Business MCQ

Multiple Choice Questions on Business

Business is defined as the activities or the tasks that are involved in the production of a product or execution of goods and sales. Business depends on significant factors such as profit, loss, product margin, marketing, etc. To start a business, one must take risks to engage the business for good sales and benefits. The size of the business can also vary from small to huge business. For example, businesses such as those selling homemade products come under small-scale businesses, and large-scale businesses require a lot of talent to manage. People that are experts in various fields can run this large-scale business for a long-time. Large-scale business includes many risks to face and has huge competition in the market as well.

To start a business, one must be confident and work on various categories and aspects. This may also need partnerships with other businesses and corporations.

Types of Businesses

1. Sole Proprietorship

As the name indicates, this type of business consists of only one person who established and manages the business. The owner themselves should manage everything. Paying taxes, etc., are to be done by the owner. The owner has the authority to access everything in the business, but they should also face the legal consequences, if any.

2. Partnership

This type of business is managed by two or more people who agree to take care of the business through a mutual understanding to manage the different aspects themselves. Everyone in the business will be responsible for the profits or loss of the business and face any legal allegations.

3. Corporation

A corporation is defined as a group of owners who are merged into a single entity. The owner of this type of business is called a shareholder; the benefit of this is that if one of the owners leaves or passes away, there will be an opportunity for another shareholder to take up and manage the business. This is not present in Sole Proprietorship or Partnership. Where the cases mentioned earlier happened, the business should be closed.

4. Limited Liability Company (LLC)

This is a hybrid type of business that protects liability from a corporation and provides tax benefits in a partnership. In LLC, the owners are called members; they have only a limit in the legal disputes or any debts of the business.

5. Franchise Model

There is another type of business called a Franchise model, which means the business belongs to the owner. Still, people can expand their business by using the company’s name, which the owner charges some amount of money. This model is safe and secure because it is determined by the owner whether or not to give the business to others. So, it will be in the right hands.

Some examples of industry-leading businesses are Amazon, Apple, Google, Tesla, Microsoft, Netflix, and many other companies which lead the industry and make huge profits.

The major aspects which play a key role in expanding the business and making them profitable are:

  1. Finance marketing
  2. Legal issues management
  3. Technology
  4. Work

Those, as mentioned earlier, are the essential components of a successful business. Because to know about the profits and losses of the established business, one must know well about the Finance industry and manage the money they gain.

Multiple Choice Questions on Business

To expand and make the business come to light marketing team is crucial because it is important to tell and showcase the features and benefits of the business we establish. The marketing must be catchy and simple so that more customers get interested in the business or company. Proper strategies should be developed to advertise and grow the business.

Legal issues management is also important because some way or another, there may be mistakes happening in the business, which might lead to major legal disputes. To overcome the legal disputes, we must follow the law and then should proceed to establish the business. Technology comes into action to develop the business and produce various tools. Some of the businesses can sell products online, so developing a website to make ordering easy, and all come into this aspect. This is very important for modern business, which relies totally on present-day technology.

A proper workflow is to be maintained in the business to make the process easy and accessible.

Let’s see the frequently asked questions on Business. Here is the list of most frequently asked questions on business:

1. Which of the term relate to Business?

  1. Work
  2. Stores
  3. Profession
  4. Merchandising

Answer: d) Merchandising

2. What is the process called where a material is gathered and worked on to produce a product?

  1. Supplying
  2. Production
  3. Marketing
  4. Gathering

Answer: b) Production

3. What is the process where a business tries to attract customers?

  1. Designing
  2. Marketing
  3. Franchising
  4. Production

Answer: b) Marketing

4. What is the type of business where only a single person owns everything?

  1. Sole proprietorship
  2. Managing
  3. Corporation
  4. Franchising

Answer: a) Sole proprietorship

5. Which from the given are the best example of a sole proprietorship?

  1. Apple
  2. Google
  3. Bakery owner
  4. Netflix

Answer: c) Bakery owner

6. What are the essentials which are needed to start a business?

  1. Team
  2. Funds
  3. Mission and Vision
  4. Office
  5. All the above

Answer: e) All the above

7. How many types of business are there?

  1. 2
  2. 4
  3. 3
  4. 7

Answer: b) 4

8. What is the benefit of the corporation?

  1. Provides limited liability to owners.
  2. Provides more share.
  3. Profits for the business increase.
  4. Restricted shares.

