Elements of Small Business Management Quiz #1

What is a sole trader?

• A nonprofit organization

• A type of corporation

• A business owned and controlled by one person

• A business owned by multiple people

Which of the following is NOT a type of business entity?

• Partnership

• Franchise

• Sole Proprietorship

• Limited Liability Company

What does competitive advantage refer to?

• The number of products sold

• The size of the company

• Unique strengths that allow a company to outperform competitors

• The ability to sell products at a lower price

Which of the following is a feature of a partnership?

• Limited liability for all partners

• Owned by one person

• An agreement may be oral or written

• No need for a written agreement

What is the primary purpose of a business proposal?

• To attract investors and secure funding

• To outline the company's mission

• To list employee benefits

• To describe the company's history

Which of the following is NOT an element of the marketing mix?

• Profit

• Price

• Product

• Promotion

What is the main goal of sales promotion?

• To reduce production costs

• To provide extra value or incentives to customers

• To increase brand awareness

• To improve customer service

What is a pop-up event?

• A temporary retail space

• A type of online advertisement

• A permanent store

• A fundraising event

What is the purpose of a profit and loss statement?

• To list all assets and liabilities

• To summarize revenues and expenses over a period

• To track cash flow

• To show the financial position at a specific time

Which of the following is a fixed cost?

• Utility bills

• Sales commissions

• Cost of raw materials

• Salaries of employees