1. What is an entrepreneur?
A person who only watches television and never works
A teacher who only teaches in school
A person who starts and runs a business and accepts its risks
A government official who makes laws
Explanation:
An entrepreneur is someone who begins and manages a business, taking financial and other risks to make it succeed.
2. What is an enterprise?
A place where people only go for recreation
A business that provides goods or services to earn income
A school subject only for older students
A type of government office
Explanation:
An enterprise is an organization (small or large) that produces goods or offers services to make money or meet community needs.
3. Which of these is a common micro enterprise in Kenyan towns?
A large manufacturing factory
The county government's main office
A national bank headquarters
A small kiosk selling groceries and snacks
Explanation:
Kiosks are typical micro enterprises in Kenya, run by individuals selling everyday items to local customers.
4. Why do many entrepreneurs start businesses?
To avoid helping their community
To stop learning new things
To make sure they never meet customers
To earn income and make a profit
Explanation:
A key reason for starting a business is to generate income for the owner and sometimes create jobs.
5. Which of the following is NOT a good characteristic of an entrepreneur?
Being lazy and avoiding work
Being hardworking and persistent
Being creative and finding solutions
Being willing to take calculated risks
Explanation:
Successful entrepreneurs are usually hardworking, creative and willing to take risks; being lazy would prevent business success.
6. What does the term 'capital' mean for a business?
The building where students study
Money and assets used to start and run a business
The total number of products sold in a day
Only the customers who visit a shop
Explanation:
Capital includes cash, equipment and other resources that help a business operate and grow.
7. What is profit?
The amount of sleep an owner gets
A list of items the business sells
The total number of customers in a market
Money left after paying business costs from the sales income
Explanation:
Profit is what remains when expenses are subtracted from the revenue earned by the business.
8. Who is a customer?
A bank manager who never visits the market
A teacher who only gives lessons in class
A person who builds roads for the county
A person who buys goods or services from a business
Explanation:
Customers are people or organizations that purchase what a business offers.
9. Which of the following is an example of a service?
Selling tomatoes at a market stall
Selling a bar of soap from a shop
Giving a haircut at a salon
Buying maize flour from a kiosk
Explanation:
A haircut is a service because it is an action performed for a customer rather than a physical product.
10. Why is record keeping important for a small business?
To know how much money is earned and spent and to make better decisions
To make sure the owner never counts money
To stop customers from buying goods
To make the shop look bigger without selling anything
Explanation:
Good records show sales, expenses and profits so the owner can plan, pay taxes and improve the business.
11. Which of these is an example of a business risk?
Having too many customers every day
Low sales during a slow season
The business making extra profits
Getting a free gift from a friend
Explanation:
Low sales reduce income and can harm a business; knowing risks helps entrepreneurs plan for them.
12. What does innovation mean in entrepreneurship?
Creating new or better ideas, products or ways of doing things
Only selling the same old items without improvement
Refusing to try anything different
Copying someone else without changes
Explanation:
Innovation helps businesses stand out by offering improved products or methods that meet customer needs.
13. Which government action can help entrepreneurs in Kenya?
Increasing rules so no one can sell anything
Stopping people from learning business skills
Providing training and support to register and start small businesses
Closing all small shops and markets
Explanation:
Governments can help by offering training, grants or simpler registration processes that make it easier to start and run enterprises.
14. What is a target market?
A place where targets are sold
The number of workers in the business
The group of customers a business wants to sell to
A list of things the owner dislikes
Explanation:
A target market is the specific group of people who are most likely to buy a product or service.
15. Which of these is an example of a startup cost?
Sleeping at home instead of working
Buying materials and equipment needed to begin the business
Going on a holiday before opening the shop
Eating at a friendβs house unrelated to the business
Explanation:
Startup costs are the initial expenses like buying stock, equipment or rent needed to open the business.
16. Why is saving important for an entrepreneur?
To have funds for emergencies, to grow the business or buy new stock
To spend all money on celebrations
To hide money so it is never used
To avoid investing in the business
Explanation:
Savings help entrepreneurs handle slow months, replace worn equipment and expand when opportunities arise.
17. What is a sole proprietorship?
A company run by a large group of strangers
A shop that never sells anything
A business owned by the whole government
A business owned and run by one person
Explanation:
A sole proprietorship is the simplest business type where one person is responsible for all decisions and profits.
18. How can an entrepreneur attract customers?
By offering good quality goods or services and telling people through simple advertising
By increasing prices without improving anything
By never answering the phone or serving people
By hiding the business so no one finds it
Explanation:
Good quality plus communication (like posters, word-of-mouth or social media) helps bring customers to the business.
19. What is the break-even point in a business?
When total sales equal total costs and the business makes no profit or loss
When the shop is closed for a holiday
When the owner spends all the money on personal items
When the business earns only losses every day
Explanation:
Break-even is the level of sales where income covers all costs; beyond this point the business starts making profit.
20. Which of these belongs in a simple business plan?
A description of the product or service, who will buy it and how costs will be met
A schedule for watching television daily
A list of games to play during school break
A record of only family chores
Explanation:
A business plan explains what you will sell, your customers, how you will sell it and how money will be managed.
21. What does sustainability mean for a business?
Only opening the business for one day and never again
Making as much waste as possible
Using all resources quickly without planning
The business can continue operating over time without harming people or the environment
Explanation:
Sustainable businesses plan for long-term success while caring for workers, customers and natural resources.
22. Why do entrepreneurs need to pay taxes?
To follow the law and support public services like roads and schools
To hide their income from everyone
Because taxes are optional for everyone
So the business can never open
Explanation:
Paying taxes is a legal duty that helps fund public services which also benefit businesses and communities.
23. How does teamwork help a small business?
It shares tasks and ideas so work gets done faster and better
It causes constant arguments and no progress
It makes the business more expensive to run for no reason
It means everyone does nothing and waits
Explanation:
Teamwork allows people to use different skills, support each other and improve business operations.
24. What is social entrepreneurship?
A business that aims to solve social problems while earning income
A business that only focuses on making the owner richer at others' expense
A shop that closes every day
A government office that gives orders
Explanation:
Social entrepreneurs start ventures that address community issues (like clean water or education) while remaining financially sustainable.
25. What is marketing?
Only saving money under a mattress
Activities that tell people about and help sell products or services
A way to increase prices without providing value
Keeping all products hidden so no one buys them
Explanation:
Marketing includes advertising, packaging and talking to customers so they learn about and choose the business's offerings.