This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 11 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is an example of a service business? A) A restaurant. B) A consulting firm. C) A bookstore. D) A clothing retailer. Show Answer Correct Answer: B) A consulting firm. 2. The recipe of Coca Cola is known as: A) Copyright. B) Patent. C) Trade secret. D) Trademark. Show Answer Correct Answer: C) Trade secret. 3. An employee who is paid a percentage of a sale is paid by ..... A) Salary. B) Hourly. C) Commissions. D) None of the above. Show Answer Correct Answer: C) Commissions. 4. What is a important item for a small business that acts like a blueprint for the company's success. A) A strong business plan. B) A large number of employees. C) High product prices. D) Little to no marketing. Show Answer Correct Answer: A) A strong business plan. 5. The unique feature of copyright is that: A) Only literary works are covered. B) Protection starts from the moment the work comes into existence. C) Only inventions are protected. D) Protection starts only after registration. Show Answer Correct Answer: B) Protection starts from the moment the work comes into existence. 6. Which type of entrepreneurship is often associated with large corporations and established companies? A) Corporate Entrepreneurship. B) Online Entrepreneurship. C) Social Entrepreneurship. D) Small Business Entrepreneurship. Show Answer Correct Answer: A) Corporate Entrepreneurship. 7. In this business structure, at least two individuals share the management, profit, and liability of a business. A) Corporation. B) Sole Proprietorship. C) Partnership. D) None of the above. Show Answer Correct Answer: C) Partnership. 8. TRUE or FALSEEveryone who owns or manages a business is an entrepreneur. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 9. The ability to borrow money or access goods or services with the understanding that you'll pay later. A) Credit. B) Debt. C) All the above. D) None of the above. Show Answer Correct Answer: A) Credit. 10. Which is a disadvantage of an S Corp? A) They have tax rates. B) There are very strict qualification requirements for becoming an S Corp. C) There is a limited # of allowed S Corps. D) They have double taxationTagsLEGAL STRUCTURES. Show Answer Correct Answer: B) There are very strict qualification requirements for becoming an S Corp. 11. What is a benefit of having of being a franchisee? A) Limited product access. B) Higher costs. C) Ability to buy at a discount due to parent company connections. D) No volume discount. Show Answer Correct Answer: C) Ability to buy at a discount due to parent company connections. 12. Which of the following is the apex institution for the promotion and financing of small-scale industries in India? A) RBI. B) SIDBI. C) NABARD. D) SEBI. Show Answer Correct Answer: B) SIDBI. 13. What is the first stage in the business life cycle? A) Survival of the Fittest. B) Maturity. C) Existence. D) Take off. Show Answer Correct Answer: C) Existence. 14. TRUE or FALSEMost small business owners enjoy being part of a team. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 15. Name one institute set up by the government for the promotion of small-scale industries. A) Small Industries Development Bank of India (SIDBI). B) Small Business Administration (SBA). C) Ministry of Micro, Small and Medium Enterprises (MSME). D) National Small Industries Corporation (NSIC). Show Answer Correct Answer: A) Small Industries Development Bank of India (SIDBI). 16. Limited Partnership A) Type of partnership where one partner has limited liability; limited involvement in the business. B) Type of partnership where the partners share the liability equally. C) All the above. D) None of the above. Show Answer Correct Answer: A) Type of partnership where one partner has limited liability; limited involvement in the business. 17. What challenges do small businesses face that institutions like NSIC and SIDBI aim to address? A) High employee turnover. B) Limited access to finance, lack of market knowledge, inadequate infrastructure, and technology adoption difficulties. C) Excessive government regulation. D) Overabundance of market knowledge. Show Answer Correct Answer: B) Limited access to finance, lack of market knowledge, inadequate infrastructure, and technology adoption difficulties. 18. Frustrated that she was working many hours for someone else, Morgan decided to start her own business. She could work when she wanted to and take a day off as needed instead of having to work on a set schedule. Morgan was likely influenced by ..... when starting her own business. A) Age. B) Family. C) Money. D) Independence. Show Answer Correct Answer: D) Independence. 19. Choose the correct word:a small computer program that can be added to an existing program in order to make the existing program work as it should A) Map-it. B) Breach. C) Earth. D) Patch. Show Answer Correct Answer: D) Patch. 