This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 10 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A type of business that sells products directly to consumers. A) E-marketing business. B) Retail business. C) Service business. D) E-commerce business. Show Answer Correct Answer: B) Retail business. 2. What is the definition of expenses? A) The money from selling goods and services. B) Cash you are spending in the business. C) Costs of running the business. D) The outgoings relating specifically to vehicles. Show Answer Correct Answer: C) Costs of running the business. 3. A business where the owner licenses their operations, products or services, branding, and knowledge for a royalty fee A) Small business. B) Entrepreneur. C) FranchiseTagsgeneral. D) None of the above. Show Answer Correct Answer: C) FranchiseTagsgeneral. 4. Buying and selling of goods in small quantities. A) Consumers. B) Manufacturers. C) Wholesalers. D) Retailers. Show Answer Correct Answer: D) Retailers. 5. What is the maximum fixed capital investment for small-scale industries? A) Rs. 50 lakhs. B) Rs. 10 lakhs. C) Rs. 1 crore. D) Rs. 2 crores. Show Answer Correct Answer: C) Rs. 1 crore. 6. What is the formula for Net Profit? A) Revenue-Cost of Sales. B) Revenue-Total Costs. C) Fixed costs + Variable Costs. D) Cost of Sales-Total Costs. Show Answer Correct Answer: B) Revenue-Total Costs. 7. If the firm cannot sell its products, it will ..... bankrupt. A) Assume. B) Go. C) Run. D) None of the above. Show Answer Correct Answer: B) Go. 8. Site locators (a) the ability to promote the business and be successful. A) A. Increase. B) Decrease. C) All the above. D) None of the above. Show Answer Correct Answer: A) A. Increase. 9. The largest percentage of small businesses are in retailing & service businesses. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. Which of the following statements is not true about small businesses? A) Small businesses provide technical innovation. B) Small businesses create cyclical unemployment. C) Small businesses provide employment. D) Small businesses provide competition. E) Small businesses fill the needs of society and other businesses. Show Answer Correct Answer: B) Small businesses create cyclical unemployment. 11. Which viability factor researches the demand for products or services? A) Copyright. B) Market size. C) Marketing plan. D) Executive summary. Show Answer Correct Answer: B) Market size. 12. How can small business owners use budget insights? A) To expand office space. B) To plan for future investments or cost-saving measures. C) To hire more staff. D) To increase product prices. Show Answer Correct Answer: B) To plan for future investments or cost-saving measures. 13. It is also necessary to develop a sound business plan that, among other things, shows how the business will make a profit and projects the cash flow that will help the business stay afloat.What does "afloat" mean? A) Having enough money to pay what you owe. B) Related to money. C) Made or done especially for a certain person. D) Healthy, without financial risk. Show Answer Correct Answer: A) Having enough money to pay what you owe. 14. Which organization in Jamaica seeks to influence national policy issues and promote private enterprise and the free market economic system? A) Jamaica Intellectual Property Office (JIPO). B) The Small Business Association of Jamaica. C) Private Sector Organisation of Jamaica. D) Scientific Research Council (SRC). Show Answer Correct Answer: C) Private Sector Organisation of Jamaica. 15. Letter of Credit is mainly used for: A) Trade finance. B) Leasing. C) Term loans. D) Mortgage loans. Show Answer Correct Answer: A) Trade finance. 16. Which of the following is organised by individuals? A) Cottage industry. B) Railway industry. C) Chemical industry. D) None of the above. Show Answer Correct Answer: A) Cottage industry. 17. How do small-scale industries contribute to the economy? A) Small-scale industries primarily focus on international markets only. B) Small-scale industries create jobs, promote entrepreneurship, enhance exports, and stimulate regional development. C) Small-scale industries have no impact on local economies. D) Small-scale industries reduce competition for large corporations. Show Answer Correct Answer: B) Small-scale industries create jobs, promote entrepreneurship, enhance exports, and stimulate regional development. 18. Soliciting individuals to consume a product and provide proactive feedback A) Survey. B) Market Analysis. C) Focus Groups. D) Target Market. Show Answer Correct Answer: C) Focus Groups. 19. NSIC was set up in ..... A) 1975. B) 1945. C) 1965. D) 1955. Show Answer Correct Answer: D) 1955. 20. Develops policies and structures to protect company data. A) CFO. B) CIOTagsROLES. C) COO. D) CEO. Show Answer Correct Answer: B) CIOTagsROLES. 21. This is the quality of mind that enables a person to face difficulty or danger without fear. A) Creativity. B) Courage. C) All the above. D) None of the above. Show Answer Correct Answer: B) Courage. 22. Below are the potential benefits of entrepreneurship, EXCEPT: A) Financial Reward. B) Control over Time. C) Freedom. D) Contribution to Society. Show Answer Correct Answer: C) Freedom. 