Test your basic knowledge |

Small Business Management

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
CBD
Some losses from bad debts and customers with fraudulent intentions are bound to occur
circulating capital

2. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
sole proprietorship
Personal checks
corporation
advertising

3. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
markdown
circulating capital
demographics
market

4. Which of the following is a requirement for a building layout?
Accessibility
Name of the business; Goodwill
Terms of the sale
Legal restrictions on activities

5. A common business credit/sales tern is...
markdown
Some losses from bad debts and customers with fraudulent intentions are bound to occur
2/10 - N30
Small Business Administration

6. If a prospective business owner attempts to statistically study such factors as human population size - density - distribution - and wealth - we should refer to this as...
demographics
Better Business Bureau
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Legal restrictions on activities

7. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
inventory control considerations
partnership
trade credit
Installment credit

8. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
intangible assets
competition
Sales are increased; Goodwill is built-up and easily maintained
commercial loans

9. A business that purchases finished goods for resale is referred to as a...
fixed expense
Credit customers are more interested in quality and service than price
merchandising business
entrepreneur

10. Which of the following is NOT an advantage of a corporation?
equity capital
intangible assets
American's with Disabilities Act
Legal restrictions on activities

11. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
sales promotions
sole proprietorship
partnership

12. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
Personal checks
demographics
commercial loans
evaluating; controlling

13. A point in business operations whereby total sales revenue equals total costs
inventory control considerations
Directing
Chamber of Commerce
break-even point

14. A source of debt capital would include
commercial loans
CBD
consumer credit
merchandising business

15. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
manufacturing business
proprietorship
Applicant's sex
a business plan

16. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
break-even point
fixed capital
to determine where the potential customers are

17. A cost which is uniform per unit - but fluctuates in total - in direct proportion to change in the related total activity or volume is known as...
Name of the business; Goodwill
partnership
service business
variable expense

18. Which of the following is not a consideration concerning the selection of suppliers?
partnership
Income trends in the community
Accessibility
Whether or not they have an acceptable accounts receivable ratio

19. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Directing
Better Business Bureau
to self-insure
partnership

20. Which of the following are disadvantages of a sole proprietorship?
revolving account; open-end credit
to determine where the potential customers are
Unlimited liability; Limited management ability
equity capital

21. Which of the following is recognized as a disadvantage of extending credit?
Sales are increased; Goodwill is built-up and easily maintained
Commercial loans; Venture capitalists
commercial loans
Some losses from bad debts and customers with fraudulent intentions are bound to occur

22. A factor to be considered with the evaluation of a credit risk would be the...
working capital; circulating capital
credit application
CBD
Name of the business; Goodwill

23. Which of the following are examples of debt capital?
a 2% discount if invoice is paid within 10 days - net due in 30 days
economic order quantity
Commercial loans; Venture capitalists
controlling; actuating

24. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Directing
inventory turnover
inventory turnover

25. Which of the following are functions of management?
an entrepreneur
to self-insure
Commercial loans; Venture capitalists
controlling; actuating

26. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
circulating capital
Proprietorship
partnership
economic base

27. An external problem that can lead to small business failure is...
working capital; circulating capital
consumerism
circulating capital
break-even point

28. One who organizes - manages - and assumes the risk of a business form or venture is known as...
an entrepreneur
trade credit
Tax burdens; Human resource planning
sole proprietorship

29. A BFOQ is...
Financial shortages
a qualification that is absolutely necessary
Sales are increased; Goodwill is built-up and easily maintained
proprietorship

30. Which of the following is an intangible asset?
Census of banking
Financial shortages
Actively managed by stockholders
Name of the business; Goodwill

31. A small business is not...
Actively managed by stockholders
Small Business Administration
working capital; circulating capital
mark-up

32. The simplest and most common legal form of business ownership is...
demographics
an entrepreneur
merchandising business
sole proprietorship

33. The principal government agency concerned with the financing - operation - and management of small businesses is the
intangible assets
demographics
Equal Pay Act of 1963
Small Business Administration

34. Capital that is investe4d in the business by the owner(s) is known as...
equity capital; personal capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
consumer credit
merchandising business

35. A management function which compares organizational and individual performance with predetermined standards or expected results is...
Tax burdens; Human resource planning
controlling
2/10 - N30
Legal restrictions on activities; Lack of personal interest

36. Which of the following are advantages of a corporation?
Commercial loans; Venture capitalists
Sales are increased; Goodwill is built-up and easily maintained
Equal Pay Act of 1963
Large financial capacity; Limited liability of each owner (stockholder)

37. Which of the following would NOT be an insurance risk to consider?
controlling; actuating
Installment credit
Terms of the sale
Indemnity

38. Which of the following is an example of a variable expense?
Ease of starting; Profit incentive
Repairs
partnership
demographics

39. Life insurance that protects a firm against losses due to the death of a key employee is known as...
CBD
key person insurance
American's with Disabilities Act
Name of the business; Goodwill

40. The main objective in a market survey is...
mark-up
to determine where the potential customers are
Terms of the sale
an entrepreneur

41. Which of the following are disadvantages of a corporation?
Census of banking
Legal restrictions on activities; Lack of personal interest
Lack of expertise
consumerism

42. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Sales are increased; Goodwill is built-up and easily maintained
Repairs
credit application
Equal Pay Act of 1963

43. In organizing a business - a legal form of organization that is authorized by a state to operate a business under a state charter is referred to as a...
Accessibility
advertising
corporation
Equal Pay Act of 1963

44. Which of the following statements is TRUE concerning consumer credit?
working capital
variable expense
Credit customers are more interested in quality and service than price
commercial loans

45. In business - a reduction of selling price below the original selling price is referred to as...
Tax burdens; Human resource planning
working capital; circulating capital
markdown
merchandising business

46. Long term capital invested in the business is...
fixed capital
Equal Pay Act of 1963
Whether or not they have an acceptable accounts receivable ratio
competition

47. Which of the following is NOT used to measure the success of advertising?
consumer credit
Income trends in the community
Commercial loans; Venture capitalists
economic order quantity

48. The wealth produced in or near a community that provides employment and income to the local population is known as the...
an entrepreneur
variable expense
advertising
economic base

49. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
risk management
manufacturing business
Income trends in the community
entrepreneur

50. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Better Business Bureau
trade credit
demographics
key person insurance