This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 16 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to the video, what is a common mistake made by small businesses in brand design? A) Consistent use of brand elements. B) Investing in brand design at the beginning. C) Lack of intention in creating the brand look. D) Changing brand elements frequently. Show Answer Correct Answer: C) Lack of intention in creating the brand look. 2. Which section of the business plan should be the bulk of your plan and time? A) Marketing and sales. B) Organization and management. C) Market analysis. D) Service and/or product line. Show Answer Correct Answer: D) Service and/or product line. 3. "They are not defined by capital investment criteria but on the basis of characteristics, " A) Village Industries. B) Cottage Industries. C) All the above. D) None of the above. Show Answer Correct Answer: B) Cottage Industries. 4. Family upbringing, the faith traditions, mentors who haveshaped their lives, and the communities they grew up factors that create entrepreneur's ethical behaviors'. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 5. A young inventor pitches her idea for a water filter system to investors on a TV show. A) Entrepreneur. B) Manager. C) Small Business Owner. D) None of the above. Show Answer Correct Answer: A) Entrepreneur. 6. What does an organizational structure provide? A) A clear managerial structure for each function of the business. B) A broad statement of the organization's purpose. C) A description of the target market. D) A forecast of industry trends. Show Answer Correct Answer: A) A clear managerial structure for each function of the business. 7. What is a benefit of owning a franchise? A) High unknown risks. B) Established branding. C) Low initial investment. D) No need for training. Show Answer Correct Answer: B) Established branding. 8. The date a loan (or debt or liability) is due to be repaid in full. A) Maturity. B) Billing Date. C) All the above. D) None of the above. Show Answer Correct Answer: A) Maturity. 9. What is the second line offer on Bell SBIS for New Activations & HUGs? A) $ 10 off per line on 2+ Lines. B) $ 15 off per line on 2+ Lines. C) $ 25 off per line on 2+ Lines. D) None Of The Above. Show Answer Correct Answer: C) $ 25 off per line on 2+ Lines. 10. What is 'start-up capital'? A) Money given as a reward to employees. B) Money needed to pay for initial requirements before receiving revenue. C) Money used for advertising only. D) Money earned after the business is successful. Show Answer Correct Answer: B) Money needed to pay for initial requirements before receiving revenue. 11. No business can exist without repeat customers. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 12. Which funding source is often considered "seed money" for a small business start-up? A) Angel investors. B) Grants. C) Bank loans. D) Venture capital. Show Answer Correct Answer: A) Angel investors. 13. Organizational structure in which business functions are subordinate to the other A) Hierarchical Structure. B) Organizational Structure. C) Learning Based Structure. D) Survey. Show Answer Correct Answer: A) Hierarchical Structure. 14. Term loans disadvantages do not include A) Fixed payments must be budgeted. B) Can be designed for the needs of a business. C) Involves a commitment for an extended period of time. D) Security may be required. Show Answer Correct Answer: B) Can be designed for the needs of a business. 15. Preparation and considering the worst case scenario is part of:(KLO 1.2) A) A) Negotiation strategy. B) B) Delaying tactic. C) C) Purpose of questioning. D) D) All of the above. Show Answer Correct Answer: A) A) Negotiation strategy. 16. The amount of money needed to open a business is called ..... financing. A) Start-up. B) Short-term. C) Long-term. D) None of the above. Show Answer Correct Answer: A) Start-up. 17. Which of the following is NOT a type of business entity? A) Limited Liability Company. B) Sole Proprietorship. C) Franchise. D) Partnership. Show Answer Correct Answer: C) Franchise. 18. Micro enterprise under service category is where the investment in plant and machinery does not exceed ..... A) 20 lakhs. B) 10 lakhs. C) 15 lakhs. D) 5 lakhs. Show Answer Correct Answer: B) 10 lakhs. 19. Which of the following steps of the consumer decision making process involves comparing the product to expectations and deciding whether it is satisfying or dissatisfying? A) Need identification. B) Post-purchase evaluation. C) Alternative evaluation. D) Information searching. Show Answer Correct Answer: B) Post-purchase evaluation. 