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Small Business Management

Instructions:

Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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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. 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...
OSHA
trade credit
equity capital
demographics

2. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
Indemnity
Unlimited liability; Limited management ability
controlling

3. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
Legal restrictions on activities; Lack of personal interest
key person insurance
CBD
lost income

4. Which of the following is NOT a way to reduce risks?
trade credit
2/10 - N30
Take on more risks
controlling

5. Business interruption insurance covers
lost income
controlling; actuating
key person insurance
circulating capital

6. Which of the following is a requirement for a building layout?
Accessibility
commercial loans
advertising
inventory turnover

7. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
Income trends in the community
fixed expense
Ease of starting; Profit incentive

8. Rent is an example of a...
competition
Actively managed by stockholders
fixed expense
credit application

9. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
entrepreneur
the religion of the applicant
break-even point
intangible assets

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...
trade credit
partnership
Ease of starting; Profit incentive
to determine where the potential customers are

11. Capital that is invested in the business by the owner(s) is known as...
equity capital
corporation
Large financial capacity; Limited liability of each owner (stockholder)
Directing

12. Which of the following are advantages of a sole proprietorship?
Financial shortages
Ease of starting; Profit incentive
the employment interview
sole proprietorship

13. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
commercial loans
market
evaluating; controlling
2/10 - N30

14. 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...
Personal checks
break-even point
market
advertising

15. A BFOQ is...
sole proprietorship
sales promotions
a qualification that is absolutely necessary
an entrepreneur

16. A common business credit/sales tern is...
2/10 - N30
Terms of the sale
mark-up
Census of banking

17. A source of debt capital would include
fixed capital
commercial loans
break-even point
inventory control considerations

18. 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...
break-even point
consumerism
corporation
equity capital; personal capital

19. The principal government agency concerned with the financing - operation - and management of small businesses is the
partnership
fixed capital
mark-up
Small Business Administration

20. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
mark-up
key person insurance
ADA
the religion of the applicant

21. 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...
equity capital
variable expense
Small Business Administration
Proprietorship

22. Which of the following are advantages of a corporation?
demographics
Large financial capacity; Limited liability of each owner (stockholder)
corporation
advertising

23. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
description
inventory turnover
consumerism

24. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
Ease of starting; Profit incentive
inventory control considerations
to self-insure

25. An external problem that can lead to small business failure is...
consumer credit
to determine where the potential customers are
consumerism
economic base

26. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
intangible assets
sales promotions
description
Better Business Bureau

27. 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...
a business plan
the religion of the applicant
Proprietorship
partnership

28. Which of the following are disadvantages of a corporation?
Income trends in the community
demographics
variable expense
Legal restrictions on activities; Lack of personal interest

29. Which of the following is an external problem and risk of business ownership?
working capital
Personal checks
Tax burdens; Human resource planning
Equal Pay Act of 1963

30. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
partnership
a business plan
break-even point
Equal Pay Act of 1963

31. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
Lack of expertise
a business plan
economic base
a 2% discount if invoice is paid within 10 days - net due in 30 days

32. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
Better Business Bureau
break-even point
Unlimited liability; Limited management ability
new venture plan; business plan

33. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
a 2% discount if invoice is paid within 10 days - net due in 30 days
variable expense
competition
Better Business Bureau

34. Which of the following is an example of a variable expense?
Repairs
American's with Disabilities Act
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Tax burdens; Human resource planning

35. Which of the following are functions of management?
controlling; actuating
Chamber of Commerce
partnership
variable expense

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

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37. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
Take on more risks
demographics
merchandising business

38. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Indemnity
advertising
a structured interview
Income trends in the community

39. Which of the following is an intangible asset?
Name of the business; Goodwill
economic order quantity
Efficiency of labor; Combined management - talent and capital
credit application

40. 2/10 - N/30 means...
Whether or not they have an acceptable accounts receivable ratio
a 2% discount if invoice is paid within 10 days - net due in 30 days
equity capital; personal capital
working capital

41. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
Sales are increased; Goodwill is built-up and easily maintained
partnership
OSHA
CBD

42. Factors associated with evaluating a credit risk
inventory control considerations
fixed capital
market
break-even point

43. Which of the following is an internal problem that can contribute to the failure of a business?
variable expense
Financial shortages
equity capital; personal capital
Unlimited liability; Limited management ability

44. In business - a reduction of selling price below the original selling price is referred to as...
working capital
corporation
markdown
Sales are increased; Goodwill is built-up and easily maintained

45. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
economic base
controlling; actuating
advertising

46. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
corporation
to determine where the potential customers are
working capital

47. Which of the following is recognized as a disadvantage of extending credit?
Chamber of Commerce
Some losses from bad debts and customers with fraudulent intentions are bound to occur
revolving account; open-end credit
Census of banking

48. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
service business
merchandising business
Census of banking

49. Which of the following are disadvantages of a sole proprietorship?
demographics
description
Unlimited liability; Limited management ability
Large financial capacity; Limited liability of each owner (stockholder)

50. In a business - the number of times the average inventory is sold or used up can be referred to as...
Legal restrictions on activities; Lack of personal interest
Take on more risks
Unlimited liability; Limited management ability
inventory turnover

Can you answer 50 questions in 15 minutes?

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Small Business Management

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