Answer: a) Provides limited liability to owners.

9. What is the correct word suitable for an enthusiastic person who is likely to set up a business?

  1. Entrepreneur
  2. Businessman
  3. Customer
  4. Partner

Answer: a) Entrepreneur

10. Select the requirements needed for an entrepreneur to be successful.

  1. Idea
  2. Optimistic nature
  3. Procrastination
  4. Flexibility

Answer: a, b, d) Idea, Optimistic nature, and Flexibility

11. What are the different types of companies?

  1. Product based.
  2. Service based.
  3. Industry based.
  4. Both a and b

Answer: d) Both a and b

12. Which of the following is a characteristic of a perfectly competitive market?

  1. Few sellers and a massive amount of buyers
  2. High barriers to entry
  3. Product differentiation
  4. Product price control by an individual seller

Answer: a) Few sellers and a massive amount of buyers

13. What does ROI stand for?

  1. Return on the industry.
  2. Regulations of India.
  3. Regulation of Industry.
  4. Return on Investment.

Answer: d) Return on Investment.

14. What is the primary purpose of Marketing in Business?

  1. To promote the business.
  2. To defame the company.
  3. To attract customers.
  4. Both a and c

Answer: d) Both a and c

15. What does CEO stand for?

  1. Chief Experimental Officer
  2. Chief Executive Officer
  3. Chief Expert Officer
  4. Chief Entrepreneur Officer

Answer: b) Chief Executive Officer

16. What is the term for the difference between a business's revenue and expenses?

  1. Income
  2. Revenue
  3. Profit
  4. Loss

Answer: c) Profit

17. What is the term coined for the total money received by selling a product in business?

  1. Revenue
  2. Profit
  3. Loss
  4. Income

Answer: a) Revenue

18. What is the correct term for the property owned by a business?

  1. Real estate
  2. Property
  3. Assets
  4. Buildings

Answer: c) Assets

19. What is the primary of a business?

  1. To gain profit.
  2. To provide with goods and services
  3. To provide employment to other
  4. None of the above

Answer: b) To provide with goods and services

20. What are the owners called in Partnership?

  1. Leaders
  2. Stake holders
  3. Sub ordinates
  4. None of the above

Answer: d) None of the above

21. What are the owners called in Corporation?

  1. Leaders
  2. Shareholders
  3. Sub ordinates
  4. None of the above

Answer: b) Shareholders

22. Apart from the owners who can be the shareholders of a business.

  1. Buyers
  2. Other companies
  3. Customers
  4. All the above

Answer: c) Customers

23. Which of the following is NOT a factor that affects a country's economic development?

  1. Technocrats and Bureaucrats
  2. Politics
  3. Natural resources
  4. All the above

Answer: a) Technocrats and Bureaucrats

24. What are the factors that affect a business?

  1. Less productivity
  2. More employees
  3. Insufficient funds
  4. All the above

Answer: d) All the above

25. What are the various legal protection factors that guard the business from legal disputes?

  1. Patents, Copyrights
  2. Trademark
  3. Trade secret
  4. All the above

Answer: d) All the above

26. Why are the legal protection factors important for a business?

  1. To prevent any disputes legally by other competitors.
  2. To avoid usage of the hard work by others.
  3. Both a and b
  4. None of these

Answer: c) Both a and b

These are some of the Multiple-choice questions that are asked in business frequently, which are of different levels and test our skills in understanding the business and the structure along with the working procedure of multiple businesses.