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
a business plan
credit application
break-even point

2. Which of the following is NOT a type of consumer credit?
controlling
Personal checks
a qualification that is absolutely necessary
advertising

3. Which of the following are disadvantages of a partnership?
Directing
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Tax burdens; Human resource planning
controlling; actuating

4. The difference between current assets and current liabilities is...
working capital; circulating capital
Tax burdens; Human resource planning
economic base
sole proprietorship

5. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
Indemnity
corporation
demographics

6. Which of the following is NOT an advantage of a corporation?
consumer credit
Legal restrictions on activities
CBD
evaluating; controlling

7. Which of the following is an intangible asset?
advertising
competition
Name of the business; Goodwill
Applicant's sex

8. Selling a business's accounts receivable for cash to a third party is referred to as...
inventory turnover
factoring
a qualification that is absolutely necessary
OSHA

9. A small business is not...
Commercial loans; Venture capitalists
Actively managed by stockholders
inventory turnover
Ease of starting; Profit incentive

10. 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
partnership
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
sales promotions

11. Which of the following is recognized as a disadvantage of extending credit?
factoring
demographics
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Better Business Bureau

12. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Credit customers are more interested in quality and service than price
working capital
trade credit
Installment credit

13. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
key person insurance
Chamber of Commerce
Indemnity

14. Which of the following would NOT be an insurance risk to consider?
the religion of the applicant
2/10 - N30
Terms of the sale
inventory turnover

15. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
inventory control considerations
break-even point
Name of the business; Goodwill

16. A strategy available to absorb risks would be...
Financial shortages
demographics
to self-insure
manufacturing business

17. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
OSHA
Personal checks
ADA
a 2% discount if invoice is paid within 10 days - net due in 30 days

18. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Applicant's sex
equity capital
ADA
demographics

19. Which of the following is NOT used to measure the success of advertising?
Income trends in the community
partnership
inventory turnover
to self-insure

20. Which of the following are disadvantages of a corporation?
Lack of expertise
CBD
Legal restrictions on activities; Lack of personal interest
the religion of the applicant

21. A BFOQ is...
Proprietorship
a qualification that is absolutely necessary
fixed expense
demographics

22. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Census of banking
Unlimited liability; Limited management ability
Civil Rights Act
Credit customers are more interested in quality and service than price

23. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
equity capital
Chamber of Commerce
manufacturing business

24. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
Legal restrictions on activities; Lack of personal interest
to self-insure
Applicant's sex

25. Which of the following is normally NOT a source of published market data?
a structured interview
circulating capital
Credit customers are more interested in quality and service than price
Census of banking

26. Rent is an example of a...
advertising
fixed expense
evaluating; controlling
working capital

27. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
a qualification that is absolutely necessary
intangible assets
Proprietorship
working capital

28. The principal government agency concerned with the financing - operation - and management of small businesses is the
Ease of starting; Profit incentive
OSHA
Small Business Administration
have good management

29. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
variable expense
OSHA
CBD
Small Business Administration

30. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
equity capital; personal capital
sales promotions
Directing
partnership

31. A point in business operations whereby total sales revenue equals total costs
Accessibility
break-even point
Terms of the sale
demographics

32. A document that lists the major responsibilities and tasks of the job is known as a job
description
credit application
partnership
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

33. A strategy to minimize risk would be to...
Directing
demographics
have good management
break-even point

34. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
Actively managed by stockholders
corporation
CBD
the employment interview

35. The difference between merchandise cost and the selling price is known as the...
equity capital
mark-up
Some losses from bad debts and customers with fraudulent intentions are bound to occur
fixed capital

36. Which of the following is a requirement for a building layout?
Accessibility
description
consumerism
break-even point

37. 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...
2/10 - N30
Tax burdens; Human resource planning
Take on more risks
partnership

38. Which of the following is NOT a consumer buying motive?
Indemnity
Credit customers are more interested in quality and service than price
Legal restrictions on activities; Lack of personal interest
Large financial capacity; Limited liability of each owner (stockholder)

39. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Small Business Administration
consumer credit
Applicant's sex
Some losses from bad debts and customers with fraudulent intentions are bound to occur

40. An interview whereby the applicant is asked a pre-determined set of questions is known as...
economic order quantity
economic base
equity capital
a structured interview

41. Long-term capital that is invested in a business is referred to as...
risk management
fixed capital
intangible assets
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

42. Business interruption insurance covers
to determine where the potential customers are
Ease of starting; Profit incentive
lost income
corporation

43. Capital that is invested in the business by the owner(s) is known as...
economic order quantity
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
service business
equity capital

44. In business - a reduction of selling price below the original selling price is referred to as...
service business
markdown
credit application
advertising

45. A particular business that provides a service as opposed to a product is referred to as a...
fixed capital
service business
sole proprietorship
2/10 - N30

46. A business that purchases finished goods for resale is referred to as a...
2/10 - N30
merchandising business
to determine where the potential customers are
Proprietorship

47. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
controlling
Installment credit
risk management
demographics

48. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
key person insurance
variable expense
Unlimited liability; Limited management ability
risk management

49. An external problem that can lead to small business failure is...
Income trends in the community
consumerism
inventory turnover
merchandising business

50. Which of the following are examples of debt capital?
revolving account; open-end credit
Commercial loans; Venture capitalists
Financial shortages
Divided authority among partners; Death or incapacity of one of the partners may end the partnership