Question 1

What is one of the key benefits of owning a small business?

Accepted Answer

Flexible work hours

Answer

Unlimited vacation days

Answer

Guaranteed high salary

Answer

No competition

Question 2

Which of the following is a common challenge faced by small businesses?

Accepted Answer

Access to capital

Answer

Lots of customers from day one

Answer

Unlimited resources

Answer

No need for marketing

Question 3

What is a primary advantage of a sole proprietorship?

Accepted Answer

Complete control over business decisions

Answer

Shared profits

Answer

Limited liability

Answer

Formal structure requirements

Question 4

What is a common marketing strategy for small businesses to attract customers?

Accepted Answer

Social media marketing

Answer

Direct mail to every household

Answer

Television advertising

Answer

National newspaper ads

Question 5

What does the term 'business plan' refer to?

Accepted Answer

A document outlining business goals and strategies

Answer

A list of all employees

Answer

A summary of financial statements

Answer

A schedule of holiday breaks

Question 6

What is a 'target market' in business?

Accepted Answer

A specific group of consumers identified as potential customers

Answer

The general public without segmentation

Answer

Only young adults

Answer

All consumers universally

Question 7

Which legal structure offers limited liability to its owners?

Accepted Answer

Limited Liability Company (LLC)

Answer

General partnership

Answer

Nonprofit organization

Answer

Sole proprietorship

Question 8

What is the primary purpose of networking for small business owners?

Accepted Answer

Building relationships that can lead to opportunities

Answer

Hiring more staff

Answer

Creating new products

Answer

Expanding to other countries

Question 9

Which financial statement provides a snapshot of a business's financial position at a specific point in time?

Accepted Answer

Balance sheet

Answer

Cash flow statement

Answer

Income statement

Answer

Sales report

Question 10

What is the role of a business mentor?

Accepted Answer

To provide guidance and advice based on experience

Answer

To hire all employees

Answer

To run the business for the owner

Answer

To invest money in the business

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