This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 5 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a private enterprise economic system, consumers can choose from a variety of products as a result of A) Inflation. B) The collection of taxes. C) Competition. D) Limited government control. Show Answer Correct Answer: C) Competition. 2. Which of the following is a benefit of a free enterprise system? A) It guarantees economic equality. B) It promotes economic growth and innovation. C) It ensures that all citizens have the same income. D) It eliminates the need for competition. Show Answer Correct Answer: B) It promotes economic growth and innovation. 3. The role of the consumer as ruler of the market A) Social Security. B) Entrepreneur. C) Consumer sovereignty. D) Minimum wage. Show Answer Correct Answer: C) Consumer sovereignty. 4. ..... obtain goods from manufactures and resell them to organizational users. A) Retailers. B) Wholesalers. C) Industry. D) Production. Show Answer Correct Answer: B) Wholesalers. 5. What is one of the negatives of free enterprise mentioned in the material? A) Stable economic growth. B) Decreased business opportunities. C) Uneven economic growth. D) Lower taxes. Show Answer Correct Answer: C) Uneven economic growth. 6. What is the term for the total value of all goods and services produced in a particular economy? A) Net worth. B) Open market value. C) Gross domestic product. D) Standard of living. Show Answer Correct Answer: C) Gross domestic product. 7. A federal judge declared Microsoft Windows operating system, a monopoly. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. In which sector do enterprises that produce goods from raw materials operate? A) Quaternary sector. B) Secondary sector. C) Primary sector. D) Tertiary sector. Show Answer Correct Answer: B) Secondary sector. 9. Is a consumer someone who buy and use goods and services. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. People & Business can buy & sell their property as well as ban others from using it A) Self-Interest. B) Economic Freedom. C) Private Property. D) Competition. Show Answer Correct Answer: C) Private Property. 11. How are prices determined in a free enterprise system? A) By the government. B) Through central planning. C) By the interaction of supply and demand. D) By international markets only. Show Answer Correct Answer: C) By the interaction of supply and demand. 12. What is adaptability in the context of free enterprise? A) The ability to sell products internationally. B) The ability to change according to circumstances. C) The ability to keep prices constant. D) The ability to produce a single product efficiently. Show Answer Correct Answer: B) The ability to change according to circumstances. 13. Labor refers to ..... A) People with all their efforts and abilities. B) Individuals who start a new business or bring a product to market. C) The tools, equipment, and factories used in production of goods and services. D) The "gifts of nature" or natural resources not created by human effort. Show Answer Correct Answer: A) People with all their efforts and abilities. 14. A ..... is an exclusive right to a new product or invention for a number of years. A) Incentive. B) Legal equality. C) Patent. D) Copyright. Show Answer Correct Answer: C) Patent. 15. Which of the following best describes the concept of consumer sovereignty in a free enterprise system? A) Consumers have the power to decide what goods and services are produced. B) The government protects the rights of consumers over producers. C) Producers have the power to influence consumer choices. D) Consumers must purchase whatever goods and services the government decides. Show Answer Correct Answer: A) Consumers have the power to decide what goods and services are produced. 16. Who bought Tableau in 2019 in one of the largest M&A Deals in this space? A) SALESFORCE. B) HP. C) SAP. D) IBM. Show Answer Correct Answer: A) SALESFORCE. 17. Malinda owns a home, and instead of living in it, she decides to rent it out to make more money. Which economic freedom does this illustrate? A) Freedom to own, use, buy, and sell private property. B) Freedom to compete for jobs. C) Freedom to choose which laws to obey. D) Freedom to control all the money you earn. Show Answer Correct Answer: A) Freedom to own, use, buy, and sell private property. 18. Cashiers at McDonalds are examples of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: B) Labor. 19. What is an increase in output of goods and services? A) Profit. B) Money. C) Economic growth. D) Food. Show Answer Correct Answer: C) Economic growth. 20. The incentive to improve material well-being by seeking to gain from economic activities is called A) Legal equality. B) Open opportunity. C) Marginal benefit. D) Profit motive. Show Answer Correct Answer: D) Profit motive. 21. Innovative companies require their employees to: A) Reluctant to take risks. B) Isolated work environment. C) Be selfish. D) Seek new opportunities. Show Answer Correct Answer: D) Seek new opportunities. 