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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. Which of the following is an external problem and risk of business ownership?
Tax burdens; Human resource planning
Civil Rights Act
inventory turnover
consumer credit

2. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Chamber of Commerce
Better Business Bureau
Some losses from bad debts and customers with fraudulent intentions are bound to occur
key person insurance

3. Which of the following are disadvantages of a partnership?
Better Business Bureau
Accessibility
Personal checks
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

4. Which of the following is a requirement for a building layout?
Accessibility
markdown
CBD
consumer credit

5. 2/10 - N/30 means...
Personal checks
Census of banking
equity capital
a 2% discount if invoice is paid within 10 days - net due in 30 days

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...
controlling; actuating
inventory control considerations
demographics
key person insurance

7. Which of the following are advantages of extending credit?
Commercial loans; Venture capitalists
Sales are increased; Goodwill is built-up and easily maintained
fixed capital
revolving account; open-end credit

8. The main objective in a market survey is...
lost income
break-even point
to determine where the potential customers are
Income trends in the community

9. Which of the following are functions of management?
to determine where the potential customers are
competition
corporation
controlling; actuating

10. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Proprietorship
competition
American's with Disabilities Act
lost income

11. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Chamber of Commerce
an entrepreneur
Commercial loans; Venture capitalists
Ease of starting; Profit incentive

12. Which of the following is an internal problem that can contribute to the failure of a business?
economic order quantity
factoring
mark-up
Financial shortages

13. Business interruption insurance covers
Chamber of Commerce
break-even point
lost income
Terms of the sale

14. The current asset items consisting of cash - inventories - and accounts receivables is known as...
consumerism
fixed expense
circulating capital
variable expense

15. In business - the name - goodwill - copyrights - and patents are referred to as...
to self-insure
Efficiency of labor; Combined management - talent and capital
demographics
intangible assets

16. A common business credit/sales tern is...
Lack of expertise
Repairs
Chamber of Commerce
2/10 - N30

17. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
market
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Unlimited liability; Limited management ability
manufacturing business

18. 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
markdown
2/10 - N30
fixed capital

19. The difference between current assets and current liabilities is...
markdown
controlling; actuating
working capital; circulating capital
Small Business Administration

20. Which of the following is an internal problem that can lead to business failure?
break-even point
Lack of expertise
Actively managed by stockholders
Census of banking

21. The difference between current assets and current liabilities is...
working capital
entrepreneur
to determine where the potential customers are
trade credit

22. Which of the following are examples of debt capital?
corporation
trade credit
Commercial loans; Venture capitalists
merchandising business

23. Capital that is investe4d in the business by the owner(s) is known as...
Lack of expertise
description
Indemnity
equity capital; personal capital

24. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
Census of banking
Financial shortages
CBD
risk management

25. Which of the following is NOT a type of consumer credit?
Personal checks
Terms of the sale
mark-up
ADA

26. A BFOQ is...
inventory turnover
Name of the business; Goodwill
merchandising business
a qualification that is absolutely necessary

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

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28. Any capital that is invested in a business by the owner(s) can be called...
Accessibility
equity capital
working capital
a structured interview

29. A point in business operations whereby total sales revenue equals total costs
new venture plan; business plan
break-even point
have good management
working capital; circulating capital

30. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
OSHA
inventory control considerations
revolving account; open-end credit
equity capital; personal capital

31. An external problem that can lead to small business failure is...
consumerism
working capital; circulating capital
working capital
Equal Pay Act of 1963

32. The difference between merchandise cost and the selling price is known as the...
inventory turnover
mark-up
Tax burdens; Human resource planning
a business plan

33. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
to determine where the potential customers are
Proprietorship
credit application

34. A small business is not...
Actively managed by stockholders
markdown
Whether or not they have an acceptable accounts receivable ratio
2/10 - N30

35. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
to determine where the potential customers are
consumer credit
key person insurance
circulating capital

36. The quantity to be purchased which minimizes total cost is referred to as the...
Indemnity
Credit customers are more interested in quality and service than price
economic order quantity
demographics

37. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
Installment credit
break-even point
Actively managed by stockholders

38. Which of the following is NOT a consumer buying motive?
Indemnity
revolving account; open-end credit
Financial shortages
Sales are increased; Goodwill is built-up and easily maintained

39. The principal government agency concerned with the financing - operation - and management of small businesses is the
to determine where the potential customers are
Small Business Administration
inventory control considerations
consumerism

40. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
Indemnity
Accessibility
equity capital

41. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
service business
demographics
corporation
advertising

42. A plan which provides inducements to potential purchasers of products and/or services is called...
Legal restrictions on activities; Lack of personal interest
controlling; actuating
sales promotions
inventory turnover

43. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
competition
a qualification that is absolutely necessary
risk management
evaluating; controlling

44. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
Better Business Bureau
partnership
Efficiency of labor; Combined management - talent and capital
controlling

45. Which of the following is an example of a variable expense?
ADA
Repairs
partnership
service business

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

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47. 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
Applicant's sex
Efficiency of labor; Combined management - talent and capital
controlling

48. A particular business that provides a service as opposed to a product is referred to as a...
OSHA
Indemnity
Unlimited liability; Limited management ability
service business

49. In a business - the number of times the average inventory is sold or used up can be referred to as...
partnership
markdown
inventory turnover
demographics

50. A strategy available to absorb risks would be...
inventory control considerations
Civil Rights Act
to self-insure
mark-up