This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 21 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An example of ..... compensation is paying field laborers for the amount of fruit they pick. A) Commission. B) Salary. C) Piece work. D) None of the above. Show Answer Correct Answer: C) Piece work. 2. Which of the following is a service that requires training? A) Shipping products. B) Manufacturing clothing. C) Selling toys. D) Car detailing. Show Answer Correct Answer: D) Car detailing. 3. Businesses, like Unilever and Procter and Gamble, spend a lot of money on advertising because their products sell in very ..... markets A) Competitive. B) Uncompetitive. C) All the above. D) None of the above. Show Answer Correct Answer: A) Competitive. 4. What is the main focus of the Marketing Strategy? A) To detail the financial requirements. B) To provide a summary of the business plan. C) To attract customers to buy products or services. D) To outline the operational processes. Show Answer Correct Answer: C) To attract customers to buy products or services. 5. How does the government support small scale industries in terms of loans? A) Loans are only available for agricultural purposes. B) The government only provides grants to large corporations. C) Small scale industries are not eligible for any financial assistance. D) The government provides loans to small scale industries through subsidized interest rates, credit guarantees, and specific loan schemes like MUDRA. Show Answer Correct Answer: D) The government provides loans to small scale industries through subsidized interest rates, credit guarantees, and specific loan schemes like MUDRA. 6. Which of the following is NOT one of the considerations to determine if you "have what it takes" to start a business? A) Finances. B) Support. C) Family life. D) Experience. Show Answer Correct Answer: D) Experience. 7. Most franchisees obtain ..... to cover a part of the cost. A) A franchise. B) A loan. C) Royalty. D) None of the above. Show Answer Correct Answer: B) A loan. 8. What are some common reasons for the success of a small business? A) Lack of vision and mission. B) Unique value proposition, strong customer relationships, effective marketing, and efficient operations. C) Ignoring customer feedback. D) Ineffective marketing strategies. Show Answer Correct Answer: B) Unique value proposition, strong customer relationships, effective marketing, and efficient operations. 9. How many employees or less are typically found in a small business? A) 250. B) 750. C) 500. D) 1000. Show Answer Correct Answer: A) 250. 10. If a customer doesn't have their CRA number that day, what should you do? A) Inform them they'll need to return with it. B) Call fraud prevention. C) Use 11111111 as a dummy BN and update later. D) Do consumer and migrate through NCS after. Show Answer Correct Answer: C) Use 11111111 as a dummy BN and update later. 11. Which of the following is NOT an objective of the Startup India initiative? A) To foster a culture of innovation. B) To simplify regulatory processes. C) To provide easier access to funding. D) To increase the number of traditional businesses. Show Answer Correct Answer: D) To increase the number of traditional businesses. 12. One of the most important physical elements of a retail business is: A) The location. B) The vendors. C) All the above. D) None of the above. Show Answer Correct Answer: A) The location. 13. What are some important skills needed for effective small business management? A) Ability to juggle multiple tasks. B) Effective small business management requires skills such as financial management, marketing, networking, problem-solving, and decision-making. C) Talented singing skills. D) Culinary skills. Show Answer Correct Answer: B) Effective small business management requires skills such as financial management, marketing, networking, problem-solving, and decision-making. 14. This section of the business plan will help determine your financial needs. A) Financial Plan. B) Goals and objective. C) Marketing plan. D) Organizational Plan. Show Answer Correct Answer: A) Financial Plan. 15. What is a mistake small businesses make in terms of their vision, as mentioned in the slide? A) Having a complex vision. B) Having a vision that is too detailed. C) Changing their vision frequently. D) Lacking simplicity in their vision. Show Answer Correct Answer: D) Lacking simplicity in their vision. 16. What is the primary objective of small business owners? A) To explore new business opportunities. B) To generate profits. C) To expand internationally. D) To innovate new products. Show Answer Correct Answer: B) To generate profits. 17. Small Business Association (SBA) A) Federal. B) State. C) Local. D) None of the above. Show Answer Correct Answer: A) Federal. 18. A school system needs a new Science teacher to work during the school year; that teacher will not be eligible for overtime. Which type of compensation would be best for this? A) Commission. B) Salary. C) Hourly. D) Piece Work. Show Answer Correct Answer: B) Salary. 19. Jenica is planning to start a small-scale business that focuses on providing handmade crafts to customers in her neighborhood. She wants to keep the business operations localized and manageable. Which characteristic of small-scale businesses does Jenica's plan align with? A) A. Local area of operations. B) B. Extensive global presence. C) C. Large teams of employees. D) None of the above. Show Answer Correct Answer: A) A. Local area of operations. 