This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 18 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... business should locate in an area with access to raw materials and transportation systems A) Retail. B) Wholesale. C) Service. D) Manufacturing. Show Answer Correct Answer: D) Manufacturing. 2. LED is responsible for strengthening the state's business environment, creating a more vibrant Louisianaeconomy. LED creates jobs and economic opportunity for Louisiana citizens and businesses. A) Louisiana Workforce Commission. B) Louisiana Department of Revenue. C) Louisiana Economic Development. D) Louisiana Secretary of State. Show Answer Correct Answer: C) Louisiana Economic Development. 3. 7-The poor quality of selection will mean extra cost on ..... and supervision. (SS1.a) A) Training. B) Recruitment. C) Work quality. D) None of the above. Show Answer Correct Answer: A) Training. 4. Small businesses employ ..... of private sector employees in the United States. A) About a quarter. B) Less than 10 percent. C) More than half. D) About 75 percent. Show Answer Correct Answer: C) More than half. 5. An employee is paid by wage or salary. A) Wage. B) Wage. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 6. What is the purpose of a budget? A) To track employee performance. B) To allocate expenses and revenue. C) To manage customer relationships. D) To analyze market trends. Show Answer Correct Answer: B) To allocate expenses and revenue. 7. A business has an annual revenue of $ 95 126. If the annual expenses are $ 56 178, did the company experience a profit, a loss, or broke even for that year? A) Loss. B) Profit. C) Broke even. D) Not enough information given. Show Answer Correct Answer: B) Profit. 8. Which statement does not describe a typical small business? A) It operates in one or very few locations. B) Owner is usually the manager. C) Is dominant in its field. D) Serves a small market. Show Answer Correct Answer: C) Is dominant in its field. 9. Instead, the small business that has defined what is unique about the product or service. What does "unique" mean? A) Very important, necessary for success. B) Made or done especially for a certain person. C) Specific. D) Special, different from all others. Show Answer Correct Answer: D) Special, different from all others. 10. In the Nayak Committee method, the working capital requirement is calculated as: A) 30% of projected turnover. B) 25% of projected turnover. C) 15% of projected turnover. D) 40% of projected turnover. Show Answer Correct Answer: B) 25% of projected turnover. 11. What are the advantages of owning a small business enterprise? A) To gain control over your destiny. B) To make a difference. C) All are correct. D) To reap unlimited profits. Show Answer Correct Answer: C) All are correct. 12. Which all are included in the role of small business in rural india? A) Rural development. B) Migration to urban areas. C) Employment opportunities. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. Successful entrepreneurs have mindsets that typically possess THREE characteristics. Which one is NOT a characteristic? A) Responsible. B) Nervous. C) Adaptable. D) Tenacious. Show Answer Correct Answer: B) Nervous. 14. Franchisors usually provide all of the listed items except ..... A) Training. B) Advertising. C) Loan. D) Equipment. Show Answer Correct Answer: C) Loan. 15. Which of these aren't problems of small business. A) Sickness. B) Raw materials. C) Finance. D) Trade. Show Answer Correct Answer: D) Trade. 16. The amount paid for insurance is the A) Assessed value. B) Premium. C) Deductible. D) Closing cost. Show Answer Correct Answer: B) Premium. 17. What is a key characteristic of successful small business innovation? A) Following exactly what large companies do. B) Never changing anything. C) Identifying and filling unmet local needs. D) Ignoring customer feedback. Show Answer Correct Answer: C) Identifying and filling unmet local needs. 18. This is a proposal that describes a new business. A) Business Plan. B) Blueprint. C) Opportunity. D) Venture. Show Answer Correct Answer: A) Business Plan. 19. Customer, family members and government are example of stakeholders A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 20. According to the Small Business Administration, a small business is an independent business with fewer than ..... employees A) 60. B) 500. C) 100. D) 20. Show Answer Correct Answer: B) 500. 21. Business managers spend how much time performing human relations activities? A) 10%. B) More than 50%. C) 25%. D) 50%. Show Answer Correct Answer: B) More than 50%. 22. What is disadvantage of buying an existing business compared to starting a business from scratch? A) Customer base is already established. B) May have pre-built reputation (goodwill). C) Established infrastructure and operational processes. D) Less flexibility in shaping the business according to personal vision. Show Answer Correct Answer: D) Less flexibility in shaping the business according to personal vision. 23. Which of the following is a fixed cost? A) Salaries of employees. B) Cost of raw materials. C) Utility bills. D) Sales commissions. Show Answer Correct Answer: A) Salaries of employees. 