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 federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
economic base
trade credit

2. Which of the following is NOT a type of consumer credit?
Personal checks
Legal restrictions on activities; Lack of personal interest
inventory control considerations
Chamber of Commerce

3. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
a business plan
Lack of expertise
Income trends in the community

4. Which of the following is an internal problem that can lead to business failure?
consumerism
Lack of expertise
commercial loans
sole proprietorship

5. Which of the following is NOT a way to reduce risks?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Take on more risks
mark-up
commercial loans

6. Which of the following are disadvantages of a partnership?
2/10 - N30
equity capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Terms of the sale

7. Which of the following is an external problem and risk of business ownership?
key person insurance
Tax burdens; Human resource planning
commercial loans
inventory turnover

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

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9. Capital that is invested in the business by the owner(s) is known as...
corporation
equity capital
Legal restrictions on activities
Sales are increased; Goodwill is built-up and easily maintained

10. Any capital that is invested in a business by the owner(s) can be called...
Legal restrictions on activities
equity capital
have good management
American's with Disabilities Act

11. Which of the following are functions of management?
controlling; actuating
intangible assets
Indemnity
Some losses from bad debts and customers with fraudulent intentions are bound to occur

12. Which of the following is NOT a consumer buying motive?
inventory turnover
commercial loans
Civil Rights Act
Indemnity

13. Which of the following is an intangible asset?
Unlimited liability; Limited management ability
Census of banking
Name of the business; Goodwill
Take on more risks

14. Which of the following is not a consideration concerning the selection of suppliers?
key person insurance
Whether or not they have an acceptable accounts receivable ratio
Indemnity
Commercial loans; Venture capitalists

15. Which of the following are advantages of a corporation?
Tax burdens; Human resource planning
corporation
Large financial capacity; Limited liability of each owner (stockholder)
Small Business Administration

16. A point in business operations whereby total sales revenue equals total costs
Large financial capacity; Limited liability of each owner (stockholder)
mark-up
break-even point
Some losses from bad debts and customers with fraudulent intentions are bound to occur

17. A document that lists the major responsibilities and tasks of the job is known as a job
Repairs
risk management
description
entrepreneur

18. The main objective in a market survey is...
Sales are increased; Goodwill is built-up and easily maintained
to determine where the potential customers are
Accessibility
sales promotions

19. A particular business that provides a service as opposed to a product is referred to as a...
fixed expense
service business
Applicant's sex
markdown

20. Which of the following is NOT used to measure the success of advertising?
Income trends in the community
circulating capital
mark-up
Credit customers are more interested in quality and service than price

21. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
fixed expense
proprietorship
working capital; circulating capital
trade credit

22. Which of the following are advantages of extending credit?
lost income
Name of the business; Goodwill
Sales are increased; Goodwill is built-up and easily maintained
fixed capital

23. Factors associated with evaluating a credit risk
inventory control considerations
a 2% discount if invoice is paid within 10 days - net due in 30 days
Repairs
Whether or not they have an acceptable accounts receivable ratio

24. The difference between current assets and current liabilities is...
a 2% discount if invoice is paid within 10 days - net due in 30 days
working capital; circulating capital
Lack of expertise
a structured interview

25. The wealth produced in or near a community that provides employment and income to the local population is known as the...
evaluating; controlling
variable expense
Financial shortages
economic base

26. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
economic order quantity
revolving account; open-end credit
factoring
a 2% discount if invoice is paid within 10 days - net due in 30 days

27. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Installment credit
a qualification that is absolutely necessary
service business
a structured interview

28. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
Income trends in the community
Small Business Administration
Legal restrictions on activities
new venture plan; business plan

29. A strategy available to absorb risks would be...
description
proprietorship
to self-insure
American's with Disabilities Act

30. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
service business
market
Large financial capacity; Limited liability of each owner (stockholder)
Indemnity

31. Which of the following is NOT an advantage of a corporation?
inventory turnover
OSHA
Legal restrictions on activities
corporation

32. In business - the name - goodwill - copyrights - and patents are referred to as...
ADA
OSHA
intangible assets
Some losses from bad debts and customers with fraudulent intentions are bound to occur

33. 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...
partnership
a structured interview
commercial loans
competition

34. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
ADA
Terms of the sale
sales promotions
consumer credit

35. A factor to be considered with the evaluation of a credit risk would be the...
Applicant's sex
credit application
inventory control considerations
2/10 - N30

36. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
partnership
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Equal Pay Act of 1963
entrepreneur

37. 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
evaluating; controlling
Efficiency of labor; Combined management - talent and capital
inventory control considerations

38. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
mark-up
Commercial loans; Venture capitalists
economic order quantity
manufacturing business

39. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
commercial loans
evaluating; controlling
market
the employment interview

40. Which of the following are examples of debt capital?
equity capital
mark-up
ADA
Commercial loans; Venture capitalists

41. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
Large financial capacity; Limited liability of each owner (stockholder)
CBD
a qualification that is absolutely necessary

42. Which of the following are advantages of a sole proprietorship?
Name of the business; Goodwill
evaluating; controlling
Ease of starting; Profit incentive
proprietorship

43. The form of legal organization that is owned and operated by one person is the...
proprietorship
Sales are increased; Goodwill is built-up and easily maintained
entrepreneur
American's with Disabilities Act

44. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
Lack of expertise
evaluating; controlling
Indemnity

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

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46. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
ADA
fixed expense
Repairs

47. Which of the following is recognized as a disadvantage of extending credit?
competition
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Repairs
have good management

48. Rent is an example of a...
demographics
Ease of starting; Profit incentive
Personal checks
fixed expense

49. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
a structured interview
proprietorship
key person insurance

50. The number of times the average inventory has been sold or used up during a period is known as...
Civil Rights Act
corporation
CBD
inventory turnover