Business Fundamentals Quiz

What is the primary goal of a business?

• To provide free products to the public

• To generate profit and provide value to customers

• To avoid competition

• To only sell to friends and family

What is an entrepreneur?

• A person who invests in large companies

• A person who starts and manages a business

• Someone who works for a big corporation

• A business customer

Which of the following is not one of the three main types of business ownership?

• Sole proprietorship

• Corporation

• Nonprofit organization

• Partnership

A target market is:

• A store where businesses buy products

• A group of people most likely to buy a product or service

• A company that makes the most money

• A business that competes with you

Why is customer service important?

• It helps attract and keep customers

• It builds a good reputation and encourages repeat business

• It increases prices for products

• It is not necessary for a business

What is a business plan?

• A random list of ideas

• A written document outlining business goals and strategies

• A document that only banks use

• A daily schedule for employees

Which of the following is an example of a service-based business?

• A bakery selling cupcakes

• A clothing store

• A lawn care company

• A bookstore

What are operating expenses?

• Costs required to run a business, like rent and utilities

• The total revenue a business earns

• Money paid to customers

• Profits after taxes

What happens if a business spends more money than it earns?

• It makes a large profit

• It operates at a loss

• It expands rapidly

• It becomes a monopoly

Why is marketing important for a business?

• It helps attract customers and build brand awareness

• It allows a business to avoid competition

• It helps employees get paid

• It reduces costs