This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 7 Managing A Growing Enterprise Quiz 3 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which group lists the key principles of the free enterprise system? A) Private property, taxation, public interest, patriotism. B) Profit motive, legal equality, consumer protection, public interest. C) Profit motive, private property, eminent domain, voluntary exchange. D) Profit motive, private property, voluntary exchange. Show Answer Correct Answer: D) Profit motive, private property, voluntary exchange. 2. Define distribution channel: A) A term for a specific group of companies who have common business activities. B) The path a good must follow in order to reach a consumer. C) A standard used by the Federal statistical agencies in classifying business establishments. D) A category of business that utilizes materials produced from the primary sector to create goods. Show Answer Correct Answer: B) The path a good must follow in order to reach a consumer. 3. The situation where unemployment among capable workers is as close to 0% as possible describes which of the 7 major economic goals of free enterprise? A) Economic growth. B) Economic efficiency. C) Full employment. D) Economic security. Show Answer Correct Answer: C) Full employment. 4. What is one way the government might try to promote economic growth? A) Raise taxes. B) Increase spending. C) Reduce prices. D) Produce more goods. Show Answer Correct Answer: B) Increase spending. 5. The free enterprise system means companies have freedom to own, to compete, to profit and to risk. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. Identify a key principle of free enterprise. A) Government ownership of resources. B) Private property rights. C) Fixed pricing by the government. D) None of the above. Show Answer Correct Answer: B) Private property rights. 7. How might an entrepreneur demonstrate they are a risk taker? A) Start a business. B) Create a product. C) Quit their full time job. D) Invest a small amount of money into the business. Show Answer Correct Answer: C) Quit their full time job. 8. These are the three roles that the government has in the economy. A) Protector. B) Provider. C) Regulator. D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 9. What is the best measure of the economic well-being of a country? A) Net worth. B) GDP. C) Open market value of goods. D) The daily stock market performance. Show Answer Correct Answer: B) GDP. 10. When trying to innovate, it is useful to explore solutions that have worked in the past A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 11. Rise in the general level of prices A) Inflation. B) Glass Ceiling. C) Bubble Effect. D) Livable Cost Adjustment. Show Answer Correct Answer: A) Inflation. 12. What is the definition of export? A) A good that one country sells to another country. B) A good that one country buys from 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 sells to another country. 13. Characteristics of free enterprise capitalism include voluntary exchange, private property and these two. A) Competition & profit motive. B) Competition & involuntary exchange. C) Profit motive & opportunity cost. D) Opportunity cost & competition. Show Answer Correct Answer: A) Competition & profit motive. 14. Businesses who sell products to other businesses are part of: A) B2C market. B) B2B market. C) An industry. D) Government market. Show Answer Correct Answer: B) B2B market. 15. The concept that people have the right and privilege to control their possessions as they wish. A) Legal equality. B) Open opportunity. C) Private property. D) Profit incentive. Show Answer Correct Answer: C) Private property. 16. The ..... , an income level below that which is needed to support families or households. A) Free rider. B) Business cycle. C) Market failure. D) Poverty threshold. Show Answer Correct Answer: D) Poverty threshold. 17. What is an example of a government regulation? A) Drinking age of 21. B) Social Security. C) Police Force. D) Education System. Show Answer Correct Answer: A) Drinking age of 21. 18. In capitalism, who primarily owns the resources and means of production? A) The government. B) The community. C) Private individuals. D) Non-profit organizations. Show Answer Correct Answer: C) Private individuals. 19. What is a common aim of many enterprises? A) Reducing market competition. B) Maximising profits. C) Limiting employee growth. D) Minimising customer satisfaction. Show Answer Correct Answer: B) Maximising profits. 20. What benefit does drawing up a business plan bring for a new entrepreneur? A) It shows exactly how much money the firm will make. B) It makes sure the bank will lend all the capital needed. C) It means that the business start up has no risk of failure. D) It helps in organising the resources needed for the new firm. Show Answer Correct Answer: D) It helps in organising the resources needed for the new firm. 21. Economic action done or brought about by free choice A) Voluntary exchange. B) Profit motive. C) Modified free enterprise economy. D) Competition. Show Answer Correct Answer: A) Voluntary exchange. 22. Why does the cost of a good usually go down over time? A) The good becomes scarce. B) Goods always go up in price. C) Fewer people want the good. D) The good costs more to make. Show Answer Correct Answer: C) Fewer people want the good. 23. Typically, when households are shown on the right side of a circular flow model of a modified free enterprise system, businesses are located A) On the left. B) In the center. C) At the top. D) At the bottom. Show Answer Correct Answer: A) On the left. 24. The governments of these two Asian nations are examples of governments who restrict the economic freedoms of their citizens: A) France & Egypt. B) Japan & Alaska. C) India & China. D) China & North Korea. Show Answer Correct Answer: D) China & North Korea. 25. An important characteristic of a successful entrepreneur is that: A) They are always rich. B) They are risk takers. C) They are usually shy. D) They want to avoid hard work. Show Answer Correct Answer: B) They are risk takers. ← PreviousNext →Related 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 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