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Bus 101 U7 Small Business Review

Total questions: 46

Worksheet time: 24mins

Name
Class
Date
1.

An individual who provides financial backing for small start-up businesses or entrepreneurs. This individual will often accept a lower return on investment or partial ownership of business.

What is this individual called?

a)

Angel Investor

b)

Banker

c)

Debt Collector

d)

Accountant

2.
According to the Small Business Administration, a small business is one with 100 or fewer workers.
a)
True
b)
False
3.

Small businesses can have a positive impact on large businesses.

a)

True

b)

False

4.

One of the first things someone needs to do before starting a business is to write which of the following?

a)

A business plan

b)

A loan application

c)

A partnership statement

d)

A franchise agreement

5.

What is the primary legal disadvantage of sole proprietorships?

a)

a) Limited liability

b)

b) Unlimited liability

c)

c) Tax complexity

d)

d) Inability to raise capital

6.

Which of the following is an advantage of franchises?

a)

a) Recognized name and product

b)

b) Management training and assistance

c)

c) Reduced risk for franchisees

d)

d) Financial assistance

e)

e) All of these

7.

In a sole proprietorship, who gets to keep the profits from the business?

a)
The government
b)
The employees
c)
The customers
d)
The owner
8.

In a sole proprietorship, who is responsible for all debts and losses?

a)
The government
b)
The employees
c)
The customers
d)
The owner
9.
The type of business ownership in which all business decisions are the sole responsibility of the owner.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
10.

A target market is

a)

a group of investors willing to put capital into a business

b)

a generational group of individuals

c)

a group of consumers at which a product/service is aimed

d)

an industry willing to sell and market your product

11.

Which is NOT one of the reasons startups typically fail?

a)

Run out of cash

b)

No business model

c)

Poor marketing

d)

Market demand

12.

An elevator pitch is a way to convey information about your business. How long should it be?

a)

5 minutes

b)

3 minutes

c)

60 seconds

d)

30 seconds

13.

What is a Sole Proprietorship?

a)

A business where 2 or more people share ownership

b)

A business owned by shareholders

c)

A business that is owned by one individual

14.

Partnership requires at least three people

a)

True

b)

False

15.

Franchisors usually provide all of the listed items except....

a)

Advertising

b)

Training

c)

Loan

d)

Equipment

16.

Google, Amazon, and Facebook are examples of...

a)

Sole Proprietorships

b)

Partnerships

c)

Corporations

17.

What is scarcity?

a)

unlimited wants and needs

b)

a shortage of resources

c)

a lack of goods and services

d)

limited expenses

18.
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
19.
What does COGS stand for?
a)
cost of goals scored
b)
cost of goods stocked
c)
cost of goods sold
d)
cost of goods solvent
20.

What assumption does this statement say "Break even is 54 units"?

a)

if we sell 55 we aren't making a profit

b)

if we sell 54 we begin to make a profit

c)

if we sell 55 we begin to make a profit

d)

if we sell 54 we are not yet at break even point

21.
Breaking down a market by regional areas, climate, and basically where people live is called ________ segmentation.
a)
geographic
b)
demographic
c)
psychographic
d)
life stages
22.

What are the four P's of marketing

a)

product, produce, production, price

b)

person, place, produce, practice

c)

promotion, product, practice, price

d)

promotion, place, price, product

23.

A financial document that shows how much a company makes and spends over a given period of time.

a)

income statement

b)

balance sheet

c)

cash flow statement

24.

A financial document where a business records assets and liabilities.

a)

income statement

b)

balance sheet

c)

cash flow statement

25.

Break Even =

a)

Sales = Expenses

b)

Profit = Expenses

c)

Revenue = Fixed Expenses

d)

Sales = Variable Expenses

26.
Which of the following is not a characteristic of a successful entrepreneur?
a)
Determination
b)
Creativity
c)
Dependence
d)
Self-Confidence
27.

The executive summary includes a brief account of key points located within the business plan.

a)

True

b)

False

28.

Research to learn about the business's customers is included in which part of the business plan?

a)

market analysis

b)

operational plan

c)

executive summary

d)

marketing plan

29.

Small businesses only serve a small area and employ no more than 100 people.

a)

True

b)

False

30.

The vision and mission statement in the business plan state the guiding principles of a business

a)

True

b)

False

31.
  1. Occurs when people’s needs and wants are unlimited and the resources to produce the goods and services to meet those needs are limited

a)

Capitalism

b)

economic decision making

c)

scarcity

d)

profit

32.

The private ownership of resources by individuals rather than by the government

a)

Capitalism

b)

economic decision making

c)

scarcity

d)

profit

33.
  1. The value of the next-best alternative—the one you pass up

a)

Capitalism

b)

economic decision making

c)

scarcity

d)

opportunity cost

34.

  Which of the 4Ps of marketing refers to how a business gets its product to customers?  

a)

Product

b)

Price

c)

Place

d)

Promotion

35.

Which is not a common differentiator for businesses?

a)

Taxes

b)

Product

c)

Service

d)

Price

36.

What is a key difference between a sole proprietorship and a limited liability company (LLC)?

a)

A sole proprietorship offers limited liability protection, while an LLC does not

b)

An LLC allows the owner to separate personal and business liability, while a sole proprietorship does not

c)

Sole proprietorships have multiple owners, while LLCs can only have one owner

d)

LLCs do not have to pay taxes, while sole proprietorships do

37.

Which of the following best describes opportunity cost in entrepreneurship?

a)

The profit earned in the first year

b)

The cost of hiring employees

c)

The value of the next best alternative forgone when making a business decision

d)

The amount spent on marketing

38.

Which of the following is considered a fixed cost for a new business?

a)

Raw materials

b)

Employee wages based on hours worked

c)

Monthly rent for office space

d)

Shipping costs per order

39.

Which of the following best describes an 'apprenticeship'?

a)

Learning a skill by reading books

b)

Training where you learn a job by working with someone who already does it

c)

Attending a university course

d)

Watching online tutorials

40.

What is the main purpose of an interest inventory?

a)

To measure your intelligence

b)

To list your abilities

c)

To help you find what kind of work fits you based on activities you like

d)

To track your work experience

41.

Which of the following is NOT a component of a SMART goal?

a)

Spontaneous

b)

Achievable

c)

Measurable

d)

Specific

42.

Which of the following is NOT a common role an entrepreneur fills when launching a business?

a)

Sales manager

b)

Product developer

c)

Professional athlete

d)

Human resources specialist

43.

What is one effective way for entrepreneurs to overcome obstacles faced during the early stages of a startup?

a)

Ignoring feedback from customers

b)

Seeking mentorship and networking

c)

Focusing only on short-term profits

d)

Reducing product quality

44.

Which scenario best demonstrates ethical decision-making in entrepreneurship?

a)

Using misleading advertising to boost sales

b)

Ignoring environmental regulations to save money

c)

Paying employees fair wages and being transparent about business practices

d)

Copying a competitor's product without permission

45.

How does entrepreneurship benefit the economy?

a)

By reducing competition

b)

By creating jobs and fostering innovation

c)

By increasing government control

d)

By limiting consumer choices

46.

What happens in a market when the supply of a product increases but demand remains the same?

a)

The price usually increases

b)

The price stays the same

c)

The price usually decreases

d)

The product becomes scarce