NTC Entrep PRELIM EXAM

What is the primary role of an entrepreneur in the economy?

• To consume resources

• To provide employment and income

• To avoid paying taxes

• To rely on government support

Which of the following is NOT one of the 4 basic aspects of being an entrepreneur?

• Creation of something of value

• Devotion of necessary time and effort

• Avoidance of risks

• Getting rewards

What is the term used to describe a person who starts and operates a business and is willing to take risks?

• Employee

• Entrepreneur

• Investor

• Manager

What does the multiplier effect refer to in entrepreneurship?

• The decrease in economic activity due to spending

• The impact of monetary supply changes on economic activity

• The increase in taxes due to entrepreneurship

• The reduction of employment opportunities

What is one of the psychological rewards of entrepreneurship?

• Increased workload

• Dependency on others

• Improved self-esteem and confidence

• Guaranteed financial success

Which of the following is a problem associated with entrepreneurship?

• Unlimited working hours

• Emotional stress

• Guaranteed high profits

• Easy job responsibilities

What is the formula for calculating profit?

• Cost & Expenses - Selling Price

• Selling Price + Cost & Expenses

• Selling Price - Cost & Expenses

• Cost & Expenses x Selling Price

Which of the following best describes an entrepreneur's business type?

• Corporation

• Partnership

• Single proprietorship

• Limited Liability Company

What does the cycle of regression involve?

• Business expansion

• Decline in economic activity

• Increase in employment

• Improvement in business profits

Which of the following is NOT considered a reward of entrepreneurship?

• Freedom

• Psychological rewards

• Guaranteed success

• Material profit