This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 3 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a disadvantage of sole proprietorships: A) Limited capital. B) Control. C) Privacy. D) Tax liability. Show Answer Correct Answer: A) Limited capital. 2. What does 'entrepreneur' mean? A) A person with a list of business ideas. B) A person who sets up a business or businesses. C) A person who shares business management strategies. D) None of the above. Show Answer Correct Answer: B) A person who sets up a business or businesses. 3. Which of the following is an example of a financial risk for a new business? A) High employee morale. B) Low customer demand. C) Strong brand reputation. D) High market share. Show Answer Correct Answer: B) Low customer demand. 4. Which of the following statements best describes the term reward A) Financial security of a full time job. B) The chance of loss or damage. C) When a hoped for outcome does not happen. D) The benefits gained through business activity. Show Answer Correct Answer: D) The benefits gained through business activity. 5. A government which uses a free enterprise system of economics, allows its citizens to: A) Start their own business. B) Purchase goods wherever. C) Spend their money as they please. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. One role of an entrepreneur is to organise resources. Which of the following statements best describes this role A) The ability to take calculated risks. B) The skill to think creatively. C) Employing workers and buying equipment in order to produce goods. D) The prospect of keeping all profits that are generated. Show Answer Correct Answer: C) Employing workers and buying equipment in order to produce goods. 7. Business planning will be key in the development of profitable business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. Occurs when a business expands its existing operations ..... A) External growth. B) Internal growth. C) Company growth. D) Business growth. Show Answer Correct Answer: B) Internal growth. 9. Keeping all the profit is a reward for setting up your own business. How is this calculated? A) Total Revenue-Total Costs. B) Total Revenue-Wages. C) Gross Profit/Sales. D) Sales-Profit. Show Answer Correct Answer: A) Total Revenue-Total Costs. 10. When the business has failed but there is still hope and chance in the corner, so what should the real entrepreneur must do as part of their characteristics? ..... A) Stop the business. B) Evaluate the business. C) Never give up. D) Accept the condition with sadness. Show Answer Correct Answer: C) Never give up. 11. In times of ..... , political instability and economic difficulty consumers tend to save not spend. A) Recession. B) Market. C) Summer. D) Forecast. Show Answer Correct Answer: A) Recession. 12. Grace and Amber are working on a project that aims to provide clean drinking water to underprivileged communities. What type of enterprise are they likely focusing on? A) Start-up. B) Lifestyle. C) Social enterprise. D) Franchise. Show Answer Correct Answer: C) Social enterprise. 13. Which is NOT an example of a good? A) Steel. B) Power. C) Automobiles. D) Aircraft parts. Show Answer Correct Answer: B) Power. 14. Why do business exist? A) To satisfy the needs of customers. B) To help owners make a living. C) To help the government collect tax. D) To provide jobs. E) To realise opportunities within the market. Show Answer Correct Answer: A) To satisfy the needs of customers. 15. A new method, idea, product, etc A) Enterprise. B) Equity. C) Brand. D) Innovation. Show Answer Correct Answer: D) Innovation. 16. Worker cooperatives are: A) Where members share the profit. B) Where employees share the profit. C) Where a sole trader earns the profit. D) Where the government earns the profit. Show Answer Correct Answer: B) Where employees share the profit. 17. What is required to maintain a functioning free enterprise system? A) Strict government regulations. B) Moral responsibility and ethical behavior. C) A single large corporation. D) No competition. Show Answer Correct Answer: B) Moral responsibility and ethical behavior. 18. Sara decided to start up a business as a personal trainer due to her passion for fitness. Which of the following is the main reason behind Sara's business idea A) Earn more money. B) Pursue an interest. C) Be her own boss. D) Work more flexible hours. Show Answer Correct Answer: B) Pursue an interest. 19. Cristian and Amber are starting a new business. They want to create a company that not only makes money but also helps the community by reinvesting its profits into social projects. What type of business are they planning to start? A) A business focused solely on profit maximisation. B) A business that avoids any form of innovation. C) A business that reinvests profits to achieve social objectives. D) A business that operates without any financial goals. Show Answer Correct Answer: C) A business that reinvests profits to achieve social objectives. 20. This social entrepreneur characteristics explains that their visions are not limited by the resources that they have. A) Resourceful. B) Socially aware. C) Innovative. D) Accountable. Show Answer Correct Answer: A) Resourceful. 21. Another term for a business A) Entrepreneurship. B) Equity. C) Marketing. D) Enterprise. Show Answer Correct Answer: D) Enterprise. 22. Adding value to a business involves: A) Decreasing costs. B) Offering unique products or services. C) Limiting innovation. D) Reducing customer satisfaction. Show Answer Correct Answer: B) Offering unique products or services. 23. How could you best describe what is a social mission is? A) Something that benefits society, the environment or econonmy. B) A religious organisation. C) A manefesto that shares the wealth amongst the owners. D) An event where everyone gets together. Show Answer Correct Answer: A) Something that benefits society, the environment or econonmy. 24. Entrepreneurs are always successful A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 25. A guarantor: A) Must be a business or individual located in-state. B) Assumes no legal responsibilities. C) Has limited liquidity. D) Is a credit-worthy individual or business responsible for repaying a loan if the debtholder cannot. Show Answer Correct Answer: D) Is a credit-worthy individual or business responsible for repaying a loan if the debtholder cannot. ← PreviousNext →Related QuizzesClass 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 1Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 2Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 4Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 5Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 6Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 7Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 8Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 9Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 10Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books