This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is meant by a commercial risk? A) Businesses rely on equipment 24/7. If this breaks down this leads to lower production and repair costs. B) Setting up a business can mean you lose your own or the banks money. C) It is critical that suppliers supply equipment to businesses. Customers need to pay for goods/services. D) Blockbusters failed to address the threat of Netflix as they had no digital content available online. Show Answer Correct Answer: C) It is critical that suppliers supply equipment to businesses. Customers need to pay for goods/services. 2. In order to make its products stand our from those of its competitors, a small chocolate manufacturer produces organic, gluten free chocolate bars. This is classed as adding value through: A) Customer service. B) A unique selling point. C) Branding. D) Convenience. Show Answer Correct Answer: B) A unique selling point. 3. In a free enterprise system, the spending habits of ..... determine which products and services to offer: A) Government. B) Professors. C) Consumers. D) Politicians. Show Answer Correct Answer: C) Consumers. 4. One advantage of establishing a new company as some type of a corporation is: A) Guarantees the company will be profitable. B) Ability to shield owners from liabilities of or judgments against the company. C) Guarantees higher revenues. D) Reduces paperwork the owners have to complete. Show Answer Correct Answer: B) Ability to shield owners from liabilities of or judgments against the company. 5. A charity will need to be selected as part of this course. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. What is a cashflow? A) The amount of cash which the company receives or gives out by the way of payment(s) to creditors. B) The amount of cash which the company receives. C) The amount of cash which the company moves into another business. D) None of the above. Show Answer Correct Answer: A) The amount of cash which the company receives or gives out by the way of payment(s) to creditors. 7. It is a business whose primary objective is to serve a purpose that has a positive social impact. A) Social Enterprise. B) Entrepreneurship. C) Social Entrepreneurship. D) Business Administration. Show Answer Correct Answer: A) Social Enterprise. 8. What is a common method for a business to gain a competitive advantage? A) Offering lower quality products. B) Ignoring customer feedback. C) Increasing prices without reason. D) Providing unique value to customers. Show Answer Correct Answer: D) Providing unique value to customers. 9. Which of these is NOT a social enterprise A) Fifteen. B) The Eden Project. C) The Big Issue. D) Cancer Research UK. Show Answer Correct Answer: D) Cancer Research UK. 10. If more than one person sells similar products to consumers, how do consumers benefit? A) The amount of goods available will be lower. B) The price of the product will most likely go down. C) The price of the product will most likely go up. D) The quality of the product will remain the same. Show Answer Correct Answer: B) The price of the product will most likely go down. 11. A ..... is not usually one of the contents of a business plan A) Description of the market. B) Description of the physical location. C) Job description. D) Cash flow forecast. Show Answer Correct Answer: C) Job description. 12. Other types of debt that you owe someone other than a mortgage A) Liquid assets. B) Securities. C) Notes payable. D) Lien. Show Answer Correct Answer: C) Notes payable. 13. Which of the following is not a reason why entrepreneurs create new business ideas? A) Obsolete products. B) Create more jobs. C) Consumer needs and wants change. D) Advanced technology. Show Answer Correct Answer: B) Create more jobs. 14. What is the price of lemonade in the example? A) $ 0.50. B) $ 0.70. C) $ 0.60. D) $ 0.80. Show Answer Correct Answer: D) $ 0.80. 15. Observing trends in the market can help entrepreneurs identify: A) Unsatisfied customer needs. B) Government regulations. C) Decreasing demand. D) Lack of innovation. Show Answer Correct Answer: A) Unsatisfied customer needs. 16. What is meant by a financial risk? A) Businesses rely on equipment 24/7. If this breaks down this leads to lower production and repair costs. B) Setting up a business can mean you lose your own or the banks money. C) It is critical that suppliers supply equipment to businesses. Customers need to pay for goods/services. D) Blockbusters failed to address the threat of Netflix as they had no digital content available online. Show Answer Correct Answer: B) Setting up a business can mean you lose your own or the banks money. 17. Which of the following statements is true in relation to goods and services A) Services can be touched and held, whilst goods are usually invisible. B) Goods can be touched and held whilst services are intangible. C) Services are visible whereas goods are usually invisible. D) Both goods and services are intangible. Show Answer Correct Answer: B) Goods can be touched and held whilst services are intangible. 18. Spending more time at home or carrying out hobbies, gives you a ..... A) Better work/life balance. B) Social enterprise. C) All the above. D) None of the above. Show Answer Correct Answer: A) Better work/life balance. 19. Which of the following is NOT a potential drawback of taking calculated risks? A) Poor health. B) Loss of business license. C) Loss of investment. D) Strained relationships. E) Loss of income. Show Answer Correct Answer: B) Loss of business license. 