Quiz | January 2010

10 Questions for Every Small Business Owner

Istockphoto

So you are thinking of starting your own business? Or maybe you are currently a small business owner? Either way, we are here to help you. We know that there are many requirements to meet and questions to ask, so we have compiled 10 questions that every business or potential business owner should know. Take a look and see how well you do.

By Amy Pollak

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 1 of 10

Which one of these costs is deductible as a business expense?

A. Advertising
B. Business travel and entertainment
C. Home office
D. Employee Compensation
E. All of the above

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 1 of 10

Which one of these costs is deductible as a business expense?

You're right! E. All of the above is correct.

Sorry, wrong! is incorrect.

The right answer is E. All of the above.

All of these business expenses are tax deductible as long as you adequately document their business use. But for home offices you can't deduct more than the amount of the income generated by the business. And only half of the cost of business-related meals and entertainment is deductible.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 2 of 10

You need a license to start most small businesses?

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 2 of 10

You need a license to start most small businesses?

You're right! A. True is correct.

Sorry, wrong! is incorrect.

The right answer is A. True .

Licensing is required in most cases. Check with your local and state government offices for the rules in your area.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Question 3 of 10

All small businesses have to be incorporated?

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Question 3 of 10

All small businesses have to be incorporated?

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

While small businesses do not have to be incorporated, there can be financial benefits to declaring your business an LLC or a corporation.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 4 of 10

As a small business owner, you must offer health care to your employees by law?

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 4 of 10

As a small business owner, you must offer health care to your employees by law?

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

There is no such federal law in existence. Massachusetts does require businesses to offer health care or pay a fee to the state, though it exempts small companies with 10 or fewer workers.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 5 of 10

You can start a business out of your home.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 5 of 10

You can start a business out of your home.

You're right! A. True is correct.

Sorry, wrong! is incorrect.

The right answer is A. True.

...But, you may have to first obtain proper work and/or zoning permits. Such permits will allow for increased foot traffic and mail volume to your home, for example. Check at both your local and state level business associations.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 6 of 10

Most auto-related expenses are tax deductible for small businesses.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 6 of 10

Most auto-related expenses are tax deductible for small businesses.

You're right! A. True is correct.

Sorry, wrong! is incorrect.

The right answer is A. True.

Charges for items such as gas, oil changes, insurance and preventive maintenance are tax deductible. You have two options: Choose the standard mileage rate of 50.5 cents per mile or deduct the actual expenses.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 7 of 10

Self-insured health plans are a good, affordable option for new and small businesses.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 7 of 10

Self-insured health plans are a good, affordable option for new and small businesses.

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

Self-insuring is a bad idea for any company that doesn’t have strong and reliable cash flow because the company becomes responsible for paying health-care claim costs. This is especially true for companies with fewer than 50 employees. A huge claim for a sick employee could sink a company not prepared to handle it.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 8 of 10

If you have employees, you need an employer ID number.

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 8 of 10

If you have employees, you need an employer ID number.

You're right! A. True is correct.

Sorry, wrong! is incorrect.

The right answer is A. True.

A business owner who has employees must have an EIN to be recognized as a business. An EIN also acts as a tax identification number for depositing payroll taxes and filing income taxes to the IRS.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 9 of 10

If you are going into business, but have no employees, you are exempt from employment taxes?

A. True
B. False

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 9 of 10

If you are going into business, but have no employees, you are exempt from employment taxes?

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

You have to pay self-employment tax. The IRS requires you to pay 15.3% of the first $102,000 of your 2008 net earnings from self-employment. If you earn above that amount you must also pay the Medicare tax of 2.9%.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 10 of 10

If your company is hit with a discrimination charge, what’s one of the first things you should do?

A. Begin your own investigation.
B. Call a lawyer.
C. Nothing.
D. Suspend the employee with pay.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Istockphoto

Question 10 of 10

If your company is hit with a discrimination charge, what’s one of the first things you should do?

You're right! A. Begin your own investigation. is correct.

Sorry, wrong! is incorrect.

The right answer is A. Begin your own investigation..

Someone who's not an attorney but is familiar with EEOC procedures can often answer such a charge effectively. A large majority of discrimination cases are found to be without merit. Ideally, an investigation would begin when the employee first makes a complaint to the company. If so, most necessary information will be at hand. If not, an investigation needs to be conducted quickly.

Legal and tax assistance provided by Sheldon J. Berman, at Rosen, Sapperstein and Friendlander, Chartered of Baltimore, Maryland and Paul Sullivan of Sullivan & Company of Bethesda, Maryland.

SCORE: 0 out of 10 correct
1
2
3
4
5
6
7
8
9
10

Quiz

10 Questions for Every Small Business Owner

Results: 0 out of 10 Right

answer_num=5,1,2,2,1,1,2,1,2,1|answer_text="E. All of the above","A. True ","B. False","B. False","A. True","A. True","B. False","A. True","B. False","A. Begin your own investigation."|total_questions=10|url=/quiz/business/T049-S001-10-questions-for-every-small-business-owner/index.html|total_pages=22|page_id=10514|evaltext_num=0|kipad_id=SmallBusinessQuizzes

Quiz | January 2010

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Quiz

10 Questions for Every Small Business Owner

Popular Quizzes

Advertisement

Advertisement

Featured Videos From Kiplinger