This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does the Operational Plan describe? A) The financial structure of the business. B) The physical location and equipment needed. C) The marketing strategies to attract customers. D) The personal details of the owners. Show Answer Correct Answer: B) The physical location and equipment needed. 2. Before a business owner completes the business plan, he or she should ask business experts to review the plan. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 3. Small businesses have an advantage over big businesses when customers A) Are willing to buy standard products. B) Prefer low cost and efficient delivery. C) Want more individual attention. D) None of the above. Show Answer Correct Answer: C) Want more individual attention. 4. When must Small Business Administration (SBA) real estate loans and equipment and inventory loans be repaid? A) Real estate loans:25 years; Equipment and inventory loans:10 years. B) Real estate loans:5 years; Equipment and inventory loans:2 years. C) Real estate loans:15 years; Equipment and inventory loans:8 years. D) Real estate loans:30 years; Equipment and inventory loans:20 years. Show Answer Correct Answer: A) Real estate loans:25 years; Equipment and inventory loans:10 years. 5. The individual that developed or created the company or organization A) Employee. B) Founder. C) CFO. D) Stakeholder. E) COOTagsROLES. Show Answer Correct Answer: B) Founder. 6. Caused by the unpredictability of nature. Examples:floods, tornadoes, earthquakes A) Economic Risk. B) Natural Risk. C) All the above. D) None of the above. Show Answer Correct Answer: B) Natural Risk. 7. Which of the following is NOT a characteristic of small businesses? A) Focus on innovation. B) Serving the local community. C) Stable business operations. D) Producing a steady income. Show Answer Correct Answer: A) Focus on innovation. 8. Which of the following structures adopt the chain-of-command methodology? A) Matrix. B) Network. C) Bureaucratic. D) Flat. Show Answer Correct Answer: C) Bureaucratic. 9. (adj) Healthy; without financial risk. A) Sound. B) Vital. C) Risky. D) Inevitable. Show Answer Correct Answer: A) Sound. 10. In limited liability companies, the most money a shareholder can lose is the amount they paid for their shares. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 11. Taxes-are ways that government can collect money from businesses to pay for hospitals, skills and roads. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 12. Which represents the biggest financial challenge for most small businesses? A) Having too many customers. B) Managing cash flow and access to capital. C) Paying excessive dividends to shareholders. D) International expansion costs. Show Answer Correct Answer: B) Managing cash flow and access to capital. 13. What is the result of having satisfied employees in a small business? A) They reduce the need for marketing. B) They put forth the effort to help the company grow. C) They decrease production costs. D) They increase customer complaints. Show Answer Correct Answer: B) They put forth the effort to help the company grow. 14. What type of businesses qualify as 'small businesses' for Small Business Saturday participation? A) Only businesses with fewer than 20 employees. B) Only businesses younger than five years. C) Most independently owned local businesses. D) Only non-profit organizations. Show Answer Correct Answer: C) Most independently owned local businesses. 15. One key risk in trade finance is: A) Excess cash reserves. B) Low electricity supply. C) Poor road conditions. D) Price fluctuations of traded goods. Show Answer Correct Answer: D) Price fluctuations of traded goods. 16. What is the role of an accountant according to the summary of terms? A) Selling products. B) Recording, preparing, and analyzing financial information. C) Starting new businesses. D) Creating marketing strategies. Show Answer Correct Answer: B) Recording, preparing, and analyzing financial information. 17. The person who assumes the risks involved in starting and owning a small business: A) Wholesaler. B) Entrepreneur. C) All the above. D) None of the above. Show Answer Correct Answer: B) Entrepreneur. 18. Chelsea had to buy a few replacement screens and a magnifying glass to speed up her service time. When she bought this stuff she was making ..... A) A mistake. B) Investment in her business. C) A business proposal. D) An insider trade. Show Answer Correct Answer: B) Investment in her business. 19. With the development of tap and go technology, credit and debit cards are a very popular, quick payment option. Tap and go refers to: A) Paying for products or services online rather than in person. B) Paying for products or services within seven days of a purchase. C) Paying on the spot without goods to be delivered by Australia Post. D) Paying electronically with a card or your phone, often without the need for a signature or PIN number. Show Answer Correct Answer: D) Paying electronically with a card or your phone, often without the need for a signature or PIN number. 20. In Nayak Committee method, the bank funds what percentage of projected turnover? A) 15%. B) 25%. C) 20%. D) 10%. Show Answer Correct Answer: C) 20%. 