs of Goods Sold 62, 000
Sales 123, 000 Salary Expense 22, 000
Utility Expense 8, 000 Income Tax Expense 9, 000
“GOOD LUCK”
