This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 6 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which skill is essential for entrepreneurs to effectively manage their business? A) Inability to take risks. B) Lack of creativity. C) Poor communication. D) Financial management. Show Answer Correct Answer: D) Financial management. 2. ..... buy goods from wholesalers or directly from manufacturers and resell them to the consumers. A) Wholesalers. B) Profit Organization. C) Retailers. D) Non Profit Organization. Show Answer Correct Answer: C) Retailers. 3. What is the main reason most businesses exist? A) To help the community. B) To create products. C) To provide jobs. D) To earn a profit. Show Answer Correct Answer: D) To earn a profit. 4. In relation to Free Enterprise, what does "supply side tendencies" mean? A) There is always more supply for a product than demand for one. B) Businesses tend to grow and consolidate, concentrating wealth in a few large companies creating monopolies. C) Free enterprise favors certain suppliers in the market due to government control. D) Consumers go straight to the suppliers and cut out the middle man. Show Answer Correct Answer: B) Businesses tend to grow and consolidate, concentrating wealth in a few large companies creating monopolies. 5. One important feature of a free enterprise system is government restriction of competition. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 6. What is an example of a negative externality? A) Fewer Oil Rigs. B) Industrial Pollution. C) Less Toxic Waste. D) Smaller buildings. Show Answer Correct Answer: B) Industrial Pollution. 7. What is the main benefit of free enterprise? A) Limited freedom and restricted barriers to trade. B) Greater government control and policy restrictions. C) Limited consumer choices and restricted market participation. D) Freedom of choice and creative expression in transactions. Show Answer Correct Answer: D) Freedom of choice and creative expression in transactions. 8. The trip had darkened every face" means: A) The pilgrims had forgotten to get their hats along. B) The pilgrims were tanned. C) The pilgrims were drity. D) The pilgrims were dissatisfied. Show Answer Correct Answer: D) The pilgrims were dissatisfied. 9. Which are the government's three goals for promoting economic strength? A) Steady growth, high prices, and innovation. B) High employment, steady growth, and stability. C) High employment, increased spending, low taxes. D) Low unemployment, low prices, and low taxes. Show Answer Correct Answer: B) High employment, steady growth, and stability. 10. What is the definition of supply? A) The amount of a product that is available. B) The amount of money a business invests in production. C) The amount of money a business earns from sales. D) The amount of a product that people are willing to buy. Show Answer Correct Answer: A) The amount of a product that is available. 11. What are the goals of free enterprise? A) Market efficiency, financial security, and economic opportunities. B) Government intervention, consumer rights, and stability. C) Restricted trade, limited choices, and controlled distribution. D) Monopolies, government control, and fixed prices. Show Answer Correct Answer: A) Market efficiency, financial security, and economic opportunities. 12. The US government allows businesses to produce and sell products which express an opinion. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. An example of a service is ..... A) A video game. B) Clothes. C) A haircut. D) Food. Show Answer Correct Answer: C) A haircut. 14. When you own the rights to an item or idea you have a ..... on it. A) Profit. B) Patent. C) Trademark. D) Copyright. Show Answer Correct Answer: B) Patent. 15. A ..... seeks to make a profit from its operations. A) Public Sector. B) Nonprofit Organization. C) Private Sector. D) For-Profit Organization. Show Answer Correct Answer: D) For-Profit Organization. 16. What happens to the price when the supply is high and the demand is low? A) The price goes down. B) The price fluctuates unpredictably. C) The price goes up. D) The price stays the same. Show Answer Correct Answer: A) The price goes down. 17. Innovation is the same as creativity. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 18. Fairtrade is an organisation that supports the work of farmers in developing countries. Which of the following is true: A) Fairtrade protects workers rights. B) Fairtrade protects the environment. C) Fairtrade works in partnership with farmers and consumers. D) Fairtrade invests in small scale organisations that help the environment. E) All of the above. Show Answer Correct Answer: E) All of the above. 19. What is the definition of import? A) A good that one country buys from another country. B) A good that one country sells to 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 buys from another country. 20. How many hours are considered to be a full work week? A) 30 hours. B) 8 hours. C) 40 hours. D) 20 hours. Show Answer Correct Answer: C) 40 hours. 21. Individuals can own land, personal property, business property, and money. They can do what ever they'd like with said property. What Characteristic is being described? A) Economic Freedom. B) Voluntary Exchange. C) Private Property. D) Profit Motive. Show Answer Correct Answer: C) Private Property. 