Understanding Entrepreneurship and Leadership

What is the primary role of an entrepreneur?

• To take no risks

• To manage other people's businesses

• To create and develop a business

• To avoid innovation

Which of the following best describes intrapreneurship?

• A person who sets up a new business

• A business leader who avoids change

• An employee who innovates within an existing business

• A company that takes over another business

Which of the following is not a barrier to entrepreneurship?

• Lack of finance

• Government incentives

• Fear of failure

• Market competition

What is the difference between risk and uncertainty in a business context?

• Risk is measurable, while uncertainty is unpredictable.

• Uncertainty is always financial, while risk is not.

• Risk always leads to failure.

• Entrepreneurs should avoid both risk and uncertainty.

What is a common risk entrepreneurs face when starting a business?

• Increased market share

• Losing personal investment

• Unlimited profits

• Higher government funding

Which of the following is a characteristic of a successful entrepreneur?

• Risk-averse behavior

• Lack of motivation

• Creativity and resilience

• Avoidance of competition

Which of the following is a financial motive for starting a business?

• Independence

• Social entrepreneurship

• Profit maximisation

• Ethical stance

Which non-financial motive explains why someone may start a business to benefit society?

• Ethical stance

• Profit satisficing

• Market share growth

• Cost efficiency

Profit satisficing means:

• Aiming for maximum possible profit

• Making just enough profit to maintain the business and lifestyle

• Selling more than competitors

• Reducing costs at all times

Which business structure has unlimited liability?

• PLC

• Sole trader

• Private limited company

• Franchise