This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 39 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Maintaining a good relationship with customers is a disadvantage for a small business owner A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 2. What is the purpose of regularly reviewing and adjusting the budget? A) To ensure alignment with financial goals. B) To reduce employee workload. C) To increase marketing efforts. D) To expand product lines. Show Answer Correct Answer: A) To ensure alignment with financial goals. 3. How do small businesses primarily benefit local communities? A) By keeping money circulating within the local economy. B) By importing products from other countries. C) By sending profits to corporate headquarters. D) By charging higher prices than chain stores. Show Answer Correct Answer: A) By keeping money circulating within the local economy. 4. What is the money used to start a business called A) Capital. B) Loan. C) Asset. D) None of the above. Show Answer Correct Answer: A) Capital. 5. This organization prepares emerging leaders and entrepreneurs in marketing, finance, hospitality and management in high school and colleges across the globe. A) Key Club. B) Leo Club. C) DECA. D) FFA. Show Answer Correct Answer: C) DECA. 6. Which group is NOT mentioned in the text as receiving special assistance from the SBA? A) Immigrants. B) Veterans. C) Women. D) Minorities. Show Answer Correct Answer: A) Immigrants. 7. What year was Small Business Saturday created? A) 2010. B) 2017. C) 2005. D) 2015. Show Answer Correct Answer: A) 2010. 8. A Franchise does not offer products, marketing and support to their Franchisees'. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 9. Which situation would result in a business having a profit? A) If the owner buys matching uniforms. B) If the revenue is less than the expenses. C) If the revenue is greater than the expenses. D) If the owner buys coffee for the employees every morning. Show Answer Correct Answer: C) If the revenue is greater than the expenses. 10. Which of the following is a common promotional tool used by small businesses? A) Direct mail. B) Public relations. C) Social media advertising. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. What is the significance of a Unique Selling Proposition (USP) in entrepreneurship? A) Differentiate a product or service from competitors. B) Monitor customer satisfaction. C) Calculate return on investment. D) Identify key competitors. Show Answer Correct Answer: D) Identify key competitors. 12. What is the main advantage of a limited company? A) Limited liability for shareholders. B) Unlimited liability. C) Easy to form. D) No need for a business plan. Show Answer Correct Answer: A) Limited liability for shareholders. 13. The most important step in starting a business is: A) An idea. B) Financing. C) Finding a partner. D) Preparation. Show Answer Correct Answer: D) Preparation. 14. This is an important reason or incentive that entrepreneurs have for starting their own businesses. A) The ability to pay taxes. B) Government regulations. C) The profit motive. D) The competition. Show Answer Correct Answer: C) The profit motive. 15. What are the legal requirements for starting a small business? A) Obtaining a business loan, hiring employees, and creating a marketing plan. B) Filing for bankruptcy, avoiding taxes, and ignoring local regulations. C) Choosing a business location, creating a website, and developing a product. D) Registering the business name, obtaining necessary licenses and permits, registering for taxes, and complying with local zoning and health regulations. Show Answer Correct Answer: D) Registering the business name, obtaining necessary licenses and permits, registering for taxes, and complying with local zoning and health regulations. 16. Customers can get a $ 5 Monthly Service Fee Unison discount on all additional lines with an in-market Rogers Infinite plan on a business account. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 17. What is a primary difference between an entrepreneur and an intrapreneur? A) Intrapreneurs start their own businesses from scratch. B) Entrepreneurs work independently, while intrapreneurs innovate within existing companies. C) Intrapreneurs only focus on non-profit ventures. D) Entrepreneurs never take risks. Show Answer Correct Answer: B) Entrepreneurs work independently, while intrapreneurs innovate within existing companies. 18. What does a lock symbol or HTTPS indicate on a website? A) The website is under maintenance. B) The website is not working. C) The website is a blog. D) The website is secure. Show Answer Correct Answer: D) The website is secure. 19. What is scarcity? A) Unlimited wants and needs. B) A shortage of resources. C) A lack of goods and services. D) Limited expenses. Show Answer Correct Answer: B) A shortage of resources. 20. Which of the following best defines "data sample size" in the context of market research? A) The number of researchers involved in a project. B) The number of charts used in a study. C) The number of questions asked in a survey. D) The number of subjects included in a sample size. Show Answer Correct Answer: D) The number of subjects included in a sample size. 21. What is a common feature of physical products? A) They are intangible. B) They have no shipping costs. C) They can be held and touched. D) They are instantly available. Show Answer Correct Answer: C) They can be held and touched. 