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

  1. 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
  2. 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
  3. At what output level is profit maximisation achieved?

    • MR equals zero
    • AR equals AC
    • TR exceeds TC
    • MC equals MR
  4. A parent sets up a business at home to balance family commitments. Which motive is this?

    • Profit satisficing
    • Ethical stance
    • Profit maximisation
    • Home working
  5. 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
  6. Which type of organisation trades commercially to achieve social or environmental goals?

    • Public limited company
    • Social enterprise
    • Franchise
    • Private limited company
  7. 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
  8. 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
  9. Which of the following is a financial motive for setting up a business?

    • Profit maximisation
    • Home working
    • Independence
    • Ethical stance
  10. Which factor allows owner-managers of small firms to adopt profit satisficing?

    • Lack of shareholders
    • High debt levels
    • Stock exchange rules
    • Strict legal targets
  11. 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
  12. Which characteristic enables an entrepreneur to bounce back after a business failure?

    • Numeracy
    • Authoritarianism
    • Delegation
    • Resilience
  13. Which non-financial motive involves running a business according to strong moral principles?

    • Independence
    • Ethical stance
    • Profit satisficing
    • Sales maximisation
  14. 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
  15. Which non-financial motive describes setting up a business in order to be your own boss?

    • Cost efficiency
    • Independence
    • Profit satisficing
    • Profit maximisation
  16. Which non-financial motive involves balancing work with family and personal life?

    • Market dominance
    • Work-life balance
    • Profit maximisation
    • Cost efficiency
  17. Which factor helps maintain an entrepreneur's commitment during early unprofitable periods?

    • Share prices
    • Profit maximisation
    • Personal passion
    • Dividend yields
  18. Which characteristic allows an entrepreneur to adjust quickly to unexpected market changes?

    • Risk aversion
    • Adaptability
    • Centralisation
    • Obstinacy
  19. 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
  20. 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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