This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is the amount of a good or service that consumers are willing to purchase. A) Demand. B) Surplus. C) Scarcity. D) Supply. Show Answer Correct Answer: A) Demand. 2. What does "Competition" in capitalism lead to? A) Higher prices. B) Better quality products. C) Less consumer choice. D) Monopolies. Show Answer Correct Answer: B) Better quality products. 3. A ..... is an exclusive right to publish or sell a piece of written material (ex. need permission to produce a movie based on a book). A) Copyright. B) Patent. C) Invention. D) Incentive. Show Answer Correct Answer: A) Copyright. 4. Free riders are examples of ..... , a situation in which the market, on its own, does not distribute resources efficiently. A) Business cycle. B) Market failure. C) Externality. D) Poverty threshold. Show Answer Correct Answer: B) Market failure. 5. In the marketplace, producers are looking to A) Buy goods for personal use. B) Earn a profit. C) Find incentives. D) Find the latest fad. Show Answer Correct Answer: B) Earn a profit. 6. Anthony purchased a ticket to the upcoming football game for $ 300. Anthony decided to sell his ticket for $ 550. Anthony just gained a ..... by making $ 250 from the sale. A) Trade. B) Demand. C) Profit. D) Loss. Show Answer Correct Answer: C) Profit. 7. Benefits of free enterprise capitalism include individual freedom, a variety of goods, creating wealth and ..... A) Promoting progress & opportunity cost. B) Opportunity cost & adapting to change. C) Adapting to change & promoting progress. D) Increasing the gap between rich and poor & unemployment. Show Answer Correct Answer: C) Adapting to change & promoting progress. 8. An entrepreneur has decided to set up a mobile hairdressing business. The main reason for starting this business was: A) To supply a service to customers. B) To produce goods for customers. C) To supply a service to suppliers. D) To produce goods for suppliers. Show Answer Correct Answer: A) To supply a service to customers. 9. What does consumer sovereignty mean in the context of the Free Enterprise System? A) Consumers have no choice. B) Consumers dictate what is produced. C) Government decides consumer needs. D) Businesses ignore consumer preferences. Show Answer Correct Answer: B) Consumers dictate what is produced. 10. What is one of the primary ways people can earn money? A) Debt. B) Labor. C) Interest. D) None of the above. Show Answer Correct Answer: B) Labor. 11. What are the 3 sub categories within SME's? A) Minuscule, Small, Medium. B) Micro, Small, Medium. C) Macro, Small, Medium. D) None of the above. Show Answer Correct Answer: B) Micro, Small, Medium. 12. A horse that can be bought with a low initial investment because it is not registered with a specific breed register is a: A) Breeding mare. B) Breeding stallion. C) Grade horse. D) Racehorse. Show Answer Correct Answer: C) Grade horse. 13. Every society must develop a system for deciding how it will use its resources so that it can A) Minimize risk. B) Meet people's needs. C) Prevent problems. D) Control production. Show Answer Correct Answer: B) Meet people's needs. 14. Something that encourages someone to make a certain choice A) Incentive. B) Industry. C) Motivation. D) Interest. Show Answer Correct Answer: A) Incentive. 15. Which is NOT a "specialty distribution channel" ? A) Vending machine. B) Internet (e-commerce). C) Wal-Mart. D) Television sales (Home Shopping Network). Show Answer Correct Answer: C) Wal-Mart. 16. Which of the following are two reasons why an entrepreneur would set up an enterprise? A) Sounded like a good idea at the time and I had nothing better to do. B) To be my own boss where I can choose when and how to work and to do something I'm interested in (E.g. making a difference). C) I was forced to do it and it seemed like a good idea at the time. D) None of the above. Show Answer Correct Answer: B) To be my own boss where I can choose when and how to work and to do something I'm interested in (E.g. making a difference). 17. One of the main negatives of the free market system. A) The rich get richer and the poor get poorer. B) Free markets make too many people rich. C) Free markets make too many people poor. D) Free markets give consumers lots of choices. Show Answer Correct Answer: A) The rich get richer and the poor get poorer. 18. The cost for bedding increases when horses are confined to a: A) Farm. B) Paddock. C) Pasture. D) Stall. Show Answer Correct Answer: D) Stall. 19. What is private property? A) Something owned by individual people or groups. B) Something owned by the government. C) Something that cannot be owned by anyone. D) Something that is shared by everyone. Show Answer Correct Answer: A) Something owned by individual people or groups. 20. What does a free enterprise system mean in terms of government control of the market? A) The government sets the price of goods and services. B) The government controls the market completely. C) The government does not control the market. D) The government tells people what they can make or sell. Show Answer Correct Answer: C) The government does not control the market. 21. The four factors of production are land, labor, capital, and ..... A) Entrepreneurs. B) Franchises. C) Inflation. D) The government. Show Answer Correct Answer: A) Entrepreneurs. 22. What is the purpose of the breeding farm? A) To lease horses for riding. B) To maintain horses for owners. C) To produce yearlings for sale. D) To train horses for show. Show Answer Correct Answer: C) To produce yearlings for sale. 23. Which is NOT a characteristic of the private enterprise system? A) Companies are owned by citizens rather than the government. B) Businesses can earn and keep the money they make from their operations. C) A business organization is wholly or partly owned by the state and controlled through a public authority. D) Businesses react to supply and demand. Show Answer Correct Answer: C) A business organization is wholly or partly owned by the state and controlled through a public authority. 24. How would you describe the first stage of the journey? A) Mournful. B) Tiring. C) Hopeful. D) Enthusiastic. Show Answer Correct Answer: D) Enthusiastic. 25. Which of the following choices is NOT a benefit of the free enterprise system? A) Creation of wealth. B) Individual freedom. C) Variety of goods offered. D) Uneven economic growth. Show Answer Correct Answer: D) Uneven economic growth. ← PreviousNext →Related QuizzesClass 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 1Class 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 7Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 8Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 9Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 10Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books