22. An analysis of the various aspects of a proposed entrepreneurial venture designed to determine its worthiness is called as? A) Small Business Case. B) Entrepreneurship Study. C) Feasibility Study. D) Business Plan Study. Show Answer Correct Answer: C) Feasibility Study. 23. Which type of entrepreneurship is often associated with startups and new ventures? A) Corporate entrepreneurship. B) Traditional entrepreneurship. C) Social entrepreneurship. D) Private entrepreneurship. Show Answer Correct Answer: D) Private entrepreneurship. 24. Malik must submit a business plan with his loan application. He has just finished the section of the plan that discusses the weaknesses of the business and how he plans to deal with those. Malik has just completed the ..... section. A) Company and Industry. B) Critical Risks and Assumptions. C) Executive Summary. D) Financial Plan. Show Answer Correct Answer: B) Critical Risks and Assumptions. 25. In which step of the Design Thinking Process do you think of innovative solutions by challenging assumptions? A) Empathize. B) Ideate. C) Define. D) MVP Prototype. Show Answer Correct Answer: B) Ideate. 26. Money provided by large investors to finance new products and new business that have a good chance to succeed is A) Risk capital. B) Venture capital. C) Working capital. D) Investment capital. Show Answer Correct Answer: B) Venture capital. 27. What is a public limited company? A) A company owned by family and friends. B) A company that does not pay taxes. C) A company that can sell shares to the public. D) A company with unlimited liability. Show Answer Correct Answer: C) A company that can sell shares to the public. 28. What is a common tool used to build customer relationships in small businesses? A) Supply chain management systems. B) Cost accounting software. C) Production tracking tools. D) Customer Relationship Management (CRM) systems. Show Answer Correct Answer: D) Customer Relationship Management (CRM) systems. 29. Out of the following which one is not a feature of small business? A) Capital intensive. B) Slow decisions. C) Both capital intensive and slow decisions. D) Low capital investment. Show Answer Correct Answer: C) Both capital intensive and slow decisions. 30. How much can the investment ceiling be raised for certain export promotion units in small-scale industries? A) Rs. 50 lakhs. B) Rs. 30 lakhs. C) Rs. 20 lakhs. D) Rs. 75 lakhs. Show Answer Correct Answer: A) Rs. 50 lakhs. 31. Choose the correct word to complete the sentence:'The entrepreneur decided to ..... a new strategy for market expansion.' A) Advice. B) Device. C) Advise. D) Devise. Show Answer Correct Answer: D) Devise. 32. What does the marketing mix consist of? A) Product, Price, Place, Promotion. B) Cost, Quality, Service, Delivery. C) Sales, Marketing, Advertising, Distribution. D) Brand, Image, Reputation, Trust. Show Answer Correct Answer: A) Product, Price, Place, Promotion. 33. Modifying computer systems to improve production & workflow-or-expanding systems to serve a new purpose is A) Networking. B) Analyzing. C) Troubleshooting. D) Managing. Show Answer Correct Answer: B) Analyzing. 34. As per the ministry of Commerce and industry startup means and entity in corporated or registered in India which is not older than ..... Years A) Five. B) Four. C) Two. D) Three. Show Answer Correct Answer: A) Five. 35. In which way does the video suggest businesses engage with customers for effective branding? A) Ads only. B) Spamming social media. C) Hiring influencers. D) Authentic conversations. Show Answer Correct Answer: D) Authentic conversations. 36. A social intrapreneur is someone who provides funding for those in 3rd world countries. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 37. In MPBF Method I, the formula is: A) Current Assets-Current Liabilities. B) 75% of (Current Assets-Current Liabilities other than bank borrowings). C) 75% of Current Assets-Current Liabilities. D) 75% of Total Assets. Show Answer Correct Answer: B) 75% of (Current Assets-Current Liabilities other than bank borrowings). 38. A negotiation is discussed in a tone that focuses attention on the need to reach a satisfactory solution by:(SS 1.A) A) A) joint problem-solving. B) C) setting conditions. C) D) making proposals. D) B) force. Show Answer Correct Answer: C) D) making proposals. 39. Portia knows the customers of her hat shop by name and knows each of their preferences. What small business advantage does this demonstrate? A) Simplified record keeping. B) Ability to adapt to change. C) Personal relationships with customers. D) Independence. Show Answer Correct Answer: C) Personal relationships with customers. 40. Hamza is doing a business of khadi unit. He can produce 10000 units, but he produce only 8000 units. Why he underutilize the capacity of his plant A) Lack of demand. B) Lack of marketing skill. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 41. Which part of the business plan provides a brief overview that convinces the reader to continue reading? A) Marketing Plan. B) Executive Summary. C) Financial Plan. D) Pitch Deck. Show Answer Correct Answer: B) Executive Summary. 