This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 41 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a characteristic of entrepreneurship? A) Assuming risk. B) Managing scarce resources. C) Producing a steady income. D) Focusing on constant innovation. Show Answer Correct Answer: C) Producing a steady income. 2. During the ..... stage of the business life cycle, a company is regularly taking on new customers and starting to generate a consistent income. A) Survival. B) Decline. C) Maturity. D) Startup. Show Answer Correct Answer: A) Survival. 3. Which of the following products is not produced by a cottage industry? A) Chairs. B) Woven baskets. C) Tie-dye t-shirts. D) Fan. Show Answer Correct Answer: D) Fan. 4. What is the advantage of a corporation? A) Ease of borrowing. B) Perpetual existence. C) Full control. D) Limited liability. Show Answer Correct Answer: D) Limited liability. 5. Sometime referred to as "a mom & pops" business. A) Small business. B) Corporation. C) Partnership. D) None of the above. Show Answer Correct Answer: A) Small business. 6. Credit Checks are required because A) They show the history of the businesses ability to pay back loans. B) Show if a business has been in financial debt in the past. C) Provide a business with a credit rating. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. It is a part of business plan, outlines specific actions that you will take to market your product /service to potential customers A) Custumer. B) Price. C) Marketing plan. D) Place. Show Answer Correct Answer: C) Marketing plan. 8. What type of resources does the SBA offer for small business owners? A) Paid management consulting. B) Get-rich-quick schemes. C) Cookie-for-business plans. D) Free online resources and courses. Show Answer Correct Answer: D) Free online resources and courses. 9. Louisiana Department of Revenue A) Federal. B) State. C) Local. D) None of the above. Show Answer Correct Answer: B) State. 10. Which of the following is not an advantage of franchising? A) Training & support. B) Proven products. C) Fees and profit sharing. D) Financial assistance. Show Answer Correct Answer: C) Fees and profit sharing. 11. What are the different sources of funding for a small business? A) Credit cards, lines of credit, and trade credit. B) Personal savings, loans from family and friends, bank loans, venture capital, angel investors, crowdfunding, grants, and government programs. C) Business incubators and accelerators. D) Merchant cash advances and invoice factoring. Show Answer Correct Answer: B) Personal savings, loans from family and friends, bank loans, venture capital, angel investors, crowdfunding, grants, and government programs. 12. It is essential part of buying inventory, paying employees, marketing the business, buying or repairing business tools and paying his own salary. A) Financial Management. B) Financing. C) Funding. D) None of the above. Show Answer Correct Answer: A) Financial Management. 13. Instead of issuing a customer a refund a business may offer the customer a A) Receipt. B) Credit Note. C) Tax Invoice. D) None of the above. Show Answer Correct Answer: B) Credit Note. 14. A three month time period. A) Quarter. B) Fiscal Year. C) All the above. D) None of the above. Show Answer Correct Answer: A) Quarter. 15. Which of the following sentences uses the word 'operation' correctly? A) The operation of the small business was smooth and efficient. B) He had an operation on his knee last week. C) The operation of the machine was broken. D) She was operation the new software. Show Answer Correct Answer: A) The operation of the small business was smooth and efficient. 16. Why is it important for the government to support small scale industries? A) They only benefit large corporations. B) They have no impact on the economy. C) It is important for the government to support small scale industries because they drive job creation, stimulate economic growth, and enhance local development. D) They reduce competition in the market. Show Answer Correct Answer: C) It is important for the government to support small scale industries because they drive job creation, stimulate economic growth, and enhance local development. 17. Intellectual Property Rights (IPR) in India does NOT include: A) Patent. B) Label only. C) Copyright. D) Geographical Indication. Show Answer Correct Answer: B) Label only. 18. Which of one of these is an advantage of a sole trader A) They don't share the losses with anyone. B) They don't share profits with anyone. C) The owner is both a sleeping partner and active partner. D) None of the above. Show Answer Correct Answer: B) They don't share profits with anyone. 19. What is the role of influencers in marketing as per the text? A) To decrease product prices. B) To advertise products to a wide audience. C) To manage company finances. D) To design company logos. Show Answer Correct Answer: B) To advertise products to a wide audience. 20. A qualitative characteristic of accounting that requires information being reported to be complete, without bias and free from error is ..... A) Relevance. B) Timeliness. C) Understandability. D) Faithful representation. Show Answer Correct Answer: D) Faithful representation. 