This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 7 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. True or False. Emergency services (fire fighters, police, etc ..... ), public educators and highways are examples of Private Goods. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 2. Free choices the consumer makes that control the economic market A) Profit Motive. B) Consumer Sovereignty. C) Free Enterprise. D) Voluntary Exchange. Show Answer Correct Answer: B) Consumer Sovereignty. 3. Which of the following is a benefit of free enterprise? A) Standardized goods/services. B) Variety of goods/services. C) Government control. D) Economic stagnation. Show Answer Correct Answer: B) Variety of goods/services. 4. Social Security, SNAP (food stamps), head start and the federal lunch programs are examples of A) Safety Nets. B) Public Goods. C) Contracts. D) Private Goods. Show Answer Correct Answer: A) Safety Nets. 5. If there is a high demand, but low supply of a product the price will ..... A) Be the same. B) Be higher. C) Be lower. D) Change randomly. Show Answer Correct Answer: B) Be higher. 6. Which one of these is a financial motive? A) Provide employment for themself. B) Fill gap in the market. C) Be the boss. D) Provide employment for others. Show Answer Correct Answer: A) Provide employment for themself. 7. How many kinds of enterprises can we find in the business world? A) Three. B) Six. C) Five. D) Four. Show Answer Correct Answer: D) Four. 8. What is the definition of demand? A) The amount of money a business invests in production. B) The amount of a product that people are willing to buy. C) The amount of a product that is available. D) The amount of money a business earns from sales. Show Answer Correct Answer: B) The amount of a product that people are willing to buy. 9. To stabilize the economy, policymakers try to achieve three main outcomes:high employment, steady growth, and A) Technological advancement. B) Stable prices. C) Competition. D) Consumer confidence. Show Answer Correct Answer: B) Stable prices. 10. Which is an example of competition changing the marketplace? A) A chain bookseller forcing many individual booksellers to go out of business. B) A chain hot dog restaurant failing to make a large profit. C) A chain coffee shop having no effect on individual coffee shops. D) A chain restaurant expanding its menu to include desserts. Show Answer Correct Answer: A) A chain bookseller forcing many individual booksellers to go out of business. 11. Explain how supply and demand determine the equilibrium price in a market. A) Supply and demand have no effect on equilibrium price. B) Equilibrium price is determined by government regulations. C) Equilibrium price is where supply equals demand. D) None of the above. Show Answer Correct Answer: C) Equilibrium price is where supply equals demand. 12. Which of these characteristics is TRUE of the American free enterprise system? A) Producers are forced to sell a certain quantity of items. B) Individuals can purchase goods and services that they want. C) Only the government can own and sell property. D) There is no profit motive for businesses. Show Answer Correct Answer: B) Individuals can purchase goods and services that they want. 13. A hands-off economic system in which producers and consumers are free to operate with minimal government interference or regulation: A) Economic Stability. B) Economic Growth. C) Free Enterprise. D) Economic Freedom. Show Answer Correct Answer: C) Free Enterprise. 14. Which of the following is not an enterprise? A) Micro-enterprise. B) Small enterprise. C) Medium-sized enterprise. D) Large enterprise. E) Extra small enterprise. Show Answer Correct Answer: E) Extra small enterprise. 15. ..... competition, businesses choose to compete on the basis of factors that are not related to price. A) Credit. B) Cash. C) Price. D) Nonprice. Show Answer Correct Answer: D) Nonprice. 16. What is the purpose of the Consumer Product Safety Commission as mentioned in the text? A) To advertise consumer products. B) To ensure the safety of consumer products. C) To regulate the prices of consumer products. D) To support the production of consumer products. Show Answer Correct Answer: B) To ensure the safety of consumer products. 17. True or False:The government can't take your property without just compensation. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. The amount of goods producers are willing to make and sell is which of the following? A) Demand. B) Business Risk. C) Profit. D) Supply. Show Answer Correct Answer: D) Supply. 19. How would you describe the first person to leave the pilgrimage? A) The poet's best friend. B) Known for his stylish dress. C) Known as the most pious. D) Known for his stylish prose. Show Answer Correct Answer: D) Known for his stylish prose. 