Entrepreneurship and Small Business
Management Exam Questions with
Correct Answers 2025
1. Which of the followingZis a type of intangible business property that isZprotected by law:
A. Acreage
B. Inventory
C. Trademark
D. Equipment CORRECT ANSWER-C
Basic torts relating to businesses often involve disputes concerning
A. emotional stress.
B. assaults.
C. defamation.
D. contracts. -ZCORRECT ANSWER -D
3. Which of the followingZis a characteristic of a business-format franchise:
A. The name of the business is chosen by the franchisee.
B. Products are bought directly from theZsupplier.
C. It is the least popular franchise arrangement.
D. Continuous assistance isZprovided by the franchisor. CORRECT ANSWER-D
4. Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are
considered advantages of a
A. sole proprietorship.
B. partnership.
C. trade union.
D. corporation. -ZCORRECT ANSWER -D
,5. ChannelsZof distribution benefitZconsumers by
A. increasing profits for businesses.
B. lowering the prices of all consumer products.
C. raising the quality of all consumer products.
D. making a variety of products available to them. CORRECT ANSWER-D
6. For which of the following markets would producers use a short channel of distribution:
A. Local consumers
B. Generation X
C. Baby boomers
D. Senior citizens CORRECT ANSWER-A
7. If a business considers where the consumers are and who they are before selectingZa channel of
distribution, the businessZis considering the factor.
A. human
B. promotion
C. market
D. sales CORRECT ANSWER-C
8. What do business employees often need to do before they are able to write proposals?
A. Research the problem
B. Analyze personal biases
C. Contact the customer
D. Evaluate technical skills CORRECT ANSWER-A
9. Which of the followingZis an example of a manager developing a policy that impacts customer relations
:
A. Increasing use of security devices
B. ExtendingZbusiness hours on weekends
, C. Revising bookkeeping procedures
D. Scheduling employees' work hours CORRECT ANSWER-B
10. What should a successful brand promise be able to do?
A. Customize the productZfor each customer
B. Clarify the company's processes
C. Communicate an appealing benefit
D. Convey a high-quality image CORRECT ANSWER-C
11. Which of the following is one way that freedom in a private enterprise system is limited by laws:
A. Certain occupations must be licensed.
B. All workersZmust take ability tests.
C. Specific pay scales are regulated.
D. Employees must register with the state. CORRECT ANSWER-A
12. During the month of July, salesZat Handy's Shoe Mart totaled $2,500. The cost of the shoes was $1,02
5.
The owner paid $866 for supplies, insurance, rent, and utilities during the month. The $609 left over
represents the owner's
A. net profit.
B. gross profit.
C. sales income.
D. operating expenses. - CORRECT ANSWERZ-A
13. Non-corporations are taxed as pass-through entities, meaning that
A. profits and losses are claimed on owners' personal tax returns.
B. they do not have to pay payroll taxes.
C. their income tax rates are lower than those of corporations.
D. they pay only state and local taxes. -ZCORRECT ANSWER -A
Management Exam Questions with
Correct Answers 2025
1. Which of the followingZis a type of intangible business property that isZprotected by law:
A. Acreage
B. Inventory
C. Trademark
D. Equipment CORRECT ANSWER-C
Basic torts relating to businesses often involve disputes concerning
A. emotional stress.
B. assaults.
C. defamation.
D. contracts. -ZCORRECT ANSWER -D
3. Which of the followingZis a characteristic of a business-format franchise:
A. The name of the business is chosen by the franchisee.
B. Products are bought directly from theZsupplier.
C. It is the least popular franchise arrangement.
D. Continuous assistance isZprovided by the franchisor. CORRECT ANSWER-D
4. Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are
considered advantages of a
A. sole proprietorship.
B. partnership.
C. trade union.
D. corporation. -ZCORRECT ANSWER -D
,5. ChannelsZof distribution benefitZconsumers by
A. increasing profits for businesses.
B. lowering the prices of all consumer products.
C. raising the quality of all consumer products.
D. making a variety of products available to them. CORRECT ANSWER-D
6. For which of the following markets would producers use a short channel of distribution:
A. Local consumers
B. Generation X
C. Baby boomers
D. Senior citizens CORRECT ANSWER-A
7. If a business considers where the consumers are and who they are before selectingZa channel of
distribution, the businessZis considering the factor.
A. human
B. promotion
C. market
D. sales CORRECT ANSWER-C
8. What do business employees often need to do before they are able to write proposals?
A. Research the problem
B. Analyze personal biases
C. Contact the customer
D. Evaluate technical skills CORRECT ANSWER-A
9. Which of the followingZis an example of a manager developing a policy that impacts customer relations
:
A. Increasing use of security devices
B. ExtendingZbusiness hours on weekends
, C. Revising bookkeeping procedures
D. Scheduling employees' work hours CORRECT ANSWER-B
10. What should a successful brand promise be able to do?
A. Customize the productZfor each customer
B. Clarify the company's processes
C. Communicate an appealing benefit
D. Convey a high-quality image CORRECT ANSWER-C
11. Which of the following is one way that freedom in a private enterprise system is limited by laws:
A. Certain occupations must be licensed.
B. All workersZmust take ability tests.
C. Specific pay scales are regulated.
D. Employees must register with the state. CORRECT ANSWER-A
12. During the month of July, salesZat Handy's Shoe Mart totaled $2,500. The cost of the shoes was $1,02
5.
The owner paid $866 for supplies, insurance, rent, and utilities during the month. The $609 left over
represents the owner's
A. net profit.
B. gross profit.
C. sales income.
D. operating expenses. - CORRECT ANSWERZ-A
13. Non-corporations are taxed as pass-through entities, meaning that
A. profits and losses are claimed on owners' personal tax returns.
B. they do not have to pay payroll taxes.
C. their income tax rates are lower than those of corporations.
D. they pay only state and local taxes. -ZCORRECT ANSWER -A
