This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why do business exist? A) To help the government collect tax. B) To realise opportunities within the market. C) To provide jobs. D) To help owners make a living. E) To satisfy the needs of customers. Show Answer Correct Answer: E) To satisfy the needs of customers. 2. A new method, idea, product, etc A) Enterprise. B) Equity. C) Brand. D) Innovation. Show Answer Correct Answer: D) Innovation. 3. Worker cooperatives are: A) Where a sole trader earns the profit. B) Where employees share the profit. C) Where members share the profit. D) Where the government earns the profit. Show Answer Correct Answer: B) Where employees share the profit. 4. What is required to maintain a functioning free enterprise system? A) Strict government regulations. B) Moral responsibility and ethical behavior. C) A single large corporation. D) No competition. Show Answer Correct Answer: B) Moral responsibility and ethical behavior. 5. Sara decided to start up a business as a personal trainer due to her passion for fitness. Which of the following is the main reason behind Sara's business idea A) Earn more money. B) Be her own boss. C) Pursue an interest. D) Work more flexible hours. Show Answer Correct Answer: C) Pursue an interest. 6. Cristian and Amber are starting a new business. They want to create a company that not only makes money but also helps the community by reinvesting its profits into social projects. What type of business are they planning to start? A) A business focused solely on profit maximisation. B) A business that operates without any financial goals. C) A business that reinvests profits to achieve social objectives. D) A business that avoids any form of innovation. Show Answer Correct Answer: C) A business that reinvests profits to achieve social objectives. 7. This social entrepreneur characteristics explains that their visions are not limited by the resources that they have. A) Resourceful. B) Socially aware. C) Innovative. D) Accountable. Show Answer Correct Answer: A) Resourceful. 8. Another term for a business A) Entrepreneurship. B) Marketing. C) Enterprise. D) Equity. Show Answer Correct Answer: C) Enterprise. 9. Adding value to a business involves: A) Decreasing costs. B) Limiting innovation. C) Reducing customer satisfaction. D) Offering unique products or services. Show Answer Correct Answer: D) Offering unique products or services. 10. How could you best describe what is a social mission is? A) Something that benefits society, the environment or econonmy. B) An event where everyone gets together. C) A manefesto that shares the wealth amongst the owners. D) A religious organisation. Show Answer Correct Answer: A) Something that benefits society, the environment or econonmy. 11. Entrepreneurs are always successful A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 12. Jacob and Lillie are starting a new business. What is a key characteristic of an entrepreneur's mindset that they should embrace? A) Rigidity. B) Passivity. C) Adaptability and flexibility. D) Indifference. Show Answer Correct Answer: C) Adaptability and flexibility. 13. Which of the following is a benefit of adapting a product or service? A) Creates a USP. B) Creates something brand new. C) Cheaper. D) None of the above. Show Answer Correct Answer: B) Creates something brand new. 14. Explain the difference between primary, secondary and tertiary. (UND) A) The Primary Sector is that part of the economy trees are drawn as raw materials. B) Secondary sector is the sector where the raw materials are manufactured. C) Tertiary sector is when services are rendered. D) All the above. Show Answer Correct Answer: D) All the above. 15. Corporate social responsibility: A) Is the legal requirement that companies make charitable donations before paying dividends. B) Is a government program required for all companies. C) Are voluntary steps beyond a company's financial self-interest that reflect what business leaders believe their companies can or should accomplish. D) Is a form that must be completed each year and filed with the Louisiana Secretary of State. Show Answer Correct Answer: C) Are voluntary steps beyond a company's financial self-interest that reflect what business leaders believe their companies can or should accomplish. 16. What is the best definition for 'finances'? A) The spending of large amounts of money. B) The management of large amounts of money. C) The distribution of large amounts of money. D) None of the above. Show Answer Correct Answer: B) The management of large amounts of money. 17. What is the main purpose of market research in entrepreneurship? A) To copy competitors. B) To understand customer needs and preferences. C) To increase production costs. D) To reduce employee wages. Show Answer Correct Answer: B) To understand customer needs and preferences. 18. When an entrepreneur applies the entrepreneurial enterprise skills of product making whilst designing and making a new product, which core skill is she most likely using the most? A) Communication and collaboration. B) Creativity and imagination. C) Citizenship. D) Student leadership and personal development. Show Answer Correct Answer: B) Creativity and imagination. 