LO2 lesson 1 Enterprise and Innovation Quiz

Which of the following is an economic benefit of enterprise?

• Established businesses are replaced

• Decreased living costs

• Increased community spirit

• Increased consumer spending

Answer explanation

Increased consumer spending is an economic benefit of enterprise as it boosts the economy and supports businesses.

What does innovative mean?

• New and original

• Tried and tested

• Traditional and trusted

• Unoriginal and used

Answer explanation

Innovative means new and original, not tried and tested, traditional, or unoriginal and used.

Which of the following is an example of innovative technology that we use every day?

• Smartphones

• Typewriters

• Steam Engines

• Telegraphs

Answer explanation

Examples of innovative technology we use every day include smartphones, GPS navigation, and cloud computing services.

Identify two qualities of an entrepreneur:

• Creativity and Risk-taking

• Laziness and Procrastination

• Indecisiveness and Fear

• Passivity and Inaction

Answer explanation

Creativity and risk-taking are two qualities of an entrepreneur.

Outline two benefits to the economy of new businesses opening:

Answer explanation

New businesses opening can create job opportunities and stimulate economic growth through increased competition and innovation.

Identify two benefits to society resulting from enterprise and entrepreneurship:

Answer explanation

Two benefits to society resulting from enterprise and entrepreneurship are job creation and innovation.

Outline how product innovation takes place:

• Through market research and development

• By copying competitors

• By reducing product quality

• Through random experimentation

Answer explanation

Product innovation takes place through research, idea generation, prototype development, testing, feedback, and final product launch.

Outline the definition of enterprise:

• A business or company

• A type of software

• A government organization

• A non-profit entity

Answer explanation

An enterprise is a business organization involved in commercial, industrial, or professional activities with the aim of making a profit.

Outline the meaning of economic growth:

• Increase in a country's output of goods and services

• Decrease in a country's population

• Stability in a country's political environment

• Reduction in a country's inflation rate

Answer explanation

Economic growth refers to an increase in a country's production of goods and services over time, indicating a rise in the overall economic output and standard of living.

Outline the difference between a customer and a consumer:

Answer explanation

A customer purchases goods or services, while a consumer uses or consumes them. Customers can buy for themselves or others, but consumers are the end-users.