This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why did America begin manufacturing their own goods instead of buying them from Britain? A) They were fighting the British in the War of 1812. B) They decided they could make better products. C) They needed to create jobs in America. D) Thousands of skilled artisans left Britain and came to America to manufacture goods. Show Answer Correct Answer: A) They were fighting the British in the War of 1812. 2. When Jada and Cristian decided to start their own business, what was a common challenge they faced? A) Having too many customers. B) Unlimited access to resources. C) Securing initial funding. D) Excessive government support. Show Answer Correct Answer: C) Securing initial funding. 3. External growth is by a takeover of or merger with another business A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 4. An example of intellectual property is: A) Stock. B) A patent on an invention. C) Electronic bank accounts. D) A truck. Show Answer Correct Answer: B) A patent on an invention. 5. Revenues after cost A) Net income. B) Maturity. C) Assets. D) Notes payable. Show Answer Correct Answer: A) Net income. 6. The main purpose of which of the following businesses is to provide a service to customers A) A specialist skateboard producer. B) An independent bakery. C) A farm. D) A dog grooming parlour. Show Answer Correct Answer: D) A dog grooming parlour. 7. Which of the following is NOT a common source of business ideas? A) Personal interests and hobbies. B) Solving problems. C) Government regulations. D) Market gaps. Show Answer Correct Answer: C) Government regulations. 8. Which of the following is an example of an entrepreneurial skill? A) Procrastination. B) Effective communication. C) Disorganisation. D) Inflexibility. Show Answer Correct Answer: B) Effective communication. 9. What is the best match for 'advertisement'? A) A notice or announcement that is not made public. B) A notice that does not receive any media coverage. C) A notice or announcement in a public medium promoting a product. D) None of the above. Show Answer Correct Answer: C) A notice or announcement in a public medium promoting a product. 10. Which of the following is a way to generate a business idea? A) Ignoring customer feedback. B) Copying a competitor's product. C) Reducing product quality. D) Solving a common problem. Show Answer Correct Answer: D) Solving a common problem. 11. Television commercials, billboards on the side of the road, and magazine advertisements are examples of? A) Networking. B) Entrepreneurship. C) Brand. D) Marketing. Show Answer Correct Answer: D) Marketing. 12. Which of the following is NOT a potential reward for taking calculated risks? A) Independence-be your own boss. B) Self-satisfaction. C) Changing customers habits. D) Financial gain. E) Pay less tax. Show Answer Correct Answer: E) Pay less tax. 13. Which of the following is a financial reason why an entrepreneur might start up a new business A) To make a profit. B) To achieve a work-life balance. C) To pursue a skill or interest. D) To have more freedom in decision-making. Show Answer Correct Answer: A) To make a profit. 14. Governments support business startups to ..... A) Reduce inflation. B) Reduce tax revenue. C) Reduce wage rates. D) Reduce unemployment. Show Answer Correct Answer: B) Reduce tax revenue. 15. A ..... is a risk of business as it can lead to less customers, which means less income and profit. A) Poor reputation. B) Good reputation. C) Commercial risk. D) Change in house prices. Show Answer Correct Answer: A) Poor reputation. 16. A product or service is obsolete when sales: A) Start to rise. B) Rise rapidly. C) Growth slows. D) Fall or come to an end. Show Answer Correct Answer: D) Fall or come to an end. 17. Which of the following is an example of a business organisation A) Google. B) Charity shop. C) Steyning Grammar School. D) West Sussex Fire and Rescue. E) All of them. Show Answer Correct Answer: E) All of them. 18. Hairdressers are which sector? A) Primary Sector. B) Secondary Sector. C) Tertiary Sector. D) None of the above. Show Answer Correct Answer: C) Tertiary Sector. 19. Under a free enterprise system, businesses in the US are allowed to do all of the following EXCEPT: A) Decide how to operate their business. B) Price their products. C) Decide what products to sell. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Dan has $ 5, 000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest? A) Corporation. B) Partnership. C) Proprietorship. D) None of the above. Show Answer Correct Answer: A) Corporation. 21. Why might some entrepreneurs want to start their own business? A) To build something of their own. B) To have no responsibilities. C) To follow others. D) To avoid working. Show Answer Correct Answer: A) To build something of their own. 22. Who benefits from social enterprises? A) The staff. B) The public. C) The members. D) The school. Show Answer Correct Answer: B) The public. 