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. 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...
corporation
Directing
manufacturing business
Commercial loans; Venture capitalists

2. Which of the following are advantages of a partnership?
Ease of starting; Profit incentive
break-even point
market
Efficiency of labor; Combined management - talent and capital

3. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
partnership
Name of the business; Goodwill
risk management
commercial loans

4. The difference between merchandise cost and the selling price is known as the...
Large financial capacity; Limited liability of each owner (stockholder)
Equal Pay Act of 1963
mark-up
to determine where the potential customers are

5. Selling a business's accounts receivable for cash to a third party is referred to as...
the employment interview
factoring
corporation
markdown

6. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Whether or not they have an acceptable accounts receivable ratio
risk management
Better Business Bureau
credit application

7. Which of the following is a requirement for a building layout?
mark-up
sole proprietorship
the religion of the applicant
Accessibility

8. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
American's with Disabilities Act
Applicant's sex
Census of banking
demographics

9. Which of the following is NOT a consumer buying motive?
OSHA
variable expense
entrepreneur
Indemnity

10. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
Commercial loans; Venture capitalists
the employment interview
Tax burdens; Human resource planning
corporation

11. A small business is not...
corporation
circulating capital
Tax burdens; Human resource planning
Actively managed by stockholders

12. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
Sales are increased; Goodwill is built-up and easily maintained
ADA
fixed capital

13. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
a business plan
commercial loans
Small Business Administration
competition

14. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
demographics
ADA
manufacturing business
Name of the business; Goodwill

15. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Ease of starting; Profit incentive
controlling; actuating
Civil Rights Act
fixed capital

16. 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...
Personal checks
a business plan
demographics
working capital

17. A business that purchases finished goods for resale is referred to as a...
merchandising business
Commercial loans; Venture capitalists
Installment credit
Applicant's sex

18. A plan which provides inducements to potential purchasers of products and/or services is called...
proprietorship
sales promotions
Lack of expertise
Take on more risks

19. Which of the following is an internal problem that can contribute to the failure of a business?
Indemnity
Take on more risks
Financial shortages
Legal restrictions on activities; Lack of personal interest

20. 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...
Legal restrictions on activities
variable expense
a 2% discount if invoice is paid within 10 days - net due in 30 days
ADA

21. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
new venture plan; business plan
sole proprietorship
have good management

22. In a business - the number of times the average inventory is sold or used up can be referred to as...
American's with Disabilities Act
inventory turnover
advertising
revolving account; open-end credit

23. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
trade credit
equity capital
Name of the business; Goodwill
advertising

24. Which of the following would NOT be an insurance risk to consider?
Unlimited liability; Limited management ability
the employment interview
Terms of the sale
2/10 - N30

25. A strategy to minimize risk would be to...
Efficiency of labor; Combined management - talent and capital
have good management
consumer credit
sales promotions

26. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
lost income
consumer credit
to self-insure
Civil Rights Act

27. Which of the following are advantages of extending credit?
Sales are increased; Goodwill is built-up and easily maintained
Repairs
controlling
Small Business Administration

28. Business interruption insurance covers
lost income
fixed capital
break-even point
manufacturing business

29. The simplest and most common legal form of business ownership is...
OSHA
key person insurance
working capital; circulating capital
sole proprietorship

30. The principal government agency concerned with the financing - operation - and management of small businesses is the
Accessibility
break-even point
have good management
Small Business Administration

31. The difference between current assets and current liabilities is...
working capital
Terms of the sale
inventory turnover
OSHA

32. A BFOQ is...
corporation
Better Business Bureau
entrepreneur
a qualification that is absolutely necessary

33. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
manufacturing business
Some losses from bad debts and customers with fraudulent intentions are bound to occur
a 2% discount if invoice is paid within 10 days - net due in 30 days
Equal Pay Act of 1963

34. Which of the following is NOT an advantage of a corporation?
equity capital; personal capital
consumer credit
Small Business Administration
Legal restrictions on activities

35. Which of the following are functions of management?
controlling; actuating
Chamber of Commerce
Census of banking
fixed expense

36. Which of the following is NOT a type of consumer credit?
intangible assets
Personal checks
corporation
Ease of starting; Profit incentive

37. Which of the following is NOT a way to reduce risks?
Take on more risks
inventory control considerations
advertising
have good management

38. 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
commercial loans
Unlimited liability; Limited management ability
Personal checks

39. Any capital that is invested in a business by the owner(s) can be called...
equity capital
American's with Disabilities Act
equity capital; personal capital
commercial loans

40. Which of the following are disadvantages of a sole proprietorship?
Efficiency of labor; Combined management - talent and capital
a business plan
American's with Disabilities Act
Unlimited liability; Limited management ability

41. A particular business that provides a service as opposed to a product is referred to as a...
Personal checks
Chamber of Commerce
Civil Rights Act
service business

42. Which of the following are disadvantages of a corporation?
Efficiency of labor; Combined management - talent and capital
Legal restrictions on activities; Lack of personal interest
proprietorship
credit application

43. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
demographics
Chamber of Commerce
evaluating; controlling
fixed capital

44. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
manufacturing business
Legal restrictions on activities; Lack of personal interest
controlling; actuating
factoring

45. 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...
controlling
Indemnity
partnership
factoring

46. Which of the following statements is TRUE concerning consumer credit?
2/10 - N30
Credit customers are more interested in quality and service than price
Large financial capacity; Limited liability of each owner (stockholder)
break-even point

47. An interview whereby the applicant is asked a pre-determined set of questions is known as...
break-even point
economic order quantity
fixed expense
a structured interview

48. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
advertising
Legal restrictions on activities; Lack of personal interest
Credit customers are more interested in quality and service than price
Efficiency of labor; Combined management - talent and capital

49. 2/10 - N/30 means...
intangible assets
variable expense
a 2% discount if invoice is paid within 10 days - net due in 30 days
Tax burdens; Human resource planning

50. Which of the following is normally NOT a source of published market data?
the religion of the applicant
Census of banking
consumer credit
partnership