22. This feature of Free Enterprise includes the desire for profit and improving material well-being A) Economic Freedom. B) Voluntary Exchange. C) Self-Interest. D) Profit Motive. Show Answer Correct Answer: D) Profit Motive. 23. Which of the following is the best example of a public good? A) Highway system. B) Shopping mall. C) Country club. D) Movie theater. Show Answer Correct Answer: A) Highway system. 24. The advantage of a person becoming an entrepreneur is: A) More money'll always be earned than working for an employer. B) There is more independence than when working for an employer. C) No oppotunity cost involved in becoming anentepeneur. D) Less risk of business failure. Show Answer Correct Answer: B) There is more independence than when working for an employer. 25. Which business model involves transactions between consumers? A) Business-to-Consumer (B2C). B) Consumer-to-Consumer (C2C). C) Peer-to-Peer (P2P). D) Business-to-Business (B2B). Show Answer Correct Answer: B) Consumer-to-Consumer (C2C). 26. What makes a Free Enterprise system Capitalist in nature A) Everyone must own a business. B) There is extreme government intervention. C) Anyone is free to start a business or enterprise. D) Everyone makes the same amount of money. Show Answer Correct Answer: C) Anyone is free to start a business or enterprise. 27. A small payment that is added for borrowed money A) Industry. B) Support. C) Incentive. D) Interest. Show Answer Correct Answer: D) Interest. 28. A major reason a plan is needed prior to going into an equine business is it: A) Forces the owner to spell out objectives. B) Keeps one from looking ahead. C) Eliminates the need for estimation. D) Helps one make "piecemeal decisions.". Show Answer Correct Answer: A) Forces the owner to spell out objectives. 29. What is the main theme of the image? A) Capitalism. B) Communism. C) Socialism. D) Feudalism. Show Answer Correct Answer: A) Capitalism. 30. What is the theme of the poem 'Enterprise'? A) Growing up. B) A pilgrimage. C) A journey into the unknown. D) Life and religion. Show Answer Correct Answer: B) A pilgrimage. 31. What is the most effective way for consumers to make their desires known to businesses? A) Through mail and phone surveys. B) By protesting and boycotting products. C) By the purchases they make. D) By hiring lobbyists and joining consumer groups. Show Answer Correct Answer: C) By the purchases they make. 32. Individuals put limits on their own economic freedom by A) Complying with the law. B) Making personal economic choices. C) Deciding to learn new job skills. D) Competing with others. Show Answer Correct Answer: B) Making personal economic choices. 33. The portion of a manager's job concerned with mobilizing the necessary resources to complete a particular task is which of the following? A) Controlling. B) Executing. C) Organizing. D) Planning. E) Leading. Show Answer Correct Answer: C) Organizing. 34. Which of the following best illustrates the concept of 'profit motive' in a free enterprise system? A) Government subsidies for certain industries. B) Businesses aiming to minimize costs and maximize revenues. C) Central planning of production targets. D) Equal distribution of profits among citizens. Show Answer Correct Answer: B) Businesses aiming to minimize costs and maximize revenues. 35. Which SEGMENT in the enterprise software market IS THE FASTEST GROWING? A) SAAS and Packaged Solutions. B) In-house developed software. C) Operating Systems. D) Custom and mobile apps by application developers & System integrators. Show Answer Correct Answer: A) SAAS and Packaged Solutions. 36. These require a company to provide full information about their product: A) Private property rights. B) Public disclosure laws. C) Consumer protection laws. D) Taxation laws. Show Answer Correct Answer: B) Public disclosure laws. 37. Which skill is crucial for entrepreneurs to identify new business opportunities? A) Lack of market knowledge. B) Poor analytical skills. C) Creativity. D) Inability to network. Show Answer Correct Answer: C) Creativity. 38. True or False:The U.S. government allows businesses to produce and sellproducts which express an opinion: A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 39. This concept insures that everyone can compete in the marketplace by opening a business: A) Profit incentive. B) Legal equality. C) Open market. D) Open opportunity. Show Answer Correct Answer: D) Open opportunity. 40. In this feature of Free Enterprise, consumers have the right to make legally binding written or oral contracts/agreements to buy and sell goods. A) Self-Interest. B) Contracts. C) Private Property. D) Economic Freedom. Show Answer Correct Answer: B) Contracts. 41. Each payday, some of your pay is withheld as payroll deductions for Social Security. What happens to the money that is withheld? A) It is redistributed as cash transfers to workers who are injured on the job. B) It is put into an account under your name to earn interest until you retire. C) It is used to provide medical benefits to Americans over 65. D) It is redistributed as cash transfers to elderly and disabled people. Show Answer Correct Answer: D) It is redistributed as cash transfers to elderly and disabled people. 