This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 8 Small Business – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 8 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to the United States Small Business Administration, what is considered a "Small Business" ? A) Companies with fewer than 100 employees. B) Companies with more than 1000 employees. C) Companies with fewer than 500 employees. D) Companies with more than 500 employees. Show Answer Correct Answer: C) Companies with fewer than 500 employees. 2. What are some effective marketing strategies for small businesses to reach their target market? A) Social media marketing, content marketing, email marketing, and local partnerships. B) Billboard advertising. C) Cold calling. D) TV commercials. Show Answer Correct Answer: A) Social media marketing, content marketing, email marketing, and local partnerships. 3. What are the important financial management practices for small businesses? A) Investing in high-risk stocks. B) Ignoring cash flow management. C) Not monitoring expenses. D) Budgeting, cash flow management, financial forecasting, and monitoring expenses. Show Answer Correct Answer: D) Budgeting, cash flow management, financial forecasting, and monitoring expenses. 4. A blog is a website feature that:KLO 1.7 A) A) discussion or informational website published on the website. B) B) a review of a product or service made by a customer who has purchased and used, or had experience with, the product or service. C) C) list of products displayed in an attractive and clear fashion. D) D) the vision and mission statement of a business. Show Answer Correct Answer: A) A) discussion or informational website published on the website. 5. A written description of the purpose of a company and the management's philosophy. A) Resourcing. B) Harvesting. C) Actualization. D) Mission Statement. Show Answer Correct Answer: D) Mission Statement. 6. Which of the following is NOT an advantage of enterprise and entreprenuers. A) They create wealth. B) They create jobs. C) They sponsor football teams. D) They support creativity. Show Answer Correct Answer: C) They sponsor football teams. 7. An external locus of control is a deep-seated sense that the individual is personally responsible for what happens in their life. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 8. Having someone shop for your groceries for a fee at the grocery store is: A) Service based. B) Product based. C) Both. D) None of the above. Show Answer Correct Answer: A) Service based. 9. The greatest asset of any is company is the A) Supplier. B) Building. C) Customer. D) Supplier. Show Answer Correct Answer: C) Customer. 10. Which organization is the Australian umbrella organization for consumer groups? A) Australian Egg Corporation Ltd. B) The Australian Council of Trade Unions (ACTU). C) The Consumer's Federation of Australia. D) Australian Pork Limited. Show Answer Correct Answer: C) The Consumer's Federation of Australia. 11. Which represents the most sustainable competitive advantage for a small business? A) Building strong customer relationships. B) Always having the lowest prices. C) Spending the most on advertising. D) Having the biggest store. Show Answer Correct Answer: A) Building strong customer relationships. 12. In general, if the price of a good or service goes down, what happens to the demand for that good or service? A) Demand goes up. B) Demand stays the same. C) Demand goes down. D) None of the above. Show Answer Correct Answer: A) Demand goes up. 13. Which legal consideration is important for protecting intellectual property? A) Selling the idea to the highest bidder. B) Obtaining patents, trademarks, or copyrights. C) Posting the idea on social media. D) Sharing the idea with friends and family. Show Answer Correct Answer: B) Obtaining patents, trademarks, or copyrights. 14. The term PIN, in relation to bank cards, stands for: A) Personal identification number. B) Primary identification number. C) Personal information number. D) Primary information number. Show Answer Correct Answer: A) Personal identification number. 15. What is the definition of a new venture/firm? A) A business that has been operational for more than 12 months. B) A business that has been operational for more than 24 months. C) A business that has been operational for less than 6 months. D) A business that has been operational for less than 12 months. Show Answer Correct Answer: D) A business that has been operational for less than 12 months. 16. This refers to a simplified financial reporting intended for micro, small and medium-sized entities, as defined under Magna Carta for Micro, Small and Medium Enterprises (RA No. 6977, as amended by RA 8289, and further amended by RA 9501) A) PFRS for Small and Medium Entities. B) PFRS for Small Entities. C) Full PFRS. D) None of the choices. Show Answer Correct Answer: B) PFRS for Small Entities. 17. In this type of business, you given the right to sell a company's goods/services in a particular geographic area. A) Franchise. B) Sole proprietorship. C) Partnership. D) Corporation. Show Answer Correct Answer: A) Franchise. 