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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. Long term capital invested in the business is...
Personal checks
2/10 - N30
a structured interview
fixed capital

2. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
CBD
Commercial loans; Venture capitalists
competition
sole proprietorship

3. The wealth produced in or near a community that provides employment and income to the local population is known as the...
a 2% discount if invoice is paid within 10 days - net due in 30 days
intangible assets
Financial shortages
economic base

4. Which of the following is a requirement for a building layout?
merchandising business
Accessibility
sole proprietorship
partnership

5. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
Repairs
Commercial loans; Venture capitalists
inventory control considerations
the employment interview

6. Which of the following would NOT be an insurance risk to consider?
Terms of the sale
to self-insure
the religion of the applicant
risk management

7. A plan which provides inducements to potential purchasers of products and/or services is called...
Legal restrictions on activities
ADA
sales promotions
inventory control considerations

8. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
to self-insure
Repairs
Installment credit
economic base

9. An external problem that can lead to small business failure is...
description
key person insurance
consumerism
fixed expense

10. Which of the following are advantages of a sole proprietorship?
fixed capital
competition
Ease of starting; Profit incentive
a business plan

11. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
sole proprietorship
ADA
Directing
a structured interview

12. Which of the following is NOT a type of consumer credit?
ADA
Take on more risks
to self-insure
Personal checks

13. 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...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Financial shortages
corporation
Better Business Bureau

14. In business - a reduction of selling price below the original selling price is referred to as...
inventory control considerations
competition
working capital
markdown

15. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Take on more risks
consumer credit
Tax burdens; Human resource planning
corporation

16. Which of the following are examples of debt capital?
a business plan
Accessibility
Tax burdens; Human resource planning
Commercial loans; Venture capitalists

17. 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
fixed capital
equity capital
Equal Pay Act of 1963

18. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
Credit customers are more interested in quality and service than price
break-even point
Sales are increased; Goodwill is built-up and easily maintained

19. The difference between current assets and current liabilities is...
controlling; actuating
working capital; circulating capital
have good management
advertising

20. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
proprietorship
Directing
circulating capital

21. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Small Business Administration
corporation
Chamber of Commerce
proprietorship

22. A factor to be considered with the evaluation of a credit risk would be the...
Efficiency of labor; Combined management - talent and capital
intangible assets
Some losses from bad debts and customers with fraudulent intentions are bound to occur
credit application

23. A strategy to minimize risk would be to...
have good management
economic base
consumer credit
equity capital

24. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
controlling; actuating
Commercial loans; Venture capitalists
new venture plan; business plan
Equal Pay Act of 1963

25. Which of the following is not a consideration concerning the selection of suppliers?
to determine where the potential customers are
credit application
demographics
Whether or not they have an acceptable accounts receivable ratio

26. Which of the following is an external problem and risk of business ownership?
Financial shortages
Tax burdens; Human resource planning
fixed capital
competition

27. 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...
Installment credit
partnership
equity capital
corporation

28. A business that purchases finished goods for resale is referred to as a...
Directing
a structured interview
merchandising business
description

29. 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
new venture plan; business plan
Installment credit
a structured interview

30. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
Better Business Bureau
demographics
Whether or not they have an acceptable accounts receivable ratio
controlling; actuating

31. The principal government agency concerned with the financing - operation - and management of small businesses is the
Small Business Administration
fixed capital
the religion of the applicant
2/10 - N30

32. A point in business operations whereby total sales revenue equals total costs
Income trends in the community
break-even point
the religion of the applicant
merchandising business

33. Which of the following are advantages of extending credit?
Repairs
Sales are increased; Goodwill is built-up and easily maintained
Unlimited liability; Limited management ability
Some losses from bad debts and customers with fraudulent intentions are bound to occur

34. A common business credit/sales tern is...
equity capital; personal capital
2/10 - N30
Proprietorship
corporation

35. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
variable expense
Installment credit
fixed expense

36. In business - the name - goodwill - copyrights - and patents are referred to as...
Name of the business; Goodwill
Repairs
intangible assets
Commercial loans; Venture capitalists

37. Capital that is investe4d in the business by the owner(s) is known as...
break-even point
controlling
consumerism
equity capital; personal capital

38. The quantity to be purchased which minimizes total cost is referred to as the...
economic order quantity
trade credit
Accessibility
new venture plan; business plan

39. Which of the following is an intangible asset?
Repairs
Name of the business; Goodwill
variable expense
fixed capital

40. Which of the following are disadvantages of a sole proprietorship?
a business plan
American's with Disabilities Act
Unlimited liability; Limited management ability
partnership

41. Which of the following is NOT a way to reduce risks?
controlling
mark-up
a business plan
Take on more risks

42. A small business is not...
Unlimited liability; Limited management ability
key person insurance
inventory turnover
Actively managed by stockholders

43. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
description
variable expense
evaluating; controlling
the religion of the applicant

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

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45. A management function which compares organizational and individual performance with predetermined standards or expected results is...
Repairs
controlling
controlling; actuating
corporation

46. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Proprietorship
working capital
Commercial loans; Venture capitalists
break-even point

47. 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...
the employment interview
partnership
inventory turnover
Ease of starting; Profit incentive

48. Long-term capital that is invested in a business is referred to as...
fixed capital
economic base
to self-insure
mark-up

49. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
to determine where the potential customers are
CBD
Income trends in the community
risk management

50. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Installment credit
the religion of the applicant
entrepreneur
Directing