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1 Enterprise: Multiple-Choice Questions

This document discusses concepts related to business enterprise and entrepreneurship. It provides definitions for key terms like entrepreneur, factors of production, and opportunity cost. It also lists characteristics of successful entrepreneurs and difficulties new businesses may face. The document is made up of multiple choice questions covering topics like business objectives, working capital, and differences between social enterprises and traditional businesses.

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Katherine Pierce
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895 views

1 Enterprise: Multiple-Choice Questions

This document discusses concepts related to business enterprise and entrepreneurship. It provides definitions for key terms like entrepreneur, factors of production, and opportunity cost. It also lists characteristics of successful entrepreneurs and difficulties new businesses may face. The document is made up of multiple choice questions covering topics like business objectives, working capital, and differences between social enterprises and traditional businesses.

Uploaded by

Katherine Pierce
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cambridge International AS and A Level Business

1 Enterprise
Multiple-choice questions
1 When a business ‘creates or adds value’ it increases:

a the difference between the cost of purchasing raw materials and the price the finished
goods are sold for

b the number of products it sells

c the difference between the cost of producing a product and the price for which it is sold

d the difference between the price of a product and the variable cost of its production

2 The machinery that is used by a business is an example of which factor of production?

a land

b capital

c labour

d enterprise

3 An entrepreneur is someone who:

a is an employee of a business enterprise

b takes the risk of starting and managing a business venture

c works for the government to provide public services

d just provides capital to a business start-up

4 Which one of the following is not a likely characteristic of a successful entrepreneur?

a willing to take risks

b committed and self-motivated

c innovative

d risk averse

5 The most likely difficulty for new business start-ups is:

a obtaining finance

b identifying a market

c marketing

d finding suitable employees

6 A dynamic business environment means:

a factors external to the business are never constant

b new employees are being recruited

c a business is constantly changing its products

d factors external to the business are easy to forecast

© Cambridge University Press 2014  Cambridge International AS and A Level Business Multiple-choice questions – Chapter 1 1
Cambridge International AS and A Level Business

 7 When an entrepreneur decides to spend $1,000 on a new computer to store details of


inventories, the opportunity cost is:

a $1,000

b everything else that could have been purchased with $1,000

c the next most needed factor that could have been bought

d the lost opportunity of buying a second-hand computer

 8 All of the following will help ensure that there is sufficient working capital for a
new business except:

a constructing a cash-flow forecast

b injecting sufficient capital at the beginning of a business venture

c developing a good working relationship with the bank

d offering generous credit terms to customers

 9 Business enterprise is claimed to bring all of the following benefits to an economy


with the exception of:

a creation of employment

b a more dynamic and innovative economy

c economic growth

d a reduction in competition

10 The most important difference between social enterprises and profit-seeking


businesses is:

a social enterprises never aim to make a profit

b social enterprises will have objectives other than profit

c profit-seeking businesses will always make a profit

d social enterprises do not sell goods and services but profit seeking businesses do

© Cambridge University Press 2014  Cambridge International AS and A Level Business Multiple-choice questions – Chapter 1 2

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