20. Outdated technology leads to high productivity. True or False? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 21. Which of the following is not a reason for starting a small business? A) Desire to determine one's own destiny. B) Willingness to find and accept a challenge. C) Desire for a guaranteed financial return. D) Desire for independence. E) Desire to create a new business. Show Answer Correct Answer: C) Desire for a guaranteed financial return. 22. What is a partnership business? A) A small business. B) A business controlled by the government. C) A business owned by two or more people. D) None of the above. Show Answer Correct Answer: C) A business owned by two or more people. 23. What is a disadvantage of using Retained Profits as a source of finance? A) Does not need to be paid back. B) Easy access to the money. C) Once the money is gone, it is not available for future unforeseen problems. D) No interest payments to make. Show Answer Correct Answer: C) Once the money is gone, it is not available for future unforeseen problems. 24. Who owns stock in the company? A) COO. B) Stockholder. C) CEO. D) Founder. Show Answer Correct Answer: B) Stockholder. 25. What is the main function of National Bank of Agriculture and Rural Development(NABARD) A) Creating a business environment for women entrepreneurs. B) Supporting cottage and village industries. C) Creating awareness on technology upgradation. D) To create sustainable employment opportunities. Show Answer Correct Answer: B) Supporting cottage and village industries. 26. A detailed to do list of steps you'll need to take to go from concept and funding all the way to business launch. A) Geaux biz portal. B) Launch plan. C) Credit. D) Capital. Show Answer Correct Answer: B) Launch plan. 27. Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as A) Start-up funding. B) Venture capital. C) Credit. D) A loan. Show Answer Correct Answer: B) Venture capital. 28. Which one of these is not a characteristic of a small business A) The main objective is to maximize profits. B) They are owned by the state. C) They don't sell products in large quantities they break the products into smaller quantities. D) None of the above. Show Answer Correct Answer: B) They are owned by the state. 29. 7A loans can cover up to $ ..... million. A) 5.5. B) 5. C) 3. D) 10. Show Answer Correct Answer: B) 5. 30. Which of the following is NOT a prerequisite for becoming a successful entrepreneur? A) Knowledge. B) Education. C) Passion. D) Determination. Show Answer Correct Answer: B) Education. 31. Small businesses are responsible for ..... of the U.S. gross domestic product each year. A) More than half. B) About 75 percent. C) Less than 10 percent. D) About a quarter. Show Answer Correct Answer: A) More than half. 32. True OR FalseSmall Industries are the largest employers of human resources, after agriculture. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 33. What does successful small business management require? A) Ignoring customer feedback. B) Effective planning and decision-making. C) Relying solely on luck. D) Avoiding risk at all costs. Show Answer Correct Answer: B) Effective planning and decision-making. 34. When two or more individuals own a company. All partners are personally liable for all debt. A) Partnership. B) Corperation. C) All the above. D) None of the above. Show Answer Correct Answer: A) Partnership. 35. What is a common reason organizations hire consultants? A) To increase employee count. B) To provide a fresh perspective on problems. C) To reduce their operational costs. D) To manage their daily tasks. Show Answer Correct Answer: B) To provide a fresh perspective on problems. 36. A business owner wants to exit their business but ensure its continued success. What is the best way to achieve this? A) Identifying and training capable successors. B) Dissolving the business immediately. C) Reducing investments in product quality. D) Ignoring future market trends. Show Answer Correct Answer: A) Identifying and training capable successors. 37. Starting a successful small business does not always require a lot of ..... A) Energy. B) Formal education. C) Intelligence. D) None of the above. Show Answer Correct Answer: B) Formal education. 38. Lending to service industry focuses more on: A) Fixed assets. B) Land ownership. C) Machinery collateral. D) Cash flow and contract quality. Show Answer Correct Answer: D) Cash flow and contract quality. 39. What type of company is a mix of a partnership and a corporation? A) A hedge fund. B) S corporation. C) Limited Liability Company. D) Charity. Show Answer Correct Answer: C) Limited Liability Company. 