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 are advantages of a corporation?
lost income
Large financial capacity; Limited liability of each owner (stockholder)
CBD
Terms of the sale

2. A small business is not...
entrepreneur
Actively managed by stockholders
American's with Disabilities Act
a 2% discount if invoice is paid within 10 days - net due in 30 days

3. Which of the following are examples of debt capital?
merchandising business
fixed capital
sole proprietorship
Commercial loans; Venture capitalists

4. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
American's with Disabilities Act
corporation
economic order quantity
evaluating; controlling

5. Which of the following is an example of a variable expense?
Repairs
market
proprietorship
corporation

6. Which of the following is NOT a consumer buying motive?
break-even point
Indemnity
commercial loans
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

7. A strategy available to absorb risks would be...
Commercial loans; Venture capitalists
to self-insure
evaluating; controlling
the religion of the applicant

8. Capital that is invested in the business by the owner(s) is known as...
circulating capital
fixed capital
new venture plan; business plan
equity capital

9. Which of the following is NOT an advantage of a corporation?
demographics
competition
Legal restrictions on activities
Large financial capacity; Limited liability of each owner (stockholder)

10. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
a 2% discount if invoice is paid within 10 days - net due in 30 days
to self-insure
consumer credit
new venture plan; business plan

11. 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
intangible assets
Small Business Administration
revolving account; open-end credit

12. 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...
mark-up
equity capital
to self-insure
demographics

13. Long term capital invested in the business is...
economic base
Legal restrictions on activities; Lack of personal interest
Accessibility
fixed capital

14. One who organizes - manages - and assumes the risk of a business form or venture is known as...
an entrepreneur
Legal restrictions on activities; Lack of personal interest
economic base
risk management

15. Rent is an example of a...
partnership
fixed expense
intangible assets
OSHA

16. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
credit application
inventory turnover
Ease of starting; Profit incentive

17. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
service business
Tax burdens; Human resource planning
consumerism
ADA

18. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
proprietorship
inventory control considerations
competition
Accessibility

19. Which of the following is an internal problem that can contribute to the failure of a business?
Directing
Financial shortages
the employment interview
Take on more risks

20. 2/10 - N/30 means...
Financial shortages
Personal checks
a 2% discount if invoice is paid within 10 days - net due in 30 days
to determine where the potential customers are

21. The difference between current assets and current liabilities is...
Financial shortages
equity capital
controlling
working capital

22. 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
trade credit
economic base
evaluating; controlling

23. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
Take on more risks
manufacturing business
Credit customers are more interested in quality and service than price
Personal checks

24. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Terms of the sale
revolving account; open-end credit
market
Whether or not they have an acceptable accounts receivable ratio

25. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
markdown
demographics
OSHA
Installment credit

26. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Terms of the sale
Equal Pay Act of 1963
Actively managed by stockholders
key person insurance

27. In business - the name - goodwill - copyrights - and patents are referred to as...
Legal restrictions on activities; Lack of personal interest
proprietorship
a qualification that is absolutely necessary
intangible assets

28. Which of the following are disadvantages of a sole proprietorship?
Actively managed by stockholders
Unlimited liability; Limited management ability
corporation
Some losses from bad debts and customers with fraudulent intentions are bound to occur

29. Long-term capital that is invested in a business is referred to as...
working capital
Financial shortages
fixed capital
advertising

30. A common business credit/sales tern is...
to determine where the potential customers are
description
Income trends in the community
2/10 - N30

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

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32. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
market
advertising
fixed expense

33. Life insurance that protects a firm against losses due to the death of a key employee is known as...
consumerism
Better Business Bureau
key person insurance
Lack of expertise

34. Capital that is investe4d in the business by the owner(s) is known as...
equity capital; personal capital
key person insurance
break-even point
Lack of expertise

35. Factors associated with evaluating a credit risk
to self-insure
description
manufacturing business
inventory control considerations

36. A plan which provides inducements to potential purchasers of products and/or services is called...
Actively managed by stockholders
sales promotions
partnership
the religion of the applicant

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...
inventory control considerations
Credit customers are more interested in quality and service than price
variable expense
advertising

38. Which of the following are disadvantages of a corporation?
Small Business Administration
fixed capital
the employment interview
Legal restrictions on activities; Lack of personal interest

39. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
manufacturing business
sales promotions
corporation

40. 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
Efficiency of labor; Combined management - talent and capital
Proprietorship
manufacturing business

41. Which of the following is a requirement for a building layout?
break-even point
Indemnity
an entrepreneur
Accessibility

42. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
advertising
Credit customers are more interested in quality and service than price
entrepreneur
fixed expense

43. The simplest and most common legal form of business ownership is...
Repairs
circulating capital
factoring
sole proprietorship

44. Which of the following is not a consideration concerning the selection of suppliers?
corporation
Whether or not they have an acceptable accounts receivable ratio
Installment credit
ADA

45. Which of the following is an intangible asset?
Income trends in the community
to self-insure
merchandising business
Name of the business; Goodwill

46. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Credit customers are more interested in quality and service than price
Legal restrictions on activities; Lack of personal interest
Proprietorship
fixed capital

47. The quantity to be purchased which minimizes total cost is referred to as the...
Better Business Bureau
Large financial capacity; Limited liability of each owner (stockholder)
Tax burdens; Human resource planning
economic order quantity

48. The main objective in a market survey is...
the religion of the applicant
trade credit
to determine where the potential customers are
fixed capital

49. The difference between merchandise cost and the selling price is known as the...
mark-up
economic order quantity
working capital
2/10 - N30

50. A source of debt capital would include
commercial loans
a qualification that is absolutely necessary
consumer credit
CBD