20. This social entrepreneur characteristics are usually creative, willing to think outside the box and ready to apply ideas to new situations A) Social Catalyst. B) Socially aware. C) Innovative. D) Opportunity-Seeking. Show Answer Correct Answer: C) Innovative. 21. Which of the following is an advantage of general partnerships: A) Limited capital. B) Unlimited liability. C) Easy to end. D) Combined capabilities. Show Answer Correct Answer: D) Combined capabilities. 22. What is the cost of lemons in the lemonade business example? A) $ 0.10. B) $ 0.20. C) $ 0.40. D) $ 0.30. Show Answer Correct Answer: B) $ 0.20. 23. What is a common reason for a business to fail? A) Effective marketing. B) Strong leadership. C) Poor financial management. D) High customer satisfaction. Show Answer Correct Answer: C) Poor financial management. 24. What is the total expense in the lemonade business example? A) $ 0.80. B) $ 0.70. C) $ 0.50. D) $ 0.60. Show Answer Correct Answer: D) $ 0.60. 25. Loan applications require: A) Applicants to offer a guarantee to take whatever. B) Applicants to provide personal and business information that must be truthful. C) Completion all in one sitting. D) Applicants to pay for the right to submit an application. Show Answer Correct Answer: B) Applicants to provide personal and business information that must be truthful. 26. The three objectives of social enterprises are economic, social and environmental. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 27. What is a key factor in successful entrepreneurship? A) Ignoring market trends. B) Avoiding risks. C) Lack of vision. D) Strong leadership. Show Answer Correct Answer: D) Strong leadership. 28. Grace and Jacob are considering starting a business. They are exploring a model where they can operate using an established company's brand and system. Which best describes this type of business model? A) A business owned and operated by one person. B) A business model where a company allows others to operate using its brand and system. C) A non-profit organisation. D) A business focused on personal lifestyle. Show Answer Correct Answer: B) A business model where a company allows others to operate using its brand and system. 29. An investment worth money; a financial instrument indicating ownership. A) Lien. B) Securities. C) Share. D) Mortgage. Show Answer Correct Answer: B) Securities. 30. An entrepreneur has produced a shaving oil for customers with sensitive skin to eliminate an pain when shaving. This is an example of a business idea that: A) Was developed and delivered to the market quickly. B) Solved a customer problem. C) Offered a cheaper way of doing something. D) Is aimed at a fast growing market. Show Answer Correct Answer: B) Solved a customer problem. 31. A large business can have high sales but employ few workers A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 32. A risk of any business is that someone else might steal your ..... A) Emails. B) Intellectual property. C) Personal details. D) Financial details. Show Answer Correct Answer: B) Intellectual property. 33. One critical difference between bank loans and online loans is: A) Applicants only have to be completely truthful on a bank loan application. B) None, they are pretty much the same. C) The amount of information the applicant must provide. D) The amount of money the applicant can request. Show Answer Correct Answer: C) The amount of information the applicant must provide. 34. Which of the following best describes how value can be added to a product through branding A) Making a product to a high standard demanded by customers. B) Saving customers time. C) When a business is recognisable by its name. D) Launching an updated product with new features. Show Answer Correct Answer: C) When a business is recognisable by its name. 35. A payment made to an insurance company to cover the costs of an insurance policy is called: A) A beneficiary. B) A policy. C) A dividend. D) A premium. Show Answer Correct Answer: D) A premium. 36. What are the 6 stages, in order, to developing a business idea? A) Launch, testing, developing, business plan, market research, brainstorming. B) Brainstorming, launch, test, develop, business plan, market research. C) Brainstorming, market research, business plan, developing the product/service, testing and launch. D) Brainstorming, market research, developing, business plan, testing and launch. Show Answer Correct Answer: C) Brainstorming, market research, business plan, developing the product/service, testing and launch. 37. Developing new contacts and maintaining a network of connections that could be beneficial for your business A) Pitch. B) Enterprise. C) Networking. D) Equity. Show Answer Correct Answer: C) Networking. 38. Being ..... is a key characteristic of a successful entrepreneur. A) A team worker. B) Unwilling to take decisions. C) A risk taker. D) Always willing to follow the advice of others. Show Answer Correct Answer: C) A risk taker. 39. Businesses should always set their prices: A) To reflect the value of their goods or services, not just their costs. B) Higher than their competitors prices. C) Lower than their competitors prices. D) Low enough so that revenues are below variable expenses. Show Answer Correct Answer: A) To reflect the value of their goods or services, not just their costs. 40. Do Social Enterprises aim to make as much profit as they can? