Small business quiz


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May 31st, 2017
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Business Strategy


Brought to you in collaboration with Incite Strategic Research Consultancy.

1. Which of the below is the main purpose of a business plan?

A) To help you strategise and outline what you want to achieve with your business
B) To help you structure the financial side of your business more efficiently ~
C) To help you plan your organisational structure
D) To help you identify key markets and target audiences
E) All of the above

Read more: https://www.bgateway.com/resources/coronavirus-business-plan (external link) 

2. Which of these is the best definition of a ‘competitor’?

A) A company operating within your industry
B) A company operating within your region
C) A company which supplies a similar good or service to you
D) A company which uses the same marketing channels as you

Read more: https://marketing-intelligence.co.uk/ (external link)

3. What does the SWOT Analysis acronym stand for?

A) Strengths, Weaknesses, Opportunities, Threats
B) Strategically Weighted Organigram Theory
C) Successes, Weaknesses, Opportunities, Targets
D) Situation, Workplan, Outputs, Timings

Read more: https://www.businessballs.com/strategy-innovation/swot-analysis/ (external link) 

4. Which of the following should NOT appear in a mission statement?

A) Company values
B) The needs which the company addresses
C) Who your customers are
D) How much turnover you want to make

Read more: https://www.entrepreneurship.org/topics/planning-and-strategy (external link)

Incite is a strategic research consultancy, unearthing and interpreting insights about brands and businesses to help their clients think clearer and plan more effectively

Business strategy answers


Question 1

E) All of the above

Question 2

C) A company which supplies a similar good or service to you

Question 3

A) Strengths, Weaknesses, Opportunities, Threats

Question 4

D) How much turnover you want to make

Marketing


Brought to you in collaboration with Luan Wise.

5. Which of the following best defines ‘growth hacking’?

A) Keeping an eye on your competitors’ growth strategies and ensuring that your presence is felt in each channel they focus on
B) Focusing your visual marketing efforts on affluent and emerging areas
C) A learn-as-you-go approach to marketing your product, improving it with each new learning until it reaches product/market fit
D) Hosting roundtables, hackathons and similar initiatives in a bid to solve problems within your company and industry

Read more: https://www.quicksprout.com/growth-hacking/ (external link)

6. Using the word ‘video’ in an email subject line boosts open rates by 19%.

A) True
B) False

Read more: https://highq.com/gb/resources/the-year-of-video-marketing/ (external link)

7. You have recently set up a website which lists and reviews events happening in the North of England. Which of the below options is not a good way of monetising your site traffic?

A) Sell advertising space
B) Sell blog space to other websites in order to boost their SEO performance
C) Charge users a fee for exclusive content
D) Charge venues a fee for listings
E) Sell merchandise

Read more: https://webmasters.googleblog.com/2013/02/a-reminder-about-selling-links.html (external link)

8. What type of website traffic is referred to as ‘organic’?

A) People who use search engines
B) People who click on adverts
C) People who click links on social media
D) People who have bookmarked your site or who type the URL into their browser
E) People who click on links on another site

Read more: https://adamnash.blog/2012/03/28/user-acquisition-five-sources-of-traffic/ (external link)

9. Facebook advertisements can be targeted to reach:

A) Individuals according to their location, age and/or gender
B) Individuals according to their interests and/or behaviours
C) Friends of the people who already like your Facebook page
D) All of the above

Luan Wise is an independent marketing practitioner with 15 years of experience which has seen her work for clients including Royal Mail, Hilton and the University of Cambridge. In 2012 Luan achieved Chartered Marketer status and sits on the board for various local and national marketing institutes, including being the chair of CIM Gloucestershire.

Marketing answers


Question 5

C) A learn-as-you-go approach to marketing your product, improving it with each new learning until it reaches product/market fit

Question 6

A) True

Question 7

B) Sell blog space to other websites in order to boost their SEO performance

Question 8

A) People who use search engines

Question 9

D) All of the above

Finance


Brought to you in collaboration with Crunch.

10. Which of the following terms best describes the strategy of selling accounts receivable to improve cash flow?

A) Equity financing
B) Factoring
C) Accounts receivable turnover
D) Sale and lease back

Read more: https://www.entrepreneur.com/encyclopedia/factoring (external link)

11. If you’re self-employed which of the following can you claim tax back for on your self-assessment tax return?

A) Advertising Costs
B) A tailored suit worn to work
C) Client Entertainment (eg. lunch or a sporting event)
D) Speeding tickets for company car

Read more: https://www.gov.uk/expenses-if-youre-self-employed (external link)

12. How long must you keep your financial records for after the 31 January submission deadline of the relevant tax year if you are self-employed?