20. How can an entrepreneur learn about and understand the industry related to their idea for a new business? A) Take a class or course related to the industry. B) Read books and journals about the industry. C) Interview people who currently work in the industry. D) All of these are correct. Show Answer Correct Answer: D) All of these are correct. 21. Choose the correct word:to make use of A) Pose a threat. B) Succumb to. C) Tap into. D) Safeguard. Show Answer Correct Answer: C) Tap into. 22. Small businesses fail for many of the same reasons as entrepreneurships A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 23. Discount off the Monthly Service Fee for 2 Months on Small Business Rogers Infinite Financing Activations A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 24. When you purchase this type of business, you are expected to follow the rules of the company brand you are purchasing. Is this type of business a franchise or an existing business? A) Franchise. B) Existing Business. C) All the above. D) None of the above. Show Answer Correct Answer: A) Franchise. 25. What are goals in the context of a business plan? A) General statements of what needs to be achieved. B) Specific, time-sensitive accomplishments. C) Descriptions of the target market. D) Forecasts of industry movement. Show Answer Correct Answer: A) General statements of what needs to be achieved. 26. ....is the process of determining whether a business idea is viable. It is the primary evaluation of the business. (Unit 33KLO 2-3a) A) Feasibility Analysis. B) Business Plan. C) Howard Plan. D) None of the Above. Show Answer Correct Answer: A) Feasibility Analysis. 27. Give an example of a small online store that overcomes geographical limitations through e-commerce. A) A small online clothing store that specializes in unique, handmade garments and leverages online platforms to reach customers worldwide. B) A small local store that does not sell online. C) A small bookstore that only sells to local customers. D) A small bakery that only offers in-store purchases. Show Answer Correct Answer: A) A small online clothing store that specializes in unique, handmade garments and leverages online platforms to reach customers worldwide. 28. In which stage does one develop a concept for a product or service? A) Monetization. B) Traction. C) Idea. D) Growth. Show Answer Correct Answer: C) Idea. 29. If projected turnover is ₹ 12 crore, WC requirement as per Nayak method is: A) 6Cr. B) 3Cr. C) 5Cr. D) 2Cr. Show Answer Correct Answer: B) 3Cr. 30. Assertion:small industries promote, balance regional development of the countryReason:in case of small industries quick and timely decisions can be taken due to small size of the organisation A) Both assertion and reason are true and reason is the correct explanation of assertion. B) Both assertion and reason are true and reason is not the correct explanation of assertion. C) Assertion is true but reason is false. D) Assertion is false but reason is true. Show Answer Correct Answer: B) Both assertion and reason are true and reason is not the correct explanation of assertion. 31. How can small businesses create employment opportunities in rural areas? A) By providing training and resources to local residents, partnering with local organizations and government agencies, and investing in infrastructure and technology. B) By automating all processes and eliminating the need for human workers. C) By reducing wages and benefits for employees. D) By outsourcing jobs to other countries. Show Answer Correct Answer: A) By providing training and resources to local residents, partnering with local organizations and government agencies, and investing in infrastructure and technology. 32. Which is one of the greatest benefits of being an entrepreneur? A) Quick return on investment. B) Paying less taxes. C) Schedule control. D) Meeting new people. Show Answer Correct Answer: C) Schedule control. 33. Which of the following is usually true for small businesses? A) They employ a large number of workers. B) They are managed by their owners. C) They have many layers of management. D) They reach a large number of markets. Show Answer Correct Answer: B) They are managed by their owners. 34. A concept that can be used to make money. A) Business. B) Entrepreneur. C) Small Business. D) Business idea. Show Answer Correct Answer: D) Business idea. 35. Business expenses i.e. what the business spends in its running are referred to as ..... A) Expenses. B) Outgoings. C) Costs. D) Revenue. Show Answer Correct Answer: C) Costs. 36. Successful entrepreneurs have a passion for their business. How do you find your passion? A) Consider your own abilities, interests, and experiences. B) Discuss with other entrepreneurs. C) Watch television. D) None of the above. Show Answer Correct Answer: A) Consider your own abilities, interests, and experiences. 37. A sole trader ..... A) Has ultimate responsibility but can work with other people. B) Never has any staff. C) Works in a partnership. D) Only works on their own. Show Answer Correct Answer: A) Has ultimate responsibility but can work with other people. 38. What is the role of a business budget template in financial management? A) It guarantees a higher profit margin. B) It reduces the need for marketing. C) It increases the number of customers. D) It helps in understanding and managing small business expenses. Show Answer Correct Answer: D) It helps in understanding and managing small business expenses. 39. Which of these is an important question to ask when brainstorming business ideas? A) What do consumers in your community want or need?. B) How many people will need to be hired?. C) When will the business open each day?. D) None of the above. Show Answer Correct Answer: A) What do consumers in your community want or need?. 40. "Trade Secret" comes under which category of Right? A) Copyright. B) Patent. C) Intellectual Property Rights. D) None of the above. Show Answer Correct Answer: C) Intellectual Property Rights. 