Entrepreneurship Quiz: Questions And Answers

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  • 1/20 Questions

    What is evaluation of your strengths and weaknesses?

    • Self Assessment
    • Employee
    • Entrepreneurship
    • Entrepreneur
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About This Quiz

An amazing entrepreneurship quiz with questions and answers is here for you. Entrepreneurship is the pride of creating something. It's something that is going to make a difference in others' lives. Well, it's curated based on knowledge of many things, but first of all, you have to be clear about the concepts of entrepreneurship.

The entrepreneurship questions and answers serve as a comprehensive tool to test and expand your knowledge in the dynamic field of entrepreneurship. This quiz is designed for aspiring entrepreneurs, business students, or anyone interested in delving deeper into the intricacies of starting and managing a successful venture. Let's get quizzing!

Entrepreneurship Quiz: Questions And Answers - Quiz

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  • 2. 

    What type of entrepreneurial business sells service instead of a product?

    • Manufacturing

    • Wholesaling

    • Retailing

    • Service

    Correct Answer
    A. Service
    Explanation
    The correct answer is Service because a business that sells services focuses on providing intangible offerings, such as consulting, repair, or professional expertise, rather than physical products. This type of entrepreneurial business relies on the skills and knowledge of its employees to deliver value to customers.

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  • 3. 

    Which one is NOT a step in the problem-solving method?

    • Define the problem

    • Gather information

    • Identify solutions

    • Ignore the problem

    Correct Answer
    A. Ignore the problem
    Explanation
    Ignoring the problem is not a step in the problem-solving method because it goes against the purpose of problem-solving, which is to find a solution. Ignoring the problem would prevent any progress from being made and would not lead to a resolution. The other three steps - defining the problem, gathering information, and identifying solutions - are all essential in order to effectively solve a problem.

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  • 4. 

    A person who works for someone else:

    • Aptitude

    • Employee

    • Entrepreneurs

    • Entrepreneurship

    Correct Answer
    A. Employee
    Explanation
    An employee is a person who works for someone else. They are typically hired by a company or organization to perform specific tasks or roles in exchange for a salary or wages. Unlike entrepreneurs who start their own businesses or work for themselves, employees work under the direction and supervision of their employers. They are responsible for carrying out their assigned duties and responsibilities as outlined by their employer.

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  • 5. 

    People who own, operate, and take risk of a business venture:

    • Aptitude

    • Employee

    • Entrepreneurs

    • Entrepreneurship

    Correct Answer
    A. Entrepreneurs
    Explanation
    Entrepreneurs are individuals who own, operate, and take the risk of a business venture. They are responsible for starting and managing their own businesses, often with innovative ideas and a willingness to take on financial risks. Unlike employees who work for a salary or wage, entrepreneurs are driven by the desire to create and grow their own businesses. Entrepreneurship refers to the process of starting and running a business, and aptitude refers to a person's natural ability or talent in a particular area.

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  • 6. 

    What is the variable cost?

    • Cost that goes up and down.

    • Cost that remains the same.

    • Measures the disadvantages of production.

    • Measures advantages of production.

    Correct Answer
    A. Cost that goes up and down.
    Explanation
    Variable cost refers to the cost that changes in direct proportion to the level of production or sales. It includes expenses such as raw materials, direct labor, and utilities, which vary depending on the quantity of goods or services produced. Unlike fixed costs that remain constant regardless of production levels, variable costs fluctuate as production increases or decreases. Therefore, the answer "Cost that goes up and down" accurately describes the nature of variable costs.

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  • 7. 

    This economy is about personal choice. Individuals decide what, how, and for whom products and services are produced.

    • Market

    • Command

    • Both

    • None

    Correct Answer
    A. Market
    Explanation
    In a market economy, individuals have the freedom to make choices about what to produce, how to produce it, and for whom to produce it. This means that individuals can decide what products and services they want to offer, how they want to produce them, and who they want to sell them to. This system is based on the principle of supply and demand, where prices are determined by the interactions of buyers and sellers in the market. In contrast, a command economy is characterized by central planning and government control over production and distribution.

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  • 8. 

    What is a fixed cost?

    • The cost that goes up and down.

    • The cost that remains the same.

    • Measure the disadvantages of production.

    • Measure advantages of production.

    Correct Answer
    A. The cost that remains the same.
    Explanation
    A fixed cost is a cost that remains constant regardless of the level of production or sales. It does not fluctuate with changes in output or sales volume. This type of cost is incurred regardless of whether any units are produced or sold. Examples of fixed costs include rent, insurance premiums, and salaries of employees who are not directly involved in production.

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  • 9. 

    What type of entrepreneurial business actually produce the products they sell?

    • Manufacturing

    • Wholesaling

    • Retailing

    • Service

    Correct Answer
    A. Manufacturing
    Explanation
    Manufacturing is the correct answer because entrepreneurial businesses that engage in manufacturing actually produce the products they sell. This involves the process of converting raw materials into finished goods through various production methods and techniques. These businesses typically have their own production facilities and equipment to create their products, which are then sold to wholesalers, retailers, or directly to consumers. Unlike wholesaling, retailing, or service-based businesses, manufacturing businesses are involved in the physical production and assembly of goods.

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  • 10. 

    What type of entrepreneurial business sells products directly to the people who use or consume them?

    • Manufacturing

    • Wholesaling

    • Retailing

    • Service

    Correct Answer
    A. Retailing
    Explanation
    Retailing is the correct answer because this type of entrepreneurial business involves selling products directly to the people who use or consume them. Retailers purchase goods from manufacturers or wholesalers and sell them to individual customers through physical stores, online platforms, or other channels. They play a crucial role in the distribution chain by providing convenient access to products for consumers.