21. What is the first step in handling customer queries? A) Provide an alternative solution. B) Address the query immediately. C) Listen to the customer. D) Thank the customer. Show Answer Correct Answer: C) Listen to the customer. 22. Damaging reutation is a risk of setting up a business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 23. The best method to clean a plexi sneeze guards is: A) Non-abrasive soap and water. B) Lysol wipes. C) Windex. D) Disinfectant spray. Show Answer Correct Answer: A) Non-abrasive soap and water. 24. As they have some financial problems, they need ..... A) A backer. B) A reward. C) A franchise. D) None of the above. Show Answer Correct Answer: A) A backer. 25. Which of the following is an essential ingredient of entrepreneurship? A) Avoidance of risks at all costs. B) Willingness to take calculated risks. C) Reliance solely on personal skills. D) Ignoring market opportunities. Show Answer Correct Answer: B) Willingness to take calculated risks. 26. The costs of operating a business. A) Expenses. B) Capital. C) All the above. D) None of the above. Show Answer Correct Answer: A) Expenses. 27. The executive summary includes a brief account of key points located within the business plan. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 28. What is the first step in starting your business according to the SBA guide? A) Plan your business. B) Write your business plan. C) Pick your business location. D) Register your business. Show Answer Correct Answer: A) Plan your business. 29. Martha has a small business in which she offers home decorating advice to her customers. This is an example of which type of small business management/entrepreneurship career? A) Education services. B) Interior design services. C) Landscape services. D) Pet businesses. Show Answer Correct Answer: B) Interior design services. 30. Which of the following is NOT a component of a business plan? A) A list of potential customers. B) Financial projections. C) Marketing and sales strategy. D) Personal resumes. Show Answer Correct Answer: A) A list of potential customers. 31. Small business contribution to export A) 35%. B) 55%. C) 50%. D) 45%. Show Answer Correct Answer: D) 45%. 32. A lawyer believes his client is guilty, but remains professional and represents his client. This is an example of which of the following? A) Mannerly behavior. B) Unlawful behavior. C) Ethical behavior. D) Moral behavior. Show Answer Correct Answer: C) Ethical behavior. 33. According to the video, what is NOT essential for successful brand building? A) Authentic engagement. B) Consistent delivery on brand promise. C) Limited brand presence. D) Building strong brand equity. Show Answer Correct Answer: C) Limited brand presence. 34. Sarah owns and operates a small business that designs e-commerce websites for her customers. This is an example of which type of small business management/entrepreneurship career? A) Human resources consultant. B) Internet entrepreneur. C) IT consultant. D) Medical (in-home) services. Show Answer Correct Answer: B) Internet entrepreneur. 35. What is the main drawback of a sole proprietorship? A) They are easy to create. B) They have unlimited personal liability. C) They are responsible to shareholdersTagsLEGAL STRUCTURES. D) They require a partner. Show Answer Correct Answer: B) They have unlimited personal liability. 36. Mark designs logos for businesses in his city. He mostly works with local bakeries. What is Mark's target market? A) Males, ages 20-40. B) Kids, ages 2-12. C) Females, ages 13-19. D) Adults, ages 25-60. Show Answer Correct Answer: D) Adults, ages 25-60. 37. Choose the correct article:' ..... entrepreneur needs a good business plan.' A) The. B) No article needed. C) A. D) An. Show Answer Correct Answer: D) An. 38. What role do small businesses play in market competition? A) They reduce consumer choices. B) They help maintain competitive prices and improve quality. C) They eliminate all large businesses. D) They have no effect on the market. Show Answer Correct Answer: B) They help maintain competitive prices and improve quality. 39. What percentage of all businesses are classified as small? A) Over 75 percent. B) Over 99 percent. C) Over 50 percent. D) Over 90 percent. Show Answer Correct Answer: B) Over 99 percent. 40. A small business usually has the same premises of the owner's home A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 41. A designed change that increases the usefulness of a product, services, or process A) Improvement. B) Invention. C) Entrepreneur. D) Innovation. Show Answer Correct Answer: A) Improvement. 42. A small business wants to use influencer marketing to promote its product in a foreign market. What should they ensure before engaging influencers? A) The influencers have a local following and resonate with the target audience. B) The influencers are from a different industry. C) The influencers are popular worldwide. D) The influencers only post in English. Show Answer Correct Answer: A) The influencers have a local following and resonate with the target audience. 