This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 24 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Refer to Taco Chick. Which of the following would not be an advantage of a franchise for Nathan? A) Taco Chick gains fast and well-controlled distribution. B) Nathan gets the opportunity to start a business with limited capital. C) Taco Chick gets outlets that are maintained and operated according to its standards. D) Nathan can operate using the business experience of others. E) Contractual disputes can cause lawsuits. Show Answer Correct Answer: E) Contractual disputes can cause lawsuits. 2. What should a small business do if it faces challenges with promotional planning in a global market? A) Abandon international expansion plans. B) Seek local partnerships or hire local experts who understand the market dynamics. C) Reduce the promotional budget completely. D) Ignore the challenges and continue using the same strategy. Show Answer Correct Answer: B) Seek local partnerships or hire local experts who understand the market dynamics. 3. All successful entrepreneurs share a number of common ..... A) Risks. B) Skills. C) Traits. D) None of the above. Show Answer Correct Answer: C) Traits. 4. Which is an example of a service industry? A) Steel rolling mill. B) Textile manufacturing. C) IT services. D) Cement production. Show Answer Correct Answer: C) IT services. 5. A hotel front desk supervisor assigns tasks to the housekeeping staff. A) Entrepreneur. B) Manager. C) Small Business Owner. D) None of the above. Show Answer Correct Answer: B) Manager. 6. A disadvantage of a sole trader is ..... A) You have unlimited liability. B) You get to make all the decisions. C) There are arguments. D) You have to split the profit. Show Answer Correct Answer: A) You have unlimited liability. 7. When was DIC launched A) May 1, 1978. B) May 1, 1980. C) July 1, 1978. D) July 1, 1980. Show Answer Correct Answer: A) May 1, 1978. 8. Which marketing strategy involves offering a lower price than competitors to gain market share? A) Cost leadership. B) Differentiation. C) Niche marketing. D) Focus strategy. Show Answer Correct Answer: A) Cost leadership. 9. A department store supervisor trains new employees on customer service. A) Entrepreneur. B) Manager. C) Small Business Owner. D) None of the above. Show Answer Correct Answer: B) Manager. 10. The fixed capital investment per head or artisan or worker does not exceed Rs.50, 000 or such other sum as may be specified by the central government. A) Micro industries. B) Women Enterprises. C) Small Scale Business. D) Village Industries. Show Answer Correct Answer: D) Village Industries. 11. Which of the following organizations supports small-scale industries by providing raw materials and marketing assistance? A) FICCI. B) RBI. C) NSIC. D) CII. Show Answer Correct Answer: C) NSIC. 12. Variable costs is A cost which changes the more or less the business produce A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. Most small businesses require little startup capital and will be: A) Funded by venture capitalists. B) Funded by the owner. C) All the above. D) None of the above. Show Answer Correct Answer: B) Funded by the owner. 14. What are the functions of CRM? A) Sales monitoring. B) Build prospects and customer database. C) Log Follow-up & Support Communications Properly. D) Deal updating. E) All of the above. Show Answer Correct Answer: E) All of the above. 15. ..... is money used to start up a new small business or help a business expand. A) Venture Capital. B) Venture Business. C) Venture Investment. D) Venture Money. Show Answer Correct Answer: A) Venture Capital. 16. What does outsourcing mean in the context of small businesses? A) Finding another business to complete specific tasks. B) Hiring more employees internally. C) Expanding the business to new locations. D) Reducing the number of services offered. Show Answer Correct Answer: A) Finding another business to complete specific tasks. 17. SWOT Analysis:Acting on weaknesses identified in a SWOT Analysis can be challenging but often necessary to grow business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. Small businesses usually require high start-up costs in comparison to larger corporations. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 19. Which of the following is NOT one of the five basic communication skills? A) Self-understanding. B) Understanding others. C) Organizing. D) Team buidling. Show Answer Correct Answer: C) Organizing. 20. Employment Contracts includes all except: A) Compensation. B) Schedule. C) After Work Activities. D) Benefits. Show Answer Correct Answer: C) After Work Activities. 21. What is the second stage of the business cycle? A) Existence Stage. B) Survival Stage. C) Decline Stage. D) Success Stage. Show Answer Correct Answer: B) Survival Stage. 22. What is the main goal of a marketing strategy? A) To reduce business costs. B) To increase product prices. C) To identify and communicate with potential customers. D) To hire more employees. Show Answer Correct Answer: C) To identify and communicate with potential customers. 