20. What is the difference between socialism and free enterprise? A) Socialism allows for individual decisions, while free enterprise focuses on resource distribution. B) Socialism emphasizes market freedom, while free enterprise emphasizes government intervention. C) Socialism restricts market results, while free enterprise allows for freely generated market outcomes. D) Socialism and free enterprise are the same concept. Show Answer Correct Answer: C) Socialism restricts market results, while free enterprise allows for freely generated market outcomes. 21. Which of the following is NOT a characteristic of Economic Freedom? A) The right of businesses to decide what to produce. B) The right to choose your occupation. C) The right to manufacture only what government tells you. D) The right to choose your employer. Show Answer Correct Answer: C) The right to manufacture only what government tells you. 22. What is the major advantage of a paddock and shelter instead of a stall? A) Horses keep cleaner. B) They are cheaper to maintain. C) Bedding is provided. D) Weather is not a problem. Show Answer Correct Answer: B) They are cheaper to maintain. 23. A large telephone company has hired lobbyists to try to persuade lawmakers to reduce governmental regulation over the telecommunications industry. Why might the company do this? A) Some regulations are costly to implement and cut into profits. B) Many regulations promote too much competition, driving down prices. C) Certain regulations result in rapid business growth, which some companies find difficult to handle. D) All of these. Show Answer Correct Answer: A) Some regulations are costly to implement and cut into profits. 24. Economists agree that a desirable rate of unemployment should be: A) 3-4%. B) 5-7%. C) 4-6%. D) 8-10%. Show Answer Correct Answer: C) 4-6%. 25. ..... refers to obtaining money in the form of a loan or credit card. A) Income. B) Saving. C) Borrowing. D) Spending. Show Answer Correct Answer: C) Borrowing. 26. What determines the prices of goods in a free enterprise system? A) Supply and demand. B) Government regulations. C) Business owners' preferences. D) Consumer preferences. Show Answer Correct Answer: A) Supply and demand. 27. Consumers and sellers make decisions that benefit them and do not have worry about pleasing the government or anyone else. A) Contracts. B) Self-Interest. C) Private Property. D) Competition. Show Answer Correct Answer: B) Self-Interest. 28. What role do government programs play in transfer payments? A) They provide a safety net for citizens. B) They increase taxes. C) They eliminate private property. D) They reduce business profits. Show Answer Correct Answer: A) They provide a safety net for citizens. 29. How does a free enterprise system promote innovation? A) Through high levels of government funding for research. B) By enforcing strict regulations on new products. C) By allowing businesses to profit from their own innovations. D) By mandating collaboration between competing businesses. Show Answer Correct Answer: C) By allowing businesses to profit from their own innovations. 30. Which of the following is NOT a pillar of capitalism shown in the image? A) Competition. B) Private Property. C) Public Welfare. D) Profit Motive. Show Answer Correct Answer: C) Public Welfare. 31. A person who purchases good and services for personal use A) Producer. B) Consumer. C) Industry. D) Demand. Show Answer Correct Answer: B) Consumer. 32. Accurate records used in an equine business will: A) Increase the need for bank loans. B) Cost more than it is worth. C) Keep taxes to a minimum. D) Encourage an IRS audit. Show Answer Correct Answer: C) Keep taxes to a minimum. 33. One of the benefits of economic freedom is that it provides individuals with A) Equality in the workplace. B) The opportunity for success. C) The right to buy anything. D) A good standard of living. Show Answer Correct Answer: B) The opportunity for success. 34. A business plan for a new business will include all of the following except A) Market research data. B) Previous years' accounts. C) Financial forecasts. D) Details of the business owners. Show Answer Correct Answer: B) Previous years' accounts. 35. Markets in the free enterprise system are seldom regulated by ..... A) Entrepreneurs. B) Businesses. C) Consumers. D) The government. Show Answer Correct Answer: D) The government. 36. As prices increase, demand increases. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 37. Which of the following best describes the law of demand? A) As price decreases, demand decreases. B) As price increases, demand decreases. C) Demand is unaffected by price changes. D) None of the above. Show Answer Correct Answer: B) As price increases, demand decreases. 38. A company can be classified according to its ..... A) Size. B) Employees. C) Electronic devices. D) Bank accounts. E) Answers 1 and 2 are correct. Show Answer Correct Answer: E) Answers 1 and 2 are correct. 