41. This is the fifth stage of the business life cycle; the business has everything it needs to thrive. A) Maturity. B) Success. C) Survival. D) Takeoff. Show Answer Correct Answer: A) Maturity. 42. What is a key characteristic of entrepreneurs? A) They only sell physical products. B) They focus solely on profits. C) They avoid unknown risks. D) They take on new opportunities. Show Answer Correct Answer: D) They take on new opportunities. 43. GST Payable is classified as A) Current Liability. B) Non Current Liability. C) Non Current Asset. D) Current Asset. Show Answer Correct Answer: A) Current Liability. 44. The Australian banking system was deregulated in 1985. This meant that the government: A) Permitted banks to trade in Australia without any limitations or regulations. B) Permitted overseas competitors to enter the Australian banking system. C) Permitted banks to act outside government regulations in the interests of competition in the banking industry. D) Permitted banks to operate within their own regulations without government interference. Show Answer Correct Answer: B) Permitted overseas competitors to enter the Australian banking system. 45. A sign near a cash register in a shop that states 'No refunds or exchanges' is: A) Rare. B) Acceptable. C) Fair enough. D) Illegal. Show Answer Correct Answer: D) Illegal. 46. Why is it important to set specific goals in a business plan? A) To make the plan longer. B) To guide the business's operations and track progress. C) To impress investors with big ambitions. D) Goals are not important in a business plan. Show Answer Correct Answer: B) To guide the business's operations and track progress. 47. A small business has limited funds but wants to maximize its advertising. Which of the following promotional methods would be most cost-effective? A) Television advertising in prime-time slots. B) Local social media ads and flyers distributed in high-traffic areas. C) Billboards on highways. D) Hiring a celebrity spokesperson. Show Answer Correct Answer: B) Local social media ads and flyers distributed in high-traffic areas. 48. Given a graph showing the height of a person over time, what type of data is being represented? A) Discrete data. B) Binary data. C) Nominal data. D) Continuous data. Show Answer Correct Answer: D) Continuous data. 49. According to the document, which of the following is considered an obvious choice for obtaining a loan for a new business? A) Family and Friends. B) Angels. C) Debts. D) All of the above. Show Answer Correct Answer: A) Family and Friends. 50. What is a mjor risk of social media marketing? A) People do not see it. B) Wording/Message taking out of context in negative manner. C) Bad Grammar. D) Ugly Pictures. Show Answer Correct Answer: B) Wording/Message taking out of context in negative manner. 51. When starting a new business, you should be prepared for which of the following? A) Ten-hour workdays five to six days each week. B) Twelve-hour workdays six to seven days each week. C) Eight-hour workdays five to six days each week. D) Six-hour workdays four to five days each week. Show Answer Correct Answer: B) Twelve-hour workdays six to seven days each week. 52. NSIC provides indigenous and imported ..... on easy hire purchase terms ..... A) Raw materials. B) Finished goods. C) Machinery. D) Land. Show Answer Correct Answer: C) Machinery. 53. Which of the following is NOT a characteristic of digital goods? A) No need for physical storage. B) Requires additional employees. C) Difficult to demonstrate value. D) Instant delivery. Show Answer Correct Answer: B) Requires additional employees. 54. How can small businesses attract customers looking for something different? A) By lowering their prices. B) By emphasizing their unique qualities and USPs. C) By copying competitors' strategies. D) By increasing production speed. Show Answer Correct Answer: B) By emphasizing their unique qualities and USPs. 55. Which of these is not a consideration when evaluating a business opportunity? A) Years of experience. B) Competition. C) Personality and skills. D) None of the above. Show Answer Correct Answer: A) Years of experience. 56. Which of the following are negotiation impact on the business:(KLO 2.5) A) A) mutual benefits. B) B) leaving each party satisfied. C) C) potential future relations. D) D) all of the above. Show Answer Correct Answer: D) D) all of the above. 57. A Limited Liability Company (LLC) is a great option for a single owner because it limits their liability-personal assets are safe. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 58. Market research and analyzing the purchasing power of the local population should play a crucial role in choosing a small business location. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 59. What is a potential disadvantage of buying a franchise? A) Lack of independence in managing the business. B) Higher success rate compared to other start-up businesses. C) Lower initial fee and yearly revenue percentage. D) No access to purchasing power and discounts. Show Answer Correct Answer: A) Lack of independence in managing the business. 60. Why are small business unable to market their products? A) Lack of necessary infrastructure. B) Low bargaining power. C) Lack of skill. D) None of the above. Show Answer Correct Answer: A) Lack of necessary infrastructure. ← 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