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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. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Sales are increased; Goodwill is built-up and easily maintained
merchandising business
competition
have good management

2. A source of debt capital would include
Actively managed by stockholders
commercial loans
proprietorship
working capital

3. 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...
an entrepreneur
variable expense
entrepreneur
Installment credit

4. Which of the following is NOT a consumer buying motive?
Ease of starting; Profit incentive
working capital
Indemnity
Terms of the sale

5. In a business - the number of times the average inventory is sold or used up can be referred to as...
Large financial capacity; Limited liability of each owner (stockholder)
Efficiency of labor; Combined management - talent and capital
American's with Disabilities Act
inventory turnover

6. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
consumerism
Civil Rights Act
inventory turnover

7. Capital that is invested in the business by the owner(s) is known as...
equity capital
Actively managed by stockholders
inventory turnover
Efficiency of labor; Combined management - talent and capital

8. Long term capital invested in the business is...
a business plan
Large financial capacity; Limited liability of each owner (stockholder)
risk management
fixed capital

9. Which of the following is normally NOT a source of published market data?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Census of banking
Sales are increased; Goodwill is built-up and easily maintained
trade credit

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
Lack of expertise
equity capital
lost income

11. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
variable expense
market
key person insurance

12. Which of the following are disadvantages of a partnership?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
economic base
the religion of the applicant
Lack of expertise

13. Life insurance that protects a firm against losses due to the death of a key employee is known as...
the employment interview
working capital
key person insurance
commercial loans

14. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Accessibility
economic order quantity
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
ADA

15. Factors associated with evaluating a credit risk
a qualification that is absolutely necessary
inventory control considerations
a structured interview
Legal restrictions on activities

16. The principal government agency concerned with the financing - operation - and management of small businesses is the
Small Business Administration
circulating capital
Proprietorship
variable expense

17. 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...
evaluating; controlling
corporation
proprietorship
Legal restrictions on activities; Lack of personal interest

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

19. A business that purchases finished goods for resale is referred to as a...
Legal restrictions on activities; Lack of personal interest
merchandising business
entrepreneur
ADA

20. Which of the following is NOT used to measure the success of advertising?
to determine where the potential customers are
partnership
Income trends in the community
fixed expense

21. The difference between merchandise cost and the selling price is known as the...
working capital; circulating capital
advertising
Better Business Bureau
mark-up

22. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
working capital; circulating capital
equity capital
advertising

23. Any capital that is invested in a business by the owner(s) can be called...
equity capital
evaluating; controlling
Some losses from bad debts and customers with fraudulent intentions are bound to occur
proprietorship

24. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Civil Rights Act
Chamber of Commerce
inventory control considerations
an entrepreneur

25. The quantity to be purchased which minimizes total cost is referred to as the...
demographics
to determine where the potential customers are
consumer credit
economic order quantity

26. Which of the following are examples of debt capital?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
break-even point
Commercial loans; Venture capitalists
Some losses from bad debts and customers with fraudulent intentions are bound to occur

27. In business - the name - goodwill - copyrights - and patents are referred to as...
Terms of the sale
intangible assets
Efficiency of labor; Combined management - talent and capital
Applicant's sex

28. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
description
Proprietorship
credit application
merchandising business

29. A BFOQ is...
a qualification that is absolutely necessary
entrepreneur
evaluating; controlling
Lack of expertise

30. Which of the following are disadvantages of a corporation?
description
lost income
Legal restrictions on activities; Lack of personal interest
controlling

31. A particular business that provides a service as opposed to a product is referred to as a...
OSHA
equity capital
manufacturing business
service business

32. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
Better Business Bureau
fixed capital
equity capital; personal capital

33. Which of the following is a requirement for a building layout?
intangible assets
a structured interview
Accessibility
Sales are increased; Goodwill is built-up and easily maintained

34. Which of the following is an internal problem that can lead to business failure?
partnership
inventory turnover
Lack of expertise
Installment credit

35. The current asset items consisting of cash - inventories - and accounts receivables is known as...
Credit customers are more interested in quality and service than price
Legal restrictions on activities
CBD
circulating capital

36. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
OSHA
equity capital
Installment credit
a business plan

37. Which of the following is an external problem and risk of business ownership?
Tax burdens; Human resource planning
a 2% discount if invoice is paid within 10 days - net due in 30 days
controlling; actuating
new venture plan; business plan

38. A management function which compares organizational and individual performance with predetermined standards or expected results is...
working capital; circulating capital
a structured interview
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
controlling

39. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
markdown
revolving account; open-end credit
Legal restrictions on activities; Lack of personal interest
proprietorship

40. Which of the following is recognized as a disadvantage of extending credit?
Applicant's sex
Some losses from bad debts and customers with fraudulent intentions are bound to occur
a qualification that is absolutely necessary
consumerism

41. Which of the following are advantages of extending credit?
consumer credit
Tax burdens; Human resource planning
Sales are increased; Goodwill is built-up and easily maintained
entrepreneur

42. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
proprietorship
key person insurance
a structured interview

43. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
fixed capital
trade credit
OSHA
description

44. Which of the following is NOT a way to reduce risks?
Take on more risks
partnership
Personal checks
market

45. Which of the following is NOT a type of consumer credit?
an entrepreneur
Personal checks
fixed capital
lost income

46. A strategy available to absorb risks would be...
Actively managed by stockholders
Repairs
Small Business Administration
to self-insure

47. 2/10 - N/30 means...
consumer credit
markdown
lost income
a 2% discount if invoice is paid within 10 days - net due in 30 days

48. Which of the following is not a consideration concerning the selection of suppliers?
working capital
Whether or not they have an acceptable accounts receivable ratio
partnership
competition

49. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
controlling
description
working capital
CBD

50. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
have good management
the employment interview
Take on more risks
Proprietorship