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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. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
fixed capital
economic base
Small Business Administration

2. Which of the following is normally NOT a source of published market data?
circulating capital
Census of banking
American's with Disabilities Act
merchandising business

3. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
credit application
Installment credit
break-even point
Lack of expertise

4. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
circulating capital
a structured interview
sole proprietorship

5. 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
Take on more risks
proprietorship
evaluating; controlling

6. Any capital that is invested in a business by the owner(s) can be called...
lost income
consumer credit
equity capital
demographics

7. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
American's with Disabilities Act
manufacturing business
competition
inventory control considerations

8. The form of legal organization that is owned and operated by one person is the...
proprietorship
controlling; actuating
controlling
new venture plan; business plan

9. The main objective in a market survey is...
American's with Disabilities Act
entrepreneur
Ease of starting; Profit incentive
to determine where the potential customers are

10. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
Sales are increased; Goodwill is built-up and easily maintained
Tax burdens; Human resource planning
Ease of starting; Profit incentive
market

11. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
entrepreneur
factoring
proprietorship

12. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Credit customers are more interested in quality and service than price
Personal checks
sales promotions
Proprietorship

13. Rent is an example of a...
manufacturing business
fixed expense
Whether or not they have an acceptable accounts receivable ratio
entrepreneur

14. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
demographics
CBD
entrepreneur
inventory turnover

15. Factors associated with evaluating a credit risk
a 2% discount if invoice is paid within 10 days - net due in 30 days
risk management
Repairs
inventory control considerations

16. A document that lists the major responsibilities and tasks of the job is known as a job
inventory turnover
CBD
factoring
description

17. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
the employment interview
Terms of the sale
inventory turnover

18. Which of the following are examples of debt capital?
Better Business Bureau
Commercial loans; Venture capitalists
demographics
corporation

19. Which of the following are advantages of a corporation?
equity capital
Directing
Large financial capacity; Limited liability of each owner (stockholder)
Applicant's sex

20. The quantity to be purchased which minimizes total cost is referred to as the...
a 2% discount if invoice is paid within 10 days - net due in 30 days
working capital
economic order quantity
Better Business Bureau

21. Which of the following are disadvantages of a partnership?
entrepreneur
fixed expense
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
ADA

22. A factor to be considered with the evaluation of a credit risk would be the...
working capital; circulating capital
credit application
Census of banking
Some losses from bad debts and customers with fraudulent intentions are bound to occur

23. The number of times the average inventory has been sold or used up during a period is known as...
Small Business Administration
Civil Rights Act
service business
inventory turnover

24. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
fixed capital
2/10 - N30
Efficiency of labor; Combined management - talent and capital

25. A management function which compares organizational and individual performance with predetermined standards or expected results is...
revolving account; open-end credit
equity capital
2/10 - N30
controlling

26. The principal government agency concerned with the financing - operation - and management of small businesses is the
Commercial loans; Venture capitalists
Small Business Administration
working capital; circulating capital
fixed capital

27. A plan which provides inducements to potential purchasers of products and/or services is called...
sales promotions
American's with Disabilities Act
Lack of expertise
variable expense

28. Which of the following is an example of a variable expense?
Repairs
working capital; circulating capital
Census of banking
working capital

29. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
Some losses from bad debts and customers with fraudulent intentions are bound to occur
factoring
equity capital; personal capital

30. Which of the following are advantages of a sole proprietorship?
manufacturing business
market
Ease of starting; Profit incentive
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

31. The simplest and most common legal form of business ownership is...
lost income
sole proprietorship
consumer credit
equity capital

32. Capital that is investe4d in the business by the owner(s) is known as...
working capital
partnership
equity capital
equity capital; personal capital

33. Which of the following are disadvantages of a sole proprietorship?
Unlimited liability; Limited management ability
corporation
consumerism
Installment credit

34. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
CBD
Ease of starting; Profit incentive
economic base

35. A BFOQ is...
Repairs
merchandising business
a qualification that is absolutely necessary
Large financial capacity; Limited liability of each owner (stockholder)

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

37. Which of the following is a requirement for a building layout?
fixed capital
merchandising business
the religion of the applicant
Accessibility

38. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Take on more risks
Income trends in the community
break-even point
advertising

39. Which of the following is an internal problem that can contribute to the failure of a business?
inventory control considerations
economic base
Financial shortages
sole proprietorship

40. A small business is not...
equity capital
consumerism
Legal restrictions on activities
Actively managed by stockholders

41. Which of the following is NOT an advantage of a corporation?
Proprietorship
Legal restrictions on activities
markdown
manufacturing business

42. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
Ease of starting; Profit incentive
Personal checks
consumerism

43. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
Proprietorship
Terms of the sale
Unlimited liability; Limited management ability

44. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
sales promotions
inventory turnover
credit application

45. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
the employment interview
evaluating; controlling
Ease of starting; Profit incentive

46. The wealth produced in or near a community that provides employment and income to the local population is known as the...
competition
economic base
sales promotions
commercial loans

47. A business that purchases finished goods for resale is referred to as a...
merchandising business
inventory turnover
consumerism
to self-insure

48. Which of the following is an intangible asset?
Name of the business; Goodwill
inventory turnover
partnership
trade credit

49. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
a business plan
intangible assets
inventory turnover

50. Which of the following is NOT a way to reduce risks?
Take on more risks
controlling; actuating
merchandising business
equity capital; personal capital