42. The driving force behind people going into business is A) Profit margin. B) Taxes. C) Profit motive. D) Opportunity cost. Show Answer Correct Answer: C) Profit motive. 43. Which one of these is a non financial motive? A) Receive a profit. B) Fill gap in the market. C) Earn an wage. D) Provide employment for themselves. Show Answer Correct Answer: B) Fill gap in the market. 44. The rivalry between sellers to get more customers by lowering costs & better goods/services A) Incentives. B) Voluntary exchange. C) Competition. D) Legal equality. Show Answer Correct Answer: C) Competition. 45. What is the role of government regulations mentioned in the context of free enterprise? A) They provide financial assistance to businesses. B) They limit the scope of some business activities. C) They promote unrestricted business competition. D) They offer tax exemptions to all businesses. Show Answer Correct Answer: B) They limit the scope of some business activities. 46. What is the part of the economy that involves the transactions of individuals and businesses? A) Private Sector. B) Microeconomics. C) Macroeconomics. D) Public Sector. Show Answer Correct Answer: A) Private Sector. 47. Which business model involves selling products directly to consumers through an online platform? A) Business-to-Business (B2B). B) Peer-to-Peer (P2P). C) Business-to-Consumer (B2C). D) Consumer-to-Consumer (C2C). Show Answer Correct Answer: C) Business-to-Consumer (B2C). 48. Which industry is primarily involved in the extraction of natural resources? A) Mining. B) Hospitality. C) Retail. D) Manufacturing. Show Answer Correct Answer: A) Mining. 49. Charles saves up enough money to buy ocean front property. He can either build a house or start a boating company on his property. Its his choice because he owns the land. What Characteristic is being show? A) Profit Motive. B) Economic Freedom. C) Voluntary Exchange. D) Private Property. Show Answer Correct Answer: D) Private Property. 50. Which is most likely to influence a person to get into an equine business? A) Horses are cheaper to buy than cows. B) He/she failed to make enough money on hogs. C) Horses require very little management. D) He/she already owns horses as a hobby. Show Answer Correct Answer: D) He/she already owns horses as a hobby. 51. One of the factors that directly limits the economic freedom of individuals in a private enterprise system is government A) Indecision. B) Taxation. C) Production. D) Services. Show Answer Correct Answer: B) Taxation. 52. What is another name for "a situation in which everyone has the same economic rights under the law" ? A) Negative Externality. B) Open Opportunity. C) Positive Externality. D) Legal Equality. Show Answer Correct Answer: D) Legal Equality. 53. Which of the following is a disadvantage of private enterprise: A) Equal distribution of income. B) Periods of unemployment. C) Careful use of resources. D) Elimination of poverty. Show Answer Correct Answer: B) Periods of unemployment. 54. What is a key characteristic of a micro-enterprise? A) Annual turnover exceeding £50 million. B) Operates in multiple countries. C) Fewer than 10 employees. D) More than 250 employees. Show Answer Correct Answer: C) Fewer than 10 employees. 55. The income level that is needed to support a household is A) The poverty threshold. B) The standard of living. C) A cash transfer. D) An in-kind benefit. Show Answer Correct Answer: A) The poverty threshold. 56. Which economic system is practiced in the United States? A) Command. B) Free enterprise. C) Mixed. D) Traditional. Show Answer Correct Answer: B) Free enterprise. 57. What are the origins of free enterprise? A) China in the fourth or fifth century B.C. B) England between the 16th and 18th centuries. C) United States during the 18th and 19th centuries. D) All of the above. Show Answer Correct Answer: D) All of the above. 58. One of the results of freedom in the marketplace is that A) Businesses use resources efficiently. B) People and businesses can own things of value. C) People can buy anything they can afford that can legally be sold. D) Government decides how to use an individual's private property. Show Answer Correct Answer: C) People can buy anything they can afford that can legally be sold. 59. When business is not associated with government agencies it is known as a ..... A) For Profit Organization. B) Public Sector. C) Private Sector. D) Nonprofit Organization. Show Answer Correct Answer: C) Private Sector. 60. What is the main goal of a profit motive? A) To help the environment. B) To provide free services. C) To support the government. D) To earn money. Show Answer Correct Answer: D) To earn money. ← 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 4Class 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