21. What is the purpose of a market analysis? A) To describe the purpose of the organization. B) To solicit feedback from focus groups. C) To forecast where the industry is moving. D) To outline the organizational structure. Show Answer Correct Answer: C) To forecast where the industry is moving. 22. People wishing to start or ..... business sometimes face such specific obstacles as lack of self-confidence, fear of risk, lack of specific business-related knowledge. A) Expand. B) Recognize. C) Account for. D) None of the above. Show Answer Correct Answer: A) Expand. 23. Oversees the day-to-day administrative functions of a business; second in command. A) CIOTagsROLES. B) COO. C) CEO. D) CFO. Show Answer Correct Answer: B) COO. 24. A business spends $ 65 723 in a year. What exact revenue would allow the business to meet the "break-even point" ? A) $ 60 000. B) $ 70 000. C) $ 65 723. D) More than $ 100 000. Show Answer Correct Answer: C) $ 65 723. 25. What percentage of all private sector employees are employed by small businesses? A) 40%. B) 60%. C) 80%. D) 90%. Show Answer Correct Answer: B) 60%. 26. What does the Venture Opportunity School of Thought emphasize in venture development? A) Identifying traits common to successful entrepreneurs. B) The search for idea sources, development of concepts, and implementation of venture opportunities. C) The role of government policies in entrepreneurship. D) The impact of economic cycles on business success. Show Answer Correct Answer: B) The search for idea sources, development of concepts, and implementation of venture opportunities. 27. Which of the following is NOT an example of a variable expense? A) Monthly loan repayment. B) Cost of goods sold. C) Employee wages based on hours worked. D) Utility bills. Show Answer Correct Answer: A) Monthly loan repayment. 28. What type of schemes does NSIC provide for machinery to small-scale industries? A) Credit Support Scheme and Marketing Development Assistance Scheme for machinery acquisition. B) Technology Transfer Scheme for large industries. C) Export Promotion Scheme for international sales. D) Loan Guarantee Scheme for equipment leasing. Show Answer Correct Answer: A) Credit Support Scheme and Marketing Development Assistance Scheme for machinery acquisition. 29. Larger firms can attract and afford more skilled and qualified leaders ..... A) Marketing. B) Managerial. C) Technical. D) Financial. Show Answer Correct Answer: B) Managerial. 30. Which of the following are the four P's of the marketing mix? A) Product, price, place, and promotion. B) People, process, physical evidence, and performance. C) Planning, production, placement, and publicity. D) Price, product, publicity, and performance. Show Answer Correct Answer: A) Product, price, place, and promotion. 31. In relation to advertising, a wise consumer needs to: A) Accept that advertisers risk too much by exaggerating claims (so they are always very honest). B) Turn off all advertisements and make their mind up on the spot when buying a product or service. C) Be wary of claims that are made in advertisements and to do some background research. D) Only buy after watching more advertisements on the same type of product. Show Answer Correct Answer: C) Be wary of claims that are made in advertisements and to do some background research. 32. What is one way to protect data on your devices? A) Use simple passwords. B) Require complex passwords. C) Share passwords with others. D) Avoid using passwords. Show Answer Correct Answer: B) Require complex passwords. 33. A collection of raw facts are referred to as ..... A) Data. B) Information. C) Accounting reports. D) Tax return. Show Answer Correct Answer: A) Data. 34. Who may have first said "If you fail to plan, you are planning to fail" A) Bill Gates. B) Benjamin Franklin. C) Sir Richard Branson. D) Donald Trump. Show Answer Correct Answer: B) Benjamin Franklin. 35. MSMED Act came into force A) 2006 Dec. B) 2007 Nov. C) 2008 Jan. D) 2006 October. Show Answer Correct Answer: D) 2006 October. 36. Entrepreneurs do not receive a regular paycheck. This means that entrepreneurs: A) Make lots of money. B) Have an uncertain income. C) All the above. D) None of the above. Show Answer Correct Answer: B) Have an uncertain income. 37. A franchisee is required to pay the franchiser an ongoing fee. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 38. What is the primary advantage of customer relationships in small businesses? A) The ability to ignore customer preferences. B) The opportunity to charge higher prices. C) The ability to provide personalized service and recommendations. D) The chance to treat customers impersonally. Show Answer Correct Answer: C) The ability to provide personalized service and recommendations. 39. Which of the following is a common goal for social entrepreneurs? A) To maximize shareholder value. B) To create luxury products for high-income customers. C) To avoid innovation in their business model. D) To address social or environmental issues through business solutions. Show Answer Correct Answer: D) To address social or environmental issues through business solutions. 40. (adj) Very important; necessary for success. A) Unique. B) Afloat. C) Vital. D) Potential. Show Answer Correct Answer: C) Vital. 41. Which is not a common differentiator for businesses? A) Product. B) Service. C) Taxes. D) Price. Show Answer Correct Answer: C) Taxes. 