Questions and Answers
An idea that is translated into a planned and implemented activity is known as what?
What term is used to describe a business venture that generates profit?
Which type of venture primarily provides profits as rewards?
Non-business ventures provide other types of rewards which may be physical or what?
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What creates an environment with numerous opportunities for enterprising individuals?
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Which of the following is NOT a feature of a business enterprise?
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The classification of enterprises based on the type of products produced is referred to as what?
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What does ISIC stand for?
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Who introduced the term entrepreneur in the early 18th century?
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Which of the following defines an entrepreneur as the agent who buys means of production at certain prices to combine them into a new product?
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Which economists referred to entrepreneurship as a broad English term for 'business management'?
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In what year was the necessity of entrepreneurs for production first formally recognized?
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What does the acronym LDC stand for?
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Which type of entrepreneurs rarely produce brand new products but instead imitate existing products and processes?
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Who are considered the engine that drives any economic revolution?
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What is the main characteristic of an entrepreneur as defined in the provided content?
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Study Notes
Definitions and Concepts
- An idea turned into a planned activity is known as an enterprise.
- A business venture aimed at profit is referred to as an enterprise.
- Business ventures provide profits as their primary reward.
Types of Ventures
- Non-business ventures offer alternative rewards, which can be physical or psychological.
- A synergistic community environment creates numerous opportunities for enterprising individuals to exploit.
Features of Enterprises
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Business enterprises are characterized by the following:
- Primary motive is profit.
- Products/services must be in demand and sold in a market.
- Payment for products/services must be made in full.
- Non-business enterprises may not require payment in full for products/services and may not be influenced by market demand.
Classification and Codes
- Classification of enterprises by product type is referred to as sectoral classification.
- ISIC stands for International Standard Industries Code.
- Size can also serve as a classification method for enterprises.
Role of Entrepreneurs
- Entrepreneurship is fundamentally a mindset.
- An entrepreneur is an individual who innovates and creates value around perceived opportunities.
- The term "entrepreneur" was first introduced by French economist Richard Cantillon in the early 18th century.
- Richard Cantillon defined an entrepreneur as an agent who combines means of production to create new products.
Contributions to Economic Understanding
- Early economists such as Adam Smith, David Ricardo, and John Stuart Mill referred to entrepreneurship using the broader term “business management.”
- Alfred Marshall formally recognized the necessity of entrepreneurs for production in 1890.
Development Indicators
- The acronym LDC stands for Least Developed Countries.
- Imitative entrepreneurs tend not to create new products but instead replicate existing ones from globally recognized innovations.
Economic Impact
- Entrepreneurs are considered the engine driving economic revolutions, underscoring their significance to economic development and innovation.
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Description
Test your knowledge on key concepts of entrepreneurship with these revision questions. This quiz focuses on defining essential terms and understanding business ventures. Perfect for students looking to reinforce their understanding of entrepreneurship.
