This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The United States is ..... ? A) Mixed. B) Market. C) Command. D) Tradiational. Show Answer Correct Answer: A) Mixed. 2. The center of a typical circular flow model showing a modified free enterprise system is occupied by A) Businesses. B) Resources. C) Products. D) Government. Show Answer Correct Answer: D) Government. 3. A shared good/service that government builds because it would be impractical for an individual A) Private good. B) Military good. C) Public good. D) Market failure. Show Answer Correct Answer: C) Public good. 4. Consumers "vote" by choosing A) A product over competing products. B) A resource over other resources. C) To become entrepreneurs. D) To keep away from fad products. Show Answer Correct Answer: A) A product over competing products. 5. Nonprice competition does not involve special services and reputation. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 6. What is meant by business enterprise? A) The closing down of an old business. B) The creation of a new business. C) The entrpreneuer. D) When an a business enters a new market. Show Answer Correct Answer: B) The creation of a new business. 7. One of the freedoms provided to individuals by the private enterprise system is the freedom to choose A) Where they will work. B) Which taxes they will pay. C) Which laws they will obey. D) How much they will be paid. Show Answer Correct Answer: A) Where they will work. 8. What is voluntary exchange? A) Buyers and sellers freely and willingly engaging in market transactions. B) Buyers and sellers engaging in forced transactions. C) Buyers and sellers not engaging in free markets. D) None of the choices are correct. Show Answer Correct Answer: A) Buyers and sellers freely and willingly engaging in market transactions. 9. The basic role of the United States government is to A) Protect U.S. citizens. B) Limit business startups. C) Maintain control of prices. D) Increase production. Show Answer Correct Answer: A) Protect U.S. citizens. 10. What is the concept that people have the right and privilege to control their possessions as they wish? A) Open Opportunity. B) Legal Equality. C) Profit Incentive. D) Private Property. Show Answer Correct Answer: D) Private Property. 11. Why do wholesalers generally refuse to sell to individual consumers? A) Wholesalers only sell goods in large quantities. B) Wholesalers are picky who they sell to. C) Wholesalers do not sell goods or services to anyone but their employees. D) Wholesalers do not have enough product to meet demand. Show Answer Correct Answer: A) Wholesalers only sell goods in large quantities. 12. People have the right to choose their jobs & business gets to make their own decisions A) Economic Freedom. B) Competition. C) Private Property. D) Self-Interest. Show Answer Correct Answer: A) Economic Freedom. 13. A two-year academic degree awarded by community colleges, junior colleges, technical colleges, and four-year colleges and universities after the completion of a course of study that typically includes at least 60 credit hours: A) Specialist Degree. B) Masters Degree. C) Bachelor's Degree. D) Associate's Degree. Show Answer Correct Answer: D) Associate's Degree. 14. Is Consumer preferences and spending habits are the main drivers of business decisions, not government policies and intervention. Your decision to open a coffee shop, start an online business, or choose to become a doctor are all examples of a free enterprise system at work. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 15. What does the character in the image suggest about the price of socks? A) They should remain at $ 1. B) They should cost less than $ 1. C) They should be free. D) They should cost more than $ 1. Show Answer Correct Answer: D) They should cost more than $ 1. 16. What is a key characteristic of a private enterprise? A) Individual or corporate ownership. B) Community ownership. C) Government control. D) Non-profit operation. Show Answer Correct Answer: A) Individual or corporate ownership. 17. Social Security and Medicare are both examples of which of the following concepts? A) Government initiatives intended to close the wealth gap between the richest and poorest people. B) Government programs that increase a person's economic security. C) Government sponsored initiatives to provide private security for older citizens. D) Government programs that are designed to monitor how citizens spend their money on healthcare related services. Show Answer Correct Answer: B) Government programs that increase a person's economic security. 18. The money left after production costs are subtracted from revenue is called A) Profit. B) Subsidy. C) Free rider. D) Scarcity. Show Answer Correct Answer: A) Profit. 19. What is the net effect of producers merging with other producers to become more efficient by eliminating overlapping operations in a free enterprise system? A) It decreases consumer choice. B) It eliminates the need for consumer choice. C) It increases consumer choice. D) It has no effect on consumer choice. Show Answer Correct Answer: A) It decreases consumer choice. 