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. A plan which provides inducements to potential purchasers of products and/or services is called...
Financial shortages
sales promotions
Census of banking
have good management

2. The quantity to be purchased which minimizes total cost is referred to as the...
the employment interview
economic order quantity
competition
new venture plan; business plan

3. The main objective in a market survey is...
consumer credit
inventory control considerations
to determine where the potential customers are
proprietorship

4. Which of the following are disadvantages of a corporation?
variable expense
have good management
sole proprietorship
Legal restrictions on activities; Lack of personal interest

5. Capital that is investe4d in the business by the owner(s) is known as...
economic order quantity
Repairs
equity capital; personal capital
Some losses from bad debts and customers with fraudulent intentions are bound to occur

6. In business - a reduction of selling price below the original selling price is referred to as...
Better Business Bureau
Small Business Administration
fixed capital
markdown

7. 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...
Small Business Administration
break-even point
corporation
Credit customers are more interested in quality and service than price

8. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
sole proprietorship
equity capital
trade credit
corporation

9. A document that lists the major responsibilities and tasks of the job is known as a job
a 2% discount if invoice is paid within 10 days - net due in 30 days
intangible assets
sales promotions
description

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

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

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12. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Efficiency of labor; Combined management - talent and capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
fixed expense
competition

13. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Repairs
evaluating; controlling
Income trends in the community
Equal Pay Act of 1963

14. The difference between current assets and current liabilities is...
Actively managed by stockholders
Chamber of Commerce
a business plan
working capital

15. Which of the following statements is TRUE concerning consumer credit?
competition
controlling
equity capital
Credit customers are more interested in quality and service than price

16. A BFOQ is...
a qualification that is absolutely necessary
description
Commercial loans; Venture capitalists
Repairs

17. Long term capital invested in the business is...
Terms of the sale
2/10 - N30
trade credit
fixed capital

18. Long-term capital that is invested in a business is referred to as...
a structured interview
fixed capital
2/10 - N30
intangible assets

19. Selling a business's accounts receivable for cash to a third party is referred to as...
economic order quantity
inventory turnover
factoring
have good management

20. Factors associated with evaluating a credit risk
a business plan
new venture plan; business plan
advertising
inventory control considerations

21. Which of the following is recognized as a disadvantage of extending credit?
have good management
ADA
Census of banking
Some losses from bad debts and customers with fraudulent intentions are bound to occur

22. The form of legal organization that is owned and operated by one person is the...
credit application
proprietorship
trade credit
partnership

23. Which of the following would NOT be an insurance risk to consider?
Terms of the sale
consumerism
merchandising business
markdown

24. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
Indemnity
demographics
key person insurance
Lack of expertise

25. Which of the following are disadvantages of a partnership?
consumerism
Credit customers are more interested in quality and service than price
break-even point
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

26. Which of the following is an external problem and risk of business ownership?
Take on more risks
Tax burdens; Human resource planning
the religion of the applicant
partnership

27. Which of the following is an intangible asset?
the religion of the applicant
Indemnity
Name of the business; Goodwill
Legal restrictions on activities

28. A strategy to minimize risk would be to...
Ease of starting; Profit incentive
risk management
have good management
an entrepreneur

29. Which of the following is NOT a way to reduce risks?
Better Business Bureau
mark-up
Take on more risks
equity capital

30. 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
Small Business Administration
commercial loans
the religion of the applicant

31. A factor to be considered with the evaluation of a credit risk would be the...
Commercial loans; Venture capitalists
consumer credit
to self-insure
credit application

32. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
ADA
Some losses from bad debts and customers with fraudulent intentions are bound to occur
lost income
the employment interview

33. One who organizes - manages - and assumes the risk of a business form or venture is known as...
factoring
an entrepreneur
merchandising business
manufacturing business

34. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities
entrepreneur
Income trends in the community
Actively managed by stockholders

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

36. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
commercial loans
inventory control considerations
fixed capital

37. Which of the following are advantages of a partnership?
to determine where the potential customers are
revolving account; open-end credit
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Efficiency of labor; Combined management - talent and capital

38. A particular business that provides a service as opposed to a product is referred to as a...
a structured interview
controlling
lost income
service business

39. Rent is an example of a...
commercial loans
Small Business Administration
fixed expense
entrepreneur

40. Which of the following are examples of debt capital?
factoring
a structured interview
the employment interview
Commercial loans; Venture capitalists

41. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
equity capital; personal capital
the employment interview
Ease of starting; Profit incentive
working capital

42. Any capital that is invested in a business by the owner(s) can be called...
Efficiency of labor; Combined management - talent and capital
equity capital
economic base
OSHA

43. Which of the following are advantages of a sole proprietorship?
partnership
Ease of starting; Profit incentive
have good management
economic base

44. In a business - the number of times the average inventory is sold or used up can be referred to as...
OSHA
equity capital
inventory turnover
Proprietorship

45. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Census of banking
Installment credit
consumer credit
demographics

46. Which of the following is an example of a variable expense?
Repairs
Income trends in the community
equity capital
advertising

47. Business interruption insurance covers
Equal Pay Act of 1963
lost income
working capital
sales promotions

48. Which of the following is an internal problem that can contribute to the failure of a business?
CBD
Tax burdens; Human resource planning
Terms of the sale
Financial shortages

49. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
corporation
revolving account; open-end credit
advertising
a qualification that is absolutely necessary

50. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
economic order quantity
inventory turnover
sales promotions
new venture plan; business plan