20. How can small businesses effectively integrate promotional activities into their global marketing strategy? A) By using the same promotional approach for every market, regardless of cultural differences. B) By tailoring promotional activities to the needs and preferences of different cultural groups. C) By focusing only on local markets. D) By minimizing promotional expenses across all markets. Show Answer Correct Answer: B) By tailoring promotional activities to the needs and preferences of different cultural groups. 21. Which of the following is not a source of debt financing? A) Bank loan. B) Small-Business Investment Company. C) SBA-guaranteed loan. D) Credit cards. E) Line of credit. Show Answer Correct Answer: B) Small-Business Investment Company. 22. Which section of the business plan discusses how owner(s) plan to enter the industry and grow the business? A) Marketing and sales. B) Organization and managment. C) Market analysis. D) Service and/or product line. Show Answer Correct Answer: A) Marketing and sales. 23. Choose appropriate location for your business. A) Workforce. B) Place. C) Workplace. D) Location. Show Answer Correct Answer: D) Location. 24. Involves cultural trends and observing customer behaviors. A) Generating ideas. B) Evaluating acceptance. C) Introducing the product. D) Testing the product. Show Answer Correct Answer: A) Generating ideas. 25. The business space has a limited capacity to entertain many customers at the same time. A) Weaknesses. B) Opportunities. C) Strength. D) Threats. Show Answer Correct Answer: A) Weaknesses. 26. What tool simplifies the budgeting process for small businesses? A) Business budget template. B) Social media analytics. C) Advanced accounting software. D) Customer relationship management system. Show Answer Correct Answer: A) Business budget template. 27. Would the following business be classified as B2B or B2C? Wholesale Flooring Distributor A) B2B. B) B2C. C) All the above. D) None of the above. Show Answer Correct Answer: A) B2B. 28. Which of the following is a common financing option for small businesses? A) Venture capital. B) Personal savings. C) Credit card cash advance. D) Small Business Administration (SBA) loans. Show Answer Correct Answer: D) Small Business Administration (SBA) loans. 29. Some new businesses are designed to expand rapidly and: A) Will require almost no startup capital. B) Might require millions of dollars in startup capital. C) All the above. D) None of the above. Show Answer Correct Answer: B) Might require millions of dollars in startup capital. 30. Select the most appropriate definition of small business A) A small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. B) A small business is one that is owned by the shareholders and raise capital through the selling of shares on the stock market. C) All the above. D) None of the above. Show Answer Correct Answer: A) A small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. 31. Elena starts a business that uses drones to deliver medical supplies to rural areas. A) Entrepreneur. B) Manager. C) Small Business Owner. D) None of the above. Show Answer Correct Answer: A) Entrepreneur. 32. Which of the following is a feature of the Startup India scheme? A) Mandatory registration for all startups. B) Financial support for only tech startups. C) Self-certification for compliance. D) No support for women entrepreneurs. Show Answer Correct Answer: C) Self-certification for compliance. 33. Small businesses make up 99% of all UK companies A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 34. This person manages a company's finances. A) CFO (Chief Financial Officer). B) COO (Chief Operating Officer). C) CEO (Chief Executive Officer). D) CIO (Chief Information Officer). Show Answer Correct Answer: A) CFO (Chief Financial Officer). 35. The ..... is a government-funded organization that helps small business owners borrow money as well as manage their businesses more efficiently. A) Small Business Institutes. B) Small Business Ventures. C) Small Business Administration. D) Service Corps of Retired Executives. Show Answer Correct Answer: C) Small Business Administration. 36. Most young entrepreneurs are female. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 37. Fill in the blank:An ..... is a tangible item a business owns. A) Expense. B) Revenue. C) Asset. D) Liability. Show Answer Correct Answer: C) Asset. 38. Total pendapatan tergantung pada jumlah unit dijual dan biaya produksi unit tersebut A) Benar. B) Salah. C) All the above. D) None of the above. Show Answer Correct Answer: B) Salah. 39. Why is it more cost-effective to keep current customers than to acquire new customers? A) New customers always spend less. B) New customers are not interested in products. C) Retaining customers requires fewer resources. D) Current customers do not require marketing. Show Answer Correct Answer: C) Retaining customers requires fewer resources. 