23. Another word use to describe a free enterprise system is A) Communism. B) Nationalism. C) Capitalism. D) None of the above. Show Answer Correct Answer: C) Capitalism. 24. Which of the following is not a risk of running your own business? A) Recession /economic / political problems and instability. B) Poor reputation which can lead to loss of sales, loss of revenue and loss of profitability. C) Commercial risks, failure of suppliers to supply and customers to pay. D) Better work/life balance. Show Answer Correct Answer: D) Better work/life balance. 25. Refers to the words and symbols such as a name, logo, and slogan that represent a business' identity A) Pitch. B) Brand. C) Innovation. D) Marketing. Show Answer Correct Answer: B) Brand. 26. Characteristics of successful entrepreneurs include: A) Short attention span. B) Self-importance. C) Grit. D) Submission. Show Answer Correct Answer: C) Grit. 27. What is the primary goal of risk management in a business? A) To eliminate all risks. B) To identify and minimise potential risks. C) To increase risks. D) To ignore risks. Show Answer Correct Answer: B) To identify and minimise potential risks. 28. Charlie and Grace are starting a new business. What is a key skill they need to succeed in entrepreneurship? A) Avoiding risks at all costs. B) Problem-solving. C) Following trends. D) Delegating all tasks. Show Answer Correct Answer: B) Problem-solving. 29. What can unethical behavior lead to? A) It can lead to business failure and a loss of trust in the system. B) It can lead to business success but a loss of trust in the system. C) It can lead to business failure but loss of trust in the system. D) None of the above. Show Answer Correct Answer: A) It can lead to business failure and a loss of trust in the system. 30. Some businesses remain small because the owner does not want it to expand A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 31. What is a key advantage of conducting market research before launching a product? A) To increase production costs. B) To understand market demand. C) To reduce product quality. D) To ignore customer feedback. Show Answer Correct Answer: B) To understand market demand. 32. What do we call a person who is willing to take the risks of starting a business in order to make a profit? A) Proprieter. B) Incorporater. C) Partner. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 33. When entrepreneurs spot an opportunity to trade and make a difference to society? A) Business enterprise. B) Social enterprise. C) Trade enterprise. D) Organic enterprise. Show Answer Correct Answer: B) Social enterprise. 34. A reward for running your own business is ..... A) Machinery might break down. B) You can't get fired. C) Suppliers might not deliver the goods to when you need them. D) You could lose money. Show Answer Correct Answer: B) You can't get fired. 35. What do entrepreneurs combine to produce goods and services? A) Only natural resources. B) Only human resources. C) Natural, human, and capital resources. D) Only capital resources. Show Answer Correct Answer: C) Natural, human, and capital resources. 36. Any activity a business does to try and contact potential customers A) Marketing. B) Networking. C) Entrepreneur. D) Business Plan. Show Answer Correct Answer: A) Marketing. 37. Which of the following is an advantage of sole proprietorships: A) Dual taxation. B) Limited liability. C) Unlimited financial power. D) Quick decision making. Show Answer Correct Answer: D) Quick decision making. 38. What role does government play in a free enterprise system? A) It does not interfere at all with businesses. B) It controls the pricing of all goods and services. C) It ensures fair practices and protects property rights. D) It owns and operates all major industries. Show Answer Correct Answer: C) It ensures fair practices and protects property rights. 39. Entrepreneurial problem solvers exhibit the following behaviors: A) Comfort performing under pressure. B) Ability to forget important details. C) Loyalty to standard practices. D) Comfort conceding defeat. Show Answer Correct Answer: A) Comfort performing under pressure. 40. True or False:All business ideas must start with a brand new idea if they are to be successful A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 41. An entrepreneur can choose to have which type of business organization? A) Sole Proprietorship. B) Partnership. C) Corporation. D) All of the above. Show Answer Correct Answer: D) All of the above. 42. Food manufacturing is which sector? A) Primary Sector. B) Secondary Sector. C) Tertiary Sector. D) None of the above. Show Answer Correct Answer: B) Secondary Sector. 43. Cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding. A) Mortgage. B) Assets. C) Liquid assets. D) Commissions. Show Answer Correct Answer: C) Liquid assets. 44. What is the trade-off that every entrepreneur must sacrifice, except ..... A) Will lost monthly income/salary. B) Overtime work. C) Need a lot of capital/money. D) Have more time. Show Answer Correct Answer: D) Have more time. 45. Which region did factories develop in the United States? A) In the West. B) In the Northeast. C) In the South. D) In the Southwest. Show Answer Correct Answer: B) In the Northeast. 46. Entrepreneurs play a crucial role in the economy by: A) Creating jobs. B) Increasing unemployment. C) Reducing competition. D) Limiting innovation. Show Answer Correct Answer: A) Creating jobs. 47. Enterprise will require work both in class and during lunchtimes. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 48. What is meant by social enterprise? A) A social enterprise has ethical considerations at his heart, for the benefit of society. B) Aims to achieve the highest profits for shareholders. C) A social enterprise is owned by one person. D) A social enterprise is two or more people working together. Show Answer Correct Answer: A) A social enterprise has ethical considerations at his heart, for the benefit of society. 49. What does 'entrepreneur' mean? A) A person with a list of business ideas. B) A person who sets up a business or businesses. C) A person who shares business management strategies. D) None of the above. Show Answer Correct Answer: B) A person who sets up a business or businesses. 50. Which of the following is an example of a financial risk for a new business? A) High employee morale. B) Low customer demand. C) Strong brand reputation. D) High market share. Show Answer Correct Answer: B) Low customer demand. 51. Which of the following statements best describes the term reward A) When a hoped for outcome does not happen. B) Financial security of a full time job. C) The chance of loss or damage. D) The benefits gained through business activity. Show Answer Correct Answer: D) The benefits gained through business activity. 52. A government which uses a free enterprise system of economics, allows its citizens to: A) Start their own business. B) Purchase goods wherever. C) Spend their money as they please. D) All of the above. Show Answer Correct Answer: D) All of the above. 53. One role of an entrepreneur is to organise resources. Which of the following statements best describes this role A) The ability to take calculated risks. B) The skill to think creatively. C) Employing workers and buying equipment in order to produce goods. D) The prospect of keeping all profits that are generated. Show Answer Correct Answer: C) Employing workers and buying equipment in order to produce goods. 54. Business planning will be key in the development of profitable business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 55. Occurs when a business expands its existing operations ..... A) Business growth. B) Internal growth. C) Company growth. D) External growth. Show Answer Correct Answer: B) Internal growth. 56. Keeping all the profit is a reward for setting up your own business. How is this calculated? A) Total Revenue-Wages. B) Sales-Profit. C) Gross Profit/Sales. D) Total Revenue-Total Costs. Show Answer Correct Answer: D) Total Revenue-Total Costs. 57. When the business has failed but there is still hope and chance in the corner, so what should the real entrepreneur must do as part of their characteristics? ..... A) Evaluate the business. B) Accept the condition with sadness. C) Stop the business. D) Never give up. Show Answer Correct Answer: D) Never give up. 58. In times of ..... , political instability and economic difficulty consumers tend to save not spend. A) Market. B) Forecast. C) Summer. D) Recession. Show Answer Correct Answer: D) Recession. 59. Grace and Amber are working on a project that aims to provide clean drinking water to underprivileged communities. What type of enterprise are they likely focusing on? A) Start-up. B) Social enterprise. C) Franchise. D) Lifestyle. Show Answer Correct Answer: B) Social enterprise. 60. Which is NOT an example of a good? A) Power. B) Aircraft parts. C) Steel. D) Automobiles. Show Answer Correct Answer: A) Power. Next →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 2Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 3Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 4Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 5Class 12 Entrepreneurship Chapter 2 Entrepreneurial Planning QuizClass 12 Entrepreneurship Chapter 3 Project Formulation And Analysis QuizClass 12 Entrepreneurship Chapter 4 Enterprise Growth And Expansion QuizClass 12 Entrepreneurship Chapter 5 Business Ethics And Corporate Social Responsibility Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books