Lesson 1.1.2

1.1.2 Entrepreneurial Motivators Quiz: NCFE Business & Enterprise, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Why do people start businesses? This lesson sorts motives into financial, personal and social groups. It covers profit as the reward for risk, independence and job satisfaction, and the ways owners benefit others, such as local jobs, sustainable sourcing, fair pay and equal opportunities.

Key points

  • Financial motivators bring money to the owner, with profit being the reward left after all costs are paid.
  • Personal motivators concern the owner's own satisfaction and way of life, such as independence or turning a hobby into work.
  • Social motivators benefit people or the environment outside the business, even when they cost the firm money.
  • Spotting a gap in the market is a strong reason to start up because the customers already exist.
  • Entrepreneurs risk losing the money they invest, so profit is the reward for taking that chance.
  • Paying the voluntary living wage, which is above the legal minimum, is a social choice rather than a legal duty.
  • Equal opportunities means judging every applicant on the same evidence, for example by hiding names on CVs.

Key terms

Financial motivator
A reason for starting up based on money coming in to the owner, such as profit.
Personal motivator
A reason linked to the owner's own happiness or lifestyle, such as job satisfaction.
Social motivator
A reason aimed at doing good for people or the planet rather than for the owner.
Independence
Being your own boss and controlling your hours, customers and the way work is done.
Sustainable sourcing
Buying materials in a way that does not use up or damage the resource.
Living wage
A voluntary pay rate above the legal minimum, based on the real cost of living.
Equal opportunities
Giving everyone the same fair chance, judged only on what they can do.

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The 20 questions

  1. Which option is a financial motivator for starting a business?

    • Earning profit
    • Social impact
    • Charity donation
    • Ethical sourcing

  2. Which option is a social motivator for setting up a new enterprise?

    • Sustainable sourcing
    • Cutting overheads
    • Maximising dividends
    • Increasing margins

  3. What is a primary operational role of an entrepreneur in their firm?

    • Organising resources
    • Routine tasks
    • Strict compliance
    • Auditing accounts

  4. Which action best demonstrates an entrepreneur supporting their local community?

    • Paying dividends
    • Creating local jobs
    • Outsourcing labour
    • Importing materials

  5. What is a major financial risk faced when starting a business?

    • Paid sick leave
    • Fixed hourly wage
    • Guaranteed pension
    • Losing invested capital

  6. Which option is considered a personal motivator for an entrepreneur?

    • Job satisfaction
    • Interest rates
    • National insurance
    • Corporate tax

  7. How might a business show a socially responsible approach towards its employees?

    • Cutting base pay
    • Minimising training
    • Lowering hours
    • Paying living wage

  8. What practice helps an entrepreneur ensure equal opportunities during recruitment?

    • Consistent criteria
    • Random selection
    • Nepotism contacts
    • Informal chats

  9. Which personal trait is typical of a successful business entrepreneur?

    • Calculated risk-taking
    • Expecting fixed pay
    • Refusing autonomy
    • Avoiding decisions

  10. Amir's bakery gives its unsold bread to a homeless shelter each night. How is this best described?

    • A social motivator
    • A legal requirement
    • A financial motivator
    • A personal motivator

  11. What financial return does an entrepreneur expect for taking business risks?

    • Fixed salary
    • Guaranteed wage
    • Overtime pay
    • Surplus profit

  12. Which option is a non-financial reason for starting an enterprise?

    • Pursuing a hobby
    • Maximising dividends
    • Minimising tax
    • Generating yield

  13. Leah left her job to escape managers and control her own work. What is her motive?

    • Diversification
    • Growth
    • Profit
    • Independence

  14. A furniture maker buys timber only from forests that are replanted. What is this called?

    • Ethical banking
    • Fair trade
    • Sustainable sourcing
    • Charitable giving

  15. A café owner pays staff a voluntary rate set to cover living costs. What is this aim?

    • Living wage
    • Minimum wage
    • Piece rate
    • Bonus scheme

  16. A bakery donates part of its profit to a local food bank. What type of aim is this?

    • Growth aim
    • Survival aim
    • Financial aim
    • Social aim

  17. Nadia opens a new factory in a town suffering from high unemployment. What social aim is this?

    • Creating local jobs
    • Sponsoring sports
    • Fair pricing
    • Reducing carbon emissions

  18. A firm hides job applicants' names on CVs to avoid bias during hiring. What aim is this?

    • Cost reduction
    • Market penetration
    • Profit maximisation
    • Equal opportunities

  19. What has an entrepreneur found when spotting an unserved customer need?

    • Gap in the market
    • Business risk
    • Market share
    • Trade surplus

  20. Which of these is a social objective rather than a financial one?

    • Increasing sales volume
    • Maximising net profit
    • Using fair-pay suppliers
    • Cutting overhead costs

All NCFE Business & Enterprise quizzes