Do You Have Basic Business Knowledge?

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| By Alan Jones

Alan Jones

Community Contributor

Quizzes Created: 2 | Total Attempts: 573

Questions: 7 | Attempts: 211 | Updated: Nov 16, 2023

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Just a small quiz to test for basic business knowledge and make you think!

Questions and Answers

1.

What are the minimum qualification you need to start a business?
- A.
  
  A Degree
- B.
  
  5 GCSEs
- C.
  
  Apprenticeship
- D.
  
  None
Correct Answer
D. None

Explanation
While it may help to have qualifications there are plenty of people who have succeeded in business without any formal qualifications!

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2
0
2.

Which of the following will you need to start a business?
- A.
  
  Premises
- B.
  
  Bank Account
- C.
  
  Business Plan
- D.
  
  BMW Car
Correct Answer(s)
B. Bank Account
C. Business Plan

Explanation
You can work from home and ride a bike... but unless you have a business plan and a bank account it will be VERY difficult to get started!

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1
0
3.

If I start a business it must be 'LTD" for me to operate.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
False....you can operate in a number of ways other than as a registered Ltd company... seek advice as to your best options from a business advisor or accountant.

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1
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4.

If I start a business I'll have to register for and deal with VAT.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
You can trade up to the VAT threshold without registering... although you may want to register before then to be able to claim back the VAT on your purchases. See your accountant or business advisor.

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5.

Which of the following are true?
- A.
  
  Turnover is more important than profit
- B.
  
  As long as I have a lot of orders I can't go wrong
- C.
  
  Cashflow is important
- D.
  
  I don't need an accountant to begin with
Correct Answer
C. Cashflow is important

Explanation
Profit is what you're measured on... Orders mean nothing if you can't satisfy them because you haven't the cash to buy or make the goods to sell... Cashflow is KING! without positive cashflow you can quickly end up in major trouble...An accountant from the start can help prevent you make very basic mistakes and save you money..

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6.

Running my own business will be easier than having a job.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
No it won't be easier! You will have to work hard and to begin with for little money and long hours BUT you can start to take it easier if you grow your business make money and employ people to help you grow it..

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1
0
7.

Small Businesses provide better benefits to employees as well as salary and stability.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Large Businesses offer better pay, stability and benefits to their employees.

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Current Version
Nov 16, 2023

Quiz Edited by
ProProfs Editorial Team
Oct 12, 2011

Quiz Created by
Alan Jones

Do You Have Basic Business Knowledge?

What are the minimum qualification you need to start a business?

Which of the following will you need to start a business?

If I start a business it must be 'LTD" for me to operate.

If I start a business I'll have to register for and deal with VAT.

Which of the following are true?

Running my own business will be easier than having a job.

Small Businesses provide better benefits to employees as well as salary and stability.