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. Any capital that is invested in a business by the owner(s) can be called...
merchandising business
equity capital
Income trends in the community
a 2% discount if invoice is paid within 10 days - net due in 30 days

2. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
ADA
credit application
economic base
Equal Pay Act of 1963

3. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Indemnity
economic base
inventory turnover
markdown

4. 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...
Unlimited liability; Limited management ability
competition
variable expense
controlling

5. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
a business plan
competition
Lack of expertise
proprietorship

6. A common business credit/sales tern is...
sales promotions
2/10 - N30
controlling
market

7. Which of the following is an external problem and risk of business ownership?
evaluating; controlling
working capital
have good management
Tax burdens; Human resource planning

8. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
new venture plan; business plan
Lack of expertise
consumerism
Civil Rights Act

9. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Large financial capacity; Limited liability of each owner (stockholder)
a business plan
partnership

10. Which of the following are functions of management?
market
controlling; actuating
Indemnity
a structured interview

11. An external problem that can lead to small business failure is...
to determine where the potential customers are
lost income
new venture plan; business plan
consumerism

12. Which of the following are disadvantages of a partnership?
inventory turnover
2/10 - N30
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
new venture plan; business plan

13. Which of the following are advantages of a partnership?
Legal restrictions on activities; Lack of personal interest
Efficiency of labor; Combined management - talent and capital
risk management
Small Business Administration

14. Which of the following is an internal problem that can contribute to the failure of a business?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
lost income
controlling
Financial shortages

15. In business - a reduction of selling price below the original selling price is referred to as...
Credit customers are more interested in quality and service than price
Whether or not they have an acceptable accounts receivable ratio
Take on more risks
markdown

16. The difference between current assets and current liabilities is...
manufacturing business
Applicant's sex
a structured interview
working capital; circulating capital

17. A point in business operations whereby total sales revenue equals total costs
markdown
controlling
break-even point
inventory control considerations

18. 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...
Tax burdens; Human resource planning
fixed capital
demographics
Legal restrictions on activities

19. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
Legal restrictions on activities; Lack of personal interest
to determine where the potential customers are
manufacturing business
OSHA

20. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
credit application
sole proprietorship
Whether or not they have an acceptable accounts receivable ratio

21. In a business - the number of times the average inventory is sold or used up can be referred to as...
Repairs
inventory turnover
ADA
to self-insure

22. The number of times the average inventory has been sold or used up during a period is known as...
the religion of the applicant
controlling
inventory turnover
Accessibility

23. Which of the following are advantages of a corporation?
factoring
Large financial capacity; Limited liability of each owner (stockholder)
controlling; actuating
equity capital

24. The form of legal organization that is owned and operated by one person is the...
economic base
have good management
mark-up
proprietorship

25. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
fixed capital
markdown
competition

26. Which of the following would NOT be an insurance risk to consider?
a structured interview
controlling
demographics
Terms of the sale

27. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
a business plan
Ease of starting; Profit incentive
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

28. All of the following are factors which can affect the recruitment and selection of employees except
lost income
corporation
the religion of the applicant
Repairs

29. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
Take on more risks
entrepreneur
economic base
CBD

30. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
to determine where the potential customers are
American's with Disabilities Act
Credit customers are more interested in quality and service than price
advertising

31. The main objective in a market survey is...
Actively managed by stockholders
commercial loans
economic order quantity
to determine where the potential customers are

32. Which of the following is not a consideration concerning the selection of suppliers?
Small Business Administration
description
Whether or not they have an acceptable accounts receivable ratio
Some losses from bad debts and customers with fraudulent intentions are bound to occur

33. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
equity capital
service business
competition

34. 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...
Tax burdens; Human resource planning
the employment interview
partnership
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

35. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
competition
demographics
proprietorship
OSHA

36. Factors associated with evaluating a credit risk
corporation
Whether or not they have an acceptable accounts receivable ratio
inventory control considerations
intangible assets

37. A BFOQ is...
service business
key person insurance
2/10 - N30
a qualification that is absolutely necessary

38. 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...
inventory turnover
Accessibility
demographics
corporation

39. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Sales are increased; Goodwill is built-up and easily maintained
a business plan
Large financial capacity; Limited liability of each owner (stockholder)
ADA

40. In business - the name - goodwill - copyrights - and patents are referred to as...
markdown
intangible assets
Better Business Bureau
sole proprietorship

41. Which of the following are advantages of a sole proprietorship?
break-even point
Ease of starting; Profit incentive
CBD
circulating capital

42. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
inventory turnover
entrepreneur
fixed capital
2/10 - N30

43. Life insurance that protects a firm against losses due to the death of a key employee is known as...
markdown
evaluating; controlling
controlling
key person insurance

44. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
circulating capital
Installment credit
risk management
partnership

45. A business that purchases finished goods for resale is referred to as a...
inventory control considerations
equity capital
merchandising business
service business

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

47. Which of the following is normally NOT a source of published market data?
Installment credit
manufacturing business
Census of banking
to determine where the potential customers are

48. Which of the following is a requirement for a building layout?
Accessibility
Actively managed by stockholders
to determine where the potential customers are
Census of banking

49. Which of the following are examples of debt capital?
Commercial loans; Venture capitalists
factoring
ADA
Credit customers are more interested in quality and service than price

50. Which of the following laws prohibits discrimination against any qualified individual with a disability?