Entrepreneurship and Small Business (ESB) Certification Practice Exam

Which of the following statements is an objective of entrepreneurship?

1. To increase personal wealth

2. To make profit

3. To create jobs

4. To expand market reach

The correct answer is: To make profit

Making a profit is a fundamental objective of entrepreneurship because profit serves as a key indicator of a business's financial health and sustainability. Entrepreneurs invest time, resources, and capital into their ventures with the expectation that these efforts will yield financial returns. Profit enables businesses to reinvest in operations, pay employees, attract additional investment, and ultimately grow. While increasing personal wealth, creating jobs, and expanding market reach are also important aspects associated with entrepreneurship, they often stem from the pursuit of profit. For instance, job creation is typically a byproduct of successful businesses that are profitable and can afford to hire more employees. Similarly, expanding market reach often occurs when a business is in a position to grow, which is contingent upon generating profit. Thus, focusing on profit aligns closely with the core mission of many entrepreneurial endeavors.