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 governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
equity capital
OSHA
demographics
Accessibility

2. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
sales promotions
Directing
an entrepreneur

3. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Accessibility
commercial loans
merchandising business
a structured interview

4. A common business credit/sales tern is...
Tax burdens; Human resource planning
2/10 - N30
Take on more risks
Applicant's sex

5. The main objective in a market survey is...
break-even point
advertising
trade credit
to determine where the potential customers are

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

7. The current asset items consisting of cash - inventories - and accounts receivables is known as...
commercial loans
circulating capital
advertising
OSHA

8. Which of the following is recognized as a disadvantage of extending credit?
Small Business Administration
Some losses from bad debts and customers with fraudulent intentions are bound to occur
variable expense
sole proprietorship

9. Long-term capital that is invested in a business is referred to as...
fixed capital
partnership
revolving account; open-end credit
a 2% discount if invoice is paid within 10 days - net due in 30 days

10. Which of the following is NOT a way to reduce risks?
working capital; circulating capital
Take on more risks
Income trends in the community
to determine where the potential customers are

11. In business - the name - goodwill - copyrights - and patents are referred to as...
Commercial loans; Venture capitalists
to self-insure
intangible assets
CBD

12. Which of the following is a requirement for a building layout?
competition
Accessibility
new venture plan; business plan
Financial shortages

13. The difference between merchandise cost and the selling price is known as the...
mark-up
Large financial capacity; Limited liability of each owner (stockholder)
trade credit
Income trends in the community

14. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Accessibility
economic base
factoring
Legal restrictions on activities; Lack of personal interest

15. The quantity to be purchased which minimizes total cost is referred to as the...
economic order quantity
Civil Rights Act
variable expense
Lack of expertise

16. Rent is an example of a...
fixed expense
Name of the business; Goodwill
fixed capital
market

17. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
a qualification that is absolutely necessary
economic order quantity
new venture plan; business plan
Large financial capacity; Limited liability of each owner (stockholder)

18. 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...
break-even point
Ease of starting; Profit incentive
corporation
Civil Rights Act

19. The difference between current assets and current liabilities is...
Tax burdens; Human resource planning
OSHA
working capital
break-even point

20. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
description
Directing
fixed capital
Income trends in the community

21. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
factoring
manufacturing business
sole proprietorship
demographics

22. 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...
consumer credit
description
partnership
American's with Disabilities Act

23. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
new venture plan; business plan
revolving account; open-end credit
sales promotions

24. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
entrepreneur
fixed expense
Chamber of Commerce
sales promotions

25. A strategy available to absorb risks would be...
Directing
Whether or not they have an acceptable accounts receivable ratio
Ease of starting; Profit incentive
to self-insure

26. The simplest and most common legal form of business ownership is...
sole proprietorship
Ease of starting; Profit incentive
fixed capital
Better Business Bureau

27. A point in business operations whereby total sales revenue equals total costs
break-even point
description
Name of the business; Goodwill
lost income

28. 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
fixed capital
new venture plan; business plan

29. Which of the following statements is TRUE concerning consumer credit?
economic base
a business plan
a 2% discount if invoice is paid within 10 days - net due in 30 days
Credit customers are more interested in quality and service than price

30. Which of the following is an internal problem that can lead to business failure?
Better Business Bureau
Lack of expertise
break-even point
service business

31. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
OSHA
Proprietorship
trade credit
working capital; circulating capital

32. Which of the following are advantages of a partnership?
working capital; circulating capital
Efficiency of labor; Combined management - talent and capital
have good management
Better Business Bureau

33. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Census of banking
Civil Rights Act
Better Business Bureau
Personal checks

34. A BFOQ is...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Better Business Bureau
fixed capital
a qualification that is absolutely necessary

35. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
markdown
Better Business Bureau
revolving account; open-end credit
merchandising business

36. A factor to be considered with the evaluation of a credit risk would be the...
a structured interview
credit application
break-even point
Legal restrictions on activities; Lack of personal interest

37. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
factoring
the employment interview
Efficiency of labor; Combined management - talent and capital
Census of banking

38. Which of the following is NOT an advantage of a corporation?
mark-up
evaluating; controlling
Legal restrictions on activities
Financial shortages

39. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
partnership
lost income
Personal checks
evaluating; controlling

40. Business interruption insurance covers
lost income
Credit customers are more interested in quality and service than price
ADA
mark-up

41. Which of the following is NOT a type of consumer credit?
Personal checks
a 2% discount if invoice is paid within 10 days - net due in 30 days
2/10 - N30
equity capital

42. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
equity capital
Installment credit
Financial shortages

43. Which of the following are disadvantages of a sole proprietorship?
new venture plan; business plan
a 2% discount if invoice is paid within 10 days - net due in 30 days
equity capital
Unlimited liability; Limited management ability

44. Which of the following are functions of management?
controlling; actuating
ADA
fixed capital
break-even point

45. Which of the following is NOT a consumer buying motive?
inventory turnover
equity capital; personal capital
new venture plan; business plan
Indemnity

46. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
inventory control considerations
economic base
service business
consumer credit

47. Which of the following is NOT used to measure the success of advertising?
Income trends in the community
an entrepreneur
Equal Pay Act of 1963
American's with Disabilities Act

48. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
consumerism
economic order quantity
Name of the business; Goodwill
Civil Rights Act

49. Capital that is invested in the business by the owner(s) is known as...
economic base
equity capital
to determine where the potential customers are
Proprietorship

50. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
OSHA
Better Business Bureau
Installment credit