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. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Chamber of Commerce
consumerism
consumer credit
revolving account; open-end credit

2. 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...
partnership
corporation
fixed capital
consumerism

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

4. In business - a reduction of selling price below the original selling price is referred to as...
Indemnity
Actively managed by stockholders
markdown
Better Business Bureau

5. One who organizes - manages - and assumes the risk of a business form or venture is known as...
circulating capital
an entrepreneur
controlling; actuating
equity capital; personal capital

6. Which of the following are disadvantages of a partnership?
inventory turnover
demographics
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Efficiency of labor; Combined management - talent and capital

7. The principal government agency concerned with the financing - operation - and management of small businesses is the
break-even point
Whether or not they have an acceptable accounts receivable ratio
sole proprietorship
Small Business Administration

8. Which of the following statements is TRUE concerning consumer credit?
Proprietorship
Efficiency of labor; Combined management - talent and capital
inventory turnover
Credit customers are more interested in quality and service than price

9. A particular business that provides a service as opposed to a product is referred to as a...
Large financial capacity; Limited liability of each owner (stockholder)
partnership
service business
sole proprietorship

10. 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...
equity capital
Sales are increased; Goodwill is built-up and easily maintained
fixed capital
corporation

11. Which of the following are advantages of a corporation?
an entrepreneur
break-even point
Large financial capacity; Limited liability of each owner (stockholder)
fixed capital

12. Which of the following is an external problem and risk of business ownership?
2/10 - N30
Tax burdens; Human resource planning
Personal checks
Accessibility

13. Which of the following is not a consideration concerning the selection of suppliers?
variable expense
break-even point
Whether or not they have an acceptable accounts receivable ratio
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

14. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a qualification that is absolutely necessary
a structured interview
risk management
Legal restrictions on activities

15. Capital that is invested in the business by the owner(s) is known as...
ADA
corporation
equity capital
partnership

16. Capital that is investe4d in the business by the owner(s) is known as...
break-even point
demographics
Financial shortages
equity capital; personal capital

17. Which of the following is recognized as a disadvantage of extending credit?
Repairs
Applicant's sex
Some losses from bad debts and customers with fraudulent intentions are bound to occur
competition

18. Which of the following is an example of a variable expense?
Better Business Bureau
controlling; actuating
Directing
Repairs

19. Any capital that is invested in a business by the owner(s) can be called...
Installment credit
a business plan
equity capital
Applicant's sex

20. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
key person insurance
intangible assets
controlling; actuating
entrepreneur

21. The quantity to be purchased which minimizes total cost is referred to as the...
Small Business Administration
mark-up
consumer credit
economic order quantity

22. A strategy to minimize risk would be to...
Large financial capacity; Limited liability of each owner (stockholder)
consumer credit
merchandising business
have good management

23. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
commercial loans
Small Business Administration
Applicant's sex

24. Long-term capital that is invested in a business is referred to as...
controlling; actuating
fixed capital
variable expense
a qualification that is absolutely necessary

25. Which of the following is an intangible asset?
break-even point
Name of the business; Goodwill
Legal restrictions on activities; Lack of personal interest
break-even point

26. Long term capital invested in the business is...
Chamber of Commerce
Better Business Bureau
description
fixed capital

27. Business interruption insurance covers
Civil Rights Act
lost income
Sales are increased; Goodwill is built-up and easily maintained
sales promotions

28. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
market
Better Business Bureau
equity capital
new venture plan; business plan

29. Factors associated with evaluating a credit risk
inventory control considerations
Tax burdens; Human resource planning
revolving account; open-end credit
evaluating; controlling

30. A factor to be considered with the evaluation of a credit risk would be the...
sales promotions
lost income
credit application
the employment interview

31. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
Personal checks
ADA
an entrepreneur

32. Which of the following are advantages of extending credit?
a structured interview
lost income
Civil Rights Act
Sales are increased; Goodwill is built-up and easily maintained

33. The difference between merchandise cost and the selling price is known as the...
inventory turnover
credit application
key person insurance
mark-up

34. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Financial shortages
Unlimited liability; Limited management ability
lost income
consumer credit

35. The simplest and most common legal form of business ownership is...
sole proprietorship
Proprietorship
revolving account; open-end credit
an entrepreneur

36. The main objective in a market survey is...
Applicant's sex
to determine where the potential customers are
the employment interview
Actively managed by stockholders

37. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
economic order quantity
Ease of starting; Profit incentive
manufacturing business
partnership

38. Which of the following are disadvantages of a corporation?
ADA
Legal restrictions on activities; Lack of personal interest
to determine where the potential customers are
mark-up

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

40. Which of the following is normally NOT a source of published market data?
the employment interview
Indemnity
Census of banking
equity capital

41. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
equity capital
Commercial loans; Venture capitalists
Accessibility

42. In business - the name - goodwill - copyrights - and patents are referred to as...
OSHA
intangible assets
Tax burdens; Human resource planning
Accessibility

43. A source of debt capital would include
a structured interview
commercial loans
fixed capital
market

44. A point in business operations whereby total sales revenue equals total costs
break-even point
working capital
working capital; circulating capital
economic base

45. A business that purchases finished goods for resale is referred to as a...
fixed expense
merchandising business
Applicant's sex
entrepreneur

46. Which of the following is an internal problem that can contribute to the failure of a business?
OSHA
Financial shortages
Credit customers are more interested in quality and service than price
controlling

47. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
an entrepreneur
Installment credit
sales promotions
the employment interview

48. Which of the following are functions of management?
inventory control considerations
economic order quantity
inventory turnover
controlling; actuating

49. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
equity capital
Name of the business; Goodwill
partnership
ADA

50. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
market
Better Business Bureau
mark-up
partnership