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. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
entrepreneur
controlling
partnership
credit application

2. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
intangible assets
Legal restrictions on activities; Lack of personal interest
a business plan
commercial loans

3. Which of the following is an example of a variable expense?
partnership
to determine where the potential customers are
Sales are increased; Goodwill is built-up and easily maintained
Repairs

4. An interview whereby the applicant is asked a pre-determined set of questions is known as...
evaluating; controlling
2/10 - N30
economic base
a structured interview

5. A small business is not...
fixed capital
Actively managed by stockholders
working capital; circulating capital
a qualification that is absolutely necessary

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
risk management
Large financial capacity; Limited liability of each owner (stockholder)
Equal Pay Act of 1963

7. Which of the following are examples of debt capital?
Financial shortages
credit application
inventory turnover
Commercial loans; Venture capitalists

8. Which of the following is NOT a consumer buying motive?
ADA
Indemnity
equity capital
a structured interview

9. Which of the following are disadvantages of a corporation?
fixed capital
inventory control considerations
Legal restrictions on activities; Lack of personal interest
new venture plan; business plan

10. Which of the following is NOT a way to reduce risks?
mark-up
American's with Disabilities Act
Take on more risks
merchandising business

11. Which of the following is an internal problem that can lead to business failure?
Applicant's sex
Lack of expertise
fixed capital
Name of the business; Goodwill

12. Which of the following are advantages of extending credit?
Installment credit
new venture plan; business plan
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Sales are increased; Goodwill is built-up and easily maintained

13. The principal government agency concerned with the financing - operation - and management of small businesses is the
Small Business Administration
to determine where the potential customers are
Accessibility
revolving account; open-end credit

14. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
partnership
equity capital; personal capital
controlling
advertising

15. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
the employment interview
to determine where the potential customers are
market
corporation

16. 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...
corporation
Commercial loans; Venture capitalists
advertising
partnership

17. The difference between current assets and current liabilities is...
Better Business Bureau
Chamber of Commerce
working capital
partnership

18. A document that lists the major responsibilities and tasks of the job is known as a job
demographics
controlling
Proprietorship
description

19. Which of the following is a requirement for a building layout?
Equal Pay Act of 1963
Take on more risks
Indemnity
Accessibility

20. 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...
partnership
proprietorship
break-even point
corporation

21. The simplest and most common legal form of business ownership is...
credit application
factoring
Personal checks
sole proprietorship

22. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
controlling; actuating
factoring
working capital; circulating capital
OSHA

23. 2/10 - N/30 means...
entrepreneur
have good management
a 2% discount if invoice is paid within 10 days - net due in 30 days
mark-up

24. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
partnership
equity capital; personal capital
OSHA
Actively managed by stockholders

25. A source of debt capital would include
commercial loans
CBD
economic order quantity
Commercial loans; Venture capitalists

26. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
circulating capital
Civil Rights Act
Take on more risks
Credit customers are more interested in quality and service than price

27. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
the employment interview
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
sole proprietorship

28. The quantity to be purchased which minimizes total cost is referred to as the...
economic order quantity
corporation
Ease of starting; Profit incentive
Applicant's sex

29. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
corporation
the employment interview
to self-insure

30. Any capital that is invested in a business by the owner(s) can be called...
proprietorship
Commercial loans; Venture capitalists
to self-insure
equity capital

31. Which of the following is an internal problem that can contribute to the failure of a business?
Take on more risks
Financial shortages
working capital
intangible assets

32. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
ADA
circulating capital
corporation
consumerism

33. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
controlling
Name of the business; Goodwill
competition
sales promotions

34. 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...
Tax burdens; Human resource planning
corporation
markdown
proprietorship

35. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
equity capital
Census of banking
consumer credit

36. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
inventory control considerations
entrepreneur
a qualification that is absolutely necessary

37. An external problem that can lead to small business failure is...
consumerism
partnership
fixed capital
Actively managed by stockholders

38. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
merchandising business
key person insurance
OSHA

39. On a chart which plots sales - fixed and variable costs for a given period of time - the point where the sales and the total cost lines intersect is called the...
break-even point
equity capital
revolving account; open-end credit
fixed capital

40. Factors associated with evaluating a credit risk
Terms of the sale
Actively managed by stockholders
inventory control considerations
partnership

41. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Terms of the sale
demographics
Lack of expertise
Chamber of Commerce

42. A strategy available to absorb risks would be...
Unlimited liability; Limited management ability
description
to self-insure
Repairs

43. The wealth produced in or near a community that provides employment and income to the local population is known as the...
to determine where the potential customers are
factoring
economic base
evaluating; controlling

44. A common business credit/sales tern is...
the religion of the applicant
2/10 - N30
a qualification that is absolutely necessary
merchandising business

45. A plan which provides inducements to potential purchasers of products and/or services is called...
equity capital
Installment credit
markdown
sales promotions

46. A BFOQ is...
inventory turnover
a qualification that is absolutely necessary
evaluating; controlling
break-even point

47. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Income trends in the community
Proprietorship
equity capital
Unlimited liability; Limited management ability

48. A strategy to minimize risk would be to...
have good management
Large financial capacity; Limited liability of each owner (stockholder)
2/10 - N30
Indemnity

49. Business interruption insurance covers
lost income
Actively managed by stockholders
sales promotions
variable expense

50. The form of legal organization that is owned and operated by one person is the...
merchandising business
proprietorship
CBD
Large financial capacity; Limited liability of each owner (stockholder)