20. What is the role of producers? A) To carry out a government economic program. B) Make the product. C) Buy the product. D) To increase the profit of other established retail stores. Show Answer Correct Answer: B) Make the product. 21. What is the ability of everyone to take part in the market by free choice? A) Free Contract. B) Open Opportunity. C) Profit Motive. D) Legal Equality. Show Answer Correct Answer: B) Open Opportunity. 22. Which has the most impact on the purchase amount one has to pay for a horse? A) Amount of bedding required. B) Cost of rye and pasture. C) Size of the paddock the horse was raised in. D) Training the horse has received. Show Answer Correct Answer: D) Training the horse has received. 23. Why do producers enter a Free Enterprise Economy? A) To make products. B) To seek profit. C) To provide income to lower class consumers. D) To create services for people. Show Answer Correct Answer: B) To seek profit. 24. What ensures the efficient allocation of resources in a free enterprise system? A) Centralized government planning. B) Unrestricted international trade. C) The invisible hand of the market. D) Uniform pricing across industries. Show Answer Correct Answer: C) The invisible hand of the market. 25. A modified free enterprise system A) Is dominated by elements of the command economic system. B) Is dominated by elements of the traditional economic system. C) Has no government involvement in the economy. D) Has some government involvement in the economy. Show Answer Correct Answer: D) Has some government involvement in the economy. 26. When the supply for a product is high, but the demand for the product is low, the price will A) Be higher. B) Be the same. C) Be lower. D) Change randomly. Show Answer Correct Answer: C) Be lower. 27. Blanca goes to Best Buy to purchase the latest Play Station game, but notices its cheaper at WalMart. She decides to go with the lower price at WalMart. This is an Example of which Characteristic? A) Private Property. B) Profit Motive. C) Voluntary Exchange. D) Economic Freedom. Show Answer Correct Answer: B) Profit Motive. 28. Which of the following is an example of adaptability in response to rising fuel prices? A) Decreasing the production of vehicles. B) Increasing the import of oil. C) Developing more fuel-efficient cars and solar energy. D) Building larger houses and buildings. Show Answer Correct Answer: C) Developing more fuel-efficient cars and solar energy. 29. Sometimes goals are in conflict and there are opportunity costs associated with achieving goals. These are caused by ..... A) Trade-offs. B) Inflation. C) Cost cutting. D) All of the answers are correct. Show Answer Correct Answer: A) Trade-offs. 30. Who bought Red Hat in 2018 in one of the largest M&A Deals in SAAS Enterprise Software space? A) IBM. B) MICROSOFT. C) SAP. D) HP. Show Answer Correct Answer: A) IBM. 31. How are entrepreneurs important within the economy? A) They buy lots of products. B) They provide many jobs. C) They make a ton of money to offset the poorer consumers. D) They give out free benefits. Show Answer Correct Answer: B) They provide many jobs. 32. Top managers at Cortland are involved in the planning process, and they have just finished setting goals for the company. What should they do next? A) Develop plans to achieve the goals. B) Determine whether a gap exists between the company's current situation and its desired situation. C) Assess the effectiveness of the plan before proceeding further. D) Implement the plans that are necessary to reach the goals that have been set. E) None of these. Show Answer Correct Answer: B) Determine whether a gap exists between the company's current situation and its desired situation. 33. What is the effect of tariffs on imported goods? A) They decrease the price of imported goods. B) They increase the price of imported goods. C) They have no effect on the price of imported goods. D) None of the above. Show Answer Correct Answer: B) They increase the price of imported goods. 34. This is the social & political commitment & freedom to start their own businesses & compete A) Free enterprise system. B) Free travel system. C) Free response system. D) Freedom of choice. Show Answer Correct Answer: A) Free enterprise system. 35. What is the free rider problem? A) People using trains and cabs without paying. B) Buying one bus ticket and getting one for free. C) Someone not paying for a good or service but getting to use it. D) None of the above. Show Answer Correct Answer: C) Someone not paying for a good or service but getting to use it. 36. What is the American Dream? A) Controlling as much land as possible. B) Each generation doing better than the last. C) Being a military powerhouse. D) Having a high minimum wage. Show Answer Correct Answer: B) Each generation doing better than the last. 37. This is the rise in the general level of prices. A) Fixed income. B) Inflation. C) Minimum wage increase. D) All the answers are correct. Show Answer Correct Answer: B) Inflation. 38. This is an individual who purchases a good or service for their own consumption: A) Entrepreneur. B) Economist. C) Profit. D) Consumer. Show Answer Correct Answer: D) Consumer. 