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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. Which of the following would NOT be an insurance risk to consider?
2/10 - N30
Terms of the sale
fixed expense
Sales are increased; Goodwill is built-up and easily maintained

2. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
inventory turnover
the employment interview
Actively managed by stockholders

3. A document that lists the major responsibilities and tasks of the job is known as a job
description
entrepreneur
an entrepreneur
break-even point

4. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
Financial shortages
risk management
Applicant's sex
consumer credit

5. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
manufacturing business
risk management
Some losses from bad debts and customers with fraudulent intentions are bound to occur
entrepreneur

6. An external problem that can lead to small business failure is...
consumerism
competition
markdown
break-even point

7. Which of the following are advantages of a sole proprietorship?
economic order quantity
Ease of starting; Profit incentive
fixed capital
partnership

8. Which of the following are disadvantages of a sole proprietorship?
Indemnity
service business
economic base
Unlimited liability; Limited management ability

9. Selling a business's accounts receivable for cash to a third party is referred to as...
OSHA
factoring
equity capital; personal capital
Ease of starting; Profit incentive

10. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
an entrepreneur
Small Business Administration
Proprietorship
Actively managed by stockholders

11. A particular business that provides a service as opposed to a product is referred to as a...
intangible assets
service business
equity capital; personal capital
risk management

12. A plan which provides inducements to potential purchasers of products and/or services is called...
equity capital
sales promotions
Installment credit
Equal Pay Act of 1963

13. A strategy to minimize risk would be to...
have good management
Tax burdens; Human resource planning
equity capital
credit application

14. Capital that is investe4d in the business by the owner(s) is known as...
lost income
equity capital; personal capital
Ease of starting; Profit incentive
Commercial loans; Venture capitalists

15. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
proprietorship
advertising
Equal Pay Act of 1963
Income trends in the community

16. The main objective in a market survey is...
to determine where the potential customers are
OSHA
key person insurance
the religion of the applicant

17. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
consumer credit
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
American's with Disabilities Act
service business

18. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
American's with Disabilities Act
equity capital; personal capital
description
revolving account; open-end credit

19. Which of the following are advantages of a corporation?
Equal Pay Act of 1963
inventory turnover
Name of the business; Goodwill
Large financial capacity; Limited liability of each owner (stockholder)

20. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
2/10 - N30
controlling; actuating
Name of the business; Goodwill
ADA

21. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
American's with Disabilities Act
service business
an entrepreneur

22. Which of the following are disadvantages of a partnership?
Personal checks
key person insurance
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
break-even point

23. The difference between current assets and current liabilities is...
fixed expense
working capital
working capital; circulating capital
a qualification that is absolutely necessary

24. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
merchandising business
Equal Pay Act of 1963
Applicant's sex
controlling; actuating

25. A small business is not...
American's with Disabilities Act
intangible assets
ADA
Actively managed by stockholders

26. A source of debt capital would include
have good management
Civil Rights Act
commercial loans
Personal checks

27. Which of the following is normally NOT a source of published market data?
equity capital; personal capital
Commercial loans; Venture capitalists
Census of banking
Installment credit

28. The form of legal organization that is owned and operated by one person is the...
Census of banking
proprietorship
break-even point
corporation

29. Which of the following is an internal problem that can lead to business failure?
equity capital
consumer credit
Lack of expertise
merchandising business

30. Which of the following is NOT a consumer buying motive?
Financial shortages
economic order quantity
Applicant's sex
Indemnity

31. Which of the following are advantages of a partnership?
Census of banking
factoring
Efficiency of labor; Combined management - talent and capital
equity capital; personal capital

32. 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...
corporation
2/10 - N30
variable expense
Small Business Administration

33. 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
Efficiency of labor; Combined management - talent and capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
the religion of the applicant

34. 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...
revolving account; open-end credit
demographics
intangible assets
inventory turnover

35. The difference between current assets and current liabilities is...
demographics
economic base
working capital
Civil Rights Act

36. Which of the following are examples of debt capital?
Commercial loans; Venture capitalists
OSHA
ADA
American's with Disabilities Act

37. Long term capital invested in the business is...
fixed capital
to determine where the potential customers are
CBD
revolving account; open-end credit

38. The wealth produced in or near a community that provides employment and income to the local population is known as the...
competition
evaluating; controlling
partnership
economic base

39. Business interruption insurance covers
lost income
sole proprietorship
service business
key person insurance

40. Any capital that is invested in a business by the owner(s) can be called...
Credit customers are more interested in quality and service than price
equity capital
controlling; actuating
advertising

41. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
Sales are increased; Goodwill is built-up and easily maintained
Credit customers are more interested in quality and service than price
Accessibility

42. The principal government agency concerned with the financing - operation - and management of small businesses is the
sole proprietorship
Small Business Administration
inventory turnover
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

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

44. Long-term capital that is invested in a business is referred to as...
Accessibility
equity capital
fixed capital
working capital; circulating capital

45. Which of the following are advantages of extending credit?
to self-insure
Sales are increased; Goodwill is built-up and easily maintained
CBD
advertising

46. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
factoring
Installment credit
the religion of the applicant

47. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
American's with Disabilities Act
demographics
sales promotions
Indemnity

48. 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
revolving account; open-end credit
inventory turnover
economic order quantity

49. In business - the name - goodwill - copyrights - and patents are referred to as...
sales promotions
intangible assets
Accessibility
markdown

50. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
demographics
fixed expense
lost income