AICE BUSINESS 1.1

What is opportunity cost?

• The value of the next best alternative that is given up

• The cost of the next best alternative that is chosen

• The cost of purchasing an opportunity

• The value of the chosen alternative

List three benefits of entrepreneurship.

• Innovation, job creation, economic growth

• Reduction in innovation, job destruction, economic downturn

• Stagnation, unemployment, economic decline

• Lack of creativity, job loss, economic recession

Explain how entrepreneurship benefits a country's economy.

• Entrepreneurship benefits a country's economy by creating inefficiency, discouraging innovation, and decreasing competition, leading to economic downturn and collapse.

• Entrepreneurship benefits a country's economy by creating jobs, driving innovation, and increasing competition, leading to economic growth and development.

• Entrepreneurship benefits a country's economy by increasing poverty, hindering progress, and decreasing competition, leading to economic recession and regression.

• Entrepreneurship benefits a country's economy by causing unemployment, stifling innovation, and reducing competition, leading to economic decline and stagnation.

Discuss the risks and benefits associated with entrepreneurship.

• Entrepreneurship always leads to failure

• Entrepreneurship is not worth the effort

• Entrepreneurship has no risks, only benefits

• Entrepreneurship involves taking risks in order to pursue opportunities, which can lead to both benefits and drawbacks.

How does creating and adding value contribute to entrepreneurship?

• By identifying opportunities, innovating, and meeting customer needs

• By focusing on personal gain rather than meeting customer needs

• By ignoring opportunities and customer needs

• By copying existing ideas and not innovating

What are the characteristics of an entrepreneur?

• Characteristics of an entrepreneur include risk-taking, innovation, leadership, resilience, and vision.

• Characteristics of an entrepreneur include fear of change, resistance to new ideas, and lack of motivation.

• Characteristics of an entrepreneur include laziness, conformity, and lack of ambition.

• Characteristics of an entrepreneur include aversion to risk, lack of creativity, and inability to lead.

What is the formula for market capitalization?

• Market capitalization = Total assets / Total liabilities

• Market capitalization = Earnings per share / Price-earnings ratio

• Market capitalization = Dividends per share x Total number of outstanding shares

• Market capitalization = Current share price x Total number of outstanding shares

Define a social enterprise and provide an example.

• An example of a social enterprise is TOMS, a company that donates a pair of shoes to a child in need for every pair of shoes purchased.

• Amazon, a company known for its aggressive business tactics and poor treatment of workers

• McDonald's, a company that focuses on maximizing profits without any social impact

• Nike, a company that has been involved in controversies related to labor practices

How does entrepreneurship contribute to social and environmental sustainability?

• By promoting unsustainable business practices and creating more waste

• By creating innovative solutions, promoting sustainable business practices, and generating employment opportunities.

• By increasing unemployment and poverty

• By causing environmental degradation and exploiting natural resources

Explain the concept of 'triple bottom line' in the context of social enterprises.

• It measures the level of competition faced by a social enterprise.

• It measures the amount of profit generated by a social enterprise.

• It measures the social, environmental, and financial performance of a social enterprise.

• It measures the number of employees in a social enterprise.