39. What is one of the benefits of free enterprise? A) Limited variety of goods/services. B) Individual freedom. C) Restricted trade. D) Monopoly. Show Answer Correct Answer: B) Individual freedom. 40. Why is planning important? A) It helps in setting objectives. B) It ensures efficient use of resources. C) It provides direction and reduces risks. D) All of the above. Show Answer Correct Answer: D) All of the above. 41. What is the side effect of products and/or services that affect someone other than the producer or buyer? A) Subsidy. B) Infrastructure. C) Externality. D) Profit. Show Answer Correct Answer: C) Externality. 42. In the context of free enterprise, what are the two contrasting states of the economy mentioned? A) Inflation and deflation. B) Surplus and deficit. C) Boom and bust cycles. D) Import and export. Show Answer Correct Answer: C) Boom and bust cycles. 43. Workers can choose any job they want when they start their careers. What Characteristic of Free Enterprise is being described? A) Economic Freedom. B) Private Property. C) Voluntary Exchange. D) Profit Motive. Show Answer Correct Answer: A) Economic Freedom. 44. What do you call the amount of money that is earned as a result of labor? A) Income. B) Donations. C) Spending. D) Saving. Show Answer Correct Answer: A) Income. 45. What characteristic is often found in successful entrepreneurs? A) Inflexibility. B) Resilience. C) Lack of vision. D) Aversion to change. Show Answer Correct Answer: B) Resilience. 46. Who are those managers responsible for a firm's overall performance and for developing long-range plans for the company? A) Corporate officers. B) Supervisors. C) Executives. D) Top managers. E) Middle managers. Show Answer Correct Answer: D) Top managers. 47. The economic basis for the private enterprise economic system is A) Competition. B) The profit motive. C) The marketplace. D) Supply and demand. Show Answer Correct Answer: B) The profit motive. 48. This is the study of the behavior/decision making of entire economies, not individuals. A) Finite economics. B) Economic models. C) Macroeconomics. D) Microeconomics. Show Answer Correct Answer: C) Macroeconomics. 49. Price competition involves competing with a lower price. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 50. In which sector do enterprises that provide services such as banking and insurance operate? A) Quaternary sector. B) Secondary sector. C) Primary sector. D) Tertiary sector. Show Answer Correct Answer: D) Tertiary sector. 51. The Chromebooks you are using are examples of A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. 52. What does S.E.O. stand for? A) Site entry option. B) Search entry optimization. C) Second entry objective. D) Search engine optimization. Show Answer Correct Answer: D) Search engine optimization. 53. This nation's government does NOT use a free enterprise system A) South Korea. B) Canada. C) United States. D) North Korea. Show Answer Correct Answer: D) North Korea. 54. Which of the following is NOT part of the government stabilizing the economy. A) Controlling the goods made. B) Keeping prices stable. C) Promoting steady Growth. D) Keeping unemployment low. Show Answer Correct Answer: A) Controlling the goods made. 55. A general rise in the level of prices over time is known as ..... A) Catalyst. B) Glass Ceiling. C) Bubble Effect. D) Inflation. Show Answer Correct Answer: D) Inflation. 56. Mike believes the sole proprietorship is the best form of doing business on his horse farm because the farm is: A) Run by a board of directors. B) Owned by a family. C) Jointly owned by two people. D) Owned by one person. Show Answer Correct Answer: D) Owned by one person. 57. Which of the following is a common feature of SMEs? A) Large market share. B) Global operations. C) Limited financial resources. D) High number of employees. Show Answer Correct Answer: C) Limited financial resources. 58. When there is not enough of a good or service to meet peoples wants or needs it is called A) Bartering. B) Scarcity. C) Marketing. D) Demanding. Show Answer Correct Answer: B) Scarcity. 59. Economic stability is the idea that the government will work towards full employment and stable prices. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 60. What are the characteristics of free enterprise? A) Central planning, public ownership of property, and fixed distribution of goods and services. B) Private property rights, voluntary contracts, and competitive bidding. C) Government interference in business and the economy. D) Decentralized knowledge among bureaucrats. Show Answer Correct Answer: B) Private property rights, voluntary contracts, and competitive bidding. ← 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 6Class 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