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 written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
new venture plan; business plan
the employment interview
corporation
revolving account; open-end credit

2. Capital that is investe4d in the business by the owner(s) is known as...
Unlimited liability; Limited management ability
equity capital; personal capital
American's with Disabilities Act
Efficiency of labor; Combined management - talent and capital

3. In business - the name - goodwill - copyrights - and patents are referred to as...
working capital; circulating capital
intangible assets
Tax burdens; Human resource planning
new venture plan; business plan

4. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Legal restrictions on activities
sales promotions
2/10 - N30

5. The current asset items consisting of cash - inventories - and accounts receivables is known as...
controlling
circulating capital
break-even point
key person insurance

6. A BFOQ is...
a qualification that is absolutely necessary
inventory control considerations
market
Credit customers are more interested in quality and service than price

7. Which of the following is an intangible asset?
Applicant's sex
circulating capital
Name of the business; Goodwill
equity capital

8. In business - a reduction of selling price below the original selling price is referred to as...
an entrepreneur
demographics
markdown
Census of banking

9. Which of the following are advantages of a sole proprietorship?
Terms of the sale
to determine where the potential customers are
OSHA
Ease of starting; Profit incentive

10. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Take on more risks
to self-insure

11. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Accessibility
service business
Better Business Bureau
inventory turnover

12. Which of the following statements is TRUE concerning consumer credit?
Tax burdens; Human resource planning
Directing
evaluating; controlling
Credit customers are more interested in quality and service than price

13. Which of the following is NOT a way to reduce risks?
Take on more risks
credit application
Financial shortages
service business

14. An external problem that can lead to small business failure is...
consumerism
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Directing
a business plan

15. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
a structured interview
description
risk management
corporation

16. Business interruption insurance covers
commercial loans
lost income
proprietorship
a business plan

17. A legal form of organization whereby a legal entity is authorized by a state to operate a business under the entity's charter or articles of incorporation is known as a...
partnership
markdown
consumer credit
corporation

18. The difference between current assets and current liabilities is...
manufacturing business
working capital
Large financial capacity; Limited liability of each owner (stockholder)
Installment credit

19. 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...
a qualification that is absolutely necessary
service business
Repairs
demographics

20. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
new venture plan; business plan
consumerism
equity capital
Civil Rights Act

21. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
Equal Pay Act of 1963
inventory turnover
Small Business Administration

22. Which of the following is NOT a type of consumer credit?
Credit customers are more interested in quality and service than price
economic order quantity
Personal checks
to self-insure

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

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24. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
Commercial loans; Venture capitalists
Tax burdens; Human resource planning
corporation
OSHA

25. Which of the following are disadvantages of a sole proprietorship?
the employment interview
Ease of starting; Profit incentive
Unlimited liability; Limited management ability
merchandising business

26. Any capital that is invested in a business by the owner(s) can be called...
equity capital
evaluating; controlling
a qualification that is absolutely necessary
break-even point

27. A document that lists the major responsibilities and tasks of the job is known as a job
sole proprietorship
Some losses from bad debts and customers with fraudulent intentions are bound to occur
description
fixed expense

28. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
market
manufacturing business
American's with Disabilities Act
Ease of starting; Profit incentive

29. Which of the following are advantages of extending credit?
CBD
proprietorship
Sales are increased; Goodwill is built-up and easily maintained
Census of banking

30. The main objective in a market survey is...
credit application
to determine where the potential customers are
corporation
fixed expense

31. Which of the following is normally NOT a source of published market data?
Census of banking
circulating capital
to determine where the potential customers are
Name of the business; Goodwill

32. A business that purchases finished goods for resale is referred to as a...
description
merchandising business
break-even point
fixed expense

33. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
market
Equal Pay Act of 1963
new venture plan; business plan
Small Business Administration

34. The number of times the average inventory has been sold or used up during a period is known as...
Take on more risks
inventory turnover
Large financial capacity; Limited liability of each owner (stockholder)
working capital

35. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
break-even point
trade credit
corporation
Take on more risks

36. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
Name of the business; Goodwill
risk management
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
demographics

37. The quantity to be purchased which minimizes total cost is referred to as the...
Legal restrictions on activities; Lack of personal interest
revolving account; open-end credit
manufacturing business
economic order quantity

38. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
Whether or not they have an acceptable accounts receivable ratio
Tax burdens; Human resource planning
Large financial capacity; Limited liability of each owner (stockholder)

39. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities
Proprietorship
Installment credit
credit application

40. A strategy available to absorb risks would be...
advertising
to self-insure
economic base
Large financial capacity; Limited liability of each owner (stockholder)

41. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
demographics
Proprietorship
economic order quantity
a 2% discount if invoice is paid within 10 days - net due in 30 days

42. A strategy to minimize risk would be to...
have good management
Ease of starting; Profit incentive
partnership
a structured interview

43. A point in business operations whereby total sales revenue equals total costs
break-even point
intangible assets
partnership
competition

44. A factor to be considered with the evaluation of a credit risk would be the...
Directing
fixed capital
demographics
credit application

45. Which of the following are functions of management?
fixed capital
demographics
controlling; actuating
Lack of expertise

46. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
economic order quantity
market
a business plan
Terms of the sale

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

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48. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
commercial loans
Legal restrictions on activities
2/10 - N30

49. Which of the following is NOT a consumer buying motive?
Terms of the sale
equity capital
Indemnity
Large financial capacity; Limited liability of each owner (stockholder)

50. Which of the following is an internal problem that can lead to business failure?
Unlimited liability; Limited management ability
fixed capital
Lack of expertise
Accessibility