39. How does the principle of 'voluntary exchange' operate in a free enterprise system? A) Consumers and producers freely engage in market transactions without coercion. B) The government determines the terms of exchange between buyers and sellers. C) Producers are required to sell goods at prices set by consumer demand. D) Exchange of goods is managed through a central planning system. Show Answer Correct Answer: A) Consumers and producers freely engage in market transactions without coercion. 40. What happens if only one company in the whole world produced every cell phone in the world? A) Lower prices. B) They could charge whatever they want. C) Better quality items. D) Better apps. Show Answer Correct Answer: B) They could charge whatever they want. 41. What is the maximum number of employees an SME can have according to the European Union definition? A) 250. B) 100. C) 50. D) 500. Show Answer Correct Answer: A) 250. 42. Which of these is not an example of a Public Transfer Payment? A) Social Security. B) Medicare. C) Government Loans. D) Food Stamps. Show Answer Correct Answer: C) Government Loans. 43. Free enterprise is an economic system with: A) Foreign control over all goods and services. B) Public and private control over goods and services. C) Only privately owned goods and services. D) Only public control over goods and services. Show Answer Correct Answer: B) Public and private control over goods and services. 44. A person, company, or country that makes, grows, or supplies goods or commodities for sale A) Producer. B) Director. C) Consumer. D) Decomposer. Show Answer Correct Answer: A) Producer. 45. Which of these is a way of gathering funds for a new enterprise? A) Cooperative. B) Cooperation funding. C) Crown funding. D) Crowd funding. E) Crowd finance. Show Answer Correct Answer: D) Crowd funding. 46. For which of the following do workers compete in a private enterprise system: A) Jobs. B) Skills. C) Benefits. D) Profits. Show Answer Correct Answer: A) Jobs. 47. As prices increase, supply increases. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 48. Which of the following is not a sector? A) Intermediate. B) Primary. C) Tertiary. D) Secondary. Show Answer Correct Answer: A) Intermediate. 49. What did the European countries do with the raw materials? A) Turn them into finished products. B) Re-sell them to other Countries. C) Trade them away. D) Re-sell them to other Colonies. Show Answer Correct Answer: A) Turn them into finished products. 50. What does consumer sovereignty mean in a capitalist economy? A) Consumers dictate what is produced. B) Consumers are controlled by producers. C) Consumers are irrelevant. D) Consumers have no choice. Show Answer Correct Answer: A) Consumers dictate what is produced. 51. Which of the following best describes 'Free Enterprise'? A) Government-controlled businesses. B) State-owned enterprises. C) Community-run businesses. D) Businesses operating with minimal government interference. Show Answer Correct Answer: D) Businesses operating with minimal government interference. 52. Predict the effect of a sudden increase in consumer income on the demand for luxury goods. A) Demand will decrease. B) Demand will increase. C) Demand will remain unchanged. D) None of the above. Show Answer Correct Answer: B) Demand will increase. 53. How is Private Property an "incentive" for people to participate in Free Enterprise Capitalism? A) It motivates them to accumulate resources. B) It motivates them to improve what they already have. C) It motivates them to lend their property. D) All choices are correct. Show Answer Correct Answer: D) All choices are correct. 54. An example of a public service is which of the following? A) School. B) Library. C) Police Station. D) All Answers Are Correct. Show Answer Correct Answer: D) All Answers Are Correct. 55. A key to innovate is to take time to investigate how things are working, even when there are no current problems. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 56. Apple Inc. sells their products all over the world, this makes them a ..... business. A) Global. B) Public. C) Domestic. D) Finance. Show Answer Correct Answer: A) Global. 57. Which is a major step in operating a successful equine business? A) Create another sideline "farming activity to help pay bills". B) Know what the market is for your horse activity. C) Make all plans on the spur of the moment. D) Use only inbreeding to preserve the lineage. Show Answer Correct Answer: B) Know what the market is for your horse activity. 58. A period of macroeconomic expansion followed by a period of contraction. A) Business cycle. B) Economic growth. C) Boom/bust. D) Recession. Show Answer Correct Answer: A) Business cycle. 59. Adam Smith was not a contributer to the Free Enterprise A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 60. Which one is not the role of an entrepreneur? A) Organising resources. B) Creating a product. C) Raising finance. D) Creating new laws. Show Answer Correct Answer: D) Creating new laws. ← 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 2Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 3Class 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