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. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
corporation
demographics
break-even point
partnership

2. 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...
sales promotions
variable expense
entrepreneur
economic base

3. A source of debt capital would include
market
commercial loans
Indemnity
sole proprietorship

4. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Indemnity
commercial loans
working capital; circulating capital
entrepreneur

5. Which of the following is NOT used to measure the success of advertising?
entrepreneur
Tax burdens; Human resource planning
equity capital
Income trends in the community

6. 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...
entrepreneur
Directing
partnership
a 2% discount if invoice is paid within 10 days - net due in 30 days

7. On a chart which plots sales - fixed and variable costs for a given period of time - the point where the sales and the total cost lines intersect is called the...
the religion of the applicant
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
corporation
break-even point

8. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
market
demographics
mark-up
commercial loans

9. The difference between current assets and current liabilities is...
consumer credit
working capital
sales promotions
Accessibility

10. Life insurance that protects a firm against losses due to the death of a key employee is known as...
entrepreneur
have good management
key person insurance
partnership

11. A point in business operations whereby total sales revenue equals total costs
controlling; actuating
break-even point
partnership
key person insurance

12. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
new venture plan; business plan
2/10 - N30
demographics
working capital; circulating capital

13. A particular business that provides a service as opposed to a product is referred to as a...
proprietorship
service business
Whether or not they have an acceptable accounts receivable ratio
Chamber of Commerce

14. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Accessibility
consumer credit
Lack of expertise
have good management

15. Rent is an example of a...
fixed expense
Sales are increased; Goodwill is built-up and easily maintained
working capital
controlling; actuating

16. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
revolving account; open-end credit
Directing
controlling; actuating
risk management

17. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
inventory turnover
equity capital
advertising
Name of the business; Goodwill

18. Which of the following are advantages of a sole proprietorship?
merchandising business
Lack of expertise
Ease of starting; Profit incentive
risk management

19. Which of the following are advantages of extending credit?
economic order quantity
Directing
Sales are increased; Goodwill is built-up and easily maintained
Large financial capacity; Limited liability of each owner (stockholder)

20. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
Equal Pay Act of 1963
partnership
equity capital; personal capital

21. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
sole proprietorship
a business plan
the employment interview
equity capital; personal capital

22. Which of the following is an internal problem that can lead to business failure?
sales promotions
entrepreneur
inventory control considerations
Lack of expertise

23. Which of the following would NOT be an insurance risk to consider?
Directing
risk management
Terms of the sale
Financial shortages

24. An external problem that can lead to small business failure is...
consumerism
Legal restrictions on activities; Lack of personal interest
corporation
OSHA

25. Selling a business's accounts receivable for cash to a third party is referred to as...
consumerism
factoring
break-even point
market

26. Which of the following is an internal problem that can contribute to the failure of a business?
consumer credit
Personal checks
Financial shortages
entrepreneur

27. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Directing
Indemnity
competition
a structured interview

28. Which of the following is not a consideration concerning the selection of suppliers?
inventory control considerations
Whether or not they have an acceptable accounts receivable ratio
break-even point
Accessibility

29. Which of the following is NOT a way to reduce risks?
corporation
economic order quantity
Take on more risks
a business plan

30. 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...
Credit customers are more interested in quality and service than price
sole proprietorship
competition
demographics

31. In business - a reduction of selling price below the original selling price is referred to as...
have good management
markdown
a business plan
the religion of the applicant

32. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
revolving account; open-end credit
Repairs
a structured interview
merchandising business

33. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
controlling; actuating
equity capital
demographics
Chamber of Commerce

34. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
Installment credit
description
break-even point

35. Which of the following is an example of a variable expense?
market
Repairs
Take on more risks
Installment credit

36. The main objective in a market survey is...
to determine where the potential customers are
to self-insure
corporation
inventory control considerations

37. Which of the following are examples of debt capital?
corporation
lost income
Commercial loans; Venture capitalists
Legal restrictions on activities; Lack of personal interest

38. Long term capital invested in the business is...
Ease of starting; Profit incentive
fixed capital
Repairs
equity capital

39. A strategy to minimize risk would be to...
demographics
have good management
economic base
commercial loans

40. 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
2/10 - N30
a qualification that is absolutely necessary
Income trends in the community

41. Which of the following is an intangible asset?
description
Name of the business; Goodwill
to self-insure
fixed capital

42. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
a structured interview
variable expense
manufacturing business

43. The difference between merchandise cost and the selling price is known as the...
mark-up
a business plan
markdown
risk management

44. Which of the following are functions of management?
controlling; actuating
partnership
a structured interview
American's with Disabilities Act

45. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Civil Rights Act
Legal restrictions on activities; Lack of personal interest
inventory turnover
credit application

46. Long-term capital that is invested in a business is referred to as...
Sales are increased; Goodwill is built-up and easily maintained
partnership
economic order quantity
fixed capital

47. Business interruption insurance covers
economic base
manufacturing business
lost income
CBD

48. In business - the name - goodwill - copyrights - and patents are referred to as...
inventory turnover
consumerism
the religion of the applicant
intangible assets

49. The simplest and most common legal form of business ownership is...
sole proprietorship
Directing
lost income
to self-insure

50. A business that purchases finished goods for resale is referred to as a...
Efficiency of labor; Combined management - talent and capital
merchandising business
Sales are increased; Goodwill is built-up and easily maintained
trade credit