A) 5 years
B) 2 years
C) 6 months
D) 10 years
E) 6 years
F) Until your business dissolves

Read more: https://www.gov.uk/self-employed-records/how-long-to-keep-your-records (external link)

13. How is gross profit best defined?

A) Total turnover in a given period
B) Total revenue minus total expenditure
C) Total revenue minus cost of goods/services sold
D) Net profit minus taxes

Read more: http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/gross-profit-2077 (external link)

14. Which of these options will not help business owners to cut the amount of business taxes they pay every year?

A) Claiming a proportion of household costs if they work from home
B) Setting up a salary sacrifice scheme for employees
C) Exploring the Flat Rate VAT Scheme
D) Claiming Capital Allowances, e.g. on Plant & Machinery and R&D
E) Paying themselves tax-efficiently through company dividends
F) The Entrepreneurial Relief scheme

Read more: http://www.bytestart.co.uk/10-tax-saving-ideas-small-business-owner.html (external link)

15. Which of the following could Professional Indemnity Insurance help protect your business from?

A) Claims brought by employees who have been injured at work
B) Claims brought by members of the public who have tripped and hurt themselves in your office
C) Claims brought by a client who is dissatisfied with your work
D) Claims for your laptop being stolen or damaged

Read more: https://www.hiscox.co.uk/business-insurance/professional-indemnity-insurance

Crunch is the UK’s first and fastest growing online accountants. Having helped its clients invoice over £1 billion, Crunch has been selected by large brands like Uber and B&Q to provide accountancy services for their contractors.

Finance answers


Question 10

B) Factoring

Question 11

A) Advertising Costs

Question 12

A) 5 years

Question 13

C) Total revenue minus cost of goods/services sold

Question 14

F) The Entrepreneurial Relief scheme

Question 15

C) Claims brought by a client who is dissatisfied with your work

Law


Brought to you in collaboration with Keystone Law.

16. You have an original idea and a great name for an invention that will help children learn sign language and you want to protect your idea and name. Which of the following steps should you take?

A) Check that no one else is already using the name
B) Ensure that you have agreed in writing who owns the rights if you have worked with someone in creating it
C) Consider applying for a patent to protect the invention and trademark to protect the name
D) Don’t tell anyone until you have taken some steps to protect your intellectual property
E) All of the above


17. If you are looking to acquire another business are you able to insist on a period of exclusivity with the seller to allow you enough time to carry out due diligence and complete the necessary legal work?

A) Yes
B) No
C) Only after you have put down a deposit


18. A male employee has asked about sharing parental leave with his spouse. Which of the following statements are correct in regard to shared parental leave (SPL)?

A) In order to share parental leave, the mother must end her maternity or adoption leave
B) Statutory Shared Parental Pay is paid at £139.58 or 90% of your average weekly earnings (whichever is lower)
C) The employee can take 2 weeks paternity leave in addition to SPL
D) The employer is within their rights to ask for the child’s birth certificate/confirmation of matching and the name and address of mother’s employer
E) All of the above


19. Which of these statements, on managing sick-leave, is inaccurate?

A) Employers are liable for sick-leave pay as well as replacement workers costs
B) Statutory sick pay is currently set at just under £90 a week
C) Employers are able to reclaim a percentage of their sick-pay outlay once it reaches 13% of National Insurance costs
D) Clear sick-leave policy guidelines should be made available and known to all at all times


20. How much could you be fined for failing to obtain Employer’s Liability Insurance when required to?

A) £10,000
B) £100,000
C) £500 per day not insured
D) £2,500 per day not insured

Read more: https://www.gov.uk/employers-liability-insurance (external link)

Keystone Law is a full service law firm established in 2002 that works with a range of corporate businesses including SMEs and individual entrepreneurs.

Law answers


Question 16

E) All of the above

Question 17

A) Yes

Question 18

E) All the above

Question 19

C) Employers are able to reclaim a percentage of their sick-pay outlay once it reaches 13% of National Insurance costs

Question 20

D) £2,500 per day not insured

Business Development


Brought to you in collaboration with Bytestart.

21. What is an elevator pitch?

A) A business pitch delivered in an elevator
B) A 60 second sales pitch
C) A quick and simple definition of your business and its value proposition
D) A short story that you can tell in the course of an elevator ride

Read more: https://www.businessknowhow.com/money/elevator-pitch.htm (external link)

22. Which of the following is not an example of upselling?

A) “Would you like to supersize that?”
B) “Our Platinum package offers lifetime upgrades.”
C) “Customers who bought this also viewed the following related products.”
D) “Free delivery on orders over £150.”

Read more: https://www.shopify.co.uk/blog/17579484-how-to-increase-revenue-and-improve-the-customer-experience-with-upselling-and-cross-selling (external link)

23. Which of the following is a source of external change for a business?

A) Increase in consumer spending power
B) Modification of its marketing campaign
C) The decision to market its product using e-commerce
D) Provision of electronic payment facilities for customers

Read More: https://www.entrepreneurshipinabox.com/9/organizational-change-source/ (external link)

24. Upselling / cross selling is cheaper & easier than selling to new customers.

A) True
B) False

Read More: https://cmo.adobe.com/#gs.9uux4j (external link)

25. Which of the following is not considered a viable finance source for SMEs?

A) Retained profits
B) Loan capital
C) Payday Loans
D) Credit cards
E) Factoring
F) Crowdfunding
G) Savings

Read More: https://smallbusiness.co.uk/financing/ (external link)

26. When is the best time in the lifecycle of a business to focus on networking?

A) Anytime anywhere
B) Start Up
C) Growth
D) Expansion
E) Decline

Read More: https://www.businessballs.com/building-relationships/networking/ (external link)

Bytestart.co.uk is an online resource for small businesses in the UK. The site is packed with tips and advice about every topic from starting up to selling a business and everything in between.

Business development answers


Question 21

C) A quick and simple definition of your business and its value proposition

Question 22

C) “Customers who bought this also viewed the following related products.”

Question 23

A) Increase in consumer spending power

Question 24

A) True

Question 25

C) Payday Loans

Question 26

A) Anytime anywhere