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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. A particular business that provides a service as opposed to a product is referred to as a...
2/10 - N30
Sales are increased; Goodwill is built-up and easily maintained
fixed expense
service business

2. The difference between current assets and current liabilities is...
working capital; circulating capital
Better Business Bureau
Small Business Administration
commercial loans

3. Which of the following is not a consideration concerning the selection of suppliers?
circulating capital
Whether or not they have an acceptable accounts receivable ratio
description
Unlimited liability; Limited management ability

4. Which of the following are advantages of a sole proprietorship?
an entrepreneur
Chamber of Commerce
Terms of the sale
Ease of starting; Profit incentive

5. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
proprietorship
Legal restrictions on activities
risk management

6. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
equity capital
trade credit
Some losses from bad debts and customers with fraudulent intentions are bound to occur

7. Which of the following statements is TRUE concerning consumer credit?
markdown
Census of banking
economic base
Credit customers are more interested in quality and service than price

8. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
variable expense
Civil Rights Act
Repairs
partnership

9. 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...
variable expense
consumer credit
Actively managed by stockholders
description

10. Business interruption insurance covers
to determine where the potential customers are
lost income
a structured interview
service business

11. A small business is not...
Actively managed by stockholders
a business plan
merchandising business
fixed expense

12. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
Unlimited liability; Limited management ability
Small Business Administration
working capital; circulating capital
a business plan

13. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Lack of expertise
Accessibility
entrepreneur
fixed capital

14. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
merchandising business
Proprietorship
an entrepreneur
to determine where the potential customers are

15. Which of the following is a requirement for a building layout?
fixed capital
Installment credit
Accessibility
controlling

16. Which of the following is an intangible asset?
controlling; actuating
Better Business Bureau
Legal restrictions on activities
Name of the business; Goodwill

17. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
Large financial capacity; Limited liability of each owner (stockholder)
the employment interview
OSHA

18. A form of legal organization in which a business association made up of two or more persons is formed for the purpose of carrying on as co-owners is known as a...
Personal checks
partnership
break-even point
economic order quantity

19. Which of the following are advantages of a corporation?
sole proprietorship
Large financial capacity; Limited liability of each owner (stockholder)
new venture plan; business plan
Terms of the sale

20. A factor to be considered with the evaluation of a credit risk would be the...
a 2% discount if invoice is paid within 10 days - net due in 30 days
economic order quantity
credit application
proprietorship

21. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Applicant's sex
advertising
ADA
Personal checks

22. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
Unlimited liability; Limited management ability
corporation
variable expense
risk management

23. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
commercial loans
entrepreneur
Small Business Administration

24. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
trade credit
Better Business Bureau
Installment credit

25. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Accessibility
Chamber of Commerce
variable expense
a qualification that is absolutely necessary

26. Which of the following are advantages of extending credit?
Unlimited liability; Limited management ability
Sales are increased; Goodwill is built-up and easily maintained
service business
intangible assets

27. Which of the following are examples of debt capital?
advertising
Commercial loans; Venture capitalists
fixed expense
an entrepreneur

28. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
consumer credit
Applicant's sex
Small Business Administration
equity capital

29. Which of the following is NOT used to measure the success of advertising?
Income trends in the community
2/10 - N30
inventory control considerations
economic order quantity

30. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
markdown
Applicant's sex
Installment credit

31. The simplest and most common legal form of business ownership is...
sole proprietorship
Name of the business; Goodwill
Tax burdens; Human resource planning
entrepreneur

32. Which of the following are disadvantages of a corporation?
a qualification that is absolutely necessary
Legal restrictions on activities; Lack of personal interest
Legal restrictions on activities
CBD

33. Capital that is invested in the business by the owner(s) is known as...
equity capital
Applicant's sex
key person insurance
Equal Pay Act of 1963

34. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
the religion of the applicant
Better Business Bureau
partnership
Tax burdens; Human resource planning

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

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36. A document that lists the major responsibilities and tasks of the job is known as a job
equity capital
description
merchandising business
the religion of the applicant

37. Which of the following are advantages of a partnership?
CBD
Sales are increased; Goodwill is built-up and easily maintained
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Efficiency of labor; Combined management - talent and capital

38. A source of debt capital would include
commercial loans
advertising
Legal restrictions on activities; Lack of personal interest
Personal checks

39. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities
a 2% discount if invoice is paid within 10 days - net due in 30 days
evaluating; controlling
Personal checks

40. The difference between current assets and current liabilities is...
working capital
demographics
Commercial loans; Venture capitalists
proprietorship

41. A strategy available to absorb risks would be...
Installment credit
economic order quantity
Whether or not they have an acceptable accounts receivable ratio
to self-insure

42. The current asset items consisting of cash - inventories - and accounts receivables is known as...
entrepreneur
service business
the religion of the applicant
circulating capital

43. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
equity capital
Take on more risks
Installment credit
Terms of the sale

44. Factors associated with evaluating a credit risk
inventory control considerations
have good management
equity capital
Large financial capacity; Limited liability of each owner (stockholder)

45. Which of the following would NOT be an insurance risk to consider?
demographics
mark-up
Census of banking
Terms of the sale

46. Which of the following is recognized as a disadvantage of extending credit?
to self-insure
Some losses from bad debts and customers with fraudulent intentions are bound to occur
corporation
partnership

47. Which of the following is an internal problem that can lead to business failure?
trade credit
Income trends in the community
inventory turnover
Lack of expertise

48. A legal form of organization whereby a legal entity is authorized by a state to operate a business under the entity's charter or articles of incorporation is known as a...
manufacturing business
Large financial capacity; Limited liability of each owner (stockholder)
corporation
sole proprietorship

49. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
factoring
sales promotions
Applicant's sex

50. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Equal Pay Act of 1963
mark-up
ADA
consumerism