Lesson 1.5.1

1.5.1 The role of an entrepreneur Quiz: Pearson Edexcel Business, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 1.5.1, The role of an entrepreneur: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 1: Marketing and people, written with Revision Ninja.

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The 20 questions

  1. Which term describes an individual who takes financial risks to set up a business?

    • Entrepreneur
    • Shareholder
    • Intrapreneur
    • Director

  2. What term describes employees displaying entrepreneurial behaviour within an established business?

    • Outsourcing
    • Franchising
    • Crowdfunding
    • Intrapreneurship

  3. Which factor represents a major barrier to starting a new business?

    • Strong demand
    • Low interest rates
    • High profits
    • Lack of finance

  4. How can an entrepreneur best reduce the impact of potential business risks?

    • Ignoring competitors
    • Contingency planning
    • Maximising prices
    • Increasing debt

  5. Which document is essential for securing initial funding when setting up a business?

    • Tax return
    • Dividend policy
    • Business plan
    • Share register

  6. Expanding a business into new geographical markets is an example of what process?

    • Liquidation
    • Insolvency
    • De-layering
    • Business growth

  7. How do large incumbent firms create a barrier to entry for new entrepreneurs?

    • High unit costs
    • Flexible pricing
    • Low brand loyalty
    • Economies of scale

  8. An entrepreneur borrows £40,000 at 6% a year. What is the annual interest?

    • £600
    • £4,000
    • £6,000
    • £2,400

  9. A start-up forecasts sales of £200,000 and costs of £150,000. What is the forecast profit?

    • £20,000
    • £150,000
    • £50,000
    • £350,000

  10. Which action is an example of intrapreneurship within an existing company?

    • Developing new products
    • Auditing accounts
    • Dismissing staff
    • Paying sales tax

  11. What is the primary financial risk when opening an additional business location?

    • Higher fixed costs
    • Higher cash reserves
    • Increased demand
    • Lower brand awareness

  12. What is the best first step for an entrepreneur testing demand for a new product?

    • Price skimming
    • Mass production
    • Market research
    • Stock flotation

  13. Which document helps an entrepreneur best reduce financial and operational risks?

    • Business plan
    • Debenture agreement
    • Share certificate
    • Tax return

  14. A business has start-up costs of £80,000 and expects a contribution of £20,000 a year. Roughly how long to recover the start-up costs?

    • 4 years
    • 2 years
    • 8 years
    • 16 years

  15. Which barrier to entrepreneurship can a government directly reduce through policy changes?

    • Risk aversion
    • Lack of ideas
    • Bureaucracy
    • Personal fear

  16. What is a major positive impact that entrepreneurs have on the economy?

    • Job creation
    • Guaranteed profit
    • Tax removal
    • Zero risk

  17. What term describes employees taking entrepreneurial risks to innovate within an existing firm?

    • Satisficing
    • Social enterprise
    • Intrapreneurship
    • Franchising

  18. A start-up's fixed costs are £50,000 a year. It sells at £25 with variable cost of £15 per unit. How many units must it sell to break even?

    • 5,000 units
    • 50,000 units
    • 3,333 units
    • 2,000 units

  19. An entrepreneur expects a 30% chance of £200,000 profit and a 70% chance of a £40,000 loss. What is the expected value?

    • £88,000
    • £32,000
    • £28,000
    • £60,000

  20. Which factor should an entrepreneur evaluate first when deciding between two potential markets?

    • Customer demand
    • Staff welfare
    • Dividend yield
    • Share price

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