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 41. What happens when the expenses of a business cost more than the income? A) Loss. B) Profit. C) Break-even. D) Income. Show Answer Correct Answer: A) Loss. 42. Flexibility is a reward for entrepreneurs because ..... A) You have to work 9-5pm every day. B) You make your own decisions, shape your own future. C) You take holidays during term-time. D) You can work from home, work the hours that suit your lifestyle. Take holidays when you want. Show Answer Correct Answer: D) You can work from home, work the hours that suit your lifestyle. Take holidays when you want. 43. The weather and other natural disasters are a risk to a business-true or false? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 44. Grace and Cristian are considering starting their own business. What is their primary motivation for entrepreneurship? A) To avoid all risks. B) To develop, organise, and manage a new venture for profit. C) To maintain the status quo. D) To work less. Show Answer Correct Answer: B) To develop, organise, and manage a new venture for profit. 45. An individual who undertakes the creation, organization, and ownership of a business by setting up a business, creating a new idea and who is willing to take a loss in order to make money A) Entrepreneurship. B) Entrepreneur. C) Enterprise. D) Business Plan. Show Answer Correct Answer: B) Entrepreneur. 46. Define what is meant by the term 'reward'. A) This is the possibility that the business will have a lower than expected profit or a loss. B) This is the benefit of having a business which may be keeping the profit, working for yourself or being able to take holidays when you want. C) All the above. D) None of the above. Show Answer Correct Answer: B) This is the benefit of having a business which may be keeping the profit, working for yourself or being able to take holidays when you want. 47. What is an entrepreneur most likely to do when faced with a business challenge? A) Blame others. B) Give up immediately. C) Ignore the problem. D) Seek innovative solutions. Show Answer Correct Answer: D) Seek innovative solutions. 48. An entrepreneur has developed a unique product to launch into the market. Which of the following best describes how this new business idea came about A) Adapting an existing product. B) Adapting an existing service. C) Adapting an existing idea. D) An original idea. Show Answer Correct Answer: D) An original idea. 49. One of objectives of an entrepreneur is, except ..... A) For fun. B) Get more flexible time. C) Escape ordinary job. D) Being their own boss. Show Answer Correct Answer: A) For fun. 50. Skills lab is a unique teaching strategy designed by and with teachers in ..... ..... A) Caribbean. B) East Africa. C) United Kingdom. D) East Asia. Show Answer Correct Answer: B) East Africa. 51. What is the cost of ice in the lemonade business example? A) $ 0.20. B) $ 0.30. C) $ 0.40. D) $ 0.10. Show Answer Correct Answer: D) $ 0.10. 52. Something of value A) Liability. B) Equity. C) Debt. D) Asset. Show Answer Correct Answer: D) Asset. 53. Which of the following is not a reward of running your own business? A) Keep all the profit. B) Change in tastes and trends which can be a problem if busineses don't adapt to meet these needs. C) Be your own boss, work when you want. D) Job protection-can't be fired. Show Answer Correct Answer: B) Change in tastes and trends which can be a problem if busineses don't adapt to meet these needs. 54. Alessia and Ben are starting a business together. What is their primary focus if they want to create a lifestyle enterprise? A) Rapid growth and expansion. B) Achieving a balance between work and personal life. C) Addressing social issues. D) Franchising opportunities. Show Answer Correct Answer: B) Achieving a balance between work and personal life. 55. What is one of the chief advantages of the free enterprise system? A) The ability to make a profit. B) Restricted freedoms. C) Increased government control. D) Limited competition. Show Answer Correct Answer: A) The ability to make a profit. 56. The process of getting into and operating one's own business refers to the execution of new ideas by building a solution to a problem and taking the necessary steps to make it a reality. A) Business Plan. B) Enterprise. C) Entrepreneurship. D) Networking. Show Answer Correct Answer: C) Entrepreneurship. 57. A breakeven analysis can determine: A) The identity of future loan guarantors. B) How many units the company will need to sell to pay for a new piece of equipment. C) How many customers a new business will need to secure to meet its revenue projections. D) When a company must pay its bills to avoid bankruptcy. Show Answer Correct Answer: B) How many units the company will need to sell to pay for a new piece of equipment. 58. Why is entrepreneurship important in a free enterprise system? A) It leads to government monopolies. B) It decreases overall employment rates. C) It drives economic growth and innovation. D) It restricts competition. Show Answer Correct Answer: C) It drives economic growth and innovation. 59. Grace and Alfonso are planning to start a new business. Which of the following is a strategic risk they might face? A) A competitor entering the market. B) Non-payment by a customer. C) Introduction of new health and safety legislation. D) Breakdown of key equipment. Show Answer Correct Answer: A) A competitor entering the market. 60. A business with Limited liability A) Are responsible for the debts that the business generates. B) Are not personally liable for the business debts. C) All the above. D) None of the above. Show Answer Correct Answer: B) Are not personally liable for the business debts. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 1Class 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 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