ENTREPRENEURSHIP

An individual who starts, creates and manages a new business can be called

• a leader

• a manager

• a professional

• an entrepreneur

Answer explanation

An individual who starts, creates, and manages a new business is best described as an entrepreneur. This term specifically refers to someone who takes on the risk of starting a new venture.

Which could provide an individual with the motivation to start a new business

venture?

• the financial rewards

• a desire to be independent

• risk taking

• all of the above

Answer explanation

All of the options—financial rewards, a desire to be independent, and risk taking—can motivate an individual to start a new business venture. Therefore, the correct answer is 'all of the above'.

why are small businesses important to a country's economy?

• they give an outlet for entrepreneurs

• they can provide specialist support to larger companies

• they can be innovators of new products

• all of the above

Answer explanation

Small businesses are vital as they provide outlets for entrepreneurs, support larger companies with specialized services, and drive innovation by creating new products. Thus, all the options highlight their importance.

A business arrangement where one party allows another party to use a business

name and sell its products or services is known as .

• a cooperative

• a franchise

• an owner-manager business

• company

Answer explanation

A franchise is a business arrangement where one party (the franchisor) allows another party (the franchisee) to use its business name and sell its products or services, making it the correct choice.

Which of the following is the reason for business failure .

• lack of market research

• poor financial control

• poor management

• all of the above

Answer explanation

All of the options—lack of market research, poor financial control, and poor management—are critical factors that can lead to business failure. Therefore, the correct answer is 'all of the above'.

Entrepreneurs are motivated by ___________.

• money

• personal values

• influences

• all of the above

Answer explanation

Entrepreneurs are driven by various factors, including money, personal values, and external influences. Therefore, the correct answer is 'all of the above' as it encompasses all possible motivations.

Which of the following is least likely to influence the timing of new business

births?

• government policies

• profitability

• consumer expenditure

• weather conditions

Answer explanation

Weather conditions are less likely to impact new business births compared to factors like government policies, profitability, and consumer expenditure, which directly affect market conditions and business viability.

A or an __________ is defined as a form of business that is an association of two or more people acting as co-owners of a business.

• proprietorship

• partnership

• Incorporated

• corporation

Answer explanation

A partnership is specifically defined as a business arrangement where two or more individuals share ownership and management responsibilities. This distinguishes it from proprietorships, corporations, and incorporated entities.

As a company grows, the entrepreneur should focus on his/her:

• technical ability to complete a task.

• written communication

• management and motivation skills

• public speaking

Answer explanation

As a company grows, effective management and motivation skills become crucial for leading teams and driving performance, making this the best focus for an entrepreneur over technical skills or communication.

A ______________ can be a budget, a plan for spending and saving future income.

• financial plan

• marketing plan

• production plan

• organizational plan

Answer explanation

A financial plan is specifically designed to manage income, expenses, and savings, making it the correct choice. Other options like marketing, production, and organizational plans focus on different aspects of business.