This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a share of stock? A) A type of loan. B) A government bond. C) A form of currency. D) A unit of ownership in a company. Show Answer Correct Answer: D) A unit of ownership in a company. 2. Some of the common revenue segments in the space are Licensing, Subscription, Maintenance And Services. Who do you think is the leader in Licensing and Subscription? A) SALESFORCE. B) SAP. C) MICROSOFT. D) ADOBE. Show Answer Correct Answer: C) MICROSOFT. 3. In a free market economy people can A) Only buy or sell what the government says. B) Choose a business from a list of options. C) Run any business they want. D) Only buy goods. Show Answer Correct Answer: C) Run any business they want. 4. Someone who organizes and manages land, capital, and labor to make a profit A) Businessman. B) Entrepreneur. C) CEO. D) Lawyer. Show Answer Correct Answer: B) Entrepreneur. 5. Which type of enterprise is primarily focused on generating profit? A) Non-profit organisation. B) Profit-making enterprise. C) Government agency. D) Social enterprise. Show Answer Correct Answer: B) Profit-making enterprise. 6. Equal pay for equal work is an example of which of the 7 major economic goals of free enterprise? A) Economic equity. B) Economic freedom. C) Economic security. D) Price stability. Show Answer Correct Answer: A) Economic equity. 7. What are the advantages of free enterprise? A) Bureaucracy, inefficient processes, and higher costs. B) Greater expression and flexibility, innovation, and consumer-driven markets. C) Unprofitable products, worker safety, and ethical behavior. D) Government bailouts, market crashes, and financial instability. Show Answer Correct Answer: B) Greater expression and flexibility, innovation, and consumer-driven markets. 8. The economic system of the United States is considered a ..... A) Free Market Capitalism. B) Socialism. C) Traditional Economy. D) Command Economy. Show Answer Correct Answer: A) Free Market Capitalism. 9. Protection from harmful economic events, like layoffs, illnesses, injuries, and disabilities describes which of the 7 major economic goals of free enterprise? A) Price stability. B) Economic freedom. C) Economic security. D) Economic equity. Show Answer Correct Answer: C) Economic security. 10. Federal health insurance program for senior citizens, regardless of income. A) Medicare. B) Medicaid. C) Medialert. D) Medicarpel. Show Answer Correct Answer: A) Medicare. 11. What are transfer payments? A) Payments for government services. B) Payments for exported goods. C) Payments given to citizens as income support. D) Payments for business investments. Show Answer Correct Answer: C) Payments given to citizens as income support. 12. A person who chooses to, and is free to, open a grocery store is participating in a A) Command economy. B) Centrally-planned economy. C) Free enterprise economy. D) Traditional economy. Show Answer Correct Answer: C) Free enterprise economy. 13. What occurs when people who do not take part within an economic transaction benefit from it? A) Wellfare is revoked. B) Market Failure. C) Negative Externality. D) A Modified Free Enterprise Comes into Play. Show Answer Correct Answer: B) Market Failure. 14. What is an entrepreneur's role in a free enterprise system? A) To provide funding to the government. B) To act as an intermediary between the government and the consumers. C) To innovate, take risks, and create new businesses. D) To ensure that all businesses follow government regulations. Show Answer Correct Answer: C) To innovate, take risks, and create new businesses. 15. Inflation is especially hard on what group of people? A) Recent college graduates. B) Illegal immigrants. C) Legal immigrants. D) People on a fixed income. Show Answer Correct Answer: D) People on a fixed income. 16. What is meant by 'Consumer Sovereignty' in a free market? A) Consumers dictate what goods are produced. B) Consumers rely on government decisions. C) Consumers are controlled by producers. D) Consumers have no choice in products. Show Answer Correct Answer: A) Consumers dictate what goods are produced. 17. Market economy in which people freely carry on economic affairs but are subject to some government regulation A) Voluntary Exchange. B) Traditional Economy. C) Modified Free Enterprise. D) Mixed Economy. Show Answer Correct Answer: C) Modified Free Enterprise. 18. What is the main goal of Free Enterprise A) Acceptance. B) Friendship. C) Profit. D) Economic Freedom. Show Answer Correct Answer: D) Economic Freedom. 19. Lowest legal wage that can be paid to most workers A) Livability Level. B) Limited Exchange. C) Poverty Line. D) Minimum Wage. Show Answer Correct Answer: D) Minimum Wage. 20. Medicare and Social Security are examples of economic A) Freedom. B) Efficiency. C) Growth. D) Security. Show Answer Correct Answer: D) Security. 21. Controlling involves: A) Monitoring expenses and revenues to ensure that the company is profitable. B) Reviewing data to ensure that employees are doing what they are supposed to do. C) Reviewing all financial and productivity data to ensure that the company is achieving its goals. D) Monitoring the firm's performance and acting to bring it in line with the firm's goals. E) Ensuring that all policies and procedures are followed within a company. Show Answer Correct Answer: D) Monitoring the firm's performance and acting to bring it in line with the firm's goals. 