Factors of Production & Opportunity Cost Quiz

What is the definition of a business enterprise?

• The formation of a new business or development of a new good or service to be introduced to the market.

• The process of buying and selling goods in a market.

• The management of a company's finances.

• The creation of a marketing strategy for a product.

Which of the following is a motive for entrepreneurs?

• To avoid taking risks.

• To generate a profit.

• To work for someone else.

• To reduce market competition.

What is one of the non-financial motives for entrepreneurs?

• Generate a profit.

• Be own boss.

• Increase market share.

• Reduce costs.

What is a function of an entrepreneur?

• They avoid taking risks.

• They set up a business.

• They work as employees.

• They focus only on profits.

What is one of the rewards of being an entrepreneur?

• Loss of security.

• Flexible working hours.

• High stress levels.

• Low sales.

What is a risk of being an entrepreneur?

• High job satisfaction.

• Financial loss of income.

• Guaranteed profits.

• Low competition.

What does an entrepreneur do to identify opportunities?

• Avoids market research.

• Spots a gap in the market.

• Follows competitors blindly.

• Ignores customer feedback.

What is one of the social/community motives for entrepreneurs?

• To maximize profits.

• To support a specific cause.

• To reduce employment.

• To increase personal wealth.

What is a characteristic of an entrepreneur?

• Indecisive.

• Determined.

• Risk-averse.

• Unorganized.

What is one reason people set up their own business?

• To avoid responsibility.

• To keep a family business running.

• To work fewer hours.

• To eliminate competition.