Lesson 1.1.3b

1.1.3b The role of the entrepreneur Quiz: Pearson Edexcel Business, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 1.1.3b, The role of the entrepreneur: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 1: Enterprise and entrepreneurship, written with Revision Ninja.

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The 20 questions

  1. What does an entrepreneur do?

    • Inspects products to check that they meet the government's safety standards
    • Organises resources, makes business decisions and takes risks
    • Works as an employee in a large firm and follows its instructions each day
    • Lends money to businesses at a fixed rate of interest each year

  2. Which of these is part of the role of entrepreneurship?

    • Bringing together land, labour and capital to start a business
    • Paying a fixed monthly wage to employees who do the same tasks daily
    • Auditing the accounts of a firm for an external regulator each year
    • Following a set of instructions written by a manager in a large firm

  3. A person starts a business, hires staff, and decides where to sell. Which entrepreneurial role do these actions show?

    • Following a set plan issued by the government for all new firms
    • Organising resources and making business decisions
    • Working only as an employee in a firm owned by someone else
    • Avoiding all risk by keeping savings in a bank account at all times

  4. Why might an entrepreneur accept risk even though a business may not succeed?

    • Because a business with no risk always makes more profit than one with risk
    • Because the government requires every new business to accept a high level of risk
    • Because entrepreneurs are unable to borrow money or use their savings instead
    • Because the possible rewards, such as profit and independence, may be worth it

  5. Which of these describes an entrepreneur taking a risk?

    • Keeping savings in a bank account that pays a fixed interest rate each year
    • Following a franchise manual exactly without making any decisions of its own
    • Working for an employer on a fixed salary with no chance of profit at all
    • Investing savings in a new shop that may not attract enough customers

  6. What is the best description of the 'organising' role of an entrepreneur?

    • Combining the resources of a business, such as staff, premises and finance, to produce goods or services
    • Inventing new products and ideas for goods or services that have never been sold before in any market
    • Setting the selling prices of goods and services so that they are always lower than those of competitors
    • Taking the risk of losing money if the business fails to sell enough goods or services to cover its costs

  7. An entrepreneur decides to launch a product in one region before expanding nationally. What role is being carried out?

    • Avoiding any decisions so that the firm does not take on extra risk
    • Making a business decision based on the available information
    • Paying suppliers without checking the cost of the goods they provide
    • Following a government order to trade in only one region of the country

  8. Which of these best shows the risk-taking role of an entrepreneur?

    • Buying equipment from a supplier who always delivers on time and at full quality
    • Hiring staff on a permanent contract with a fixed salary and benefits each year
    • Keeping all the money in a current account and never investing it anywhere
    • Borrowing money to buy equipment for a new product that has not yet been tested

  9. An entrepreneur who runs a business is best described as someone who:

    • Takes the initiative to start and run a business, accepting its risks
    • Holds shares in a company but does not take part in its daily operations
    • Works only when instructed by a manager and never takes any responsibility
    • Advises the government on how to regulate the business sector each year

  10. Which group of tasks best describes the role of entrepreneurship in a small business?

    • Writing government policy on business regulation for the wider economy
    • Following orders from the head office and reporting results every week
    • Recruiting staff, pricing products and deciding how to finance the firm
    • Checking the tax records of other firms for the local council each year

  11. Which statement about an entrepreneur is accurate?

    • An entrepreneur avoids all risk so that the business never has any losses
    • An entrepreneur is always employed by a large company as a manager
    • An entrepreneur is someone who never takes decisions about the firm they run
    • An entrepreneur organises resources and accepts risks in order to gain rewards

  12. A business owner decides to take on a bank loan to expand a successful café. Which entrepreneurial role is most clearly shown?

    • Selling the café to a larger firm and ceasing to take any part in running it
    • Making a financial decision and accepting the risk of repaying the loan
    • Keeping all profits in cash and avoiding any form of financial decision
    • Following a set procedure that the bank has written for all of its customers

  13. Which of these is NOT a role of an entrepreneur?

    • Inspecting goods on behalf of the government to check their quality standards
    • Making decisions about which products to launch and when
    • Organising the resources needed to produce a product for customers
    • Taking the risks of starting a business that may not succeed

  14. Why are the rewards of entrepreneurship important to someone starting a business?

    • They remove the need for the owner to organise any resources for the firm
    • They guarantee that the business will never face any financial losses at all
    • They mean that no other business can compete with the new firm in its market
    • They provide the motivation to take the risks involved in starting up

  15. An entrepreneur organises resources by:

    • Bringing together staff, premises, equipment and finance to run the business
    • Using only the owner's personal time and no other resource to run the firm
    • Leaving all the arrangements to suppliers so that the owner has less to do
    • Keeping the resources of the business in separate places with no coordination

  16. Which of these is the most accurate description of entrepreneurship?

    • Lending money to other businesses to earn interest on savings each year
    • Working for a fixed salary in an existing firm without making any decisions
    • Inspecting products for safety on behalf of the government each month
    • Organising resources, making decisions and taking risks to run a business

  17. An entrepreneur hires a designer and buys raw materials for a new clothing line. Which entrepreneurial function is being carried out?

    • Accepting the risk of the business by agreeing to take no profit at all
    • Auditing the accounts of the business for the local tax authority
    • Organising the resources needed to produce goods for customers
    • Setting the government's policy on wages for the clothing industry

  18. Which of these would be an entrepreneur's decision about a business?

    • Choosing to sell online as well as in a physical shop
    • Following the government's list of approved products for all retailers
    • Recording the sales of a business that another person has decided to run
    • Paying a fixed monthly salary to a manager of a separate company

  19. Why is risk-taking an important part of entrepreneurship?

    • Because risk means that a business always makes a profit in its first year
    • Because the government requires every entrepreneur to borrow large sums each year
    • Because risk removes the need for an entrepreneur to make any decisions at all
    • Because starting a business involves uncertainty about whether it will succeed

  20. Which example shows an entrepreneur using their own savings as a risk?

    • Keeping personal savings in a current account for everyday spending needs
    • Putting savings into a fixed-rate account that is guaranteed by the government
    • Spending personal savings on equipment for a business that may not earn enough
    • Asking a bank to hold the owner's savings in a safe deposit box for ten years

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