Unit 1: The Enterprise and the Entrepreneur Quiz

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What is a classic definition of an enterprise?

An economic unit of production that uses third party work (correct)

An entity motivated by social goals

A unit that uses only the entrepreneur's work

An autonomous unit that produces for personal consumption

Which sector is primarily composed of firms that perform extractive activities without generating transformation?

Secondary sector

Tertiary sector

Primary sector (correct)

Quaternary sector

Which legal form in Spain has only one owner who is personally liable for all obligations of the firm?

Sole-owner firms (correct)

Limited partnership

Private limited company

General partnership

What criteria does the European Commission use to distinguish SMEs from non-SMEs?

Size and resources Signup and view all the answers

What is a common factor among all firms?

The human factor directly linked to the organization Signup and view all the answers

Which component of an enterprise refers to the beliefs and behaviors determining how employees and management interact?

Corporate culture Signup and view all the answers

What does an enterprise do with its products according to the text?

Produces for the market Signup and view all the answers

Why is the classic definition of an enterprise considered inadequate nowadays?

Due to its dehumanized nature and lack of risks involved Signup and view all the answers

What is one of the factors external to a firm mentioned in the text?

Technological advancements Signup and view all the answers

What type of firms have their capital split between private and public ownership?

Mixed equity firms Signup and view all the answers

What is the motivation behind the activity of an enterprise?

Desire for obtaining profits Signup and view all the answers

What characteristic makes the classic definition of an enterprise inadequate nowadays?

Too narrow and dehumanized nature Signup and view all the answers

Which factor is NOT common to all firms as mentioned in the text?

Government regulation Signup and view all the answers

What does an enterprise NOT produce its goods for, according to the text?

Personal consumption Signup and view all the answers

Which legal form does an enterprise NOT need to adhere to according to the modern definition?

Undergoes no risks Signup and view all the answers

What distinguishes firms in the primary sector according to the text?

They perform extractive activities without relevant transformation. Signup and view all the answers

In Spain, which legal form of enterprise has the liabilities assumed by the firm itself?

Firms owned by legal persons Signup and view all the answers

What is the main criteria used by the European Commission to differentiate SMEs from non-SMEs?

Resources and size Signup and view all the answers

Which component of an enterprise refers to the beliefs and behaviors determining employee interactions and external business transactions?

Corporate culture Signup and view all the answers

What type of ownership involves capital split between private and public hands in an enterprise?