22. How many principles does the US Free Enterprise have? A) Ten. B) Five. C) Seven. D) Three. Show Answer Correct Answer: B) Five. 23. Who can start their own business in a free enterprise system? A) Only government-approved individuals. B) Only people with a certain level of income. C) Anyone who meets strict regulatory standards. D) Anybody based on people's needs and wants. Show Answer Correct Answer: D) Anybody based on people's needs and wants. 24. Which of the following is a feature of a small enterprise? A) High market share. B) Operates in multiple countries. C) More than 500 employees. D) Annual turnover of less than £10 million. Show Answer Correct Answer: D) Annual turnover of less than £10 million. 25. This feature of Free Enterprise includes consumers & producers willingly buying and selling goods. A) Profit Motive. B) Voluntary Exchange. C) Economic Freedom. D) Self-Interest. Show Answer Correct Answer: B) Voluntary Exchange. 26. ..... is the amount of a good or service that consumers are willing to purchase. A) Demand. B) Surplus. C) Scarcity. D) Supply. Show Answer Correct Answer: A) Demand. 27. What does "Competition" in capitalism lead to? A) Better quality products. B) Higher prices. C) Monopolies. D) Less consumer choice. Show Answer Correct Answer: A) Better quality products. 28. A ..... is an exclusive right to publish or sell a piece of written material (ex. need permission to produce a movie based on a book). A) Incentive. B) Invention. C) Copyright. D) Patent. Show Answer Correct Answer: C) Copyright. 29. Free riders are examples of ..... , a situation in which the market, on its own, does not distribute resources efficiently. A) Externality. B) Market failure. C) Business cycle. D) Poverty threshold. Show Answer Correct Answer: B) Market failure. 30. In the marketplace, producers are looking to A) Find the latest fad. B) Earn a profit. C) Buy goods for personal use. D) Find incentives. Show Answer Correct Answer: B) Earn a profit. 31. Anthony purchased a ticket to the upcoming football game for $ 300. Anthony decided to sell his ticket for $ 550. Anthony just gained a ..... by making $ 250 from the sale. A) Trade. B) Demand. C) Profit. D) Loss. Show Answer Correct Answer: C) Profit. 32. Which one of these is not a characteristic of an entrepreneur. A) Inititiative. B) Risk taker. C) Creative. D) Confident. Show Answer Correct Answer: D) Confident. 33. Benefits of free enterprise capitalism include individual freedom, a variety of goods, creating wealth and ..... A) Promoting progress & opportunity cost. B) Opportunity cost & adapting to change. C) Adapting to change & promoting progress. D) Increasing the gap between rich and poor & unemployment. Show Answer Correct Answer: C) Adapting to change & promoting progress. 34. An entrepreneur has decided to set up a mobile hairdressing business. The main reason for starting this business was: A) To supply a service to suppliers. B) To produce goods for suppliers. C) To produce goods for customers. D) To supply a service to customers. Show Answer Correct Answer: D) To supply a service to customers. 35. What does consumer sovereignty mean in the context of the Free Enterprise System? A) Government decides consumer needs. B) Consumers dictate what is produced. C) Businesses ignore consumer preferences. D) Consumers have no choice. Show Answer Correct Answer: B) Consumers dictate what is produced. 36. What is one of the primary ways people can earn money? A) Debt. B) Labor. C) Interest. D) None of the above. Show Answer Correct Answer: B) Labor. 37. What are the 3 sub categories within SME's? A) Minuscule, Small, Medium. B) Micro, Small, Medium. C) Macro, Small, Medium. D) None of the above. Show Answer Correct Answer: B) Micro, Small, Medium. 38. A horse that can be bought with a low initial investment because it is not registered with a specific breed register is a: A) Breeding mare. B) Breeding stallion. C) Grade horse. D) Racehorse. Show Answer Correct Answer: C) Grade horse. 39. Every society must develop a system for deciding how it will use its resources so that it can A) Prevent problems. B) Meet people's needs. C) Minimize risk. D) Control production. Show Answer Correct Answer: B) Meet people's needs. 40. Something that encourages someone to make a certain choice A) Motivation. B) Industry. C) Interest. D) Incentive. Show Answer Correct Answer: D) Incentive. 41. Which is NOT a "specialty distribution channel" ? A) Television sales (Home Shopping Network). B) Internet (e-commerce). C) Vending machine. D) Wal-Mart. Show Answer Correct Answer: D) Wal-Mart. 42. Which of the following are two reasons why an entrepreneur would set up an enterprise? A) Sounded like a good idea at the time and I had nothing better to do. B) To be my own boss where I can choose when and how to work and to do something I'm interested in (E.g. making a difference). C) I was forced to do it and it seemed like a good idea at the time. D) None of the above. Show Answer Correct Answer: B) To be my own boss where I can choose when and how to work and to do something I'm interested in (E.g. making a difference). 