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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. Capital that is invested in the business by the owner(s) is known as...
credit application
corporation
corporation
equity capital

2. The main objective in a market survey is...
lost income
trade credit
Small Business Administration
to determine where the potential customers are

3. Which of the following is not a consideration concerning the selection of suppliers?
economic order quantity
Financial shortages
Whether or not they have an acceptable accounts receivable ratio
a structured interview

4. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
economic base
corporation
new venture plan; business plan
OSHA

5. Which of the following is an internal problem that can contribute to the failure of a business?
consumerism
break-even point
Indemnity
Financial shortages

6. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Proprietorship
equity capital; personal capital
fixed expense
controlling

7. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
entrepreneur
Legal restrictions on activities; Lack of personal interest
revolving account; open-end credit
Efficiency of labor; Combined management - talent and capital

8. Which of the following is NOT a consumer buying motive?
corporation
partnership
Indemnity
a business plan

9. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
consumerism
key person insurance
demographics

10. Which of the following are disadvantages of a partnership?
Indemnity
proprietorship
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
working capital

11. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
commercial loans
ADA
consumerism

12. The difference between current assets and current liabilities is...
working capital; circulating capital
to self-insure
an entrepreneur
American's with Disabilities Act

13. A point in business operations whereby total sales revenue equals total costs
sole proprietorship
new venture plan; business plan
break-even point
Accessibility

14. Which of the following is a requirement for a building layout?
have good management
Accessibility
corporation
a structured interview

15. Business interruption insurance covers
corporation
lost income
mark-up
Equal Pay Act of 1963

16. Rent is an example of a...
equity capital
fixed expense
working capital; circulating capital
break-even point

17. A small business is not...
Actively managed by stockholders
consumerism
controlling; actuating
2/10 - N30

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

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19. Any capital that is invested in a business by the owner(s) can be called...
Small Business Administration
intangible assets
commercial loans
equity capital

20. 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
Take on more risks
corporation
demographics

21. Which of the following is an intangible asset?
Commercial loans; Venture capitalists
Name of the business; Goodwill
Take on more risks
to determine where the potential customers are

22. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
to determine where the potential customers are
markdown
CBD
new venture plan; business plan

23. A source of debt capital would include
commercial loans
Small Business Administration
equity capital
a 2% discount if invoice is paid within 10 days - net due in 30 days

24. A strategy to minimize risk would be to...
corporation
have good management
economic order quantity
Personal checks

25. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
trade credit
economic order quantity
Personal checks

26. An external problem that can lead to small business failure is...
consumerism
manufacturing business
Proprietorship
Lack of expertise

27. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
partnership
a 2% discount if invoice is paid within 10 days - net due in 30 days
Take on more risks
OSHA

28. Which of the following is normally NOT a source of published market data?
intangible assets
break-even point
partnership
Census of banking

29. The difference between current assets and current liabilities is...
working capital
Installment credit
Take on more risks
economic base

30. A business that purchases finished goods for resale is referred to as a...
market
merchandising business
trade credit
demographics

31. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
proprietorship
Equal Pay Act of 1963
corporation
credit application

32. Which of the following is NOT used to measure the success of advertising?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
equity capital
factoring
Income trends in the community

33. A strategy available to absorb risks would be...
Tax burdens; Human resource planning
to self-insure
trade credit
economic base

34. Which of the following is recognized as a disadvantage of extending credit?
Ease of starting; Profit incentive
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Take on more risks
mark-up

35. Which of the following are advantages of extending credit?
Sales are increased; Goodwill is built-up and easily maintained
a 2% discount if invoice is paid within 10 days - net due in 30 days
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Unlimited liability; Limited management ability

36. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
2/10 - N30
proprietorship
Accessibility

37. A factor to be considered with the evaluation of a credit risk would be the...
Commercial loans; Venture capitalists
intangible assets
inventory control considerations
credit application

38. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Lack of expertise
Credit customers are more interested in quality and service than price
inventory turnover
economic base

39. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Census of banking
an entrepreneur
to determine where the potential customers are
a structured interview

40. Which of the following is NOT a way to reduce risks?
Accessibility
ADA
description
Take on more risks

41. Long term capital invested in the business is...
evaluating; controlling
Census of banking
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
fixed capital

42. 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...
risk management
factoring
Take on more risks
partnership

43. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
inventory turnover
competition
ADA
Indemnity

44. Which of the following is an example of a variable expense?
markdown
Repairs
consumer credit
service business

45. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
have good management
equity capital; personal capital
Name of the business; Goodwill

46. A plan which provides inducements to potential purchasers of products and/or services is called...
Accessibility
sales promotions
Personal checks
Better Business Bureau

47. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
have good management
the employment interview
economic order quantity

48. 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...
Repairs
demographics
risk management
Financial shortages

49. In business - a reduction of selling price below the original selling price is referred to as...
Proprietorship
markdown
Legal restrictions on activities; Lack of personal interest
new venture plan; business plan

50. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
Applicant's sex
Accessibility
Directing