When I say "scare", I don't necessarily mean it gives you nightmares. It can creep you out, make you feel uneasy or uncomfortable. And when I say "entertains", I don't necessarily mean it makes you laugh. It's just a fun or good movie, but doesn't give you ill feelings.

Mix of both but mostly this.

I don’t know, that is the main issue of horror and comedies for me. If a horror movie is good but doesn’t scare me (in the sense Heather said), I feel it lacks something. Same with comedy if it doesn’t make me laugh. I can appreciate their qualities of course, but I won’t feel like they had fulfilled their purposes.