Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What does DBA represent in a business name context?

1. Doing Business Along

2. Doing Business As

3. Designated Business Authority

4. Direct Business Acquisition

The correct answer is: Doing Business As

DBA stands for "Doing Business As," a term used to indicate that a business is operating under a name different from its legal, registered name. This designation allows a business to enhance its branding and market presence. For example, if a sole proprietorship named “John Smith” decides to operate a coffee shop under the name “Smith’s Coffee,” it would file a DBA to legally reflect this operation under the chosen trade name. Using a DBA can also provide clarity to consumers, as the business name may better represent the services or products offered. This is particularly important for small businesses and sole proprietors looking to establish a unique identity without forming a new legal entity. Having a DBA can also be crucial for banking purposes, since many financial institutions require the business name used for transactions to match the name on its legal registration. Understanding the definition and implications of a DBA is essential for those in real estate and other industries, ensuring compliance with state regulations and helping to build a professional reputation in the market.