This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 22 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A business structure helps you organize your business A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 2. If plans have not been made for supporting the costs of the business until it brings a profit, inevitably it will fail.What does "inevitably" mean? A) First, beginning. B) Certainly, to be expected. C) Specific. D) Possible. Show Answer Correct Answer: B) Certainly, to be expected. 3. Statement 1:Boot Strapping refers to the practice of funding a project or ventureby raising money from a large number of people for a common goal.Statement 2:Boot Strapping is a good option of funding only if the initialrequirement is small and handy. A) Both the statements are true. B) Both the statements are false. C) Statement 1 is true and Statement 2 is false. D) Statement 2 is true and Statement 1 is false. Show Answer Correct Answer: D) Statement 2 is true and Statement 1 is false. 4. Advantages of small businesses to the community A) They sometimes offer credit facilities. B) They offer goods and services for free. C) They give the community money. D) None of the above. Show Answer Correct Answer: A) They sometimes offer credit facilities. 5. Which statement best describes small business management? A) Owners only focus on one task. B) Managers never interact with customers. C) Owners must handle multiple responsibilities simultaneously. D) All decisions are made by corporate headquarters. Show Answer Correct Answer: C) Owners must handle multiple responsibilities simultaneously. 6. A venture capitalist is ..... A) Someone currently going bankrupt. B) A person who starts a business of their own. C) A type of marketing strategy. D) Someone will to risk money on another person's business. Show Answer Correct Answer: D) Someone will to risk money on another person's business. 7. If a business doesn't have a habit of breaking the law, it doesn't need a permanent lawyer in staff. Most businesses need legal services several times a year. A contract with a law company is a good way to get qualified legal aid. You have to pay only for solving your legal issue. What is this an example of? A) Opportunity. B) Outsourcing. C) Networking. D) Separation of Duties. Show Answer Correct Answer: B) Outsourcing. 8. Ms. Patel leads staff meetings and ensures the company follows workplace policies. A) Entrepreneur. B) Manager. C) Small Business Owner. D) None of the above. Show Answer Correct Answer: B) Manager. 9. What is the synonym of 'entrepreneur'? A) Innovator. B) Follower. C) Manager. D) Employee. Show Answer Correct Answer: A) Innovator. 10. Pilot test is a preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 11. How do small businesses in India contribute to environmental sustainability? A) By causing environmental degradation. B) By promoting sustainable practices and community development. C) By monopolizing local resources. D) By creating social unrest. Show Answer Correct Answer: B) By promoting sustainable practices and community development. 12. A(n) ..... is someone who takes a risk in starting a business to earn profit. A) Adventurer. B) Entredoer. C) Entrepreneur. D) Manager. Show Answer Correct Answer: C) Entrepreneur. 13. What does a target market describe? A) Who a business is providing services for. B) The organizational structure of the business. C) The purpose of the organization. D) The current condition of the industry. Show Answer Correct Answer: A) Who a business is providing services for. 14. This U.S. Government Agency helps small business owners obtain financing and other support for their companies. A) Venture Capitalists. B) Federal Reserve Banks. C) Small Business Administration. D) Chamber of Commerce. Show Answer Correct Answer: C) Small Business Administration. 15. The franchisee must follow ALL rules stated in the franchise agreement. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 16. TRUE or FALSEA business plan does not have to be written since the business owner is well aware of the information in the plan. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 17. For some people going ..... business is a financial necessity. A) To. B) For. C) Into. D) None of the above. Show Answer Correct Answer: C) Into. 18. True or False:With owners of equity in a business, contractors own equity. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 19. How can an individual help small businesses? A) Shop Small Business Satuday. B) Advocate with small businesses in the community and with elected officials. C) Patronize small businesses whenever possible. D) All of these would help. Show Answer Correct Answer: D) All of these would help. 20. Which of the following is an example of a variable cost? A) Insurance premiums. B) Office rent. C) Raw materials. D) Employee salaries. Show Answer Correct Answer: C) Raw materials. 21. In the opening section of the business plan, a business owner or entrepreneur will list all of the start up costs, short and long-term financial needs and sources of financing. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. What are the three options for starting a small business? A) From scratch, starting a partnership, buying a franchise. B) From scratch, buying an existing business, buying a franchise. C) From scratch, buying a new business, buying a franchise. D) From scratch, starting a corporation, buying a franchise. Show Answer Correct Answer: B) From scratch, buying an existing business, buying a franchise. 23. In the U.S., women own close to this percentage of small business. A) 25 percent. B) 90 percent. C) 50 percent. D) 35 percent. Show Answer Correct Answer: D) 35 percent. 24. What does the franchisor provide for those purchasing the franchise? A) Advice. B) Training. C) Advertising. D) All of these are provided. Show Answer Correct Answer: D) All of these are provided. 25. What is the significance of fixed capital investment in classifying small businesses? A) Fixed capital investment is solely about employee count. B) It only affects large corporations, not small businesses. C) Fixed capital investment helps classify small businesses by indicating their scale of operations and financial commitment. D) Fixed capital investment is irrelevant to small business classification. Show Answer Correct Answer: C) Fixed capital investment helps classify small businesses by indicating their scale of operations and financial commitment. 26. Why might a small business choose to use spreadsheets for accounting instead of hiring a large finance team? A) To comply with international regulations. B) Because of limited resources and simpler financial needs. C) To manage global campaigns. D) To automate production. Show Answer Correct Answer: B) Because of limited resources and simpler financial needs. 27. What is a SWOT analysis used for in business planning? A) To evaluate the financial statements. B) To assess strengths, weaknesses, opportunities, and threats. C) To determine employee salaries. D) To create a marketing budget. Show Answer Correct Answer: B) To assess strengths, weaknesses, opportunities, and threats. 28. A person or company with sufficient liquidity who guarantees to repay loan if a company cannot. A) Guarantor. B) Bank Loan. C) All the above. D) None of the above. Show Answer Correct Answer: A) Guarantor. 29. Most of the money needed to start a business comes from A) The owner and his/her family and friends. B) Selling stock. C) Bank loans. D) Credit from other businesses. Show Answer Correct Answer: A) The owner and his/her family and friends. 30. What is the MOST important think businesses need to do to keep their customers loyal? A) Say bad things about rival products. B) Keep prices low. C) Give special offers. D) Spend a lot of money on marketing. Show Answer Correct Answer: D) Spend a lot of money on marketing. 31. Out of the following, which incentive is not given by government to industries in rural, backward and hilly areas? A) Loans at concessional interest rates. B) Free raw materials. C) Power at concessional rates. D) Tax holiday. Show Answer Correct Answer: B) Free raw materials. 32. A ..... employee receives a set amount of pay each month without overtime compensation from extra hours worked. A) Salary. B) Hourly. C) Commissions. D) None of the above. Show Answer Correct Answer: A) Salary. 33. What is the excise exemption limit raised to for small industries? A) Rs. 1.5 crore. B) Rs. 50 lakh. C) Rs. 2 crore. D) Rs. 75 lakh. Show Answer Correct Answer: A) Rs. 1.5 crore. 34. An improvement is a(n) ..... A) Idea. B) Starting over on your product. C) Designed change that increases the usefulness of a product, service, or product. D) None of The Above. Show Answer Correct Answer: C) Designed change that increases the usefulness of a product, service, or product. 35. There is very little help available to small-business owners. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 36. What is the definition of business-to-business (B2B) sales? A) A business selling products or services directly to consumers. B) A business selling products or services to another business, generally for resale purposes. C) A consumer selling products to a business. D) A business buying products from consumers. Show Answer Correct Answer: B) A business selling products or services to another business, generally for resale purposes. 37. Loan covers up to $ ..... million. A) 25. B) 10. C) 5.5. D) 5. Show Answer Correct Answer: C) 5.5. 38. Which of the following would NOT count as expenses when preparing a budget for a gardening business: A) Money paid to a sign-writer to update the business vehicle logo. B) Money paid to a fuel supplier for the business lawnmower. C) Money paid to the business mechanic for repairing a vehicle used in the business. D) Money paid to the owner for landscaping advice. Show Answer Correct Answer: D) Money paid to the owner for landscaping advice. 39. Business customers porting-in their number from another provider can get $ ..... credit for 24 Months on BYOD. A) $ 7. B) $ 5. C) $ 12.50. D) $ 10. Show Answer Correct Answer: B) $ 5. 40. Which of the following would be an example of revenue for a business? A) Buying supplies to make your product. B) Paying for utilities. C) Paying rent. D) Selling a product. Show Answer Correct Answer: D) Selling a product. 