40. High failure rate are mistakes to many owners of small businesses A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 41. Bill just started a new graphic design business. He is advertising online and trying to gain customers. He just finished working with his first client. In which business life cycle stage is Bill? A) Exit Plan. B) Growth. C) Existence. D) Survival. Show Answer Correct Answer: C) Existence. 42. What goods and/or services do small businesses provide? A) Personal services. B) Professional services. C) Ready to eat food. D) All of these and more. Show Answer Correct Answer: D) All of these and more. 43. Small business ..... are also called entrepreneurs. A) Failures. B) Takers. C) Owners. D) None of the above. Show Answer Correct Answer: C) Owners. 44. What is a focus group used for? A) Describing the target market. B) Soliciting individuals to consume a product and provide feedback. C) Asking questions about people's interest in a product. D) Describing the organizational structure. Show Answer Correct Answer: B) Soliciting individuals to consume a product and provide feedback. 45. TRUE or FALSEThe primary reason that businesses started by entrepreneurs close is disagreements with business partners. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 46. Becoming an Entrepreneur starts with having ..... A) Money. B) An idea. C) Name. D) All of the above. Show Answer Correct Answer: D) All of the above. 47. What is the relationship between small businesses and entrepreneurship? A) Small businesses and entrepreneurship are interchangeable terms. B) Small businesses and entrepreneurship are completely separate entities. C) Entrepreneurship is a subset of small businesses. D) Small businesses are a subset of entrepreneurship. Show Answer Correct Answer: D) Small businesses are a subset of entrepreneurship. 48. What is the primary purpose of a business proposal? A) To attract investors and secure funding. B) To outline the company's mission. C) To list employee benefits. D) To describe the company's history. Show Answer Correct Answer: A) To attract investors and secure funding. 49. Which investment is considered for deciding the status of manufacturing enterprises? A) Working Capital. B) Building and land. C) Plant and machinery. D) Salary of employees. Show Answer Correct Answer: C) Plant and machinery. 50. An example of a service business would include: A) Selling a car. B) Selling a house. C) Repairing a car. D) Selling furniture. Show Answer Correct Answer: C) Repairing a car. 51. Which is NOT a reason a business closes? A) Good service. B) Putting the business in a location hard to find. C) Competition. D) Bad customer service. Show Answer Correct Answer: A) Good service. 52. Which of the following is NOT a role of small business in the American economy according to the slide? A) Market analysis. B) Job creation. C) Innovation. D) Exporting. Show Answer Correct Answer: A) Market analysis. 53. What does market size mean? A) Money or how much money a companies has. B) How many people would be interested in your offering. C) The size of the biggest market in the world. D) Stocks. Show Answer Correct Answer: B) How many people would be interested in your offering. 54. Which example illustrates a social enterprise model? A) A traditional retail store. B) A tech startup focused on developing new apps. C) A nonprofit that donates a pair of shoes for every pair sold. D) A company that only sells luxury goods. Show Answer Correct Answer: C) A nonprofit that donates a pair of shoes for every pair sold. 55. Most entrepreneurial ventures will be very small and: A) Are planned to remain that way. B) Will grow to be worth billions of dollars. C) All the above. D) None of the above. Show Answer Correct Answer: B) Will grow to be worth billions of dollars. 56. Which of the following is NOT listed as an advantage of small business ownership? A) Market Share. B) Costs. C) Independence. D) Flexibility. Show Answer Correct Answer: A) Market Share. 57. What is a major challenge for small business owners? A) Lack of ideas for businesses. B) Too many customers. C) Too much government support. D) Difficulty in raising capital. Show Answer Correct Answer: D) Difficulty in raising capital. 58. Entrepreneurs often start their business while working for another company, this allows them: A) To increase their income. B) To practice community service. C) All the above. D) None of the above. Show Answer Correct Answer: A) To increase their income. 59. What problem arises due to lack of marketing and lack of demand? A) Lack of skilled labor. B) Usage of obsolete technology. C) Firms operate below full capacity. D) None of these. Show Answer Correct Answer: C) Firms operate below full capacity. 60. People don't think they have enough education, that's why they hesitate to ..... their dreams. A) Recognize. B) Pursue. C) Risk. D) None of the above. Show Answer Correct Answer: B) Pursue. ← 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