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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. One who organizes - manages - and assumes the risk of a business form or venture is known as...
partnership
an entrepreneur
equity capital; personal capital
partnership

2. Which of the following are functions of management?
break-even point
controlling; actuating
description
key person insurance

3. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
lost income
key person insurance
intangible assets

4. 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...
Legal restrictions on activities
description
corporation
Commercial loans; Venture capitalists

5. Which of the following are advantages of extending credit?
Installment credit
Whether or not they have an acceptable accounts receivable ratio
Commercial loans; Venture capitalists
Sales are increased; Goodwill is built-up and easily maintained

6. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Installment credit
break-even point
controlling

7. Long-term capital that is invested in a business is referred to as...
fixed capital
Sales are increased; Goodwill is built-up and easily maintained
manufacturing business
equity capital; personal capital

8. Which of the following would NOT be an insurance risk to consider?
inventory control considerations
Commercial loans; Venture capitalists
Actively managed by stockholders
Terms of the sale

9. 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
Better Business Bureau
Installment credit
a business plan

10. Which of the following is NOT a way to reduce risks?
lost income
the religion of the applicant
Take on more risks
corporation

11. The difference between merchandise cost and the selling price is known as the...
the employment interview
fixed capital
mark-up
Financial shortages

12. Which of the following is NOT a consumer buying motive?
consumer credit
Indemnity
fixed capital
Better Business Bureau

13. A plan which provides inducements to potential purchasers of products and/or services is called...
Tax burdens; Human resource planning
sales promotions
Commercial loans; Venture capitalists
an entrepreneur

14. A source of debt capital would include
break-even point
fixed capital
Indemnity
commercial loans

15. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
consumerism
new venture plan; business plan
working capital; circulating capital
Better Business Bureau

16. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
risk management
Better Business Bureau
Terms of the sale
manufacturing business

17. Which of the following is a requirement for a building layout?
sales promotions
equity capital; personal capital
break-even point
Accessibility

18. The number of times the average inventory has been sold or used up during a period is known as...
economic base
inventory turnover
fixed capital
demographics

19. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
an entrepreneur
a 2% discount if invoice is paid within 10 days - net due in 30 days
Some losses from bad debts and customers with fraudulent intentions are bound to occur

20. 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...
Unlimited liability; Limited management ability
variable expense
a 2% discount if invoice is paid within 10 days - net due in 30 days
new venture plan; business plan

21. Which of the following are advantages of a sole proprietorship?
a 2% discount if invoice is paid within 10 days - net due in 30 days
Personal checks
Ease of starting; Profit incentive
variable expense

22. Which of the following are examples of debt capital?
partnership
variable expense
Commercial loans; Venture capitalists
Legal restrictions on activities

23. Selling a business's accounts receivable for cash to a third party is referred to as...
proprietorship
Accessibility
factoring
Legal restrictions on activities; Lack of personal interest

24. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
factoring
manufacturing business
working capital
Equal Pay Act of 1963

25. A particular business that provides a service as opposed to a product is referred to as a...
service business
competition
Lack of expertise
factoring

26. The current asset items consisting of cash - inventories - and accounts receivables is known as...
commercial loans
Name of the business; Goodwill
Better Business Bureau
circulating capital

27. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
fixed capital
equity capital; personal capital
Proprietorship
the employment interview

28. 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...
partnership
Income trends in the community
description
evaluating; controlling

29. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
Personal checks
working capital; circulating capital
Legal restrictions on activities; Lack of personal interest

30. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
entrepreneur
corporation
Repairs
an entrepreneur

31. A small business is not...
Whether or not they have an acceptable accounts receivable ratio
Repairs
Actively managed by stockholders
Commercial loans; Venture capitalists

32. A common business credit/sales tern is...
corporation
demographics
controlling
2/10 - N30

33. A point in business operations whereby total sales revenue equals total costs
break-even point
factoring
revolving account; open-end credit
market

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

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35. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
market
credit application
markdown
OSHA

36. Which of the following are disadvantages of a corporation?
CBD
Legal restrictions on activities; Lack of personal interest
controlling
trade credit

37. Which of the following is NOT a type of consumer credit?
a 2% discount if invoice is paid within 10 days - net due in 30 days
Personal checks
Civil Rights Act
Terms of the sale

38. Life insurance that protects a firm against losses due to the death of a key employee is known as...
equity capital; personal capital
key person insurance
inventory turnover
controlling; actuating

39. Factors associated with evaluating a credit risk
merchandising business
inventory control considerations
Large financial capacity; Limited liability of each owner (stockholder)
risk management

40. Capital that is investe4d in the business by the owner(s) is known as...
ADA
market
equity capital; personal capital
Small Business Administration

41. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
commercial loans
sole proprietorship
consumer credit
variable expense

42. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Actively managed by stockholders
Chamber of Commerce
OSHA
Directing

43. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
equity capital
break-even point
Take on more risks

44. Which of the following are advantages of a corporation?
risk management
circulating capital
Large financial capacity; Limited liability of each owner (stockholder)
fixed capital

45. The difference between current assets and current liabilities is...
working capital; circulating capital
key person insurance
Tax burdens; Human resource planning
CBD

46. Which of the following is an intangible asset?
Directing
Legal restrictions on activities
fixed expense
Name of the business; Goodwill

47. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Income trends in the community
fixed capital
trade credit

48. Long term capital invested in the business is...
commercial loans
fixed capital
Legal restrictions on activities
Name of the business; Goodwill

49. Which of the following is NOT an advantage of a corporation?
have good management
sales promotions
Installment credit
Legal restrictions on activities

50. An interview whereby the applicant is asked a pre-determined set of questions is known as...
proprietorship
a structured interview
break-even point
demographics