41. What is (probably) the most difficult part of starting a business? A) Determining a passion. B) Finding a location. C) Obtaining financing. D) Finding a partner. Show Answer Correct Answer: C) Obtaining financing. 42. (n) Something that is made. A) Reputation. B) Finance. C) Product. D) Motivation. Show Answer Correct Answer: C) Product. 43. Which two aspects of a product do Minimum Viable Products (MVPs) test? A) Ease-of-use and Functionality. B) Design and Marketing. C) Price and Brand Recognition. D) Durability and Warranty. Show Answer Correct Answer: A) Ease-of-use and Functionality. 44. 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 "sound" mean? A) Healthy, without financial risk. B) Specific. C) Possible. D) Having enough money to pay what you owe. Show Answer Correct Answer: A) Healthy, without financial risk. 45. In the context of small businesses and the economy of a country, entrepreneurship rates are significantly lower in countries where it is hard to get fired. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 46. In which stage is a business considered economically healthy? A) Existence stage. B) Success stage. C) Pivot or persist stage. D) Take-off stage. Show Answer Correct Answer: B) Success stage. 47. How many assumptions are there? A) 5. B) 6. C) 4. D) 3. Show Answer Correct Answer: C) 4. 48. Jacob, Caleb, Riley, Lacey, and Bennett started a new company. Who among them, if appointed as CFO, would be responsible for the company's finances and creating budgets? A) Bennett. B) Jacob. C) Caleb. D) Lacey. E) Riley. Show Answer Correct Answer: B) Jacob. 49. Why is it important for small businesses to have a clear vision and mission? A) A clear vision and mission are not important for small businesses. B) A clear vision and mission provide direction, inspire employees, and help in decision-making. C) A clear vision and mission only create confusion. D) A clear vision and mission are only important for large corporations. Show Answer Correct Answer: B) A clear vision and mission provide direction, inspire employees, and help in decision-making. 50. Small Scale Industries are Exempted for payment of tax for 5 years A) In Developed Areas. B) In Rural Areas. C) In Slum Areas. D) In Backward areas. Show Answer Correct Answer: D) In Backward areas. 51. What is a pop-up event? A) A temporary retail space. B) A type of online advertisement. C) A fundraising event. D) A permanent store. Show Answer Correct Answer: A) A temporary retail space. 52. What is the term for specific, time-sensitive accomplishments used to measure the short-term progress of an organization? A) Goals. B) Missions. C) Plans. D) Objectives. Show Answer Correct Answer: D) Objectives. 53. How might a small business owner best handle limited resources? A) By immediately expanding nationwide. B) By starting small and growing gradually. C) By spending all available money immediately. D) By ignoring budget constraints. Show Answer Correct Answer: B) By starting small and growing gradually. 54. Which is not an example of an E-Commerce retailer? A) NFL.com. B) JcPenny in the Edison Mall. C) Ebay. D) Amazon. Show Answer Correct Answer: B) JcPenny in the Edison Mall. 55. What should you consider when purchasing used equipment for your business? A) Check for liens and require a bill of sale. B) Ignore any UCC filings or chattel mortgages. C) Rely on the seller's word about the equipment's condition. D) Purchase without any legal documentation. Show Answer Correct Answer: A) Check for liens and require a bill of sale. 56. Which of the below is not the advantage of having higher capital? A) Easier to open more branches. B) Easier to increase production. C) Easier to establish partnership. D) Easier to hire employee. Show Answer Correct Answer: D) Easier to hire employee. 57. Alexa and Caleb are planning to start a new business. They are considering different marketing strategies. Which of the following is a common marketing strategy for startups? A) Word of Mouth. B) Social Media Marketing. C) Email Marketing. D) All of the above. Show Answer Correct Answer: D) All of the above. 58. A business or manufacturing activity carried on in people's homes A) Cottage industry. B) Micro Industry. C) Small Business. D) Macro Business. Show Answer Correct Answer: A) Cottage industry. 59. Equipment Financing loans are Best for businesses who need equipment but dont have the funds to ..... equipment outright. A) Borrow. B) Rent. C) Purchase. D) Sell. Show Answer Correct Answer: C) Purchase. 60. What are the challenges faced by small businesses in rural areas? A) Lack of infrastructure, limited access to resources, difficulty in reaching target markets. B) Limited access to resources, lack of infrastructure, difficulty in reaching target markets. C) Abundance of infrastructure, low demand for products, easy access to target markets. D) High population density, excessive competition, easy access to resources. Show Answer Correct Answer: A) Lack of infrastructure, limited access to resources, difficulty in reaching target markets. ← 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