22. What are the aims and purpose of an enterprise? A) To-make a profit, survive, expand, maximise sales, being ethical, providing a voluntary or charitable service. B) To-have no ethical values and focus on making as much money as possible, even to the detriment of it's own employees (meaning they don't care if their actions affect their staff). C) To-make a profit and take control of the sector they specialise in. D) None of the above. Show Answer Correct Answer: A) To-make a profit, survive, expand, maximise sales, being ethical, providing a voluntary or charitable service. 23. What is Innovation? A) Short term goals in the business. B) How many times a business has changed their product. C) A "new idea, creative thoughts, new imaginations in form of device or method" . D) The exclusive and assignable legal right, given to the originator for a fixed number of years, to print, publish, perform, film, or record literary, artistic, or musical material. Show Answer Correct Answer: C) A "new idea, creative thoughts, new imaginations in form of device or method" . 24. Government restricts free enterprise through A) Deregulation. B) Income redistribution. C) Public policy. D) Goods and services. Show Answer Correct Answer: B) Income redistribution. 25. What causes inflation? A) Rise in Wages. B) Profit Motive. C) Free Enterprise. D) Government Control. Show Answer Correct Answer: A) Rise in Wages. 26. What is the role of business owners in free enterprise? A) They can choose what to sell and how much to sell it for. B) They have no control over their businesses. C) They must follow strict government regulations. D) They cannot make a profit. Show Answer Correct Answer: A) They can choose what to sell and how much to sell it for. 27. What characteristic is being described? Individuals can act in their own self interest. Businesses can charge the highest price they can, and consumers can shop around to find the lowest price. Workers are also free to ask for higher wages and better working conditions. A) Profit Motive. B) Economic Freedom. C) Private Property. D) Voluntary Exchange. Show Answer Correct Answer: A) Profit Motive. 28. Producers (business) are free to sell their products at what ever price they wish, and Consumers (customers) are free to refuse to buy. This is part of which Characteristic of Free Enterprise? A) Profit Motive. B) Economic Freedom. C) Private Property. D) Voluntary Exchange. Show Answer Correct Answer: D) Voluntary Exchange. 29. The management process which involves interactions between managers and their subordinates is A) Planning. B) Organizing the jobs. C) Controlling. D) Decision making. E) Leading. Show Answer Correct Answer: E) Leading. 30. Occurs when the resources to produce goods, or offer services are limited and/or costly A) Profit. B) Competition. C) Scarcity. D) Economic System. Show Answer Correct Answer: C) Scarcity. 31. What role does government regulation play in a free enterprise system? A) It ensures fair competition and protects consumers. B) It sets all prices in the market. C) It owns all businesses. D) None of the above. Show Answer Correct Answer: A) It ensures fair competition and protects consumers. 32. What impact does 'competition' have on innovation in a free enterprise system? A) It reduces innovation because of the focus on price wars. B) It has no significant impact on innovation. C) It discourages businesses from innovating due to increased risks. D) It stimulates innovation as businesses strive to gain a competitive edge. Show Answer Correct Answer: D) It stimulates innovation as businesses strive to gain a competitive edge. 33. Alex owns a guitar, several books, and a telescope. Alex's possessions are examples of A) Capital goods. B) Equal distribution. C) Private property. D) Economic resources. Show Answer Correct Answer: C) Private property. 34. What is the primary goal of businesses in a capitalist economy? A) To maximize profits. B) To serve the government. C) To eliminate competition. D) To reduce consumer choice. Show Answer Correct Answer: A) To maximize profits. 35. What effect does consumer choice have on the quality of products in a free enterprise system? A) It leads to a decrease in product quality due to cost-cutting. B) It has no significant effect on product quality. C) It encourages producers to improve quality to meet consumer demands. D) It results in uniform product quality due to government standards. Show Answer Correct Answer: C) It encourages producers to improve quality to meet consumer demands. 36. The situation that exists when general price levels don't change much over time describes which of the 7 major economic goals of free enterprise? A) Price stability. B) Economic security. C) Economic freedom. D) Economic efficiency. Show Answer Correct Answer: A) Price stability. 37. What does infrastructure include? A) Only roads and bridges. B) Services like transit, power, water, and sewer systems. C) Only public transportation. D) Only private buildings. Show Answer Correct Answer: B) Services like transit, power, water, and sewer systems. 38. When the amount of a product supplied is equal to the amount the is demanded, a state of ..... exists. A) Panic. B) Pressure. C) Equilibrium. D) Stand Off. Show Answer Correct Answer: C) Equilibrium. 39. True or False:Under a free enterprise system, people must work in a profession that is chosen for them by the government: A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 40. The quantity of something that producers have available for sale A) Demand. B) Supply. C) Deplete. D) Surplus. Show Answer Correct Answer: B) Supply. 