23. List two eligibility requirements for Small Business Administration (SBA) grants. A) The business must operate for a profit and operate within the United States or its territories. B) The business must be a non-profit and operate internationally. C) The business must have more than 100 employees and be publicly traded. D) The business must be owned by a government agency and operate in any country. Show Answer Correct Answer: A) The business must operate for a profit and operate within the United States or its territories. 24. What is the average startup cost for a small business entrepreneur? A) $ 25, 000. B) $ 1, 000, 000. C) $ 5, 000. D) $ 100, 000. Show Answer Correct Answer: A) $ 25, 000. 25. What you are selling is called? A) Place. B) Promotion. C) Price. D) Product. Show Answer Correct Answer: D) Product. 26. Label the items as either a product or a service. Jewelry A) Product. B) Service. C) All the above. D) None of the above. Show Answer Correct Answer: A) Product. 27. A business forecasts a decline in sales. What strategy should they adopt to strengthen customer relationships during this period? A) Improving communication and offering tailored promotions. B) Reducing product quality to cut costs. C) Ignoring customer concerns to focus on financial recovery. D) Increasing prices to offset losses. Show Answer Correct Answer: A) Improving communication and offering tailored promotions. 28. An Angel Investor is a wealthy private investores focuse on finding small business venture in exchange for equity. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 29. Bethany owns and operates a small business that helps other small businesses screen, hire, and train employees. This is an example of which type of small business management/entrepreneurship career? A) Internet entrepreneur. B) Medical (in-home) services. C) IT consultant. D) Human resources consultant. Show Answer Correct Answer: D) Human resources consultant. 30. Choose the correct word:aim at A) Set sights on. B) Safeguard. C) Succumb to. D) Be affected by. Show Answer Correct Answer: A) Set sights on. 31. Sam and Jacob are planning to start a new business. They are considering different types of business models. Which business model involves selling products directly to the end customer? A) Direct-to-Consumer. B) Wholesale. C) Dropshipping. D) Franchise. Show Answer Correct Answer: A) Direct-to-Consumer. 32. Which of the following is a feature of a partnership? A) Limited liability for all partners. B) Owned by one person. C) An agreement may be oral or written. D) No need for a written agreement. Show Answer Correct Answer: C) An agreement may be oral or written. 33. Taking a Crossfit class is: A) Service Based. B) Product Based. C) Both. D) None of the above. Show Answer Correct Answer: A) Service Based. 34. What motivates the entrepreneur to become a small business owner? A) The entrepreneur wants to retire and stop working altogether. B) The entrepreneur wants to become a hobo. C) The entrepreneur wants to be his or her own boss. D) The entrepreneur wants to perform boring work. Show Answer Correct Answer: C) The entrepreneur wants to be his or her own boss. 35. On the Job Learning are general features of small businesses A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 36. The organization chart for a business would appear in which section of the business plan? A) Labor Force. B) Appendix. C) Executive Summary. D) Management Team. Show Answer Correct Answer: B) Appendix. 37. For entrepreneurs, there is no correlation between dollars earned and hours worked. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 38. What is a learning-based structure? A) A structure where functions are subordinate to each other. B) A structure that allows functions to work together. C) A structure that describes the purpose of the organization. D) A structure that forecasts industry movement. Show Answer Correct Answer: B) A structure that allows functions to work together. 39. Owners can have more personal ties with customers A) Small Businesses. B) Large Businesses. C) All the above. D) None of the above. Show Answer Correct Answer: A) Small Businesses. 40. What does the phrase 'cutting-edge' mean in a business context? A) Innovative and advanced. B) Old-fashioned. C) Expensive. D) Difficult to use. Show Answer Correct Answer: A) Innovative and advanced. 41. Consumers must make decisions when trying to satisfy their needs and wants. The key difference between a need and a want is that: A) Needs are goods and services that are desired but not necessary. B) Wants are goods and services that are required. C) Needs are goods and services we need to stay 'on trend' in comparison with others in society. D) Wants are goods and services that are desired but not necessary. Show Answer Correct Answer: D) Wants are goods and services that are desired but not necessary. 42. What is one way the Small Business Administration supports entrepreneurs? A) Reducing business taxes. B) Providing workshops and seminars. C) Limiting business growth. D) Increasing competition. Show Answer Correct Answer: B) Providing workshops and seminars. 43. What does the COO oversee in a business? A) Marketing strategies. B) Day-to-day operations and administrative functions. C) Financial investments. D) Product development. Show Answer Correct Answer: B) Day-to-day operations and administrative functions. 