Practice for class test

Businesses that are registered with the relevant authorities and pay tax on their earnings. Their activities are included in the Gross Domestic Product (GDP) of a country

• Informal Sector

• Formal Sector

• Market Capitalization

• Owner- managed business

The products or services that businesses produce are given to customers in ________ for money

A private business that raises funds for elderly people in need, is an example of which type of need-satisfying business

• Government Organization

• Business Organization

• Non-Profit Organization

• State owned company

Which of the following are examples of elements of business

• Humans and human activities

• Profit

• Organizing

• Exchange

• Human Resources

Which of the following statements is correct?

• There is no direct correlation between entrepreneurship and the economic growth of

  a country.

• There is a significant association between the level of economic growth in a

  country and entrepreneurship.

• Entrepreneurship cannot be learnt; it is an innate ability that only a few people are

  born with.

• An entrepreneur is a person appointed by an owner of an enterprise to manage a

  business.

An entrepreneur can be identified by the following attributes:

• Risk-taker, innovation-averse, reproduce existing products.

• Eloquent, highly educated, good managers

• Lazy, dream about being successful, get bored easily.

• Innovative, seize opportunities, takes calculated risks.

Entrepreneurship can be defined as:

• A business discipline on how to make money.

• The process of establishing a business from the identification of a business

  opportunity and innovation through to planning, start-up, managing and growing the

  business.

• The process of developing a new product or service and selling it to customers in

  exchange for profit.

What is the primary characteristic of an entrepreneur?

• Risk-averse, follows existing trends, avoids innovation.

• Highly educated, good at following instructions, prefers stability.

• Innovative, takes calculated risks, seizes opportunities.

• Lazy, lacks ambition, dislikes challenges.

Which sector of business contributes directly to a country's GDP?

• Informal Sector

• Formal Sector

• Market Capitalization

• Owner-managed business

Why is entrepreneurship considered important for economic growth?

• It has no impact on economic growth.

• It leads to job creation, innovation, and increased productivity.

• Entrepreneurs only focus on personal wealth and not societal development.

• Entrepreneurship is a hindrance to economic progress.