Lesson 1.1.1

1.1.1 Being an Entrepreneur Quiz: NCFE Business & Enterprise, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

This lesson introduces the entrepreneur as the person who spots a gap in the market, tests whether the idea is viable and then risks their own time and money to set it up. It links the marketing mix, factors of production, finance and the business plan to the start-up process.

Key points

  • An entrepreneur acts on an idea, carries the risk of failure and keeps any profit that follows.
  • New ideas often begin with a gap in the market: customers want something that nobody yet supplies.
  • A viable idea has a realistic chance of succeeding, which is why it is tested with research before money is spent.
  • The target market is the group of customers a product is aimed at, and it shapes the whole marketing mix.
  • The four factors of production are land, labour, capital and enterprise; capital means equipment, not cash.
  • External finance, such as a bank loan, comes from outside the business and usually carries interest.
  • A business plan sets out aims, costs and forecasts, and it is what lenders read before backing an idea.

Key terms

Entrepreneur
A person who sets up and runs a business, putting in their own money and time and accepting the risk.
Gap in the market
An unmet customer need where demand exists but no business is supplying it.
Viable
Having a realistic chance of succeeding, judged from research into costs and demand.
Target market
The specific group of customers a business designs and sells its product for.
Factors of production
The inputs combined to make goods or services: land, labour, capital and enterprise.
Marketing mix
The four decisions of product, price, place and promotion that shape how a product reaches customers.
External finance
Money raised from outside the business, such as a bank loan or investor, usually at a cost.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

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The 20 questions

  1. What is the primary definition of entrepreneurship in business?

    • Drafting tax returns
    • Auditing company accounts
    • Managing staff daily
    • Taking business risks

  2. Which factor of business finance is set by an external lender?

    • Selling price
    • Staff wage level
    • Loan interest rate
    • Advertising budget

  3. What term describes a business idea with a realistic chance of success?

    • Liquid
    • Viable
    • Solvent
    • Insolvent

  4. What term refers to the specific group of customers a product is aimed at?

    • Supply chain
    • Competitor base
    • Target market
    • Board of directors

  5. Which of the following is a traditional factor of production?

    • Capital
    • Revenue
    • Stock
    • Profit

  6. A café starts posting special offers on social media. Which part of the marketing mix is this?

    • Product.
    • Promotion.
    • Place.
    • Price.

  7. Which action best helps an entrepreneur manage financial risk before opening?

    • Researching local demand
    • Increasing ad spending
    • Borrowing more money
    • Copying rivals directly

  8. What normally happens first when establishing a new business?

    • Employing staff
    • Applying for loans
    • Spotting market gaps
    • Setting retail prices

  9. Why do entrepreneurs research customer demographics?

    • To recruit staff
    • To audit accounts
    • To pay taxes
    • To design products

  10. What is a key personal reward of being an entrepreneur rather than an employee?

    • Sick leave
    • Guaranteed wage
    • Holiday pay
    • Business control

  11. What is the core function of an entrepreneur in a business?

    • Bearing financial risk
    • Auditing financial records
    • Regulating market prices
    • Enforcing tax laws

  12. What has an entrepreneur found when noticing an unfilled customer need in a town?

    • Financial liability
    • Business loss
    • Trade surplus
    • Market gap

  13. Why should an entrepreneur test a new business idea before investing heavily?

    • To confirm demand
    • To hire managers
    • To file accounts
    • To pay dividends

  14. What term describes the consumer group targeted by a firm's marketing mix?

    • Target market
    • Shareholder group
    • Supplier network
    • Retail channel

  15. What are the four standard factors of production?

    • Land money staff premises
    • Sales costs profit revenue
    • Factory office shop warehouse
    • Land labour capital enterprise

  16. Which of these is classified as an external source of finance?

    • Owner savings
    • Retained profit
    • Asset sale
    • Bank loan

  17. Which part of the marketing mix involves selling smoothies through gym cafés?

    • Price
    • Place
    • Product
    • Promotion

  18. What is an entrepreneur primarily hoping to gain by risking personal savings?

    • Zero liability
    • Fixed salary
    • Profit
    • Guaranteed safety

  19. What is a key document used to secure bank finance for a new startup?

    • Business plan
    • Invoicing ledger
    • Tax return
    • Balance sheet

  20. Which factor of production includes ovens and delivery vans?

    • Capital
    • Enterprise
    • Land
    • Labour

All NCFE Business & Enterprise quizzes