18. Which sentence is written in the future tense? A) The entrepreneur has started a new business. B) The entrepreneur starts a new business. C) The entrepreneur started a new business. D) The entrepreneur will start a new business. Show Answer Correct Answer: D) The entrepreneur will start a new business. 19. Which legal structure has no ownership and no US federal taxes? A) S-Corp. B) C-Corp. C) Partnership. D) Non-profit. Show Answer Correct Answer: D) Non-profit. 20. Because of entrepreneurs, we have: A) A shortage of goods and services available to consumers. B) An abundance of goods and services from which to choose. C) All the above. D) None of the above. Show Answer Correct Answer: B) An abundance of goods and services from which to choose. 21. Which of the following is a cottage industry? A) Commerce. B) Textiles. C) Oil. D) Transport. Show Answer Correct Answer: B) Textiles. 22. Elif is a musician who would like to raise money to start her business. She decides to use ..... as a source of financing. To do so, she posts a description about her business and products on a website and invites people to contribute. A) Franchising. B) Venture capital. C) Crowdfunding. D) A small business investment company (SBIC). Show Answer Correct Answer: C) Crowdfunding. 23. How can small businesses contribute to the economic development of rural areas? A) By depleting natural resources and harming the environment. B) By creating job opportunities, attracting investment, and providing goods and services to the local community. C) By causing unemployment and poverty. D) By increasing the cost of living for the local community. Show Answer Correct Answer: B) By creating job opportunities, attracting investment, and providing goods and services to the local community. 24. What is the role of the marketing department? A) To manage finances. B) To handle customer service. C) To plan and execute marketing strategies. D) To oversee production. Show Answer Correct Answer: C) To plan and execute marketing strategies. 25. Which section of a business plan outlines the target market and customer segments? A) Market research. B) Operations and resources. C) Financial plan. D) Executive summary. Show Answer Correct Answer: A) Market research. 26. Which of the following best describes 'bootstrapping' in a startup context? A) Securing a loan from a bank. B) Funding the business using personal finances and revenue. C) Receiving a large investment from a venture capitalist. D) Launching a crowdfunding campaign. Show Answer Correct Answer: B) Funding the business using personal finances and revenue. 27. Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy enjoys while competing with larger firms is reduced burden of complying with government regulations. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 28. Small business innovation requires A) Becoming overly specialized. B) Customer connection. C) Passion. D) Customer connection and passion. Show Answer Correct Answer: D) Customer connection and passion. 29. Which is a franchisor? A) Starts a business. B) Takes over a business. C) Buys into an existing brand. D) Allows others to use their brand name. Show Answer Correct Answer: D) Allows others to use their brand name. 30. What is a common challenge faced by small businesses when starting up? A) High profit margins. B) Access to skilled labor. C) Strong brand recognition. D) Established customer base. Show Answer Correct Answer: B) Access to skilled labor. 31. Choose the correct word:travelling towards a particular point A) Inbound. B) Clickjacking. C) Outbound. D) Reverse. Show Answer Correct Answer: A) Inbound. 32. The highest-ranking employee in the company; reports to the board of directors. A) CIOTagsROLES. B) CFO. C) COO. D) CEO. Show Answer Correct Answer: D) CEO. 33. ....is a set of written rules which explains how people should behave at work place. (Unit 33-KLO 1-3) A) C. Evaluation. B) D. Strategic planning. C) A. Tax. D) B. Code of practice. Show Answer Correct Answer: D) B. Code of practice. 34. By far the greatest percentage of businesses in the U.S. is small businesses. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 35. SSIs do not have good quality raw materials as their ..... is low. A) Risk. B) Bargaining power. C) Storage. D) Sale. Show Answer Correct Answer: B) Bargaining power. 36. If a person has total responsibility of a business, works long hours, has financial risks, intense competition, and unstable income they are examples of: A) Reasons entrepreneurships fail. B) Disadvantages of an entrepreneur. C) Advantages of entrepreneurship. D) Skills of an entrepreneur. E) Characteristics of an entrepreneur. Show Answer Correct Answer: B) Disadvantages of an entrepreneur. 37. An idea that has commercial value A) Risk. B) Resourcing. C) Innovation. D) Opportunity. Show Answer Correct Answer: D) Opportunity. 38. Writing codes for computer software is A) Designing. B) Programming. C) Managing. D) Trouble shooting. Show Answer Correct Answer: B) Programming. 39. How do you differentiate small businesses from large corporations? A) Small businesses have fewer employees, lower revenue. B) Small businesses have the same number of employees as large corporations. C) Small businesses operate on a larger scale compared to large corporations. D) Small businesses have more employees and higher revenue than large corporations. Show Answer Correct Answer: A) Small businesses have fewer employees, lower revenue. 