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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. One who organizes - manages - and assumes the risk of a business form or venture is known as...
OSHA
CBD
an entrepreneur
Proprietorship

2. 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...
Equal Pay Act of 1963
demographics
variable expense
Sales are increased; Goodwill is built-up and easily maintained

3. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
revolving account; open-end credit
Credit customers are more interested in quality and service than price
a 2% discount if invoice is paid within 10 days - net due in 30 days
circulating capital

4. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
an entrepreneur
ADA
Whether or not they have an acceptable accounts receivable ratio

5. Which of the following is NOT a way to reduce risks?
entrepreneur
Sales are increased; Goodwill is built-up and easily maintained
Better Business Bureau
Take on more risks

6. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
Tax burdens; Human resource planning
lost income
corporation

7. Which of the following are advantages of a partnership?
description
Applicant's sex
advertising
Efficiency of labor; Combined management - talent and capital

8. A small business is not...
proprietorship
OSHA
Actively managed by stockholders
Better Business Bureau

9. The current asset items consisting of cash - inventories - and accounts receivables is known as...
key person insurance
circulating capital
to determine where the potential customers are
an entrepreneur

10. Which of the following are advantages of a sole proprietorship?
CBD
Ease of starting; Profit incentive
an entrepreneur
new venture plan; business plan

11. Which of the following would NOT be an insurance risk to consider?
Terms of the sale
Census of banking
demographics
new venture plan; business plan

12. Long-term capital that is invested in a business is referred to as...
inventory turnover
key person insurance
fixed capital
merchandising business

13. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Civil Rights Act
Legal restrictions on activities; Lack of personal interest
Accessibility
CBD

14. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
Indemnity
demographics
sole proprietorship
OSHA

15. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
revolving account; open-end credit
Chamber of Commerce
Terms of the sale
new venture plan; business plan

16. A business that purchases finished goods for resale is referred to as a...
inventory turnover
Lack of expertise
fixed expense
merchandising business

17. The principal government agency concerned with the financing - operation - and management of small businesses is the
controlling
Credit customers are more interested in quality and service than price
Small Business Administration
Terms of the sale

18. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
2/10 - N30
break-even point
inventory turnover

19. A strategy to minimize risk would be to...
have good management
Ease of starting; Profit incentive
fixed expense
Indemnity

20. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
Whether or not they have an acceptable accounts receivable ratio
demographics
sales promotions

21. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
break-even point
intangible assets
Large financial capacity; Limited liability of each owner (stockholder)

22. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
controlling; actuating
a business plan
consumerism
Income trends in the community

23. Which of the following are examples of debt capital?
Commercial loans; Venture capitalists
Equal Pay Act of 1963
Accessibility
proprietorship

24. In a business - the number of times the average inventory is sold or used up can be referred to as...
working capital
partnership
to self-insure
inventory turnover

25. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
Indemnity
economic base
risk management

26. Which of the following are disadvantages of a corporation?
a business plan
Legal restrictions on activities; Lack of personal interest
Financial shortages
inventory turnover

27. Which of the following is not a consideration concerning the selection of suppliers?
Equal Pay Act of 1963
Whether or not they have an acceptable accounts receivable ratio
advertising
Tax burdens; Human resource planning

28. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Legal restrictions on activities
circulating capital
Civil Rights Act
consumer credit

29. A strategy available to absorb risks would be...
to self-insure
mark-up
Whether or not they have an acceptable accounts receivable ratio
equity capital

30. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
American's with Disabilities Act
Accessibility
credit application
Proprietorship

31. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Better Business Bureau
Census of banking
Equal Pay Act of 1963
Repairs

32. Which of the following is NOT a type of consumer credit?
corporation
Personal checks
lost income
Small Business Administration

33. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
equity capital
risk management
Applicant's sex
controlling

34. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
description
consumer credit
Census of banking
Chamber of Commerce

35. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
commercial loans
Applicant's sex
break-even point

36. The simplest and most common legal form of business ownership is...
to determine where the potential customers are
commercial loans
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
sole proprietorship

37. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
service business
merchandising business
a business plan
manufacturing business

38. The number of times the average inventory has been sold or used up during a period is known as...
working capital; circulating capital
OSHA
partnership
inventory turnover

39. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
Better Business Bureau
market
Some losses from bad debts and customers with fraudulent intentions are bound to occur
manufacturing business

40. The difference between merchandise cost and the selling price is known as the...
new venture plan; business plan
Large financial capacity; Limited liability of each owner (stockholder)
mark-up
Proprietorship

41. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Whether or not they have an acceptable accounts receivable ratio
the religion of the applicant
entrepreneur
corporation

42. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
Terms of the sale
entrepreneur
market

43. Which of the following are advantages of extending credit?
Sales are increased; Goodwill is built-up and easily maintained
consumerism
Ease of starting; Profit incentive
Installment credit

44. Which of the following is an example of a variable expense?
Repairs
Large financial capacity; Limited liability of each owner (stockholder)
sales promotions
new venture plan; business plan

45. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
break-even point
ADA
a structured interview
have good management

46. In business - a reduction of selling price below the original selling price is referred to as...
to determine where the potential customers are
economic base
the religion of the applicant
markdown

47. A factor to be considered with the evaluation of a credit risk would be the...
factoring
credit application
new venture plan; business plan
market

48. Which of the following is an intangible asset?
Name of the business; Goodwill
market
Civil Rights Act
ADA

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

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50. Which of the following is NOT used to measure the success of advertising?
proprietorship
fixed expense
Proprietorship
Income trends in the community