Entrepreneurship and Small Business (ESB) Certification Practice Exam

A business opportunity is an ____ that lets a buyer start a business.

1. expansion

2. investment

3. acquisition

4. incubation

The correct answer is: investment

A business opportunity refers to a scenario that allows an individual or entity to start a business venture. The term "investment" best captures this concept because it signifies the allocation of resources, such as time and money, into a new business project with the expectation of generating profits. In this context, investment embodies the underlying implication of putting capital at risk in pursuit of a return, which aligns closely with the notion of initiating a business. Investing in a business opportunity entails evaluating its potential for growth, understanding the market conditions, and committing resources to bring the business idea to fruition. While terms like "acquisition," "expansion," and "incubation" relate to various business processes, they do not directly convey the essence of starting a new business. An acquisition typically involves obtaining an existing business, expansion implies a growth strategy of an already operating business, and incubation refers to the support of new ventures but does not inherently denote the initial act of starting one. Therefore, investment stands out as the most appropriate choice to describe a business opportunity that enables the start of a business.