44. Assertion (A):Patent creates a temporary monopoly. Reason (R):After a patent expires, the invention is in public domain. Choose the correct option. A) Both Assertion (A) and Reason (R) are true, and R explains A. B) Both are true, but R does not explain A. C) A is true, R is false. D) A is false, R is true. Show Answer Correct Answer: A) Both Assertion (A) and Reason (R) are true, and R explains A. 45. Westfarmers, Telstra, BHP and Westfield which are listed in the Australian stock market, large in size and market a large range of products are examples of A) Public Companies (Ltd). B) Partnerships. C) Sole Proprietorship. D) Private Companies (Pty Ltd). Show Answer Correct Answer: A) Public Companies (Ltd). 46. What is a key decision in starting your own business? A) Choosing a favorite color. B) Flipping a coin to decide on the business location. C) Deciding what form of business ownership will be used. D) Selecting a business name based on a pet's name. Show Answer Correct Answer: C) Deciding what form of business ownership will be used. 47. What is a practical way for a small business to maintain customer relationships after the initial sale? A) Providing excellent after-sales support and follow-ups. B) Avoiding further communication to save resources. C) Sending frequent promotional emails without consent. D) Offering discounts only during peak seasons. Show Answer Correct Answer: A) Providing excellent after-sales support and follow-ups. 48. Which of the following would NOT count as revenue when preparing a budget for a gardening business: A) Income from customers for mowing lawns regularly. B) Money paid to a fuel supplier for the business lawnmower. C) Income for occasional rubbish removals from customer yards. D) Money paid to the owner for landscaping advice. Show Answer Correct Answer: B) Money paid to a fuel supplier for the business lawnmower. 49. What are the key financial challenges faced by small businesses in India? A) Low taxes and fees. B) Abundant access to capital. C) High financial literacy among business owners. D) Access to capital, high interest rates, lack of financial literacy, and limited access to banking services. Show Answer Correct Answer: D) Access to capital, high interest rates, lack of financial literacy, and limited access to banking services. 50. Administrative costs for small health plans are much higher than for large firms making it tougher for small firms to offer coverage to their employees. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 51. What is one of the risks a company might face when conducting business online? A) Decreased market competition. B) Infringement on copyrights, patents, or trademarks. C) Improved employee efficiency. D) Reduced marketing costs. Show Answer Correct Answer: B) Infringement on copyrights, patents, or trademarks. 52. Which of the following is a characteristic of a successful elevator pitch? A) Lengthy and detailed. B) Focused on personal achievements. C) Concise and compelling. D) Avoidance of eye contact. Show Answer Correct Answer: C) Concise and compelling. 53. What can a large corporation headquartered in a community help provide? A) Reduced market growth. B) Enhanced local services. C) Tax reductions. D) Decreased property values. Show Answer Correct Answer: B) Enhanced local services. 54. Dominic feels that an incredible string of bad luck has affected his personal life. He also feels that his boss is subjecting him to unfair treatment at work for no fault of his. Dominic's perceptions suggest that he has an internal locus of control. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 55. Fill in the blank:An ..... is an investor who provides funding to a business for a stake in the business in return. A) Angel Investor. B) Stock Broker. C) Venture Capitalist. D) Bank Manager. Show Answer Correct Answer: A) Angel Investor. 56. Leasing does not mean A) The the business avoids large cash outlay. B) The business owns the asset. C) The assets can be updated every couple of years. D) None of the above. Show Answer Correct Answer: B) The business owns the asset. 57. What is the main focus of public relations? A) To sell products directly. B) To promote a positive image and goodwill. C) To manage financial statements. D) To handle customer complaints. Show Answer Correct Answer: B) To promote a positive image and goodwill. 58. What is the definition of Revenue? A) Income from the sales of goods and services. B) Income from the cost of goods and services. C) The money made on products. D) Cash coming into the business. Show Answer Correct Answer: A) Income from the sales of goods and services. 59. The key to using credit is that: A) You will save money by always buying on credit. B) You need to keep spending to save money in the long term. C) You must be able to pay it back on time. D) You will always need to use credit if you wish to get ahead in life. Show Answer Correct Answer: C) You must be able to pay it back on time. 60. How has brand building evolved according to the video? A) Remaining one-way communication. B) Engaging with customers authentically. C) Decreased customer interaction. D) Eliminating social media presence. Show Answer Correct Answer: B) Engaging with customers authentically. ← 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