Cambridge International AS Level · Business (9609)

Enterprise: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Enterprise.

10 questions24 marksFree, no account

Question 1

1 mark

Which of the following best explains why a comprehensive business plan might fail to prevent a new business from collapsing in its first year?

Question 2

1 mark

Which of the following describes a key distinction between an entrepreneur and an intrapreneur?

Question 3

1 mark

Why might a business plan fail to secure funding from a venture capitalist even if the financial forecasts show high potential profitability?

Question 4

1 mark

Which of the following best illustrates the concept of adding value?

Question 5

1 mark

A national retail chain operates in various cities across a single country but does not have any stores or production facilities abroad. Which of the following best describes the scope of this business activity?

Question 6

2 marks

Explain the primary difference between a local business and a multinational business.

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Question 7

4 marks

Explain why uncertainty presents a more significant challenge to an entrepreneur than business risk when entering a brand-new market.

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Question 8

5 marks

Evaluate how a dynamic business environment, characterized by rapid technological change, impacts the accuracy and usefulness of a long-term business plan.

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Question 9

3 marks

An aspiring entrepreneur decides to open a small coffee shop in a local neighborhood. To start the business, they rent a small building, hire two baristas, purchase an espresso machine, and use their personal savings to fund the launch.

(a) Identify the four factors of production mentioned in this scenario.
(b) Briefly explain the difference between business risk and uncertainty for this new entrepreneur.

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Question 10

5 marks

A software development firm must effectively manage its factors of production and its planning processes to survive in a dynamic business environment.

(a) Distinguish between land and capital as factors of production by providing one specific example of each for a software development business. (2 points)
(b) Analyze two reasons why a business plan might fail to prevent a startup from failing within its first year of operation. (3 points)

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