23. Which business model involves selling a product below cost to increase sales of a high-margin component? A) Affiliate. B) Franchise. C) Razor blade. D) Brokerage. Show Answer Correct Answer: C) Razor blade. 24. What is a sales event? A) All of the above. B) An event to promote brand awareness. C) An event to clear out inventory. D) An event to launch a new product. Show Answer Correct Answer: A) All of the above. 25. Which type of business has the lowest rate of success? A) Franchise. B) Start up. C) Existing Business. D) None of the above. Show Answer Correct Answer: B) Start up. 26. Rules and regulations that provide a framework of acceptable accounting procedures is called A) Standards of accounting. B) Accounting standards. C) Accounting reports. D) Accounting information. Show Answer Correct Answer: B) Accounting standards. 27. This is the sixth stage of the business life cycle; the owners must decide whether to sell the business or invest more into it before its value goes down. A) Success. B) Survival. C) Maturity. D) Pivot or Persist. Show Answer Correct Answer: D) Pivot or Persist. 28. What is the definition of a small business? A) A business with fewer than 1000 employees. B) A business with fewer than 50 employees. C) A business with fewer than 100 employees. D) A business with fewer than 500 employees. Show Answer Correct Answer: C) A business with fewer than 100 employees. 29. Label the items as either a product or a service:"Web designs" A) Product. B) Service. C) All the above. D) None of the above. Show Answer Correct Answer: B) Service. 30. If a small business owner wanted to enter a competitive market, which strategy could best help them stand out? A) Offering a similar product at a lower price. B) Ensuring high visibility through unique branding and promotional strategies. C) Choosing a location far from competitors. D) Only offering the product in limited quantities. Show Answer Correct Answer: B) Ensuring high visibility through unique branding and promotional strategies. 31. When you buy into a franchise, do you receive ongoing support and help from the franchise owner/larger company & brand? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 32. What does CEO stand for? A) Chief Extra Officer. B) Chief Executive officer. C) Chief Essential Officer. D) Chief Enemy Officer. Show Answer Correct Answer: B) Chief Executive officer. 33. A business pays $1, 200 per month for rent and $ A) $ 1, 500. B) $ 1, 200. C) $ 1, 700. D) $ 1, 800. Show Answer Correct Answer: C) $ 1, 700. 34. What is a method for providing your own personal capital for financial resources? A) Line of credit. B) Equity Financing. C) Venture Capitalists. D) Debt financing. Show Answer Correct Answer: B) Equity Financing. 35. What is the most common type of small business, making up about 14.6 percent of all small businesses? A) Educational services. B) Construction. C) Retail trade. D) Manufacturing. Show Answer Correct Answer: C) Retail trade. 36. Which of the following is not a Social Media platform? A) Youtube. B) Facebook. C) Twitter. D) Television. Show Answer Correct Answer: D) Television. 37. This person develops the policies and structures that protect the company's data. A) CIO (Chief Information Officer). B) COO (Chief Operating Officer). C) CFO (Chief Financial Officer). D) Manager. Show Answer Correct Answer: A) CIO (Chief Information Officer). 38. SSIs in India supply an enormous variety of products. True or False? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 39. Parameters used to measure the size of business is ..... A) Number of persons employed in business. B) Volume of output or value of output. C) Investment in Plant and Machinery. D) Power consumption. Show Answer Correct Answer: C) Investment in Plant and Machinery. 40. The Success Stage of the Business Life Cycle includes which of the following? A) Making $. B) Company is growing. C) Founder lets employees run the company. D) All of the above. Show Answer Correct Answer: D) All of the above. 41. Which of the following statements concerning bank personal loans is NOT accurate? A) Bank personal loans generally have a higher interest rate than credit cards. B) Bank personal loans generally have a lower interest rate than credit cards. C) Bank personal loans are usually only made once the bank has evidence of your income and savings history. D) Bank personal loans must be paid off within a set time. Show Answer Correct Answer: A) Bank personal loans generally have a higher interest rate than credit cards. 42. How can small businesses market their products effectively? A) By increasing product prices. B) By ignoring social media. C) By reducing customer service. D) By using low-cost or free marketing outlets. Show Answer Correct Answer: D) By using low-cost or free marketing outlets. 43. The number reason(s) most small businesses fail is (are) A) Not enough money to start. B) Poor location. C) Not keeping accurate records. D) Failure to have a business plan. E) All are valid reasons. Show Answer Correct Answer: E) All are valid reasons. 