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  • 11. 

    What is an office memorandum?

    • Message from one person to another.

    • A short written form of business communication.

    • Short speech

    • Letter

    Correct Answer
    A. A short written form of business communication.
    Explanation
    An office memorandum is a short written form of business communication. It is a document used within an organization to convey important information, instructions, or announcements to employees. Unlike a letter or a message between individuals, an office memorandum is specifically designed for internal communication within a company or department. It is concise and typically includes specific details and directives relevant to the business context.

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  • 12. 

    Which is NOT a disadvantage of Entrepreneurship?

    • Risky

    • Uncertain Income

    • You are the boss

    • Work long hours

    Correct Answer
    A. You are the boss
    Explanation
    The statement "You are the boss" is not a disadvantage of entrepreneurship because it implies having control and autonomy over one's own business. While being the boss may come with its own challenges and responsibilities, it is generally seen as a positive aspect of entrepreneurship rather than a disadvantage.

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  • 13. 

    What is market validation?

    • Conducting market research to determine if there is demand for a product or service

    • Obtaining necessary licenses and permits to operate a business

    • Creating a marketing plan to promote a product

    • Setting the price for a product or service

    Correct Answer
    A. Conducting market research to determine if there is demand for a product or service
    Explanation
    Market validation is a crucial step before launching a business or product. It involves testing your idea with potential customers to see if there's actual interest and a viable market. This might involve surveys, focus groups, or even testing a minimum viable product (MVP).

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  • 14. 

    Which is NOT an advantage of Entrepreneurship?

    • Can choose a business of interest.

    • You can be creative.

    • Make a lot of money.

    • You will make decisions alone.

    Correct Answer
    A. You will make decisions alone.
    Explanation
    Entrepreneurship offers numerous advantages such as the ability to choose a business of interest, being creative, and the potential to make a lot of money. However, the statement "You will make decisions alone" is not an advantage of entrepreneurship. In fact, one of the challenges of entrepreneurship is the responsibility of making decisions alone, which can be overwhelming and risky. It requires a strong decision-making ability, adaptability, and the willingness to take full accountability for the outcomes. Collaborative decision-making and seeking advice from others can often lead to better outcomes in entrepreneurship.

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  • 15. 

    The ability to learn a particular job:

    • Aptitude

    • Employee

    • Entrepreneurship

    • Entrepreneur

    Correct Answer
    A. Aptitude
    Explanation
    Aptitude refers to the natural ability or talent that an individual possesses to learn and excel in a particular job or field. It is the inherent capacity to acquire the necessary skills and knowledge required for a specific role. This ability can be developed and enhanced through training and experience. Therefore, aptitude is the correct answer as it directly relates to the capability of learning a particular job.

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  • 16. 

    What is the primary purpose of a business plan?

    • To secure funding from investors

    • To act as a roadmap for the business

    • To fulfill legal requirements for starting a business

    • To impress potential customers

    Correct Answer
    A. To act as a roadmap for the business
    Explanation
    Though a business plan can be used to secure funding (a), its core purpose is to guide the entrepreneur. It outlines the business's goals, strategies, target market, financial projections, and more. This roadmap helps entrepreneurs stay focused, make informed decisions, and measure progress. While a business plan might impress customers (d), its primary audience is the entrepreneur and their team.

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  • 17. 

    What is the opportunity cost?

    • Going with your first option.

    • Going with the easiest option.

    • Choosing the best alternative.

    • All of these

    Correct Answer
    A. Choosing the best alternative.
    Explanation
    Opportunity cost refers to the value of the next best alternative that is given up when making a decision. In this context, choosing the best alternative implies that the decision-maker is considering the potential benefits and drawbacks of each option and selecting the one that offers the greatest overall advantage. This suggests that the opportunity cost is the value associated with the alternatives that were not chosen, as they may have had potential benefits or advantages that were forfeited in favor of the selected option.

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  • 18. 

    What entrepreneurial business sells products to other businesses rather than the final customer?

    • Manufacturing

    • Wholesaling

    • Retailing

    • Service

    Correct Answer
    A. Wholesaling
    Explanation
    Wholesaling is the correct answer because it refers to the type of entrepreneurial business that sells products to other businesses or retailers, rather than directly to the final customer. Wholesalers typically purchase goods in bulk from manufacturers and sell them in smaller quantities to retailers, who then sell the products to the end consumers. This intermediary role makes wholesaling an essential part of the supply chain, facilitating the distribution of goods between producers and retailers.

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  • 19. 

    If you own your own business you will need to know how to calculate your profit. Which one is a calculation of profit?

    • Sales-months in a year

    • Sales-expenses

    • Total sales-expenses

    • Monthly sales* expenses

    Correct Answer
    A. Total sales-expenses
    Explanation
    The calculation of profit is determined by subtracting the total expenses from the total sales. This calculation gives the business owner an understanding of the amount of money they have earned after deducting all the expenses incurred in generating those sales.

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  • 20. 

    What type of economy allows the government to determine what, how, and whom products and services are produced?

    • Command

    • Market

    • Both

    • None

    Correct Answer
    A. Command
    Explanation
    A command economy allows the government to have complete control over what, how, and whom products and services are produced. In this type of economy, the government makes all the decisions regarding production, allocation of resources, and distribution of goods and services. This means that the government determines what goods and services are produced, how they are produced, and who receives them. This system is often associated with centrally planned economies, where the government sets production targets, prices, and wages.

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  • Current Version
  • Dec 11, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 14, 2009
    Quiz Created by
    Mrsruffin
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