Overview of small business MCQs

Overview of small business MCQs

Answer these 20+ Overview of small business MCQs and see how sharp is your knowledge of Overview of small business. Scroll down and let's start!

1: When a business closes _____ to a creditor is called Business Failure.

A.   Due to financial loss

B.   Due to business management

C.   Due to business planning

D.   None of these

2: Business may be terminated for the following reasons:

A.   Cessation of the business

B.   Owner becomes bankrupt

C.   Death of the owner

D.   All of the above

3: A competitive advantage can be built from many different factors.

A.   True

B.   False

4: Creative destruction is the replacement of _____ and businesses with new and better ones.

A.   Existing products

B.   Processes

C.   Ideas

D.   All of the above

5: Economy of scale is the _____ of costs through production of larger quantities.

A.   Increasing

B.   Lowering

C.   Both a and b

D.   None of the above

6: Intellectual capacity is the valuable _____ that employees of a business possess.

A.   Skills

B.   Knowledge

C.   Both a and b

D.   None of these

7: Marketing concept is the philosophy of a business in which the _____ of customers are determined before goods and services are produced.

A.   Wants

B.   Needs

C.   Both a and b

D.   None of the above

8: Businesses in an economic sector that provide services, rather than tangible goods, are called the Service sector.

A.   True

B.   False

9: When will a business be considered a small business?

A.   Independently owned,operated and financed.

B.   Fewer than 100 employees

C.   Little impact on its industry

D.   All of the above

10: What is the best strategy for estimating the amount of capital you need for starting and running a new small business?

A.   Estimate the amount of capital you will need and double it.

B.   Do sufficient research to estimate exactly the amount of capital you need.

C.   Base your business model on the amount of personal assets you have to start the business.

D.   Look at your competitors and use their business plans to develop accurate estimates.

11: How can economies of scale hurt small businesses?

A.   Goods and services cost less, making it harder to make a profit.

B.   More employees are needed when taking advantage of economies of scale.

C.   Economies of scale can disrupt financing for a small business.

D.   Barriers of entry are higher in an industry making it harder to compete.

12: Why are microbusinesses so important to the U.S. economy?

A.   They produce the majority of products sold in the United States.

B.   They are the second largest group of employers in the United States.

C.   They are the third largest contributor to the U.S. GDP.

D.   They generate the largest share of revenues in the United States.

13: How can poor management of a small business lead to business failure?

A.   Poor leadership results in high turnover of employees.

B.   Owners do not understand the market well enough to successfully sell their products.

C.   Products are developed that are not what the customer wants.

D.   Poor planning results in financial issues.

14: When companies develop and implement new products that replace old products, they are utilizing what type of business strategy?

A.   Creative destruction

B.   Economies of scale

C.   Product improvement

D.   Marketing concept

15: ______ is important in producing a variety of solutions to problems faced by small businesses.

A.   Diversity

B.   Brainstorming

C.   Project teams

D.   Creative destruction

16: Why was the growth of small businesses stagnant in the first half of the twentieth century?

A.   Lack of capital to start a business

B.   High barriers of entry to industries

C.   Difficulty in hiring skilled employees

D.   Small profit margins

17: When businesses use market research to investigate what consumers want and then use that information to develop their product or service, what business paradigm are they employing?

A.   Business modeling

B.   Creative destruction

C.   Marketing concept

D.   Customer service

18: Why is a hiring strategy of “we just need warm bodies” detrimental to small businesses?

A.   These employees will be less committed to your business.

B.   The intellectual capital of a small business does not depend on every employee.

C.   The skills and knowledge of your employees make a contribution to your business.

D.   Small businesses have a difficult time hiring employees.

19: The Small Business Administration was established for what purpose?

A.   Research the economic impact of small businesses

B.   Act as a go-between for small businesses and large businesses

C.   Provide capital to small businesses

D.   Train small business owners on management techniques

20: Why is the failure rate so high for small businesses?

A.   The failure rate is a myth as most small businesses are successful.

B.   Owners inaccurately estimate cash flow and capital needs.

C.   One third of business closures are successful at closing.

D.   Creditors do not get their expected return on investment quick enough.

21: Which statement best describes the characteristics of a small business?

A.   Independently owned and operated and has a significant impact on its industry

B.   More than 500 employees and has a marginal impact on its industry

C.   Less than 100 employees and publicly owned

D.   Independently owned and operated and less than 100 employees

22: New innovations typically are the results of a single inventor coming up with a new idea. How can this be a competitive advantage for a small business?

A.   If it is new product, there is no competition.

B.   New products can create new markets.

C.   Customers are always looking for new products.

D.   Larger businesses have a hard time innovating.

23: How can a small business develop a competitive advantage in a market?

A.   Provide a product or service that customers want and will buy

B.   Develop the capacity to produce large amounts of a product

C.   Introduce new products on a regular basis to attract new customers

D.   Ensure there is sufficient capital to operate long term

24: What is the best definition of a failed business?

A.   The small business is sold to another owner.

B.   The small business is closed and the assets are sold.

C.   The small business is closed for less than the assets.

D.   The small business is taken over by a competitor.

25: Techniques used to collect primary data are often classified as ____ and ____ methods.

A.   Surveys, experimentation

B.   Observational

C.   Observational/questioning

D.   Identify informational needs

26: Birchbox's phrase ""the box is monthly, the discoveries are endless"" is an example of a(n) ________.

A.   Tagline

B.   Grabline

C.   Notice-line

D.   Catchline

27: ___________ and ____________ are questioning methods that involve contact with respondents.

A.   Questionnaires; telemarketing

B.   Observations; surveys

C.   Mystery shopping; surveys

D.   Surveys, experimentation

28: The boom in collaboration between u.s. companies and workforces in india created a need for ____.

A.   Internet 3.0

B.   Transatlantic telecommunications infrastructure

C.   Project management workflow software

D.   All of these