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 business that makes finished goods from raw materials by hand or machinery is referred to as a...
manufacturing business
credit application
demographics
competition

2. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
commercial loans
Whether or not they have an acceptable accounts receivable ratio
ADA
consumerism

3. 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
variable expense
markdown
Name of the business; Goodwill

4. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
partnership
controlling
corporation

5. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
Applicant's sex
corporation
Actively managed by stockholders

6. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
demographics
break-even point
consumer credit

7. A small business is not...
fixed expense
Actively managed by stockholders
proprietorship
demographics

8. Which of the following are disadvantages of a corporation?
sole proprietorship
Legal restrictions on activities; Lack of personal interest
factoring
Credit customers are more interested in quality and service than price

9. A common business credit/sales tern is...
consumerism
OSHA
circulating capital
2/10 - N30

10. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
Financial shortages
consumer credit
new venture plan; business plan
Sales are increased; Goodwill is built-up and easily maintained

11. The main objective in a market survey is...
fixed capital
ADA
to determine where the potential customers are
Name of the business; Goodwill

12. Long term capital invested in the business is...
trade credit
intangible assets
fixed capital
sole proprietorship

13. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
OSHA
markdown
risk management
Large financial capacity; Limited liability of each owner (stockholder)

14. A factor to be considered with the evaluation of a credit risk would be the...
Income trends in the community
Unlimited liability; Limited management ability
fixed expense
credit application

15. The number of times the average inventory has been sold or used up during a period is known as...
Small Business Administration
inventory turnover
Unlimited liability; Limited management ability
Better Business Bureau

16. Which of the following are disadvantages of a partnership?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Ease of starting; Profit incentive
Unlimited liability; Limited management ability
American's with Disabilities Act

17. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
corporation
Credit customers are more interested in quality and service than price
the employment interview
Whether or not they have an acceptable accounts receivable ratio

18. A plan which provides inducements to potential purchasers of products and/or services is called...
equity capital
Small Business Administration
economic base
sales promotions

19. Which of the following are functions of management?
Equal Pay Act of 1963
controlling; actuating
Whether or not they have an acceptable accounts receivable ratio
sales promotions

20. Which of the following is an example of a variable expense?
Ease of starting; Profit incentive
Proprietorship
Repairs
Sales are increased; Goodwill is built-up and easily maintained

21. 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...
Lack of expertise
inventory turnover
description
demographics

22. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
circulating capital
Tax burdens; Human resource planning
CBD

23. The difference between current assets and current liabilities is...
working capital; circulating capital
lost income
Directing
Accessibility

24. Which of the following is an external problem and risk of business ownership?
entrepreneur
demographics
markdown
Tax burdens; Human resource planning

25. The principal government agency concerned with the financing - operation - and management of small businesses is the
Legal restrictions on activities
risk management
Small Business Administration
equity capital; personal capital

26. Any capital that is invested in a business by the owner(s) can be called...
consumerism
Legal restrictions on activities
equity capital
Financial shortages

27. 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...
variable expense
the religion of the applicant
Credit customers are more interested in quality and service than price
corporation

28. Which of the following is an internal problem that can lead to business failure?
Indemnity
Lack of expertise
Actively managed by stockholders
Credit customers are more interested in quality and service than price

29. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
the employment interview
consumer credit
Equal Pay Act of 1963
Some losses from bad debts and customers with fraudulent intentions are bound to occur

30. Capital that is investe4d in the business by the owner(s) is known as...
equity capital; personal capital
break-even point
a qualification that is absolutely necessary
fixed expense

31. Long-term capital that is invested in a business is referred to as...
CBD
break-even point
Accessibility
fixed capital

32. In business - the name - goodwill - copyrights - and patents are referred to as...
Unlimited liability; Limited management ability
a qualification that is absolutely necessary
intangible assets
inventory turnover

33. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
mark-up
credit application
break-even point
demographics

34. The difference between current assets and current liabilities is...
working capital
a 2% discount if invoice is paid within 10 days - net due in 30 days
demographics
circulating capital

35. Capital that is invested in the business by the owner(s) is known as...
Financial shortages
equity capital
consumerism
corporation

36. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
Actively managed by stockholders
Tax burdens; Human resource planning
to determine where the potential customers are

37. An external problem that can lead to small business failure is...
consumerism
market
the employment interview
Directing

38. Which of the following is normally NOT a source of published market data?
Census of banking
Personal checks
Actively managed by stockholders
working capital

39. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
a business plan
credit application
partnership

40. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
competition
inventory control considerations
Equal Pay Act of 1963

41. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
2/10 - N30
equity capital; personal capital
risk management

42. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Personal checks
Ease of starting; Profit incentive
ADA
Directing

43. 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
working capital; circulating capital
Income trends in the community
ADA

44. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
risk management
working capital; circulating capital
fixed expense
Chamber of Commerce

45. Which of the following is an intangible asset?
Legal restrictions on activities; Lack of personal interest
to self-insure
Name of the business; Goodwill
a structured interview

46. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
description
Tax burdens; Human resource planning
the religion of the applicant

47. Which of the following is NOT an advantage of a corporation?
Income trends in the community
a structured interview
Equal Pay Act of 1963
Legal restrictions on activities

48. The form of legal organization that is owned and operated by one person is the...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
proprietorship
factoring
Actively managed by stockholders

49. Which of the following would NOT be an insurance risk to consider?
the employment interview
fixed capital
Terms of the sale
controlling

50. A particular business that provides a service as opposed to a product is referred to as a...
Take on more risks
fixed capital
service business
have good management