42. How does the SBA support veterans in transitioning to civilian life through entrepreneurship? A) By offering combat training. B) By providing business start-up kits. C) By facilitating access to capital and resources. D) By arranging job interviews. Show Answer Correct Answer: C) By facilitating access to capital and resources. 43. The majority of small business owners are A) Under 40 years old. B) Over 75 years old. C) Over 40 years old. D) Under 25 years old. Show Answer Correct Answer: C) Over 40 years old. 44. Which of the following is a benefit of using social media for marketing? A) It reaches a limited audience. B) It is the most expensive form of marketing. C) It allows for direct interaction with customers. D) It guarantees sales. Show Answer Correct Answer: C) It allows for direct interaction with customers. 45. What type of data does the Office for National Statistics provide? A) Qualitative data. B) Experimental data. C) Fictional data. D) Quantitative data. Show Answer Correct Answer: D) Quantitative data. 46. Mariah owns a local dance studio and is responsible for motivating and training staff. This is an example of which entrepreneurial function? A) Operations Management. B) Strategic Management. C) Human Resource Management. D) Risk Management. Show Answer Correct Answer: C) Human Resource Management. 47. The internet represents how much business opportunity to small businesses in the UK? A) £10 million. B) £90 million. C) £19 billion. D) None of the above. Show Answer Correct Answer: C) £19 billion. 48. SWOT Analyses Is Components of Marketing plan? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 49. What is Entrepreneurship? A) Job shadowing for customers. B) The process of working under a boss. C) The process of starting, organizing, managing, and assuming the responsibility for a business. D) Working the cash. Show Answer Correct Answer: C) The process of starting, organizing, managing, and assuming the responsibility for a business. 50. This person has authority over employees and gig workers and is ultimately responsible for their work. A) Manager. B) COO (Chief Operating Officer). C) CIO (Chief Information Officer). D) CFO (Chief Financial Officer). Show Answer Correct Answer: A) Manager. 51. Who can own a small business? A) Only a college graduate. B) Anyone. C) Only someone with a lot of money. D) Only smart people. Show Answer Correct Answer: B) Anyone. 52. The lowest level of production necessary for survival A) Export Production. B) Tertiary Production. C) Domestic Production. D) Subsistence Production. Show Answer Correct Answer: D) Subsistence Production. 53. What type of loans are becoming increasingly popular in Jamaica and other regional countries due to rising energy costs? A) Start-up capital financing. B) Venture capital. C) Technical support services. D) Energy conservation loans. Show Answer Correct Answer: D) Energy conservation loans. 54. A new or different product A) Harvesting. B) Risk. C) Innovation. D) Opportunity. Show Answer Correct Answer: C) Innovation. 55. Promoting a business without defining a clear brand identity may lead to confusing marketing messages and a lack of customer connection. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 56. Which of these makes selling products in the global marketplace easier for entrepreneurs? A) Technology. B) Depending on the tourists. C) Franchise of stores. D) None of the above. Show Answer Correct Answer: A) Technology. 57. The first and primary source of start-up capital for most entrepreneurs comes from: A) Personal savings and personal loans. B) Loans from banks or other financial institutions. C) Interest in the business sold to venture capitalists. D) Money earned from an initial public offering. Show Answer Correct Answer: A) Personal savings and personal loans. 58. Sara Blakely, founder of Spanx, worked what job before founding her billion-dollar empire? A) She worked in fast food. B) She was a stand-up comedian. C) She sold makeup door to door. D) None of the above. Show Answer Correct Answer: B) She was a stand-up comedian. 59. What is a hierarchical structure in a business? A) An organizational structure where functions are subordinate to each other. B) A structure that allows functions to work together without subordination. C) A description of the target market. D) A clear broad statement describing the purpose of the organization. Show Answer Correct Answer: A) An organizational structure where functions are subordinate to each other. 60. What is a key characteristic of a small business? A) Limited market reach. B) Large employee base. C) All the above. D) None of the above. Show Answer Correct Answer: A) Limited market reach. Next →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 8 Small Business Quiz 2Class 11 Business Studies Chapter 8 Small Business Quiz 3Class 11 Business Studies Chapter 8 Small Business Quiz 4Class 11 Business Studies Chapter 8 Small Business Quiz 5Class 11 Business Studies Chapter 8 Small Business Quiz 6Class 11 Business Studies Chapter 8 Small Business Quiz 7Class 11 Business Studies Chapter 8 Small Business Quiz 8Class 11 Business Studies Chapter 8 Small Business Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books