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 disadvantages of a sole proprietorship?
variable expense
Financial shortages
Unlimited liability; Limited management ability
inventory turnover

2. 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
break-even point
Ease of starting; Profit incentive
Chamber of Commerce

3. The simplest and most common legal form of business ownership is...
Legal restrictions on activities
trade credit
sole proprietorship
Better Business Bureau

4. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Terms of the sale
Name of the business; Goodwill
mark-up
entrepreneur

5. A factor to be considered with the evaluation of a credit risk would be the...
Financial shortages
credit application
sole proprietorship
Accessibility

6. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
inventory turnover
Civil Rights Act
evaluating; controlling
Large financial capacity; Limited liability of each owner (stockholder)

7. A particular business that provides a service as opposed to a product is referred to as a...
equity capital
service business
evaluating; controlling
new venture plan; business plan

8. A plan which provides inducements to potential purchasers of products and/or services is called...
markdown
break-even point
controlling
sales promotions

9. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
entrepreneur
Tax burdens; Human resource planning
OSHA

10. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
fixed expense
Credit customers are more interested in quality and service than price
Whether or not they have an acceptable accounts receivable ratio

11. The quantity to be purchased which minimizes total cost is referred to as the...
have good management
Accessibility
controlling; actuating
economic order quantity

12. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
mark-up
markdown
merchandising business
demographics

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

14. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Unlimited liability; Limited management ability
evaluating; controlling
ADA
Take on more risks

15. Which of the following is NOT a type of consumer credit?
Personal checks
OSHA
the employment interview
corporation

16. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
Repairs
consumer credit
credit application

17. Capital that is investe4d in the business by the owner(s) is known as...
partnership
description
trade credit
equity capital; personal capital

18. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
consumer credit
Equal Pay Act of 1963
equity capital
Name of the business; Goodwill

19. Which of the following are advantages of a partnership?
consumerism
Efficiency of labor; Combined management - talent and capital
economic base
controlling

20. Which of the following is an internal problem that can lead to business failure?
to determine where the potential customers are
Lack of expertise
intangible assets
controlling; actuating

21. The difference between current assets and current liabilities is...
working capital
manufacturing business
2/10 - N30
revolving account; open-end credit

22. A document that lists the major responsibilities and tasks of the job is known as a job
CBD
description
sole proprietorship
Personal checks

23. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
working capital; circulating capital
fixed capital
CBD

24. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
merchandising business
proprietorship
to determine where the potential customers are

25. Which of the following statements is TRUE concerning consumer credit?
circulating capital
Credit customers are more interested in quality and service than price
commercial loans
demographics

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

27. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
risk management
revolving account; open-end credit
trade credit

28. Business interruption insurance covers
fixed capital
Lack of expertise
Some losses from bad debts and customers with fraudulent intentions are bound to occur
lost income

29. Rent is an example of a...
break-even point
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Civil Rights Act
fixed expense

30. Which of the following is recognized as a disadvantage of extending credit?
demographics
working capital
Some losses from bad debts and customers with fraudulent intentions are bound to occur
to determine where the potential customers are

31. 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
economic base
lost income
partnership

32. The difference between merchandise cost and the selling price is known as the...
Efficiency of labor; Combined management - talent and capital
break-even point
mark-up
Applicant's sex

33. 2/10 - N/30 means...
Chamber of Commerce
a 2% discount if invoice is paid within 10 days - net due in 30 days
Better Business Bureau
controlling

34. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
sole proprietorship
CBD
Legal restrictions on activities
partnership

35. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
break-even point
risk management
fixed expense

36. Which of the following are functions of management?
break-even point
controlling; actuating
Chamber of Commerce
variable expense

37. A small business is not...
Actively managed by stockholders
Census of banking
to self-insure
American's with Disabilities Act

38. Which of the following is NOT a consumer buying motive?
consumerism
intangible assets
Indemnity
Financial shortages

39. Which of the following are advantages of a corporation?
risk management
fixed expense
Large financial capacity; Limited liability of each owner (stockholder)
a business plan

40. Capital that is invested in the business by the owner(s) is known as...
partnership
equity capital
entrepreneur
economic base

41. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
American's with Disabilities Act
advertising
partnership
variable expense

42. Which of the following is an internal problem that can contribute to the failure of a business?
factoring
Financial shortages
merchandising business
description

43. Which of the following is a requirement for a building layout?
risk management
a business plan
variable expense
Accessibility

44. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
key person insurance
commercial loans
Proprietorship
a qualification that is absolutely necessary

45. A cost which is uniform per unit - but fluctuates in total - in direct proportion to change in the related total activity or volume is known as...
consumer credit
variable expense
corporation
a 2% discount if invoice is paid within 10 days - net due in 30 days

46. Which of the following is normally NOT a source of published market data?
Census of banking
fixed capital
service business
American's with Disabilities Act

47. Long term capital invested in the business is...
an entrepreneur
competition
equity capital
fixed capital

48. An external problem that can lead to small business failure is...
controlling
consumerism
economic base
equity capital; personal capital

49. Which of the following is NOT used to measure the success of advertising?
Income trends in the community
OSHA
Equal Pay Act of 1963
Small Business Administration

50. A strategy available to absorb risks would be...
credit application
trade credit
to self-insure
advertising