41. When two or more businesses produce and sell similar products and compete against each other A) War. B) Scarcity. C) Competition. D) Game. Show Answer Correct Answer: C) Competition. 42. Thomas has the option to go the college, start and apprenticeship or work at an entry level job when he graduates. This is an example of what? A) Voluntary Exchange. B) Economic Freedom. C) Private Property. D) Profit Motive. Show Answer Correct Answer: B) Economic Freedom. 43. Thinking about why might an enterprise fail, which of the following is the ODD one out? A) Unwilling to listen to the needs and wants of a customer. B) Having an in depth growth strategy with key achievable milestones and SMART targets. C) Not having enough cash to pay for resources, products and equipment before they begin trading. D) None of the above. Show Answer Correct Answer: B) Having an in depth growth strategy with key achievable milestones and SMART targets. 44. Which is NOT a drawback of Free Enterprise? A) Uneven Economic Growth. B) Growing gap between the rich and the poor. C) Competition, lower prices and more choice. D) Monopolies (one company gaining control). Show Answer Correct Answer: C) Competition, lower prices and more choice. 45. True/False:Government safety nets are called welfare or aid to the poor. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 46. What do anti-trust laws regulate according to the text? A) Business start-ups. B) Business mergers and acquisitions. C) Employee rights within businesses. D) International trade agreements. Show Answer Correct Answer: B) Business mergers and acquisitions. 47. Federal program of disability and retirement benefits that covers most working people. A) Inflationary income. B) Fixed income allowance. C) American Security. D) Social Security. Show Answer Correct Answer: D) Social Security. 48. Consumers in a free enterprise economy ultimately determine ..... to produce. A) How. B) Where. C) When. D) What. Show Answer Correct Answer: D) What. 49. Struggle among multiple sellers to attract consumers A) Profit Motive. B) Competition. C) Inflation. D) Mixed Economy. Show Answer Correct Answer: B) Competition. 50. Define private enterprise A) A sector of the economy that included companies who deal with the extraction and production of raw materials and natural resources. B) A business or industry that is managed by independent companies or private individuals rather than by the state. C) A business that supplies a good or service. D) A business that purchases a vast amount of goods from manufacturers to sell them to other businesses. Show Answer Correct Answer: B) A business or industry that is managed by independent companies or private individuals rather than by the state. 51. Most people are inspired to start a business by the A) Marginal benefit. B) Open opportunity clause. C) Profit motive. D) Free contract clause. Show Answer Correct Answer: C) Profit motive. 52. Struggle among sellers to attract consumers A) Social Security. B) Competition. C) Voluntary exchange. D) Profit motive. Show Answer Correct Answer: B) Competition. 53. Who gets to decide what price to sell a product for? A) The store where it's being sold. B) The people buying it. C) The person or company that made it. D) The government. Show Answer Correct Answer: C) The person or company that made it. 54. Which activity is typically associated with enterprises in the secondary sector? A) Retailing. B) Consulting. C) Manufacturing. D) Farming. Show Answer Correct Answer: C) Manufacturing. 55. Which of the following is a benefit of the freedom to own private property: A) It helps to limit our economic choices. B) It encourages businesses to be cooperative. C) It encourages people to save and to invest. D) It allows people to do anything they want to do. Show Answer Correct Answer: C) It encourages people to save and to invest. 56. If it costs $ 100 to make an iphone, would it be a good idea to sell it for $ 100 to the customers? A) Yes, because you want the customers to have the lowest price possible. B) No, because it is morally wrong. C) No, because you would not make a profit. D) Yes, because it is a government regulation. Show Answer Correct Answer: C) No, because you would not make a profit. 57. Which of the following is a synonym for surplus? A) Excess. B) Oversupply. C) Extra. D) All Selection are Correct. Show Answer Correct Answer: D) All Selection are Correct. 58. Define the term management. A) A form of entertainment. B) The process of dealing with or controlling things or people. C) A type of financial investment. D) A style of cooking. Show Answer Correct Answer: B) The process of dealing with or controlling things or people. 59. What is an Example of Competition A) An oil company starting a monopoly. B) Lisa asking for higher pay. C) Workers striking for Higher pay. D) Sony and Microsoft obtaining different games to one up each other. Show Answer Correct Answer: D) Sony and Microsoft obtaining different games to one up each other. 60. This is another name for capitalism A) Free Contract. B) Free Enterprise. C) Infrastructure. D) Legal Equality. Show Answer Correct Answer: B) Free Enterprise. ← 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 5Class 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