19. There is no choice when deciding on what products will be sold. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 20. Which is an example of a good? A) Nurse. B) Mechanic. C) Basketball. D) Cook. Show Answer Correct Answer: C) Basketball. 21. You will borrow money from the school and will not have to pay the money back to the school at the end of trading. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. A business partnership has ..... who share the risks and the profits. A) One owner. B) Five or more owners. C) No more than three owners. D) Two or more owners. Show Answer Correct Answer: D) Two or more owners. 23. Jacob and Cristian are discussing different types of enterprises for their business class project. Which of the following is NOT a type of enterprise? A) Lifestyle. B) Corporation. C) Social enterprise. D) Start-up. Show Answer Correct Answer: B) Corporation. 24. This is the manufacturing and assembly process A) Primary Sector. B) Secondary Sector. C) Tertiary Sector. D) None of the above. Show Answer Correct Answer: B) Secondary Sector. 25. Amber and Jacob are starting a new business venture. What should be their primary goal in enterprise? A) To maximise profits at any cost. B) To use creativity and innovation to meet customers' needs and aspirations. C) To eliminate all competition. D) To focus solely on financial gains. Show Answer Correct Answer: B) To use creativity and innovation to meet customers' needs and aspirations. 26. True or False:A entrepreneur needs to be excellent at financial management A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 27. You can buy stock in McDonald's. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 28. Is a document containing the business objectives and important details about the operations, finance, and owners of business A) Business plan. B) Important document. C) General proposal. D) Executive summary. Show Answer Correct Answer: A) Business plan. 29. Market research is not essential when starting a business. A) False. B) True. C) All the above. D) None of the above. Show Answer Correct Answer: A) False. 30. Which is the closest match to Business Enterprise as a subject? A) A subject that incorporates project-based skills in order to start a business. B) A subject that allows students to make money. C) A subject that develops students' speaking ability. D) A subject that develops students' written ability. Show Answer Correct Answer: A) A subject that incorporates project-based skills in order to start a business. 31. Which of the following statements best describes the term unique selling point. A) Establishing a clear target market for a product. B) Developing an aspect of a product that makes it different from its rivals. C) Carrying out market research effectively. D) Producing a range of goods and services. Show Answer Correct Answer: B) Developing an aspect of a product that makes it different from its rivals. 32. Grace and Jacob are discussing different types of business structures. Which enterprise type allows shares to be sold to the public? A) Sole trader. B) Partnership. C) Private limited company (LTD). D) Public limited company (PLC). Show Answer Correct Answer: D) Public limited company (PLC). 33. Urbanization means that cities get smaller. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 34. The pricing of materials and products will not be an important factor when managing a business in this course. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 35. Under a free enterprise system, people must work in a profession that is chosen for them by the government: A) TRUE!. B) That's CAP!. C) All the above. D) None of the above. Show Answer Correct Answer: B) That's CAP!. 36. A major disadvantage of entrepreneurship is: A) Limited working hours. B) Guaranteed financial success. C) Lack of responsibility. D) High levels of stress. Show Answer Correct Answer: D) High levels of stress. 37. What is the correct function of a business plan? ..... A) Gaining customers. B) Selling the product. C) Describe company. D) Get funding. Show Answer Correct Answer: D) Get funding. 38. What is one reason entrepreneurs might start a business? A) To follow trends. B) To solve a problem. C) To avoid risks. D) To work less. Show Answer Correct Answer: B) To solve a problem. 39. One of the primary advantages of being an entrepreneur is: A) Guaranteed success. B) High level of security. C) Flexibility and control. D) Low risk. Show Answer Correct Answer: C) Flexibility and control. 40. Entrepreneurs get a ..... from building up their own business which can increase happiness and personal fulfillment. A) Lot of profit. B) Great sense of satisfaction. C) All the above. D) None of the above. Show Answer Correct Answer: B) Great sense of satisfaction. 