43. One of the main negatives of the free market system. A) The rich get richer and the poor get poorer. B) Free markets make too many people rich. C) Free markets make too many people poor. D) Free markets give consumers lots of choices. Show Answer Correct Answer: A) The rich get richer and the poor get poorer. 44. The cost for bedding increases when horses are confined to a: A) Farm. B) Paddock. C) Pasture. D) Stall. Show Answer Correct Answer: D) Stall. 45. What is private property? A) Something that is shared by everyone. B) Something owned by the government. C) Something that cannot be owned by anyone. D) Something owned by individual people or groups. Show Answer Correct Answer: D) Something owned by individual people or groups. 46. What does a free enterprise system mean in terms of government control of the market? A) The government sets the price of goods and services. B) The government controls the market completely. C) The government does not control the market. D) The government tells people what they can make or sell. Show Answer Correct Answer: C) The government does not control the market. 47. The four factors of production are land, labor, capital, and ..... A) Entrepreneurs. B) The government. C) Franchises. D) Inflation. Show Answer Correct Answer: A) Entrepreneurs. 48. What is the purpose of the breeding farm? A) To lease horses for riding. B) To train horses for show. C) To maintain horses for owners. D) To produce yearlings for sale. Show Answer Correct Answer: D) To produce yearlings for sale. 49. Which is NOT a characteristic of the private enterprise system? A) Companies are owned by citizens rather than the government. B) Businesses can earn and keep the money they make from their operations. C) A business organization is wholly or partly owned by the state and controlled through a public authority. D) Businesses react to supply and demand. Show Answer Correct Answer: C) A business organization is wholly or partly owned by the state and controlled through a public authority. 50. How would you describe the first stage of the journey? A) Mournful. B) Enthusiastic. C) Tiring. D) Hopeful. Show Answer Correct Answer: B) Enthusiastic. 51. Which of the following choices is NOT a benefit of the free enterprise system? A) Individual freedom. B) Variety of goods offered. C) Uneven economic growth. D) Creation of wealth. Show Answer Correct Answer: C) Uneven economic growth. 52. Which group lists the key principles of the free enterprise system? A) Profit motive, legal equality, consumer protection, public interest. B) Profit motive, private property, voluntary exchange. C) Private property, taxation, public interest, patriotism. D) Profit motive, private property, eminent domain, voluntary exchange. Show Answer Correct Answer: B) Profit motive, private property, voluntary exchange. 53. Define distribution channel: A) A term for a specific group of companies who have common business activities. B) The path a good must follow in order to reach a consumer. C) A standard used by the Federal statistical agencies in classifying business establishments. D) A category of business that utilizes materials produced from the primary sector to create goods. Show Answer Correct Answer: B) The path a good must follow in order to reach a consumer. 54. The situation where unemployment among capable workers is as close to 0% as possible describes which of the 7 major economic goals of free enterprise? A) Economic growth. B) Economic security. C) Full employment. D) Economic efficiency. Show Answer Correct Answer: C) Full employment. 55. What is one way the government might try to promote economic growth? A) Reduce prices. B) Increase spending. C) Raise taxes. D) Produce more goods. Show Answer Correct Answer: B) Increase spending. 56. The free enterprise system means companies have freedom to own, to compete, to profit and to risk. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 57. Identify a key principle of free enterprise. A) Government ownership of resources. B) Private property rights. C) Fixed pricing by the government. D) None of the above. Show Answer Correct Answer: B) Private property rights. 58. How might an entrepreneur demonstrate they are a risk taker? A) Start a business. B) Create a product. C) Quit their full time job. D) Invest a small amount of money into the business. Show Answer Correct Answer: C) Quit their full time job. 59. These are the three roles that the government has in the economy. A) Protector. B) Provider. C) Regulator. D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 60. What is the best measure of the economic well-being of a country? A) GDP. B) Open market value of goods. C) The daily stock market performance. D) Net worth. Show Answer Correct Answer: A) GDP. Next →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 2Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 3Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 4Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 5Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 6Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 7Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 8Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books