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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 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
controlling; actuating
variable expense
have good management

2. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
demographics
equity capital; personal capital
CBD

3. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
working capital; circulating capital
controlling
Actively managed by stockholders
consumer credit

4. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
credit application
market
Some losses from bad debts and customers with fraudulent intentions are bound to occur
entrepreneur

5. One who organizes - manages - and assumes the risk of a business form or venture is known as...
to self-insure
markdown
an entrepreneur
2/10 - N30

6. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
working capital
Applicant's sex
inventory control considerations

7. Which of the following is an intangible asset?
circulating capital
working capital
Name of the business; Goodwill
Small Business Administration

8. All of the following are factors which can affect the recruitment and selection of employees except
Whether or not they have an acceptable accounts receivable ratio
the religion of the applicant
a qualification that is absolutely necessary
a structured interview

9. In business - the name - goodwill - copyrights - and patents are referred to as...
Ease of starting; Profit incentive
an entrepreneur
demographics
intangible assets

10. The difference between merchandise cost and the selling price is known as the...
sales promotions
Census of banking
mark-up
Personal checks

11. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
sole proprietorship
Census of banking
Sales are increased; Goodwill is built-up and easily maintained
advertising

12. 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...
demographics
Indemnity
corporation
economic base

13. Which of the following would NOT be an insurance risk to consider?
fixed capital
evaluating; controlling
Terms of the sale
Large financial capacity; Limited liability of each owner (stockholder)

14. The form of legal organization that is owned and operated by one person is the...
to self-insure
inventory turnover
evaluating; controlling
proprietorship

15. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
proprietorship
inventory turnover
controlling
OSHA

16. An external problem that can lead to small business failure is...
Tax burdens; Human resource planning
Sales are increased; Goodwill is built-up and easily maintained
consumerism
have good management

17. Which of the following are functions of management?
controlling; actuating
Repairs
evaluating; controlling
circulating capital

18. A source of debt capital would include
commercial loans
competition
Tax burdens; Human resource planning
mark-up

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

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20. Which of the following are advantages of a sole proprietorship?
Civil Rights Act
Ease of starting; Profit incentive
a business plan
Directing

21. 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
Small Business Administration
break-even point
demographics

22. Which of the following are advantages of a partnership?
fixed expense
partnership
Efficiency of labor; Combined management - talent and capital
credit application

23. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
have good management
Proprietorship
demographics
a business plan

24. Which of the following are disadvantages of a partnership?
controlling; actuating
Income trends in the community
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Ease of starting; Profit incentive

25. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
equity capital
Better Business Bureau
equity capital
demographics

26. The principal government agency concerned with the financing - operation - and management of small businesses is the
corporation
sole proprietorship
Small Business Administration
manufacturing business

27. The current asset items consisting of cash - inventories - and accounts receivables is known as...
corporation
a business plan
circulating capital
lost income

28. Which of the following is NOT a type of consumer credit?
Unlimited liability; Limited management ability
Personal checks
controlling; actuating
Name of the business; Goodwill

29. Factors associated with evaluating a credit risk
inventory control considerations
Financial shortages
description
the religion of the applicant

30. The number of times the average inventory has been sold or used up during a period is known as...
sales promotions
Take on more risks
to determine where the potential customers are
inventory turnover

31. Which of the following is not a consideration concerning the selection of suppliers?
Chamber of Commerce
description
inventory control considerations
Whether or not they have an acceptable accounts receivable ratio

32. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
markdown
Personal checks
Repairs
CBD

33. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
Legal restrictions on activities
evaluating; controlling
merchandising business

34. Which of the following is an external problem and risk of business ownership?
economic order quantity
equity capital
Tax burdens; Human resource planning
commercial loans

35. Which of the following is an example of a variable expense?
Repairs
revolving account; open-end credit
equity capital; personal capital
risk management

36. 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
CBD
have good management
corporation

37. Which of the following is an internal problem that can lead to business failure?
sole proprietorship
Lack of expertise
equity capital
to determine where the potential customers are

38. A common business credit/sales tern is...
advertising
Personal checks
inventory turnover
2/10 - N30

39. Which of the following is NOT a way to reduce risks?
Take on more risks
equity capital
Better Business Bureau
consumer credit

40. Which of the following is normally NOT a source of published market data?
manufacturing business
a 2% discount if invoice is paid within 10 days - net due in 30 days
revolving account; open-end credit
Census of banking

41. In business - a reduction of selling price below the original selling price is referred to as...
Proprietorship
corporation
markdown
consumer credit

42. Capital that is invested in the business by the owner(s) is known as...
Credit customers are more interested in quality and service than price
demographics
equity capital
Some losses from bad debts and customers with fraudulent intentions are bound to occur

43. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
manufacturing business
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
evaluating; controlling
a qualification that is absolutely necessary

44. In a business - the number of times the average inventory is sold or used up can be referred to as...
factoring
inventory turnover
Sales are increased; Goodwill is built-up and easily maintained
revolving account; open-end credit

45. Any capital that is invested in a business by the owner(s) can be called...
Credit customers are more interested in quality and service than price
intangible assets
working capital; circulating capital
equity capital

46. Long-term capital that is invested in a business is referred to as...
economic order quantity
OSHA
a 2% discount if invoice is paid within 10 days - net due in 30 days
fixed capital

47. Selling a business's accounts receivable for cash to a third party is referred to as...
Civil Rights Act
factoring
manufacturing business
market

48. Which of the following are advantages of extending credit?
trade credit
Financial shortages
Sales are increased; Goodwill is built-up and easily maintained
Chamber of Commerce

49. Which of the following are examples of debt capital?
intangible assets
variable expense
competition
Commercial loans; Venture capitalists

50. Which of the following is a requirement for a building layout?
equity capital; personal capital
Accessibility
Efficiency of labor; Combined management - talent and capital
entrepreneur