24. When exploring idea sources, entrepreneurs should look for for limitations of what is currently available. True or False? A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 25. MPBF Method II formula is: A) CA-CL non-bank. B) 75% of (CA-CL non-bank). C) 75% of Net Assets. D) 75% of Current Assets-Current Liabilities (non-bank). Show Answer Correct Answer: D) 75% of Current Assets-Current Liabilities (non-bank). 26. A small business owner is preparing for the harvest and wants to sell the business to a family member. What key consideration should they address? A) Ensuring the successor has adequate training and support. B) Maximizing marketing expenditures. C) Eliminating all customer loyalty programs. D) Reducing the business's market presence. Show Answer Correct Answer: A) Ensuring the successor has adequate training and support. 27. What is the purpose of advertising? A) To persuade customers to buy. B) To inform customers about products. C) All of the above. D) To create a positive company image. Show Answer Correct Answer: C) All of the above. 28. Which of the following is organized by individuals? A) Cottage Industries. B) Railway. C) Chemical industry. D) None of these. Show Answer Correct Answer: A) Cottage Industries. 29. What challenges do small-scale industries face in India? A) Limited access to finance, inadequate infrastructure, lack of skilled labor, regulatory hurdles, and competition from larger firms. B) Abundant skilled labor. C) Strong government support. D) High demand for products. Show Answer Correct Answer: A) Limited access to finance, inadequate infrastructure, lack of skilled labor, regulatory hurdles, and competition from larger firms. 30. What role does leadership play in the success of a small business? A) Leadership has no impact on the success of a small business. B) Leadership provides direction and guidance for the business, motivates employees, and makes critical decisions. C) Leadership only creates chaos and confusion in a small business. D) Leadership is only important in large corporations, not small businesses. Show Answer Correct Answer: B) Leadership provides direction and guidance for the business, motivates employees, and makes critical decisions. 31. Which source of finance does not need to be paid back and is available to small businesses? A) Government Grant. B) Owner's Capital. C) Bank Loan. D) Bank Overdraft. Show Answer Correct Answer: A) Government Grant. 32. A business plan ..... A) Is a break even graph. B) Is a prediction of cash inflow. C) Is a set of financial documents. D) Is a plan that outlines exactly how a business would work. Show Answer Correct Answer: D) Is a plan that outlines exactly how a business would work. 33. What does the term 'small business' typically refer to? A) Businesses with high revenue. B) Large-scale multinational companies. C) Independently owned and operated companies. D) Government-run organizations. Show Answer Correct Answer: C) Independently owned and operated companies. 34. You have just opened a new small business. You're really happy to learn that studies show that small-business workers ..... A) Don't really like bill collectors much. B) Are more innovative than workers in large businesses. C) Don't want a lot of benefits. D) Don't have a lot of experience. E) Pay little attention to their salary levels compared to similar workers in large businesses. Show Answer Correct Answer: B) Are more innovative than workers in large businesses. 35. Which of the following is a characteristic of a limited company? A) Owned by a single individual. B) Unlimited liability for owners. C) Separate legal entity from its members. D) No need for formal registration. Show Answer Correct Answer: C) Separate legal entity from its members. 36. One of the first things someone needs to do before starting a business is to write which of the following? A) A franchise agreement. B) A partnership statement. C) A business plan. D) A loan application. Show Answer Correct Answer: C) A business plan. 37. Price, Quality, Location, and Service are characteristics that identify which term? A) Business Opportunity. B) Business Milestone. C) Brand Recognition. D) Brand Marketing. Show Answer Correct Answer: A) Business Opportunity. 38. Starbucks is an example of what type of business ownership? A) Sole trader. B) Limited liability partnership. C) Parthership. D) Franchise. Show Answer Correct Answer: D) Franchise. 39. A consumer need is: A) Goods and services that are required. B) Goods and services that are wished for. C) Goods and services that are desired but not necessary. D) Goods and services that are valued. Show Answer Correct Answer: A) Goods and services that are required. 40. What should businesses develop to provide early warnings about potential risks? A) A cost-cutting strategy. B) A new product line. C) Monitoring systems. D) A public relations campaign. Show Answer Correct Answer: C) Monitoring systems. 41. Which of the following is an example of a physical factor influencing the choice of a small business location? A) Availability of local tax incentives. B) Availability of parking spaces. C) Local demand for the product or service. D) Brand recognition. Show Answer Correct Answer: B) Availability of parking spaces. 