This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 8 Small Business – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 8 Small Business Quiz 43 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Instead, the small business that has defined what is unique about the product or service. What does "unique" mean? A) Very important, necessary for success. B) Made or done especially for a certain person. C) Specific. D) Special, different from all others. Show Answer Correct Answer: D) Special, different from all others. 2. In the Nayak Committee method, the working capital requirement is calculated as: A) 15% of projected turnover. B) 40% of projected turnover. C) 25% of projected turnover. D) 30% of projected turnover. Show Answer Correct Answer: C) 25% of projected turnover. 3. What are the advantages of owning a small business enterprise? A) To gain control over your destiny. B) To make a difference. C) All are correct. D) To reap unlimited profits. Show Answer Correct Answer: C) All are correct. 4. Which all are included in the role of small business in rural india? A) Rural development. B) Migration to urban areas. C) Employment opportunities. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. Successful entrepreneurs have mindsets that typically possess THREE characteristics. Which one is NOT a characteristic? A) Nervous. B) Responsible. C) Adaptable. D) Tenacious. Show Answer Correct Answer: A) Nervous. 6. Franchisors usually provide all of the listed items except ..... A) Advertising. B) Training. C) Loan. D) Equipment. Show Answer Correct Answer: C) Loan. 7. Which of these aren't problems of small business. A) Finance. B) Raw materials. C) Trade. D) Sickness. Show Answer Correct Answer: C) Trade. 8. The amount paid for insurance is the A) Closing cost. B) Premium. C) Deductible. D) Assessed value. Show Answer Correct Answer: B) Premium. 9. What is a key characteristic of successful small business innovation? A) Following exactly what large companies do. B) Never changing anything. C) Identifying and filling unmet local needs. D) Ignoring customer feedback. Show Answer Correct Answer: C) Identifying and filling unmet local needs. 10. This is a proposal that describes a new business. A) Business Plan. B) Blueprint. C) Venture. D) Opportunity. Show Answer Correct Answer: A) Business Plan. 11. Customer, family members and government are example of stakeholders A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 12. According to the Small Business Administration, a small business is an independent business with fewer than ..... employees A) 20. B) 60. C) 100. D) 500. Show Answer Correct Answer: D) 500. 13. Business managers spend how much time performing human relations activities? A) 10%. B) 25%. C) 50%. D) More than 50%. Show Answer Correct Answer: D) More than 50%. 14. What is disadvantage of buying an existing business compared to starting a business from scratch? A) Customer base is already established. B) May have pre-built reputation (goodwill). C) Established infrastructure and operational processes. D) Less flexibility in shaping the business according to personal vision. Show Answer Correct Answer: D) Less flexibility in shaping the business according to personal vision. 15. Which of the following is a fixed cost? A) Utility bills. B) Sales commissions. C) Cost of raw materials. D) Salaries of employees. Show Answer Correct Answer: D) Salaries of employees. 16. When exploring idea sources, entrepreneurs should look for for limitations of what is currently available. True or False? A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 17. MPBF Method II formula is: A) 75% of Current Assets-Current Liabilities (non-bank). B) 75% of (CA-CL non-bank). C) CA-CL non-bank. D) 75% of Net Assets. Show Answer Correct Answer: A) 75% of Current Assets-Current Liabilities (non-bank). 18. A small business owner is preparing for the harvest and wants to sell the business to a family member. What key consideration should they address? A) Ensuring the successor has adequate training and support. B) Maximizing marketing expenditures. C) Eliminating all customer loyalty programs. D) Reducing the business's market presence. Show Answer Correct Answer: A) Ensuring the successor has adequate training and support. 19. What is the purpose of advertising? A) To persuade customers to buy. B) To inform customers about products. C) All of the above. D) To create a positive company image. Show Answer Correct Answer: C) All of the above. 20. Which of the following is organized by individuals? A) Cottage Industries. B) Railway. C) Chemical industry. D) None of these. Show Answer Correct Answer: A) Cottage Industries. 21. What challenges do small-scale industries face in India? A) Limited access to finance, inadequate infrastructure, lack of skilled labor, regulatory hurdles, and competition from larger firms. B) Abundant skilled labor. C) Strong government support. D) High demand for products. Show Answer Correct Answer: A) Limited access to finance, inadequate infrastructure, lack of skilled labor, regulatory hurdles, and competition from larger firms. 22. What role does leadership play in the success of a small business? A) Leadership has no impact on the success of a small business. B) Leadership provides direction and guidance for the business, motivates employees, and makes critical decisions. C) Leadership only creates chaos and confusion in a small business. D) Leadership is only important in large corporations, not small businesses. Show Answer Correct Answer: B) Leadership provides direction and guidance for the business, motivates employees, and makes critical decisions. 23. Which source of finance does not need to be paid back and is available to small businesses? A) Government Grant. B) Bank Loan. C) Owner's Capital. D) Bank Overdraft. Show Answer Correct Answer: A) Government Grant. 24. A business plan ..... A) Is a set of financial documents. B) Is a plan that outlines exactly how a business would work. C) Is a prediction of cash inflow. D) Is a break even graph. Show Answer Correct Answer: B) Is a plan that outlines exactly how a business would work. 25. What does the term 'small business' typically refer to? A) Businesses with high revenue. B) Large-scale multinational companies. C) Independently owned and operated companies. D) Government-run organizations. Show Answer Correct Answer: C) Independently owned and operated companies. ← PreviousNext →Related 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 8Class 11 Business Studies Chapter 8 Small Business Quiz 9Class 11 Business Studies Chapter 8 Small Business Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books