Certificate in Small Business Model

Online Examination Detail:
Duration- 60 minutes.
Number of Questions- 30. (Multiple Choice Questions).
Maximum Marks- 100, Passing Marks- 40%.
There is no negative marking.

Candidate Details

NameEmailPhone Number

1 / 30

1. MSMEs play an important role in the economy by

A. Reducing employment opportunities

B. Limiting innovation

C. Supporting job creation and regional development

D. Focusing only on urban markets

2 / 30

2. Intellectual property rights help a small business by

A. Restricting innovation

B. Protecting creations like logos, designs and inventions

C. Reducing the need for contracts

D. Increasing labour costs

3 / 30

3. The first step in identifying a business opportunity is

A. Selecting a brand nameSelecting a brand name

B. Understanding market needs

C. Hiring employees

D. Finalizing product packaging

4 / 30

4. Labour law compliance ensures

A. Unregulated hiring

B. Safe working conditions and fair treatment of employees

C. Reduction in employer responsibilities

D. Suspension of wages

5 / 30

5. A common source of finance for small businesses is

A. Lottery winnings

B. Bank loans and microfinance

C. Large-scale foreign investment

D. Government taxes

6 / 30

6. A common myth about small businesses is that

A. They can grow into larger enterprises

B. They face competition

C. They always fail within the first year

D. They contribute to local income generation

7 / 30

7. Operational planning focuses on

A. Long-term visionLong-term vision

B. Market share analysis

C. Daily processes and how work will be carried out

D. Hiring the top management team

8 / 30

8. GST is a tax that applies to

A. Only agricultural products

B. The supply of goods and services

C. Income from employment

D. International donations

9 / 30

9. The marketing mix mainly refers to

A. Product, price, place and promotion

B. Only social media tools

C. Office management techniques

D. Customer complaints

10 / 30

10. Idea validation is important because it

A. Removes the need for marketing

B. Confirms whether customers truly need and will pay for the idea

C. Guarantees long-term success

D. Replaces financial planning

11 / 30

11. The mission statement of a business describes

A. Future long-term aspirations

B. Daily transactions

C. The core purpose and what the business aims to do

D. Only financial targets

12 / 30

12. A USP mainly helps a small business

A. Copy competitors’ strategies

B. Blend in with the market

C. Stand out by offering something distinct

D. Reduce product quality

13 / 30

13. A benefit of low budget marketing tools is that they

A. Require expensive agencies

B. Help reach customers at a lower cost

C. Work only for large firms

D. Reduce customer engagement

14 / 30

14. Financial software tools help small businesses by

A. Making accounting more complicated

B. Automating bookkeeping and improving accuracy

C. Reducing customer numbers

D. Replacing all financial statements

15 / 30

15. Customer segmentation focuses on

A. Treating all customers the same

B. Grouping customers based on needs and behavior

C. Ignoring target audiences

D. Reducing product variety

16 / 30

16. A business plan mainly helps an entrepreneur

A. Avoid competition

B. Present goals, strategies and operational details

C. Replace financial records

D. Eliminate the need for marketing

17 / 30

17. Working capital refers to

A. Long-term loans

B. Money needed for day-to-day operations

C. Investment in buildings

D. Owner’s personal savings

18 / 30

18. Break-even analysis is used to

A. Measure customer satisfaction

B. Identify the point where revenue equals total cost

C. Reduce fixed expenses

D. Track employee performance

19 / 30

19. SEO helps a business by

A. Printing more brochures

B. Improving visibility in search engine results

C. Reducing website traffic

D. Avoiding online competition

20 / 30

20. Choosing the right legal entity is important because it

A. Decides only the business name

B. Determines liability, taxation and compliance requirements

C. Removes the need for registration

D. Has no impact on operations

21 / 30

21. Diploma in Co- Operative Housing Society Management

A. Increase marketing costs

B. Provide legal identity and recognition

C. Replace the need for licenses

D. Avoid tax obligations

22 / 30

22. Strategic partnerships help small businesses by

A. Increasing unnecessary costs

B. Limiting market access

C. Expanding capabilities and resources through collaboration

D. Replacing internal teams

23 / 30

23. SWOT analysis helps an entrepreneur

A. Increase product prices

B. Compare only competitors’ strengths

C. Review internal strengths and weaknesses along with external opportunities and threats

D. Avoid risk assessment

24 / 30

24. Small businesses are generally defined by

A. Large market share

B. Limited employees and lower investment levels

C. High export volume

D. Global operations

25 / 30

25. Cash flow management mainly helps a small business

A. Increase fixed assets

B. Ensure there is enough money to meet daily obligations

C. Avoid preparing accounts

D. Reduce sales

26 / 30

26. A key characteristic of a typical small business model is

A. Heavy dependence on multinational investors

B. Close owner involvement in daily operations

C. Large corporate hierarchy

D. High entry barriers

27 / 30

27. A profitable niche is usually defined by

A. Broad customer segments

B. Low demand and high competition

C. A focused group with specific needs

D. Only seasonal buyers

28 / 30

28. Branding helps a small business by

A. Increasing production cost

B. Creating a clear identity that customers recognize

C. Reducing the need for marketing

D. Limiting customer reach

29 / 30

29. Sole proprietorship is a legal form of ownership that

A. Requires complex registration

B. Has shared liability

C. Is owned and controlled by a single individual

D. Needs multiple partners to operate

30 / 30

30. A profit and loss statement shows

A. Only total assets

B. Income and expenses over a specific period

C. Details of employee performance

D. Only tax payments

Exit

Certificate in Small Business Model

Certificate in Small Business Model

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