Florida Broker Practice Exam

What does DBA stand for in a business context?

1. Doing business as

2. Database administration

3. Designated business associate

4. Direct business account

The correct answer is: Doing business as

In a business context, DBA stands for "Doing Business As." This term is commonly used when a business operates under a name that is different from its legally registered name. For example, if John Smith registers his business as "Smith Enterprises" but he invites customers to deal with him under the name "John's Landscaping," he is effectively using a DBA. The DBA designation is important because it allows businesses to create a brand identity that may be more appealing to consumers while keeping their original legal business name for regulatory and administrative purposes. Many states require businesses to register their DBA names to ensure transparency and protect consumers from potential fraud, making it a vital aspect of business operations. Options like "Database administration," "Designated business associate," and "Direct business account" refer to specific functions or roles within various fields but do not pertain to the general naming practices of a business. Hence, they are not relevant in this context.