Chapter 1 Quiz: The Business Idea

What is an entrepreneur?

• An individual who works for a company and follows orders.

• An individual who creates a new business, bears most of the risks, and enjoys the rewards.

• An individual who invests in the stock market.

• An individual who manages a government office.

What is an entrepreneur usually known for?

• Following traditional business models.

• Being a source of new ideas/products/services.

• Working in a government office.

• Investing in real estate.

What do all levels of government provide to promote entrepreneurship?

• Loans and mortgages.

• Grants and support programs.

• Free office spaces.

• Tax exemptions.

Which of the following is a motivation for starting a business?

• A desire for independence

• A desire for dependence

• Lack of flexibility

• Avoiding responsibility

What is one of the motivations for starting a business mentioned in the document?

• To avoid market needs

• To fulfill a market need

• To reduce social interaction

• To minimise profit

Which of the following is NOT listed as a motivation for starting a business?

• Freedom and flexibility

• Success and wealth

• To make a profit

• To avoid competition

What is one of the personal motivations for starting a business?

• To fulfill a social need

• To develop a niche business

• To be 'your own boss'

• To fulfill a market need

What is one of the factors an individual must assess when determining their personal suitability for starting a business?

• The current market trends

• The personal motivation and objectives for starting the business

• The availability of investors

• The economic policies of the government

Which of the following is NOT mentioned as a consideration for assessing personal suitability for starting a business?

• Personal skills and qualities

• Compatibility of personal and business goals

• Market competition

• Things important to them (e.g. family, lifestyle, wealth)

Why is it important to assess the compatibility of personal and business goals when starting a business?

• To ensure the business aligns with market trends

• To ensure the business aligns with personal values and objectives

• To attract more investors

• To comply with government regulations