Lesson 1.5.2
1.5.2 Entrepreneurial motives and characteristics Quiz: Pearson Edexcel Business, Unit 1
20 questions
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Lesson 1.5.2, Entrepreneurial motives and characteristics: 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
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Which motive describes an owner who is content with a reasonable level of profit rather than the highest possible profit?
- Profit satisficing
- Cost minimisation
- Profit maximisation
- Sales maximisation
-
An entrepreneur turns down a £2m offer for her firm because she values controlling her own working day. Which motive does this most closely reflect?
- Market share growth
- Independence
- Profit maximisation
- Survival
-
At what output level is profit maximisation achieved?
- MR equals zero
- AR equals AC
- TR exceeds TC
- MC equals MR
-
A parent sets up a business at home to balance family commitments. Which motive is this?
- Profit satisficing
- Ethical stance
- Profit maximisation
- Home working
-
Which characteristic best describes an entrepreneur's willingness to accept uncertainty for potential gains?
- Avoiding all risk
- Financial caution
- Following strict routine
- Taking calculated risks
-
Which type of organisation trades commercially to achieve social or environmental goals?
- Public limited company
- Social enterprise
- Franchise
- Private limited company
-
A firm pays a premium for fair-trade cocoa even though it reduces its profit margin. Which motive best explains this decision?
- Profit maximisation
- Ethical stance
- Sales maximisation
- Cost efficiency
-
An owner aims for an acceptable profit rather than the highest possible return. Which concept is this?
- Profit satisficing
- Profit maximisation
- Cost efficiency
- Sales maximisation
-
Which of the following is a financial motive for setting up a business?
- Profit maximisation
- Home working
- Independence
- Ethical stance
-
Which factor allows owner-managers of small firms to adopt profit satisficing?
- Lack of shareholders
- High debt levels
- Stock exchange rules
- Strict legal targets
-
An entrepreneur says: I started this firm so I would never again take orders from anyone. This is an example of which motive?
- Profit satisficing
- Survival
- Independence
- Market share
-
Which characteristic enables an entrepreneur to bounce back after a business failure?
- Numeracy
- Authoritarianism
- Delegation
- Resilience
-
Which non-financial motive involves running a business according to strong moral principles?
- Independence
- Ethical stance
- Profit satisficing
- Sales maximisation
-
A business donates a portion of its profits to support local community projects. Which motive is this?
- Sales maximisation
- Social objectives
- Cost efficiency
- Profit maximisation
-
Which non-financial motive describes setting up a business in order to be your own boss?
- Cost efficiency
- Independence
- Profit satisficing
- Profit maximisation
-
Which non-financial motive involves balancing work with family and personal life?
- Market dominance
- Work-life balance
- Profit maximisation
- Cost efficiency
-
Which factor helps maintain an entrepreneur's commitment during early unprofitable periods?
- Share prices
- Profit maximisation
- Personal passion
- Dividend yields
-
Which characteristic allows an entrepreneur to adjust quickly to unexpected market changes?
- Risk aversion
- Adaptability
- Centralisation
- Obstinacy
-
A firm sets a target of a 15% return on capital and is satisfied when it achieves it. Which concept fits best?
- Revenue maximisation
- Cost maximisation
- Profit satisficing
- Profit maximisation
-
Which of the following is a primary non-financial motive for starting a business?
- Independence
- Cost reduction
- Profit maximisation
- Profit satisficing
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