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The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Entrepreneurs as small business owners.

The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Introduction to entrepreneurship (IENT101) micro-course. Please consult the Certify participation page for more information.


True - false questions

Indicate whether the following statements are true or false:

  • Most small businesses are publicly owned.
    • True
      • That is not the right answer.
    • False
      • Well done – you are right.
  • Small business owners usually have someone else managing their business, so that they can focus on strategy.
    • True
      • That is not the right answer.
    • False
      • Well done – that statement is false.
  • Small business owners and entrepreneurs generally have different leadership styles.
    • True
      • Yes, this statement is true.
    • False
      • Think again – this statement is true.
  • Small businesses help contribute to their local community.
    • True
      • Well done.
    • False
      • Incorrect – this statement is true.
  • The financial risks are low for small business owners.
    • True
      • This statement is not true – the financial risks are often high for small business owners.
    • False
      • Well done – this statement is false.


Multiple choice questions

  • Which ONE of these is an advantage of small business ownership?
    • Time
      • This is unlikely! Running your own business is very time-consuming.
    • You’ll enjoy every aspect of your work
      • No, try again. As a small business owner, there may be many aspects of your role that you won’t enjoy, such as hiring and firing people, or keeping company accounts.
    • Learning opportunities
      • Yes, that’s right. Running your own business provides many learning opportunities.
    • Stress-free lifestyle
      • No, not really – although being your own boss can be an enjoyable lifestyle for many people, there are also multiple things to think about, and you are responsible for everything.
  • SWOT stands for:
    • Saving, Working, Owning, Trading
      • No, try again.
    • Strengths, Weaknesses, Opportunities, Threats
      • Yes, that’s right. Analysing these things can help you to identify internal and external factors that could affect your business.
    • Sales, Wages, Objectives, Targets
      • No, try again.
    • Safety, Workforce, Organisation, Training
      • No, try again.
  • Why is a SWOT analysis important? (Select the most correct option.)
    • It’s the first thing potential investors will want to see
      • This is partially true. Potential investors will want to see a business plan, which may refer to strategies based on your SWOT analysis.
    • It allows you to share information easily with your customers
      • No, try again.
    • It prioritises issues for you
      • No, it can help you identify issues, but it is up to you to determine what your priorities are.
    • It helps you develop/improve your business strategy and assess any changes in the business environment
      • Yes, that’s right. You can conduct a SWOT analysis at any point as a business owner – it’s something you should do at least once a year.
  • Indicate which ONE of the following statements about SWOT analysis is FALSE:
    • Strengths and Weaknesses are considered as internal factors
      • This is true; these are internal to the company (factors like location and reputation).
    • Opportunities and Threats can be either internal or external
      • This is false. Opportunities and threats are external factors; things that you cannot change.
    • It is a good idea for a group of people to conduct a SWOT analysis, rather than just one person
      • Yes, this is true. Multiple perspectives and insights (e.g. from management, stakeholders, and customers) can be very valuable in a SWOT analysis.
    • Assets belonging to the company, without outstanding debt, are normally considered ‘Strengths’ in a SWOT analysis
      • This is true. Assets include capital, patents, fixed and moveable property, and can be sold to improve liquidity.