HHS 1.1 Enterprise and Entrepreneurship

Which of the following is a common source of business ideas?

• Watching television

• Identifying a gap in the market

• Reading novels

• Playing video games

What is one key characteristic of an entrepreneur?

• Pessimism

• Risk aversion

• Creativity

• Laziness

Which of the following is a method of risk management?

• Ignoring potential problems

• Diversifying products

• Increasing prices without reason

• Reducing quality

What is a business plan primarily used for?

• To entertain employees

• To outline business goals and strategies

• To confuse competitors

• To avoid paying taxes

Which of the following is an example of a financial risk for a new business?

• High employee morale

• Low customer demand

• Strong brand reputation

• High market share

What is the main purpose of market research in entrepreneurship?

• To copy competitors

• To understand customer needs and preferences

• To increase production costs

• To reduce employee wages

Which of the following is a non-financial risk for a business?

• Economic recession

• Poor customer service

• High interest rates

• Exchange rate fluctuations

What is an entrepreneur most likely to do when faced with a business challenge?

• Give up immediately

• Seek innovative solutions

• Blame others

• Ignore the problem

Which of the following is a benefit of being an entrepreneur?

• Guaranteed success

• Flexible working hours

• No financial risks

• No need for planning

What is a common reason for a business to fail?

• Strong leadership

• Poor financial management

• High customer satisfaction

• Effective marketing