This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When trying to innovate, it is useful to explore solutions that have worked in the past A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 2. Rise in the general level of prices A) Glass Ceiling. B) Livable Cost Adjustment. C) Bubble Effect. D) Inflation. Show Answer Correct Answer: D) Inflation. 3. What is the definition of export? A) A good that one country sells to another country. B) A good that one country buys from another country. C) A good that is produced and consumed within the same country. D) A good that is not traded between countries. Show Answer Correct Answer: A) A good that one country sells to another country. 4. Characteristics of free enterprise capitalism include voluntary exchange, private property and these two. A) Opportunity cost & competition. B) Competition & involuntary exchange. C) Profit motive & opportunity cost. D) Competition & profit motive. Show Answer Correct Answer: D) Competition & profit motive. 5. Businesses who sell products to other businesses are part of: A) B2C market. B) B2B market. C) An industry. D) Government market. Show Answer Correct Answer: B) B2B market. 6. The concept that people have the right and privilege to control their possessions as they wish. A) Private property. B) Legal equality. C) Open opportunity. D) Profit incentive. Show Answer Correct Answer: A) Private property. 7. The ..... , an income level below that which is needed to support families or households. A) Poverty threshold. B) Business cycle. C) Market failure. D) Free rider. Show Answer Correct Answer: A) Poverty threshold. 8. What is an example of a government regulation? A) Education System. B) Social Security. C) Police Force. D) Drinking age of 21. Show Answer Correct Answer: D) Drinking age of 21. 9. In capitalism, who primarily owns the resources and means of production? A) Non-profit organizations. B) The government. C) The community. D) Private individuals. Show Answer Correct Answer: D) Private individuals. 10. What is a common aim of many enterprises? A) Minimising customer satisfaction. B) Maximising profits. C) Reducing market competition. D) Limiting employee growth. Show Answer Correct Answer: B) Maximising profits. 11. What benefit does drawing up a business plan bring for a new entrepreneur? A) It shows exactly how much money the firm will make. B) It makes sure the bank will lend all the capital needed. C) It means that the business start up has no risk of failure. D) It helps in organising the resources needed for the new firm. Show Answer Correct Answer: D) It helps in organising the resources needed for the new firm. 12. Economic action done or brought about by free choice A) Competition. B) Voluntary exchange. C) Profit motive. D) Modified free enterprise economy. Show Answer Correct Answer: B) Voluntary exchange. 13. Why does the cost of a good usually go down over time? A) The good becomes scarce. B) The good costs more to make. C) Fewer people want the good. D) Goods always go up in price. Show Answer Correct Answer: C) Fewer people want the good. 14. Typically, when households are shown on the right side of a circular flow model of a modified free enterprise system, businesses are located A) At the top. B) In the center. C) On the left. D) At the bottom. Show Answer Correct Answer: C) On the left. 15. The governments of these two Asian nations are examples of governments who restrict the economic freedoms of their citizens: A) France & Egypt. B) China & North Korea. C) India & China. D) Japan & Alaska. Show Answer Correct Answer: B) China & North Korea. 16. An important characteristic of a successful entrepreneur is that: A) They are always rich. B) They are risk takers. C) They are usually shy. D) They want to avoid hard work. Show Answer Correct Answer: B) They are risk takers. 17. What is a benefit of the "freedom to choose your own job?" A) People are more productive and happier. B) People can afford to make money off the land they own. C) Better Quality Items at Lower Cost. D) Motivates people to work hard. Show Answer Correct Answer: A) People are more productive and happier. 18. Constitutional protection of one's property comes from: A) 16th amendment. B) 14th amendment. C) 13th amendment. D) 1st amendment. Show Answer Correct Answer: B) 14th amendment. 19. TRUE or FALSE:The American economy allows individuals to purchase what they want, work where they want, and change jobs when they want. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 20. Who are those managers responsible for supervising the work of employees? A) Top managers. B) Floor managers. C) First-line managers. D) Operations managers. E) Middle managers. Show Answer Correct Answer: C) First-line managers. 21. What does a free enterprise system promote according to the learning material? A) Monopolies in the market. B) Stagnation of product development. C) A constant supply of newer and better products. D) Decreased competition in the cell phone market. Show Answer Correct Answer: C) A constant supply of newer and better products. 