40. Some major advantages of a small businesses over a larger business are: A) Able to offer services larger companies cannot. B) Easier to form. C) The owner gets to be their own boss. D) All of the above. Show Answer Correct Answer: D) All of the above. 41. Which of the following business structures work great for small businesses? A) Learning based. B) Divisional. C) Bureaucratic. D) Hierarchical. Show Answer Correct Answer: A) Learning based. 42. Which of the following is NOT a feature of a small-scale enterprise? A) Limited investment in machinery and equipment. B) Operates in local areas. C) Large-scale production for export. D) Managed by owners or partners. Show Answer Correct Answer: C) Large-scale production for export. 43. A financial document where a business records assets and liabilities. A) Income statement. B) Balance sheet. C) Cash flow statement. D) None of the above. Show Answer Correct Answer: B) Balance sheet. 44. ..... is the public service department of New Zealand charged with advising the government on tax policy, collecting payments for social support programmes, and collecting tax. A) Inland Revenue Department. B) Business, Innovation and Employment. C) All the above. D) None of the above. Show Answer Correct Answer: A) Inland Revenue Department. 45. Which one is not a segment in a Marketing Plan? A) Psychographic. B) Loyalty. C) Demographic. D) None of the above. Show Answer Correct Answer: B) Loyalty. 46. Which personal quality is important for business success? A) Proactiveness. B) Indecisiveness. C) Pessimism. D) Passivity. Show Answer Correct Answer: A) Proactiveness. 47. External sources of finance could include: A) Trade credit. B) Leasing. C) Term loans. D) Bank overdraft. E) All of the above. Show Answer Correct Answer: E) All of the above. 48. Example of action that are legal but unethical is steal to give homeless people foods. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 49. What is the first practical step in creating a budget? A) Conducting a market survey. B) Hiring a financial consultant. C) Gathering all relevant financial documents. D) Increasing product prices. Show Answer Correct Answer: C) Gathering all relevant financial documents. 50. What is the targeted goal for Small business activations? A) 30%. B) 10%. C) 20%. D) 15%. Show Answer Correct Answer: B) 10%. 51. What is the investment limit for a small enterprise according to the 2025 revised MSME classification? A) Up to ₹ 10 crore. B) ₹ 2.5 crore to ₹ 25 crore. C) ₹ 25 crore to ₹ 125 crore. D) Above ₹ 125 crore. Show Answer Correct Answer: B) ₹ 2.5 crore to ₹ 25 crore. 52. Small businesses ownership do not gives the independence and the freedom not enjoyed in the corporate world. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 53. What is the cornerstone of financial success for small businesses in 2024? A) A well-structured budget. B) High sales volume. C) Low employee turnover. D) Strong social media presence. Show Answer Correct Answer: A) A well-structured budget. 54. How much can a customer save by bundling their streaming services with us? A) Up to 50%. B) Up to 30%. C) Up to 25%. D) None of the Above. Show Answer Correct Answer: C) Up to 25%. 55. Providing security and safety for products, personnel, and customers. A) Industrial Management. B) Risk Management. C) All the above. D) None of the above. Show Answer Correct Answer: B) Risk Management. 56. Anything of value OWNED by a person or business. A) Asset. B) Liability. C) All the above. D) None of the above. Show Answer Correct Answer: A) Asset. 57. This is the fourth stage of the business life cycle; the business might expand or improve its systems and processes. A) Takeoff. B) Survival. C) Success. D) Maturity. Show Answer Correct Answer: A) Takeoff. 58. Which characteristic of an entrepreneur involves adapting to change, loss, and disappointment? A) Growth mindset. B) Collaboration. C) Grit. D) Risk tolerance. Show Answer Correct Answer: C) Grit. 59. A small business discovers that its customer retention rate is declining. What is the best way to rebuild relationships with existing customers? A) Launching a loyalty program and personalized marketing campaigns. B) Raising product prices to generate higher revenue. C) Cutting costs on customer service. D) Focusing solely on acquiring new customers. Show Answer Correct Answer: A) Launching a loyalty program and personalized marketing campaigns. 60. MSMED implemented its policies and schemes through A) SIDO & NSIC. B) NABARD. C) SIDCO. D) None of the above. Show Answer Correct Answer: A) SIDO & NSIC. ← 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