43. What are the 4 P's of Marketing? A) Product, planning, promotion, people. B) Product, price, promotion, place. C) Product, place, promotion, people. D) Promotion, planning, puzzles, prizes. Show Answer Correct Answer: B) Product, price, promotion, place. 44. Which of the following is an advantage to a business of operating as a partnership rather than a sole trader? A) Unlimited liability. B) Decision making is faster and easier. C) Liability is split. D) Financial accounts are kept private. Show Answer Correct Answer: C) Liability is split. 45. This is mainly from personal savings, relatives at the initial stages and some secured credit later if the business is growing. A) Funding. B) Finance. C) Financial Management. D) Financial. Show Answer Correct Answer: A) Funding. 46. Which of the following statements about the importance of small business is false? A) They account for 99.9 percent of all employer firms. B) They pay about 40 percent of total U.S. payroll. C) They comprise 97.5 percent of all exporters. D) They employ 99.9 percent of all private-sector workers. E) They generated about 65 percent of net new jobs over the last two decades. Show Answer Correct Answer: D) They employ 99.9 percent of all private-sector workers. 47. Chatr customer porting to Rogers SMB is not eligible for any credits. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 48. What is a primary focus of small-business owners? A) Innovation and sustainable growth. B) Expecting stable sales, profits, and growth. C) Expanding into international markets. D) Developing new technologies. Show Answer Correct Answer: B) Expecting stable sales, profits, and growth. 49. What should you do to share sensitive information safely? A) Use a secure .gov website. B) Use a .edu website. C) Use a .com website. D) Use a .org website. Show Answer Correct Answer: A) Use a secure .gov website. 50. It is difficult to compete with the array of products or services a large business can offer.What does "compete" mean? A) Made or done especially for a certain person. B) To estimate, calculate a future amount. C) Having enough money to pay what you owe. D) To do as well as or better than others. Show Answer Correct Answer: D) To do as well as or better than others. 51. In small businesses, who typically handles hiring and employee concerns? A) Owner. B) IT Department. C) Compliance Specialist. D) Marketing Manager. Show Answer Correct Answer: A) Owner. 52. Although most small businesses have annual revenues of less than $ 39 million, there is no specific revenue set by teh SBA for small business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 53. In comparison to large businesses, small businesses A) Can usually charge lower prices. B) Can provide more personalized customer service. C) Focus on products that meet the needs of a large group. D) Have less frequent contact with their customers. Show Answer Correct Answer: B) Can provide more personalized customer service. 54. What is the purpose of the Conclusion/Recommendation section? A) To justify the purpose of the business plan. B) To summarize the financial plan. C) To list the marketing strategies. D) To provide an overview of the operational plan. Show Answer Correct Answer: A) To justify the purpose of the business plan. 55. The franchisee wins because he can take advantage ..... the franchiser's proven business system. A) On. B) Of. C) From. D) None of the above. Show Answer Correct Answer: B) Of. 56. Most employees in the United States work in businesses that employ one to four people. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 57. What does the term 'Market Share' refer to? A) The total sales of a company. B) The number of competitors in the market. C) The portion of the market a business can capture. D) The total number of customers. Show Answer Correct Answer: C) The portion of the market a business can capture. 58. What is the significance of 'scalability' in a startup's business model? A) It indicates the business's ability to decrease in size. B) It refers to the business's capacity to increase its operations and revenue with minimal incremental cost. C) It measures the business's ability to maintain a fixed number of customers. D) It describes the business's potential to relocate to different markets. Show Answer Correct Answer: B) It refers to the business's capacity to increase its operations and revenue with minimal incremental cost. 59. What is a franchise fee? A) A fee for advertising. B) A fee for licensing operations, products, or services. C) A fee for buying products. D) A fee for hiring employees. Show Answer Correct Answer: B) A fee for licensing operations, products, or services. 60. What is one advantage of being an entrepreneur in the gig economy? A) Access to traditional employment benefits. B) Guaranteed financial stability. C) Ability to develop diverse income streams. D) Limited competition from other entrepreneurs. Show Answer Correct Answer: C) Ability to develop diverse income streams. ← 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