42. What is a business milestone? A) Costs incurred by a business for property or equipment. B) Items provided to employees in addition to standard compensation. C) A point in a business' life where a manager or other administrative employee designates an achieved goal or standard in time. D) The point in which a business' revenue matches with expenses over a given time period. Show Answer Correct Answer: C) A point in a business' life where a manager or other administrative employee designates an achieved goal or standard in time. 43. What is a key characteristic of social entrepreneurs? A) Preference for high-risk ventures. B) Development of luxury goods. C) Emphasis on social impact. D) Focus on profit maximization. Show Answer Correct Answer: C) Emphasis on social impact. 44. (adv) Certainly; to be expected. A) Competitively. B) Inevitably. C) Productively. D) Profitably. Show Answer Correct Answer: B) Inevitably. 45. Profits are taxed when earned, and then the shareholders' dividends are taxed after they are distributed. This legal structure is best for international businesses A) S Corp. B) C Corp. C) Sole Proprietorship. D) PartnershipTagsLEGAL STRUCTURES. E) LLC. Show Answer Correct Answer: B) C Corp. 46. Can a tiny industry exceed Rs. 25 lakhs in fixed capital investment? A) A tiny industry can have a fixed capital investment of up to Rs. 50 lakhs. B) Yes, a tiny industry can exceed Rs. 25 lakhs in fixed capital investment. C) No, a tiny industry cannot exceed Rs. 25 lakhs in fixed capital investment. D) Tiny industries are exempt from fixed capital investment limits. Show Answer Correct Answer: C) No, a tiny industry cannot exceed Rs. 25 lakhs in fixed capital investment. 47. Which legal structure is best for international business even with being double-taxed? A) Non-profit. B) S-Corp. C) C-Corp. D) LLC. Show Answer Correct Answer: C) C-Corp. 48. Why is it important to include a buffer for unexpected costs in a budget? A) To manage unforeseen financial demands. B) To increase profit margins. C) To reduce tax liabilities. D) To attract investors. Show Answer Correct Answer: A) To manage unforeseen financial demands. 49. As an entrepreneur, you should always use website to:KLO 1.4 A) Promote your business. B) Sell online. C) Interact with your customers. D) All of the above. Show Answer Correct Answer: D) All of the above. 50. Which type of retailers provides door to door services to their customers A) Street traders. B) Peddlers and hawkers. C) General stores. D) Street stall holders. Show Answer Correct Answer: B) Peddlers and hawkers. 51. A small business is an independent business with fewer than ..... employees. A) 10. B) 500. C) 100. D) 50. Show Answer Correct Answer: B) 500. 52. What is the most important aspect of a business manager A) Careness. B) Creativity. C) Leadership. D) Originality. Show Answer Correct Answer: C) Leadership. 53. Which of the following is the main problem for small businesses? A) Raw material. B) Technology. C) Managerial skill. D) All of the above. Show Answer Correct Answer: D) All of the above. 54. Many small businesses have an advantage over larger businesses because they are better able to ..... A) Raise large amounts of financial capital. B) Market their products. C) Mass produce products. D) Provide unique services to customers. Show Answer Correct Answer: D) Provide unique services to customers. 55. What percentage of all U.S. businesses do small businesses represent according to the U.S. Small Business Administration (SBA)? A) 25.1%. B) 99.9%. C) 75.5%. D) 50.2%. Show Answer Correct Answer: B) 99.9%. 56. Jill is an investor in a full detail car wash, she has been very pleased in the company after helping choose a CEO a couple of months ago. Which best describes Jill's role in the car wash? A) Stockholder. B) COO. C) Human resources manager. D) StakeholderTagsROLES. Show Answer Correct Answer: A) Stockholder. 57. The most successful small business owners A) Establish good working relationships with professionals such as bankers, lawyers, and accountants. B) Have never worked for anyone else before. C) Do not need to choose employees carefully because they will be the ones giving orders. D) Understand that a written business plan is a waste of time and money. Show Answer Correct Answer: A) Establish good working relationships with professionals such as bankers, lawyers, and accountants. 58. Chelsea charges customers $ 150 to fix an iphone. She pays $ 40 for each replacement screens she puts on a phone. What is her profit from fixing one iphone? A) $ 190. B) $ 150. C) $ 600. D) $ 110. Show Answer Correct Answer: D) $ 110. 59. An individual or company that owns shares in a company. A) Shareholder. B) Managing Member. C) All the above. D) None of the above. Show Answer Correct Answer: A) Shareholder. 60. Who is the highest-ranked employee in a company? A) Chief Financial Officer (CFO). B) Chief Executive Officer (CEO). C) Board of Directors. D) Chief Operating Officer (COO). Show Answer Correct Answer: B) Chief Executive Officer (CEO). ← 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