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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. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
markdown
intangible assets
trade credit
consumer credit

2. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Legal restrictions on activities; Lack of personal interest
equity capital
Terms of the sale

3. 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...
corporation
fixed capital
demographics
competition

4. The difference between current assets and current liabilities is...
working capital; circulating capital
competition
inventory turnover
break-even point

5. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
inventory control considerations
equity capital
Proprietorship
Equal Pay Act of 1963

6. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Credit customers are more interested in quality and service than price
Chamber of Commerce
consumerism
key person insurance

7. Any capital that is invested in a business by the owner(s) can be called...
Civil Rights Act
a qualification that is absolutely necessary
controlling
equity capital

8. Which of the following is an intangible asset?
Directing
equity capital; personal capital
new venture plan; business plan
Name of the business; Goodwill

9. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
partnership
a business plan
service business

10. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
Efficiency of labor; Combined management - talent and capital
trade credit
CBD
advertising

11. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
Repairs
fixed capital
Commercial loans; Venture capitalists

12. The main objective in a market survey is...
service business
equity capital
Tax burdens; Human resource planning
to determine where the potential customers are

13. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Tax burdens; Human resource planning
consumerism
competition
working capital; circulating capital

14. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
circulating capital
break-even point
Take on more risks

15. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Civil Rights Act
controlling
manufacturing business
Installment credit

16. Rent is an example of a...
Legal restrictions on activities
Unlimited liability; Limited management ability
fixed expense
demographics

17. The difference between merchandise cost and the selling price is known as the...
mark-up
break-even point
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Repairs

18. Which of the following are functions of management?
proprietorship
controlling; actuating
the religion of the applicant
Terms of the sale

19. A strategy to minimize risk would be to...
sole proprietorship
working capital; circulating capital
Chamber of Commerce
have good management

20. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
Ease of starting; Profit incentive
Chamber of Commerce
market
Efficiency of labor; Combined management - talent and capital

21. The simplest and most common legal form of business ownership is...
Legal restrictions on activities
sole proprietorship
Actively managed by stockholders
2/10 - N30

22. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
Some losses from bad debts and customers with fraudulent intentions are bound to occur
a 2% discount if invoice is paid within 10 days - net due in 30 days
Take on more risks

23. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
controlling; actuating
Small Business Administration
break-even point

24. In business - a reduction of selling price below the original selling price is referred to as...
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corporation
OSHA
equity capital; personal capital

25. Which of the following is an internal problem that can contribute to the failure of a business?
a qualification that is absolutely necessary
Accessibility
Financial shortages
corporation

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

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27. All of the following are factors which can affect the recruitment and selection of employees except
commercial loans
factoring
economic base
the religion of the applicant

28. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
Actively managed by stockholders
Efficiency of labor; Combined management - talent and capital
trade credit
demographics

29. A source of debt capital would include
fixed capital
Credit customers are more interested in quality and service than price
commercial loans
consumer credit

30. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
market
lost income
trade credit

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

32. Which of the following are disadvantages of a sole proprietorship?
Unlimited liability; Limited management ability
entrepreneur
Accessibility
Directing

33. Which of the following are disadvantages of a corporation?
to determine where the potential customers are
fixed capital
Commercial loans; Venture capitalists
Legal restrictions on activities; Lack of personal interest

34. Factors associated with evaluating a credit risk
description
inventory control considerations
Take on more risks
Commercial loans; Venture capitalists

35. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
Ease of starting; Profit incentive
Credit customers are more interested in quality and service than price
description

36. Which of the following are advantages of extending credit?
revolving account; open-end credit
fixed capital
Sales are increased; Goodwill is built-up and easily maintained
Repairs

37. Long term capital invested in the business is...
Large financial capacity; Limited liability of each owner (stockholder)
corporation
fixed capital
Ease of starting; Profit incentive

38. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
new venture plan; business plan
circulating capital
Directing
manufacturing business

39. Which of the following is NOT a way to reduce risks?
Take on more risks
manufacturing business
inventory turnover
Repairs

40. Which of the following is NOT a type of consumer credit?
the employment interview
Income trends in the community
Personal checks
Civil Rights Act

41. Life insurance that protects a firm against losses due to the death of a key employee is known as...
equity capital
Credit customers are more interested in quality and service than price
key person insurance
market

42. Which of the following is an example of a variable expense?
sales promotions
Repairs
break-even point
Income trends in the community

43. 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...
Directing
demographics
market
corporation

44. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Repairs
revolving account; open-end credit
Tax burdens; Human resource planning
Sales are increased; Goodwill is built-up and easily maintained

45. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
credit application
Indemnity
Small Business Administration
advertising

46. Which of the following would NOT be an insurance risk to consider?
Efficiency of labor; Combined management - talent and capital
Terms of the sale
ADA
evaluating; controlling

47. Which of the following are examples of debt capital?
a 2% discount if invoice is paid within 10 days - net due in 30 days
Large financial capacity; Limited liability of each owner (stockholder)
Commercial loans; Venture capitalists
fixed expense

48. The quantity to be purchased which minimizes total cost is referred to as the...
Repairs
trade credit
economic order quantity
corporation

49. Which of the following is recognized as a disadvantage of extending credit?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Income trends in the community
Financial shortages
Small Business Administration

50. Which of the following is normally NOT a source of published market data?
working capital; circulating capital
Census of banking
merchandising business
evaluating; controlling