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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. 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
equity capital
manufacturing business
Terms of the sale

2. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
entrepreneur
lost income
an entrepreneur

3. Long term capital invested in the business is...
fixed capital
competition
a business plan
Terms of the sale

4. In business - the name - goodwill - copyrights - and patents are referred to as...
Actively managed by stockholders
demographics
controlling
intangible assets

5. Which of the following is an intangible asset?
demographics
to self-insure
entrepreneur
Name of the business; Goodwill

6. Which of the following are advantages of a corporation?
an entrepreneur
Financial shortages
description
Large financial capacity; Limited liability of each owner (stockholder)

7. The form of legal organization that is owned and operated by one person is the...
Large financial capacity; Limited liability of each owner (stockholder)
equity capital
demographics
proprietorship

8. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
a 2% discount if invoice is paid within 10 days - net due in 30 days
key person insurance
economic base

9. Which of the following is an internal problem that can contribute to the failure of a business?
inventory control considerations
Financial shortages
service business
Ease of starting; Profit incentive

10. Which of the following is a requirement for a building layout?
Accessibility
entrepreneur
inventory turnover
manufacturing business

11. The wealth produced in or near a community that provides employment and income to the local population is known as the...
corporation
equity capital
competition
economic base

12. Capital that is investe4d in the business by the owner(s) is known as...
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equity capital; personal capital
inventory turnover
new venture plan; business plan

13. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Terms of the sale
key person insurance
break-even point
credit application

14. Long-term capital that is invested in a business is referred to as...
key person insurance
merchandising business
fixed capital
Personal checks

15. 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
a structured interview
Civil Rights Act

16. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
evaluating; controlling
proprietorship
Accessibility

17. The difference between current assets and current liabilities is...
working capital
mark-up
working capital; circulating capital
a 2% discount if invoice is paid within 10 days - net due in 30 days

18. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
proprietorship
corporation
Proprietorship
manufacturing business

19. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Small Business Administration
key person insurance
Equal Pay Act of 1963

20. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
advertising
Unlimited liability; Limited management ability
Actively managed by stockholders
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21. A document that lists the major responsibilities and tasks of the job is known as a job
description
Small Business Administration
risk management
new venture plan; business plan

22. In business - a reduction of selling price below the original selling price is referred to as...
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the religion of the applicant
fixed expense
factoring

23. All of the following are factors which can affect the recruitment and selection of employees except
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merchandising business
Whether or not they have an acceptable accounts receivable ratio
the religion of the applicant

24. The principal government agency concerned with the financing - operation - and management of small businesses is the
Small Business Administration
Ease of starting; Profit incentive
Income trends in the community
consumer credit

25. Which of the following is an external problem and risk of business ownership?
key person insurance
Tax burdens; Human resource planning
to self-insure
Accessibility

26. Which of the following is not a consideration concerning the selection of suppliers?
demographics
Whether or not they have an acceptable accounts receivable ratio
ADA
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27. Factors associated with evaluating a credit risk
credit application
lost income
sales promotions
inventory control considerations

28. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
equity capital
market
consumer credit
sales promotions

29. A source of debt capital would include
Sales are increased; Goodwill is built-up and easily maintained
evaluating; controlling
commercial loans
American's with Disabilities Act

30. Which of the following are advantages of extending credit?
inventory turnover
Sales are increased; Goodwill is built-up and easily maintained
break-even point
American's with Disabilities Act

31. The difference between current assets and current liabilities is...
fixed expense
markdown
break-even point
working capital; circulating capital

32. Which of the following are advantages of a sole proprietorship?
partnership
Civil Rights Act
Ease of starting; Profit incentive
evaluating; controlling

33. Business interruption insurance covers
equity capital
lost income
variable expense
inventory turnover

34. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
partnership
Legal restrictions on activities; Lack of personal interest
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Installment credit

35. Which of the following statements is TRUE concerning consumer credit?
Small Business Administration
Credit customers are more interested in quality and service than price
description
inventory turnover

36. A particular business that provides a service as opposed to a product is referred to as a...
circulating capital
service business
commercial loans
OSHA

37. A business that purchases finished goods for resale is referred to as a...
equity capital
key person insurance
Installment credit
merchandising business

38. Which of the following is NOT a type of consumer credit?
working capital; circulating capital
break-even point
Personal checks
fixed capital

39. 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...
inventory turnover
to self-insure
Terms of the sale
demographics

40. One who organizes - manages - and assumes the risk of a business form or venture is known as...
an entrepreneur
equity capital
sales promotions
Proprietorship

41. 2/10 - N/30 means...
Directing
a 2% discount if invoice is paid within 10 days - net due in 30 days
Name of the business; Goodwill
credit application

42. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
fixed capital
Commercial loans; Venture capitalists
consumerism

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

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44. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
controlling
Large financial capacity; Limited liability of each owner (stockholder)
competition
Ease of starting; Profit incentive

45. Which of the following are functions of management?
break-even point
Take on more risks
controlling; actuating
Legal restrictions on activities; Lack of personal interest

46. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
consumerism
the religion of the applicant
Better Business Bureau
market

47. Which of the following is normally NOT a source of published market data?
advertising
demographics
competition
Census of banking

48. A BFOQ is...
factoring
consumerism
a qualification that is absolutely necessary
sole proprietorship

49. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Large financial capacity; Limited liability of each owner (stockholder)
partnership
Proprietorship
working capital; circulating capital

50. The main objective in a market survey is...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
an entrepreneur
Installment credit
to determine where the potential customers are