22. What is the opposite of a free enterprise economy? A) Planned economy. B) Mixed economy. C) Command economy. D) Socialist economy. Show Answer Correct Answer: C) Command economy. 23. Government financed agencies are ..... A) Public Sector. B) Private Sector. C) Derived Demand. D) Retailers. Show Answer Correct Answer: A) Public Sector. 24. In a free enterprise system, the government places ..... restrictions on businesses and citizens A) Normal. B) Abnormal. C) Minimum. D) Maximum. Show Answer Correct Answer: C) Minimum. 25. What is a major advantage of incorporating an equine business? A) There is limited liability for businesses that are incorporated. B) It costs to do business in the form of a corporation. C) One person has sole responsibility for the corporation. D) Fewer state laws affect corporations than other types of businesses. Show Answer Correct Answer: A) There is limited liability for businesses that are incorporated. 26. One of the ways that the government intervenes in a free enterprise system is through ..... A) Protecting public safety by ensuring vehicle safety/emissions standards. B) Setting prices for certain goods. C) Setting fixed output quantities for companies. D) Setting wage levels. Show Answer Correct Answer: A) Protecting public safety by ensuring vehicle safety/emissions standards. 27. Which is NOT an "intermediary" in a distribution channel? A) Producers. B) Importers. C) Wholesaler. D) Retailer. Show Answer Correct Answer: A) Producers. 28. One of the characteristics of a capitalist free enterprise economy is ..... A) Voluntary Exchange. B) Consumerism. C) CentralPlanning. D) Minimum Wage. Show Answer Correct Answer: A) Voluntary Exchange. 29. Free contract means that people can chose A) For themselves what legal agreements to enter into. B) For themselves what positive externalities to support. C) To enter and compete in the marketplace. D) To enter into open opportunities. Show Answer Correct Answer: A) For themselves what legal agreements to enter into. 30. Businesses that use raw materials to create goods are called: A) Wholesalers. B) Tertiary. C) Manufacturers. D) Extractors. Show Answer Correct Answer: C) Manufacturers. 31. Which of the following describes social pressures on an enterprise? A) Government and local councils have an influence on how an enterprise operate. B) Communities, customers, business owners have an influence on how an enterprise operates. C) The impact that having a poor year has on an enterprise's employees. D) None of the above. Show Answer Correct Answer: B) Communities, customers, business owners have an influence on how an enterprise operates. 32. True or False. Macroeconomics looks at the behavior and decision making of the entire economy. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 33. Which of the following choices is a NEGATIVE impact of inflation? A) Reduces unemployment. B) Strengthens currency. C) Lowers cost of borrowing money. D) Bills are harder to pay and planning for the future is more difficult. Show Answer Correct Answer: D) Bills are harder to pay and planning for the future is more difficult. 34. What do you call the added cost, you have to pay back, when you borrow money? A) Savings. B) Interest. C) Surplus. D) None of the above. Show Answer Correct Answer: B) Interest. 35. Define wholesaler: A) A business owned fully or in part by the government. B) A business that purchases a vast amount of goods from manufacturers to sell them to other businesses. C) A business or industry that is managed by independent companies or private individuals rather than by the state. D) A business that buys products from wholesalers then increases the price of the goods to resell them. Show Answer Correct Answer: B) A business that purchases a vast amount of goods from manufacturers to sell them to other businesses. 36. A restaurant uses a ..... distribution channel. A) Indirect. B) Direct. C) Specialty. D) None of the above. Show Answer Correct Answer: B) Direct. 37. Private enterprise is based on the idea that everyone is better served when A) Economic resources are controlled by the government. B) Government determines where individuals will work. C) Businesses regularly increase their prices. D) Individuals are free to set their own goals. Show Answer Correct Answer: D) Individuals are free to set their own goals. 38. I work 66 hours how many hours is overtime? A) 26. B) 46. C) 16. D) 36. Show Answer Correct Answer: A) 26. 39. What is the primary goal of a free enterprise system? A) To ensure equal distribution of wealth. B) To maximize individual profit. C) To eliminate competition. D) None of the above. Show Answer Correct Answer: B) To maximize individual profit. 40. One indication that too many horses are being kept at a boarding stable is: A) Clean, fresh water supplied in several troughs. B) Evidence of overcrowding on pastures. C) Several stalls in one barn. D) Stalls with lots of clean bedding. Show Answer Correct Answer: B) Evidence of overcrowding on pastures. 