41. Business exist to: A) Provide quality goods to people who can afford them. B) Sell goods to a particular target audience. C) Meet the needs of all of their customers. D) Research ways to make products better. E) Increase the amount of tax collected by the Government. Show Answer Correct Answer: C) Meet the needs of all of their customers. 42. Grace has decided to start her own bakery business, where she will be the sole owner and operator. What type of business format is Grace using? A) Limited partnership. B) Public limited company (PLC). C) Sole trader. D) Partnership. Show Answer Correct Answer: C) Sole trader. 43. Lack of overall planning and poor decision-making can lead to business failure. This is known as: A) Poor management. B) Poor quality. C) Poor understanding of the economy. D) Poor sales levels. Show Answer Correct Answer: A) Poor management. 44. Which is NOT a benefit of free enterprise? A) People make all of the choices. B) Profit is unlimited. C) Only some people can make a profit. D) Government has only some control. Show Answer Correct Answer: C) Only some people can make a profit. 45. A budget is an estimate of income and expenditure for a set period of time. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 46. A business with Unlimited liability A) Is personally responsible for all the debts of the business. B) Is not personally responsible for all the debts of the business. C) All the above. D) None of the above. Show Answer Correct Answer: B) Is not personally responsible for all the debts of the business. 47. Susie is starting her own lemonade store. What economic term would best describe Susie and what does that term mean? A) Consumer-a person who uses or consumes goods. B) Partnership-partner in the lemonade stand. C) Entrepreneur person who takes a risk to start a new company. D) None of the above. Show Answer Correct Answer: C) Entrepreneur person who takes a risk to start a new company. 48. A government which uses a free enterprise system of economics, allows its citizens to (a) A) A. all of the above. B) Start their own business. C) Spend money as they please. D) Purchase goods wherever they choose. Show Answer Correct Answer: A) A. all of the above. 49. True or false:A good entrepreneur will take calculated risks A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 50. A budding entrepreneur who is looking to set up a new enterprise is concerned that the business might not provide enough of a stable income to maintain his current standard of living. Which of the following best describes this risk? A) Business failure. B) Lack of security. C) Inability to break even. D) Lack of independence. Show Answer Correct Answer: B) Lack of security. 51. Which of the following is a strategy to manage financial risk? A) Investing all capital in one venture. B) Creating a budget and monitoring expenses. C) Ignoring financial statements. D) Spending without planning. Show Answer Correct Answer: B) Creating a budget and monitoring expenses. 52. What is a primary reason for creating a business plan? A) To confuse investors. B) To outline business objectives and strategies. C) To avoid competition. D) To increase operational costs. Show Answer Correct Answer: B) To outline business objectives and strategies. 53. Define 'customer retention'? A) The ability to lose a customer after two or three transactions. B) The ability of a company or product to retain its customers over some specified period. C) The ability to underperform when selling a product. D) None of the above. Show Answer Correct Answer: B) The ability of a company or product to retain its customers over some specified period. 54. What is the main goal of an entrepreneur in America? A) To open lots of stores. B) To make a profit. C) To retire rich. D) Provide jobs to immigrants. Show Answer Correct Answer: B) To make a profit. 55. What is the money left over after a business pays all its expenses called? A) Income. B) Expense. C) Loss. D) Profit. Show Answer Correct Answer: D) Profit. 56. The number of people employed and value of ..... are two ways of measuring the size of a business. A) Profit. B) Expenses. C) Shares. D) Output. Show Answer Correct Answer: D) Output. 57. One of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits. A) Share. B) Assets. C) Liability. D) Securities. Show Answer Correct Answer: A) Share. 58. Which of the following is NOT a key quality of a successful entrepreneur? A) Perseverance. B) Fear of failure. C) Creativity. D) Risk-taking. Show Answer Correct Answer: B) Fear of failure. 59. Which of the following best describes the term, obsolete. When consumers ..... A) Demand more of a particular product or service. B) Want, and can afford, to buy more products and services. C) Can no longer afford to buy a particular product or service. D) No longer want to buy a particular product or service. Show Answer Correct Answer: D) No longer want to buy a particular product or service. 60. Entrepreneurs often face financial risks, including: A) Guaranteed profits. B) Debt and loss. C) Low expenses. D) Stable income. Show Answer Correct Answer: B) Debt and loss. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 1Class 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