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. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
a 2% discount if invoice is paid within 10 days - net due in 30 days
revolving account; open-end credit
mark-up

2. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
key person insurance
risk management
the religion of the applicant
to determine where the potential customers are

3. Long-term capital that is invested in a business is referred to as...
fixed capital
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Accessibility
break-even point

4. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
equity capital
Equal Pay Act of 1963
factoring

5. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Applicant's sex
Directing
CBD
advertising

6. A document that lists the major responsibilities and tasks of the job is known as a job
proprietorship
working capital; circulating capital
description
to determine where the potential customers are

7. A source of debt capital would include
intangible assets
commercial loans
the employment interview
Better Business Bureau

8. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
intangible assets
fixed capital
2/10 - N30

9. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
ADA
Directing
competition
variable expense

10. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
Financial shortages
corporation
partnership
demographics

11. The difference between merchandise cost and the selling price is known as the...
partnership
risk management
OSHA
mark-up

12. Which of the following is an intangible asset?
Name of the business; Goodwill
Legal restrictions on activities
break-even point
sole proprietorship

13. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
equity capital; personal capital
advertising
Indemnity
the employment interview

14. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
controlling
intangible assets
Directing
market

15. 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
Census of banking
Credit customers are more interested in quality and service than price
Income trends in the community

16. A factor to be considered with the evaluation of a credit risk would be the...
credit application
Take on more risks
key person insurance
economic base

17. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
consumerism
equity capital
the religion of the applicant
competition

18. An external problem that can lead to small business failure is...
consumerism
economic base
a 2% discount if invoice is paid within 10 days - net due in 30 days
Indemnity

19. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
fixed capital
new venture plan; business plan
OSHA
Civil Rights Act

20. Which of the following are advantages of a sole proprietorship?
the employment interview
new venture plan; business plan
controlling
Ease of starting; Profit incentive

21. Any capital that is invested in a business by the owner(s) can be called...
manufacturing business
OSHA
CBD
equity capital

22. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
corporation
partnership
2/10 - N30

23. Which of the following are advantages of a partnership?
sales promotions
to self-insure
Efficiency of labor; Combined management - talent and capital
equity capital

24. Which of the following is NOT used to measure the success of advertising?
new venture plan; business plan
Income trends in the community
trade credit
partnership

25. Which of the following would NOT be an insurance risk to consider?
consumerism
equity capital
Large financial capacity; Limited liability of each owner (stockholder)
Terms of the sale

26. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Directing
market
Proprietorship
fixed capital

27. An interview whereby the applicant is asked a pre-determined set of questions is known as...
2/10 - N30
a structured interview
controlling; actuating
Personal checks

28. A small business is not...
factoring
fixed expense
American's with Disabilities Act
Actively managed by stockholders

29. Capital that is invested in the business by the owner(s) is known as...
demographics
equity capital
sales promotions
lost income

30. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
the religion of the applicant
Some losses from bad debts and customers with fraudulent intentions are bound to occur
service business

31. A point in business operations whereby total sales revenue equals total costs
break-even point
variable expense
to self-insure
consumer credit

32. The wealth produced in or near a community that provides employment and income to the local population is known as the...
trade credit
Legal restrictions on activities
economic order quantity
economic base

33. Which of the following statements is TRUE concerning consumer credit?
a qualification that is absolutely necessary
Credit customers are more interested in quality and service than price
Whether or not they have an acceptable accounts receivable ratio
inventory control considerations

34. Which of the following are disadvantages of a partnership?
Unlimited liability; Limited management ability
inventory turnover
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
the employment interview

35. Which of the following is NOT an advantage of a corporation?
Efficiency of labor; Combined management - talent and capital
break-even point
Legal restrictions on activities
Better Business Bureau

36. Long term capital invested in the business is...
service business
Large financial capacity; Limited liability of each owner (stockholder)
fixed capital
inventory control considerations

37. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Legal restrictions on activities; Lack of personal interest
new venture plan; business plan
Better Business Bureau
entrepreneur

38. A BFOQ is...
demographics
a qualification that is absolutely necessary
controlling; actuating
partnership

39. 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...
variable expense
service business
fixed capital
inventory control considerations

40. The simplest and most common legal form of business ownership is...
risk management
ADA
service business
sole proprietorship

41. 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...
corporation
inventory control considerations
sales promotions
the religion of the applicant

42. Which of the following are advantages of extending credit?
working capital
service business
Civil Rights Act
Sales are increased; Goodwill is built-up and easily maintained

43. The quantity to be purchased which minimizes total cost is referred to as the...
to determine where the potential customers are
demographics
an entrepreneur
economic order quantity

44. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
Directing
partnership
consumer credit
circulating capital

45. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Commercial loans; Venture capitalists
an entrepreneur
economic order quantity
consumerism

46. 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...
Proprietorship
break-even point
Sales are increased; Goodwill is built-up and easily maintained
consumer credit

47. 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...
partnership
Equal Pay Act of 1963
advertising
Applicant's sex

48. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Applicant's sex
a business plan
Civil Rights Act
Legal restrictions on activities; Lack of personal interest

49. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
to determine where the potential customers are
the employment interview
Some losses from bad debts and customers with fraudulent intentions are bound to occur
break-even point

50. Which of the following is NOT a consumer buying motive?
Actively managed by stockholders
inventory control considerations
Commercial loans; Venture capitalists
Indemnity