42. What role do State Industrial Development Corporations (SIBs) play in entrepreneurship? A) Offer legal advice. B) Conduct market research. C) Provide venture capital. D) Promote industrial development. Show Answer Correct Answer: D) Promote industrial development. 43. An interest calculation that accrues (sums of money, or benefits, be received by someone in regular or increasing amounts over time) the interest percentage for each of a loan is considered? A) Simple Interest. B) Collection Interest. C) Compound Interest. D) Partial Interest. Show Answer Correct Answer: C) Compound Interest. 44. Flat rate of interest is A) Applied to the principal amount over the borrowed fixed term. B) Based on the current amount owed. C) No interest is charged. D) None of the above. Show Answer Correct Answer: A) Applied to the principal amount over the borrowed fixed term. 45. What are the key characteristics of a successful small business in rural India? A) Ignoring the needs of the local community. B) Understanding the local market, adapting to the needs of the community, and leveraging available resources. C) Investing in high-end technology and infrastructure. D) Relying solely on imported goods for business operations. Show Answer Correct Answer: B) Understanding the local market, adapting to the needs of the community, and leveraging available resources. 46. What is the competetive strength of small business? A) Low cost of production. B) High cost of production. C) Both A and B. D) None of these. Show Answer Correct Answer: A) Low cost of production. 47. What is the most important factor in starting a successful small business? A) A good product and service. B) A good marketing plan. C) A lot of money. D) None of the above. Show Answer Correct Answer: B) A good marketing plan. 48. The design team creates multiple inexpensive versions of a product, known as ..... A) Beta Versions. B) Prototypes. C) Final Products. D) Minimum Viable Products. Show Answer Correct Answer: D) Minimum Viable Products. 49. The majority of small business owners are over 40 years old. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 50. Which of the following is NOT listed as a disadvantage of small-business ownership? A) Easy Work-Life Balance. B) High Stress Level. C) Undercapitalization. D) Managerial Inexperience. Show Answer Correct Answer: A) Easy Work-Life Balance. 51. Any industry located in a rural area which produces any goods, renders any service with or without the use of power is known as ..... A) Village industry. B) Cottage industry. C) City industry. D) Town industry. Show Answer Correct Answer: A) Village industry. 52. File the forms necessary to form a business entity (partnership, corporation, etc.) A) Louisiana Economic Development. B) Louisiana Secretary of State. C) Louisiana Department of Revenue. D) Louisiana Workforce Commission. Show Answer Correct Answer: B) Louisiana Secretary of State. 53. What is a disadvantage of not having creative control in a franchise? A) Full independence. B) Free advertising. C) Limited menu options. D) No initial fees. Show Answer Correct Answer: C) Limited menu options. 54. What does SWOT analysis stand for in the context of business planning? A) Sales, Workflow, Operations, Testing. B) Strengths, Weaknesses, Opportunities, Threats. C) Strategic Workforce Optimization Techniques. D) Sustainable Workplace Organization and Training. Show Answer Correct Answer: B) Strengths, Weaknesses, Opportunities, Threats. 55. What is a recommended security measure for laptops connecting remotely? A) Enable full-disk encryption. B) Disable encryption. C) Share passwords. D) Use public Wi-Fi. Show Answer Correct Answer: A) Enable full-disk encryption. 56. Disadvantage of a Sole Proprietorship A) You assume all the risk, by yourself. B) You have to do what the corporation tells you. C) You aren't allowed to have a social media account. D) There are no disadvantages; it's the best way to open a business. Show Answer Correct Answer: A) You assume all the risk, by yourself. 57. What is not part of the marketing mix (the 4Ps)? A) Person. B) Product. C) Price. D) Promotion. Show Answer Correct Answer: A) Person. 58. Easier record management because of the fewer transactions compared to large businesses. Thus, most accounting responsibilities are highly manageable. A) Advantage. B) Disadvantage. C) All the above. D) None of the above. Show Answer Correct Answer: A) Advantage. 59. What does the term "bootstrapping" mean in the context of entrepreneurship? A) Wearing specialized footwear in the workplace. B) Funding a business using personal savings and revenue. C) Outsourcing manufacturing processes. D) Developing a mobile app. Show Answer Correct Answer: B) Funding a business using personal savings and revenue. 60. How can a small business differentiate itself from competitors? A) By offering the same products at higher prices. B) Through unique branding and customer experience. C) By avoiding marketing strategies. D) By copying successful competitors. Show Answer Correct Answer: B) Through unique branding and customer experience. ← 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