40. An individual, group, or organization that owns one or more shares in a company, and in whose name the share certificate is issued. A) Owner. B) Partner. C) Client. D) Shareholders. Show Answer Correct Answer: D) Shareholders. 41. What is the main goal of Small Business Saturday? A) Promote online-only retailers. B) Encourage consumers to shop local. C) Launch national chain stores. D) Promote Black Friday. Show Answer Correct Answer: B) Encourage consumers to shop local. 42. Which of the following is NOT a characteristic of a small business owner? A) Focuses on generating profits. B) Deals with known risks. C) Tends to grow fast. D) Invests time and money. Show Answer Correct Answer: C) Tends to grow fast. 43. Small businesses are typically characterized by: A) Low start-up costs. B) Large number of employee. C) Complex and lengthy planning processes. D) None of the above. Show Answer Correct Answer: A) Low start-up costs. 44. Shared financial backing A) LLC. B) C Corp. C) Sole Proprietorship. D) S Corp. E) PartnershipTagsLEGAL STRUCTURES. Show Answer Correct Answer: E) PartnershipTagsLEGAL STRUCTURES. 45. Which of the following is not a common reason for the failure of small businesses? A) Lack of management experience. B) Shortage of skilled workers. C) Failure to manage credit offered to customers. D) A lack of sufficient start-up money. Show Answer Correct Answer: B) Shortage of skilled workers. 46. The a legal document allowing the corporation to operate as if it were a person. A) Charter. B) Partnership Agreement. C) Licensing Agreement. D) None of the above. Show Answer Correct Answer: A) Charter. 47. There are a number of levels of protection of consumers in Australia today. Select the following INCORRECT example of consumer protection: A) Banks being allowed by the government to offer higher interest rates which in turn discourage purchases. B) Cooling off periods on purchases. C) Warranties. D) Product standards. Show Answer Correct Answer: A) Banks being allowed by the government to offer higher interest rates which in turn discourage purchases. 48. Which of the following is a retail business? A) Auto Body Shop. B) Lawn mowing business. C) Car dealer. D) Barber. Show Answer Correct Answer: C) Car dealer. 49. Small businesses generate 50% of total employment in American inner cities. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 50. What type of business structure is described by having unlimited liability, four owners who are friends, and being unincorporated? A) Sole trader (Sole proprietorship). B) Public company (Ltd). C) Partnership. D) Private company (Pty Ltd). Show Answer Correct Answer: C) Partnership. 51. What types of taxes are small scale units exempted from? A) Value-added tax, payroll tax, and capital gains tax. B) Income tax, sales tax, and certain local taxes. C) Corporate tax, excise tax, and environmental tax. D) Property tax, luxury tax, and inheritance tax. Show Answer Correct Answer: B) Income tax, sales tax, and certain local taxes. 52. Fill in the blank: ..... is a calculation used to measure a business's monthly cash flow. A) Gross Margin. B) Net Profit. C) Inventory Turnover. D) Burn Rate. Show Answer Correct Answer: D) Burn Rate. 53. Which of the following is not a disadvantages of a partnership? A) Unlimited liability for all partners. B) Possibility of disputes. C) Divided authority. D) Pooled funds and talent. Show Answer Correct Answer: D) Pooled funds and talent. 54. Under this framework, comparative information are not stated in case of any changes in accounting policies and correction of prior-period errors. A) PFRS for Small and Medium Entities. B) PFRS for Small Entities. C) Full PFRS. D) None of the choices. Show Answer Correct Answer: B) PFRS for Small Entities. 55. Which of the following is not a type of itinerant retailers A) Market traders. B) Street stall holders. C) Cheap jacks. D) Peddlers and hawkers. Show Answer Correct Answer: B) Street stall holders. 56. A micro enterprise, where the investment in plant and machinery does not exceed A) 25 lacs. B) 10 lacs. C) 15 lacs. D) None of the above. Show Answer Correct Answer: A) 25 lacs. 57. Fill in the blank:The ..... (CFO) holds a leadership role within a business. The CFO oversees a company's finances. A) Chief Financial Officer. B) Chief Operations Officer. C) Chief Technology Officer. D) Chief Marketing Officer. Show Answer Correct Answer: A) Chief Financial Officer. 58. New Businesses are often discontinued because of A) Low sales. B) Competitive pressure. C) Higher than expected expenses. D) All of the above. Show Answer Correct Answer: D) All of the above. 59. It is easier for large business to meet the precise needs of customers than a small business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 60. Some negotiation tactics involves:(KLO 2.1) A) A) Listen more than you talk. B) B) Use timing to your advantage. C) C) find the right way to frame the negotiation. D) D) All of the above. Show Answer Correct Answer: D) D) All of the above. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books