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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. Long-term capital that is invested in a business is referred to as...
Terms of the sale
fixed capital
a structured interview
a 2% discount if invoice is paid within 10 days - net due in 30 days

2. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
OSHA
controlling
fixed capital
evaluating; controlling

3. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
a 2% discount if invoice is paid within 10 days - net due in 30 days
market
Equal Pay Act of 1963
Legal restrictions on activities

4. Which of the following are advantages of a partnership?
fixed capital
working capital; circulating capital
Efficiency of labor; Combined management - talent and capital
new venture plan; business plan

5. A strategy to minimize risk would be to...
Chamber of Commerce
Commercial loans; Venture capitalists
have good management
the religion of the applicant

6. 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...
Directing
partnership
Tax burdens; Human resource planning
risk management

7. Which of the following is an intangible asset?
to self-insure
Name of the business; Goodwill
risk management
inventory control considerations

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

9. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
consumer credit
2/10 - N30
break-even point

10. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
corporation
entrepreneur
trade credit
to self-insure

11. Which of the following statements is TRUE concerning consumer credit?
Terms of the sale
Credit customers are more interested in quality and service than price
equity capital
variable expense

12. The principal government agency concerned with the financing - operation - and management of small businesses is the
fixed expense
mark-up
Small Business Administration
working capital; circulating capital

13. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
credit application
sole proprietorship
fixed capital
partnership

14. Which of the following is an external problem and risk of business ownership?
competition
Tax burdens; Human resource planning
markdown
fixed capital

15. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
have good management
demographics
key person insurance
Name of the business; Goodwill

16. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Large financial capacity; Limited liability of each owner (stockholder)
economic base
Better Business Bureau
inventory turnover

17. Which of the following is a requirement for a building layout?
Name of the business; Goodwill
the employment interview
Accessibility
revolving account; open-end credit

18. Capital that is invested in the business by the owner(s) is known as...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
equity capital
Financial shortages
Applicant's sex

19. Which of the following is not a consideration concerning the selection of suppliers?
variable expense
Whether or not they have an acceptable accounts receivable ratio
consumer credit
Efficiency of labor; Combined management - talent and capital

20. The simplest and most common legal form of business ownership is...
sole proprietorship
entrepreneur
proprietorship
demographics

21. Capital that is investe4d in the business by the owner(s) is known as...
Commercial loans; Venture capitalists
Terms of the sale
Legal restrictions on activities; Lack of personal interest
equity capital; personal capital

22. A factor to be considered with the evaluation of a credit risk would be the...
inventory turnover
intangible assets
a 2% discount if invoice is paid within 10 days - net due in 30 days
credit application

23. The difference between current assets and current liabilities is...
working capital
fixed capital
sales promotions
Terms of the sale

24. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
demographics
CBD
Equal Pay Act of 1963
Personal checks

25. Rent is an example of a...
Personal checks
OSHA
fixed expense
Installment credit

26. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Terms of the sale
revolving account; open-end credit
description
commercial loans

27. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
new venture plan; business plan
controlling
markdown
Large financial capacity; Limited liability of each owner (stockholder)

28. The form of legal organization that is owned and operated by one person is the...
evaluating; controlling
proprietorship
Better Business Bureau
Sales are increased; Goodwill is built-up and easily maintained

29. 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...
working capital
to self-insure
description
demographics

30. Which of the following are functions of management?
market
corporation
controlling; actuating
Better Business Bureau

31. Life insurance that protects a firm against losses due to the death of a key employee is known as...
the employment interview
proprietorship
inventory control considerations
key person insurance

32. Which of the following is NOT used to measure the success of advertising?
Tax burdens; Human resource planning
Income trends in the community
American's with Disabilities Act
market

33. Which of the following is normally NOT a source of published market data?
Lack of expertise
corporation
Census of banking
Take on more risks

34. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
revolving account; open-end credit
commercial loans
sole proprietorship

35. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
market
inventory turnover
consumer credit
working capital

36. All of the following are factors which can affect the recruitment and selection of employees except
Legal restrictions on activities
the religion of the applicant
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
the employment interview

37. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
sole proprietorship
Unlimited liability; Limited management ability
Credit customers are more interested in quality and service than price

38. The main objective in a market survey is...
to self-insure
Lack of expertise
to determine where the potential customers are
working capital

39. The difference between current assets and current liabilities is...
Legal restrictions on activities
fixed capital
Legal restrictions on activities; Lack of personal interest
working capital; circulating capital

40. Which of the following is NOT a type of consumer credit?
revolving account; open-end credit
Personal checks
a structured interview
to self-insure

41. Business interruption insurance covers
revolving account; open-end credit
equity capital
fixed expense
lost income

42. Factors associated with evaluating a credit risk
Commercial loans; Venture capitalists
inventory control considerations
Unlimited liability; Limited management ability
description

43. 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
service business
controlling; actuating
trade credit

44. 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...
entrepreneur
Small Business Administration
fixed expense
corporation

45. A document that lists the major responsibilities and tasks of the job is known as a job
Legal restrictions on activities
description
break-even point
have good management

46. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
a structured interview
Proprietorship
consumer credit
working capital

47. Long term capital invested in the business is...
Actively managed by stockholders
Efficiency of labor; Combined management - talent and capital
Applicant's sex
fixed capital

48. A point in business operations whereby total sales revenue equals total costs
inventory turnover
mark-up
break-even point
factoring

49. Which of the following are advantages of a corporation?
have good management
commercial loans
entrepreneur
Large financial capacity; Limited liability of each owner (stockholder)

50. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
Legal restrictions on activities; Lack of personal interest
OSHA
an entrepreneur
ADA