44. Approach customers with care and offer to support them. A) First. B) Next. C) Then. D) Finally. Show Answer Correct Answer: B) Next. 45. Advertising plays a key role in consumer choices-the main purpose of effective advertising is to: A) Persuade consumers to think carefully before buying any product. B) Persuade consumers that advertising is fun to watch and enjoy during ad breaks. C) Persuade consumers to buy what a producer has to offer. D) Persuade consumers to hum that annoying jingle they heard on the last advertisement. Show Answer Correct Answer: C) Persuade consumers to buy what a producer has to offer. 46. Below are the costs of entrepreneurship, EXCEPT: A) Loneliness. B) Financial Insecurity. C) Strain on Personal Relationships. D) None of above. Show Answer Correct Answer: D) None of above. 47. The latent skills and talents of people can be channelled into business ideas which can be converted into reality with little capital investment and almost nil formalities to start a small business. This refers to the contribution of SSIs towards ..... A) Customization of products. B) Balanced regional development. C) Opportunity for entrepreneurship. D) Export. Show Answer Correct Answer: C) Opportunity for entrepreneurship. 48. A non-profit does not pay any taxes, is not owned by stockholders or individuals and is usually a charity. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 49. Why is business planning important for a small business? A) Business planning helps in setting clear goals and objectives, identifying potential risks and challenges, making informed decisions, securing funding, and measuring progress. B) Business planning is not important for small businesses. C) Business planning is a waste of time and resources for small businesses. D) Business planning only benefits large corporations. Show Answer Correct Answer: A) Business planning helps in setting clear goals and objectives, identifying potential risks and challenges, making informed decisions, securing funding, and measuring progress. 50. Clear managerial structure for each function of the business A) Hierarchical Structure. B) Learning Based Structure. C) Organizational Structure. D) Survey. Show Answer Correct Answer: C) Organizational Structure. 51. How do startups impact employment in India? A) They create job opportunities. B) They reduce the overall workforce. C) They only hire experienced professionals. D) They have no effect on employment rates. Show Answer Correct Answer: A) They create job opportunities. 52. Alexa and Caleb started a new business and they came up with a unique slogan. What type of intellectual property should they register to protect their slogan? A) Trademark. B) Patent. C) Trade Secret. D) Copyright. Show Answer Correct Answer: A) Trademark. 53. Samantha has been running a successful bakery for five years. Her business is profitable, and she is now considering expanding by opening new locations in neighboring towns. To finance this growth, she is looking at different funding options. Which stage of the business life cycle is Samantha's business currently in? A) Success Stage. B) Survival Stage. C) Take-Off Stage. D) Exit Plan Stage. Show Answer Correct Answer: C) Take-Off Stage. 54. Which of the following is considered a product? A) Clothing. B) Car detailing. C) Lawn maintenance. D) Computer repairs. Show Answer Correct Answer: A) Clothing. 55. Which document outlines the funds a business will need to run efficiently? A) Sales report. B) Operating budget. C) Business license. D) Marketing plan. Show Answer Correct Answer: B) Operating budget. 56. The McDonald brothers perfected A) The speedy system of using carhops to deliver food. B) The speedy service system for delivery of food quickly. C) All the above. D) None of the above. Show Answer Correct Answer: B) The speedy service system for delivery of food quickly. 57. A(n) ..... is an invention or creation that is brand new. A) Start-up. B) Innovation. C) Venture capital. D) None of the above. Show Answer Correct Answer: B) Innovation. 58. Which of the following people will be the most financially disadvantaged/worse off at the end of one year? A) Aaron who earns $ 100 per week but lives with his parents who pay for all his expenses. B) Billy who earns $ 100 per week and who pays his parents $ 20 board per week but has no other expenses. C) Candice who earns $ 200 per week but has expenses of $ 110 per week. D) Darius who earns $ 300 per week but has expenses of $ 230 per week. Show Answer Correct Answer: D) Darius who earns $ 300 per week but has expenses of $ 230 per week. 59. Which of the following is not related to SSIs? A) Lack of managerial skills. B) Lack of funds. C) Lack of personal touch. D) Lack of collateral security. Show Answer Correct Answer: C) Lack of personal touch. 60. Which one is not considered as an incentive to small business A) Land. B) Power. C) Sales tax exemption. D) Technology. Show Answer Correct Answer: D) Technology. ← PreviousNext →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 8 Small Business Quiz 1Class 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books