41. The wise use of scarce resources & factors of production describes which of the 7 major economic goals of free enterprise? A) Economic freedom. B) Full employment. C) Economic growth. D) Economic efficiency. Show Answer Correct Answer: D) Economic efficiency. 42. What does the price of a good or service depend on first according to the text? A) The number of stores selling it. B) How much of the good there is for people to buy. C) The quality of the good. D) The brand of the good. Show Answer Correct Answer: B) How much of the good there is for people to buy. 43. What is considered a negative effect of government regulation? A) It protects consumers but harms the environment. B) It is expensive for businesses to follow all of the rules. C) It allows businesses to sell unsafe products. D) It does not protect the well-being of the public. Show Answer Correct Answer: B) It is expensive for businesses to follow all of the rules. 44. Trading goods and services for other goods and services is called A) Sharing. B) Bartering. C) Trading. D) Giving. Show Answer Correct Answer: B) Bartering. 45. What have some states done to protect workers from adverse economic events such as layoffs and illnesses? A) They set up support groups. B) They set up unemployment compensation programs. C) They provided every worker with insurance. D) They gave workers more time off. Show Answer Correct Answer: B) They set up unemployment compensation programs. 46. Economic system with a combination of command, traditional, and market economies A) Capitalism. B) Socialism. C) Free Enterprise. D) Mixed. Show Answer Correct Answer: D) Mixed. 47. Shoes Inc. has their main factory for distribution in the U.S.A, they also only sell their products in the U.S.A. What type of business does Shoe Inc. do? A) Global. B) Domestic. C) Industry. D) Private. Show Answer Correct Answer: B) Domestic. 48. Open opportunity helps to ensure that everyone is free to A) Maximize production. B) Be efficient. C) Start businesses. D) Invest in stocks. Show Answer Correct Answer: C) Start businesses. 49. According to the Free Enterprise system, how can you make money using your car? A) You can sell it for parts. B) You can drive Uber. C) You can use it in an illegal street race. D) You can forget to get the oil changed. Show Answer Correct Answer: B) You can drive Uber. 50. What is the definition of consumer? A) A person who buys or uses goods and services. B) A person who starts a new business, hoping to make a profit. C) A person who works for a business. D) A person who invests money in businesses. Show Answer Correct Answer: A) A person who buys or uses goods and services. 51. What is the total value of all final goods and services produced in the economy? A) Microeconomics. B) Business Cycle. C) Macroeconomics. D) Gross Domestic Product (GDP). Show Answer Correct Answer: D) Gross Domestic Product (GDP). 52. What is the name of the FEDERAL health insurance program for senior citizens? A) Medicaid. B) SNAP. C) Medicare. D) Social Security. Show Answer Correct Answer: C) Medicare. 53. What role does competition play in a free enterprise system? A) It discourages innovation. B) It increases government control over businesses. C) It drives down prices and improves quality. D) It leads to monopolies. Show Answer Correct Answer: C) It drives down prices and improves quality. 54. What is meant by the term entrepreneur? A) A person who runs a business. B) A person who sets up a business. C) A person who creates a product. D) A person who is in control of the business. Show Answer Correct Answer: B) A person who sets up a business. 55. An industry consists of a group of establishments primarily engaged in producing or handling the same product or group of products. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 56. The concept of giving everyone the same legal rights, equal protections & due process of law. A) Legal equality. B) Open opportunity. C) Open market. D) Profit incentive. Show Answer Correct Answer: A) Legal equality. 57. Business ownership by ordinary people, not the government is which of the following? A) Public Enterprise. B) Competition. C) Free Trade. D) Private Enterprise. Show Answer Correct Answer: D) Private Enterprise. 58. An economic system in which businesses compete against one another free of government control A) Socialism. B) Free Enterprise. C) Product. D) None of the above. Show Answer Correct Answer: B) Free Enterprise. 59. What is the name of the force that encourages people and organizations to improve their material well-being from economic activities? A) Positive Externality. B) Profit Motive. C) Market Failure. D) Free Rider. Show Answer Correct Answer: B) Profit Motive. 60. This feature of Free Enterprise creates rivalries between business to attract/gain business and pushes businesses to create new and better products. A) Self-Interest. B) Competition. C) Profit Motive. D) Voluntary Exchange. Show Answer Correct Answer: B) Competition. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 1Class 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