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- 1. Multiple ChoiceThe advantage of a person becoming an entrepreneur is:more money'll always be earned than working for an employerthere is more independence than when working for an employerLess risk of business failureno oppotunity cost involved in becoming anentepeneur
- 2. Multiple ChoiceAn important characteristic of a successful entrepreneur is that:they are always richthey are risk takersthey are usually shythey want to avoid hard work
- 3. Multiple ChoiceA business plan for a new business will include all of the following exceptfinancial forecastsmarket research datadetails of the business ownersprevious years' accounts
- 4. Multiple ChoiceWhat benefit does drawing up a business plan bring for a new entrepreneur?it shows exactly how much money the firm will makeit makes sure the bank will lend all the capital neededit means that the business start up has no risk of failureit helps in organising the resources needed for the new firm
- 5. Multiple ChoiceWhich of the following is not an effective way of measuring the size of a business?number of employeesvalue of salesvalue of capital investedprofit level
- 6. Multiple ChoiceWhich of the following options is most likely to be a reason why a firm may wish to expand?To keep control of the businessTo increase the level of profits the firm will makeTo encourage competitionTo avoid publicity
- 7. Multiple ChoiceWhich of the following is an example of horizontal integration between two businesses?An oil company and an insurance company mergeA shoe shop buys out a shoe factoryA steel firm takes over a coal mine that supplies coalCoca-Cola takes over a small soft drink business
- 8. Multiple ChoiceOne of the reasons for vertical integration between two businesses could be to:diversify into a completely different industryreduce competitors supplying the same productcontrol the supply of raw materialobtain higher market share
- 9. Multiple ChoiceOne of the most common reasons for a new business not surviving is:too much time spent on developing the business planno competitors in the industrypoor cash flow as a result of poor financial planningconsumers like dealing with small firms providing a service
- 10. Multiple ChoiceIf the risks of starting up a business are so high, why do entrepreneurs create new businesses?The rewards are always extremely lowThe rewards can be very highThe risks of the business failing are very low
- 11. Multiple ChoiceOne way of overcoming the problems that often result from fast business growth is tointegrate with a much larger businessreduce the amount of capital invested in the businessreduce communication between people to save timeoperate the business in smaller units
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