This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 5 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Under a free enterprise system, people must work in a profession that is chosen for them by the government: A) TRUE!. B) That's CAP!. C) All the above. D) None of the above. Show Answer Correct Answer: B) That's CAP!. 2. A major disadvantage of entrepreneurship is: A) High levels of stress. B) Guaranteed financial success. C) Lack of responsibility. D) Limited working hours. Show Answer Correct Answer: A) High levels of stress. 3. What is the correct function of a business plan? ..... A) Get funding. B) Describe company. C) Selling the product. D) Gaining customers. Show Answer Correct Answer: A) Get funding. 4. What is one reason entrepreneurs might start a business? A) To solve a problem. B) To avoid risks. C) To work less. D) To follow trends. Show Answer Correct Answer: A) To solve a problem. 5. One of the primary advantages of being an entrepreneur is: A) Guaranteed success. B) High level of security. C) Flexibility and control. D) Low risk. Show Answer Correct Answer: C) Flexibility and control. 6. Entrepreneurs get a ..... from building up their own business which can increase happiness and personal fulfillment. A) Lot of profit. B) Great sense of satisfaction. C) All the above. D) None of the above. Show Answer Correct Answer: B) Great sense of satisfaction. 7. Business exist to: A) Provide quality goods to people who can afford them. B) Sell goods to a particular target audience. C) Meet the needs of all of their customers. D) Research ways to make products better. E) Increase the amount of tax collected by the Government. Show Answer Correct Answer: C) Meet the needs of all of their customers. 8. Grace has decided to start her own bakery business, where she will be the sole owner and operator. What type of business format is Grace using? A) Partnership. B) Sole trader. C) Limited partnership. D) Public limited company (PLC). Show Answer Correct Answer: B) Sole trader. 9. Lack of overall planning and poor decision-making can lead to business failure. This is known as: A) Poor management. B) Poor quality. C) Poor understanding of the economy. D) Poor sales levels. Show Answer Correct Answer: A) Poor management. 10. Which is NOT a benefit of free enterprise? A) People make all of the choices. B) Profit is unlimited. C) Only some people can make a profit. D) Government has only some control. Show Answer Correct Answer: C) Only some people can make a profit. 11. A budget is an estimate of income and expenditure for a set period of time. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 12. A business with Unlimited liability A) Is personally responsible for all the debts of the business. B) Is not personally responsible for all the debts of the business. C) All the above. D) None of the above. Show Answer Correct Answer: B) Is not personally responsible for all the debts of the business. 13. Susie is starting her own lemonade store. What economic term would best describe Susie and what does that term mean? A) Consumer-a person who uses or consumes goods. B) Partnership-partner in the lemonade stand. C) Entrepreneur person who takes a risk to start a new company. D) None of the above. Show Answer Correct Answer: C) Entrepreneur person who takes a risk to start a new company. 14. A government which uses a free enterprise system of economics, allows its citizens to (a) A) A. all of the above. B) Start their own business. C) Spend money as they please. D) Purchase goods wherever they choose. Show Answer Correct Answer: A) A. all of the above. 15. True or false:A good entrepreneur will take calculated risks A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 16. A budding entrepreneur who is looking to set up a new enterprise is concerned that the business might not provide enough of a stable income to maintain his current standard of living. Which of the following best describes this risk? A) Inability to break even. B) Lack of security. C) Business failure. D) Lack of independence. Show Answer Correct Answer: B) Lack of security. 17. Which of the following is a strategy to manage financial risk? A) Investing all capital in one venture. B) Creating a budget and monitoring expenses. C) Ignoring financial statements. D) Spending without planning. Show Answer Correct Answer: B) Creating a budget and monitoring expenses. 18. What is a primary reason for creating a business plan? A) To confuse investors. B) To outline business objectives and strategies. C) To avoid competition. D) To increase operational costs. Show Answer Correct Answer: B) To outline business objectives and strategies. 19. Define 'customer retention'? A) The ability to lose a customer after two or three transactions. B) The ability of a company or product to retain its customers over some specified period. C) The ability to underperform when selling a product. D) None of the above. Show Answer Correct Answer: B) The ability of a company or product to retain its customers over some specified period. 20. What is the main goal of an entrepreneur in America? A) Provide jobs to immigrants. B) To make a profit. C) To open lots of stores. D) To retire rich. Show Answer Correct Answer: B) To make a profit. 21. What is the money left over after a business pays all its expenses called? A) Income. B) Loss. C) Profit. D) Expense. Show Answer Correct Answer: C) Profit. 22. The number of people employed and value of ..... are two ways of measuring the size of a business. A) Profit. B) Expenses. C) Shares. D) Output. Show Answer Correct Answer: D) Output. 23. One of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits. A) Securities. B) Share. C) Assets. D) Liability. Show Answer Correct Answer: B) Share. 24. Which of the following is NOT a key quality of a successful entrepreneur? A) Risk-taking. B) Creativity. C) Fear of failure. D) Perseverance. Show Answer Correct Answer: C) Fear of failure. 25. Which of the following best describes the term, obsolete. When consumers ..... A) Demand more of a particular product or service. B) Want, and can afford, to buy more products and services. C) Can no longer afford to buy a particular product or service. D) No longer want to buy a particular product or service. Show Answer Correct Answer: D) No longer want to buy a particular product or service. ← 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 3Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise Quiz 4Class 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