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. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
revolving account; open-end credit
Repairs
working capital; circulating capital
Better Business Bureau

2. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
to determine where the potential customers are
Sales are increased; Goodwill is built-up and easily maintained
Applicant's sex

3. The main objective in a market survey is...
risk management
to determine where the potential customers are
demographics
Better Business Bureau

4. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Commercial loans; Venture capitalists
sole proprietorship
Large financial capacity; Limited liability of each owner (stockholder)
ADA

5. Which of the following is not a consideration concerning the selection of suppliers?
new venture plan; business plan
inventory turnover
Ease of starting; Profit incentive
Whether or not they have an acceptable accounts receivable ratio

6. 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...
corporation
Proprietorship
Better Business Bureau
proprietorship

7. Capital that is invested in the business by the owner(s) is known as...
a 2% discount if invoice is paid within 10 days - net due in 30 days
credit application
equity capital
new venture plan; business plan

8. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
inventory turnover
mark-up
working capital; circulating capital

9. A common business credit/sales tern is...
2/10 - N30
factoring
evaluating; controlling
risk management

10. Which of the following is NOT included on the employment application?

11. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
an entrepreneur
Terms of the sale
commercial loans

12. The current asset items consisting of cash - inventories - and accounts receivables is known as...
manufacturing business
Applicant's sex
have good management
circulating capital

13. The form of legal organization that is owned and operated by one person is the...
Commercial loans; Venture capitalists
proprietorship
Income trends in the community
mark-up

14. Which of the following is an example of a variable expense?
Repairs
Credit customers are more interested in quality and service than price
economic order quantity
evaluating; controlling

15. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
revolving account; open-end credit
Take on more risks
Terms of the sale

16. Which of the following is NOT an advantage of a corporation?
working capital
a 2% discount if invoice is paid within 10 days - net due in 30 days
Legal restrictions on activities
corporation

17. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
OSHA
risk management
merchandising business
Large financial capacity; Limited liability of each owner (stockholder)

18. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
manufacturing business
Tax burdens; Human resource planning
working capital; circulating capital
Lack of expertise

19. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
new venture plan; business plan
market
break-even point
equity capital

20. Which of the following is NOT a type of consumer credit?
Personal checks
Large financial capacity; Limited liability of each owner (stockholder)
service business
description

21. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
ADA
Whether or not they have an acceptable accounts receivable ratio
Actively managed by stockholders

22. The difference between current assets and current liabilities is...
economic base
trade credit
working capital
Chamber of Commerce

23. Which of the following are disadvantages of a sole proprietorship?
credit application
fixed expense
Unlimited liability; Limited management ability
equity capital

24. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
Indemnity
risk management
Lack of expertise
CBD

25. The difference between current assets and current liabilities is...
economic order quantity
CBD
Repairs
working capital; circulating capital

26. Which of the following are advantages of a partnership?
Unlimited liability; Limited management ability
Efficiency of labor; Combined management - talent and capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Census of banking

27. Capital that is investe4d in the business by the owner(s) is known as...
Efficiency of labor; Combined management - talent and capital
revolving account; open-end credit
advertising
equity capital; personal capital

28. A particular business that provides a service as opposed to a product is referred to as a...
a qualification that is absolutely necessary
service business
mark-up
manufacturing business

29. Which of the following is an internal problem that can contribute to the failure of a business?
Unlimited liability; Limited management ability
market
consumer credit
Financial shortages

30. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
to determine where the potential customers are
demographics
inventory control considerations
Applicant's sex

31. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
credit application
Chamber of Commerce
Take on more risks

32. All of the following are factors which can affect the recruitment and selection of employees except
Accessibility
a business plan
the religion of the applicant
break-even point

33. A small business is not...
Lack of expertise
a structured interview
Small Business Administration
Actively managed by stockholders

34. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
revolving account; open-end credit
description
an entrepreneur
inventory turnover

35. Which of the following statements is TRUE concerning consumer credit?
Commercial loans; Venture capitalists
Installment credit
Credit customers are more interested in quality and service than price
Name of the business; Goodwill

36. Which of the following laws prohibits discrimination against any qualified individual with a disability?

37. Which of the following is a requirement for a building layout?
Accessibility
CBD
Census of banking
inventory control considerations

38. Which of the following is normally NOT a source of published market data?
new venture plan; business plan
equity capital
Census of banking
service business

39. One who organizes - manages - and assumes the risk of a business form or venture is known as...
an entrepreneur
Actively managed by stockholders
OSHA
Credit customers are more interested in quality and service than price

40. An external problem that can lead to small business failure is...
a business plan
Civil Rights Act
Actively managed by stockholders
consumerism

41. Which of the following is recognized as a disadvantage of extending credit?
Unlimited liability; Limited management ability
2/10 - N30
Some losses from bad debts and customers with fraudulent intentions are bound to occur
fixed capital

42. A strategy to minimize risk would be to...
credit application
have good management
consumerism
demographics

43. The number of times the average inventory has been sold or used up during a period is known as...
partnership
inventory turnover
manufacturing business
Equal Pay Act of 1963

44. The wealth produced in or near a community that provides employment and income to the local population is known as the...
market
a qualification that is absolutely necessary
economic base
partnership

45. Which of the following is NOT a way to reduce risks?
American's with Disabilities Act
Tax burdens; Human resource planning
partnership
Take on more risks

46. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
new venture plan; business plan
Proprietorship
Ease of starting; Profit incentive
description

47. Which of the following are disadvantages of a corporation?
Whether or not they have an acceptable accounts receivable ratio
a structured interview
equity capital; personal capital
Legal restrictions on activities; Lack of personal interest

48. Factors associated with evaluating a credit risk
corporation
a business plan
inventory control considerations
fixed capital

49. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
inventory turnover
equity capital
Proprietorship
risk management

50. The principal government agency concerned with the financing - operation - and management of small businesses is the
have good management
Terms of the sale
Small Business Administration
key person insurance