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 partnership?
inventory control considerations
inventory turnover
Efficiency of labor; Combined management - talent and capital
have good management

2. Which of the following is an intangible asset?
Name of the business; Goodwill
economic order quantity
Directing
Personal checks

3. Capital that is investe4d in the business by the owner(s) is known as...
Repairs
corporation
equity capital; personal capital
partnership

4. In business - a reduction of selling price below the original selling price is referred to as...
markdown
Better Business Bureau
equity capital
Credit customers are more interested in quality and service than price

5. Which of the following are disadvantages of a corporation?
Better Business Bureau
Legal restrictions on activities; Lack of personal interest
commercial loans
American's with Disabilities Act

6. 2/10 - N/30 means...
competition
Better Business Bureau
Legal restrictions on activities
a 2% discount if invoice is paid within 10 days - net due in 30 days

7. A particular business that provides a service as opposed to a product is referred to as a...
Efficiency of labor; Combined management - talent and capital
Repairs
service business
working capital

8. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
mark-up
credit application
Financial shortages

9. 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...
Ease of starting; Profit incentive
service business
Credit customers are more interested in quality and service than price
partnership

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

11. Life insurance that protects a firm against losses due to the death of a key employee is known as...
controlling; actuating
key person insurance
competition
working capital; circulating capital

12. Which of the following is NOT used to measure the success of advertising?
Directing
controlling; actuating
Better Business Bureau
Income trends in the community

13. Long-term capital that is invested in a business is referred to as...
Whether or not they have an acceptable accounts receivable ratio
fixed capital
mark-up
a qualification that is absolutely necessary

14. Which of the following is an example of a variable expense?
factoring
partnership
Repairs
Census of banking

15. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
a 2% discount if invoice is paid within 10 days - net due in 30 days
Repairs
Take on more risks

16. The difference between current assets and current liabilities is...
break-even point
working capital
Applicant's sex
ADA

17. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
demographics
a structured interview
2/10 - N30

18. The main objective in a market survey is...
merchandising business
to determine where the potential customers are
circulating capital
Unlimited liability; Limited management ability

19. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
market
trade credit
Unlimited liability; Limited management ability
description

20. The simplest and most common legal form of business ownership is...
sole proprietorship
a 2% discount if invoice is paid within 10 days - net due in 30 days
a structured interview
inventory turnover

21. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
description
Census of banking
Whether or not they have an acceptable accounts receivable ratio

22. A small business is not...
proprietorship
Civil Rights Act
Actively managed by stockholders
Commercial loans; Venture capitalists

23. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Legal restrictions on activities; Lack of personal interest
a structured interview
evaluating; controlling
economic base

24. A source of debt capital would include
commercial loans
circulating capital
mark-up
Indemnity

25. Which of the following is NOT an advantage of a corporation?
revolving account; open-end credit
factoring
equity capital
Legal restrictions on activities

26. 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...
factoring
Chamber of Commerce
demographics
revolving account; open-end credit

27. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
service business
demographics
Indemnity
partnership

28. Which of the following is recognized as a disadvantage of extending credit?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
partnership
markdown
inventory turnover

29. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Credit customers are more interested in quality and service than price
manufacturing business
a structured interview

30. The current asset items consisting of cash - inventories - and accounts receivables is known as...
sole proprietorship
corporation
Accessibility
circulating capital

31. Rent is an example of a...
a qualification that is absolutely necessary
fixed expense
risk management
intangible assets

32. Any capital that is invested in a business by the owner(s) can be called...
markdown
equity capital
risk management
Credit customers are more interested in quality and service than price

33. 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
controlling; actuating
Whether or not they have an acceptable accounts receivable ratio
Legal restrictions on activities; Lack of personal interest

34. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
working capital; circulating capital
ADA
Tax burdens; Human resource planning
Personal checks

35. Long term capital invested in the business is...
fixed capital
Tax burdens; Human resource planning
an entrepreneur
advertising

36. Factors associated with evaluating a credit risk
Indemnity
inventory control considerations
a 2% discount if invoice is paid within 10 days - net due in 30 days
fixed capital

37. Which of the following is not a consideration concerning the selection of suppliers?
to self-insure
manufacturing business
Whether or not they have an acceptable accounts receivable ratio
economic order quantity

38. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Income trends in the community
an entrepreneur
Better Business Bureau
demographics

39. Which of the following is NOT a way to reduce risks?
Small Business Administration
inventory control considerations
Accessibility
Take on more risks

40. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
commercial loans
Directing
break-even point
Sales are increased; Goodwill is built-up and easily maintained

41. Business interruption insurance covers
key person insurance
break-even point
lost income
markdown

42. Which of the following would NOT be an insurance risk to consider?
fixed expense
trade credit
Terms of the sale
Small Business Administration

43. A common business credit/sales tern is...
to determine where the potential customers are
working capital
demographics
2/10 - N30

44. Which of the following are advantages of a corporation?
circulating capital
American's with Disabilities Act
working capital; circulating capital
Large financial capacity; Limited liability of each owner (stockholder)

45. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
working capital; circulating capital
a business plan
controlling; actuating
commercial loans

46. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
Directing
Better Business Bureau
Proprietorship

47. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Civil Rights Act
Income trends in the community
controlling; actuating
Legal restrictions on activities

48. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Civil Rights Act
advertising
Repairs
equity capital

49. Selling a business's accounts receivable for cash to a third party is referred to as...
to determine where the potential customers are
Census of banking
break-even point
factoring

50. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
a structured interview
competition
sole proprietorship
equity capital