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. Which of the following is a requirement for a building layout?
Chamber of Commerce
Repairs
Accessibility
economic base

2. Which of the following is normally NOT a source of published market data?
corporation
controlling
2/10 - N30
Census of banking

3. Which of the following is NOT a type of consumer credit?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Tax burdens; Human resource planning
merchandising business
Personal checks

4. Long-term capital that is invested in a business is referred to as...
break-even point
controlling
entrepreneur
fixed capital

5. Which of the following are disadvantages of a sole proprietorship?
working capital
to determine where the potential customers are
to self-insure
Unlimited liability; Limited management ability

6. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
controlling
manufacturing business
advertising
demographics

7. The principal government agency concerned with the financing - operation - and management of small businesses is the
variable expense
Credit customers are more interested in quality and service than price
risk management
Small Business Administration

8. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
Income trends in the community
partnership
competition
merchandising business

9. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
Personal checks
Equal Pay Act of 1963
corporation

10. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
trade credit
Proprietorship
Civil Rights Act
inventory turnover

11. Which of the following is an external problem and risk of business ownership?
break-even point
Chamber of Commerce
Tax burdens; Human resource planning
proprietorship

12. Which of the following are examples of debt capital?
working capital; circulating capital
Personal checks
Commercial loans; Venture capitalists
Take on more risks

13. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
ADA
a 2% discount if invoice is paid within 10 days - net due in 30 days
fixed capital

14. A strategy available to absorb risks would be...
description
Applicant's sex
to self-insure
risk management

15. 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...
circulating capital
new venture plan; business plan
working capital; circulating capital
variable expense

16. One who organizes - manages - and assumes the risk of a business form or venture is known as...
equity capital; personal capital
Installment credit
an entrepreneur
a business plan

17. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
sales promotions
revolving account; open-end credit
working capital

18. Which of the following are advantages of a partnership?
mark-up
advertising
Efficiency of labor; Combined management - talent and capital
revolving account; open-end credit

19. Capital that is invested in the business by the owner(s) is known as...
equity capital
Applicant's sex
Take on more risks
Lack of expertise

20. Which of the following is an example of a variable expense?
factoring
revolving account; open-end credit
Repairs
have good management

21. 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
Income trends in the community
equity capital; personal capital
consumer credit

22. A BFOQ is...
Commercial loans; Venture capitalists
Civil Rights Act
key person insurance
a qualification that is absolutely necessary

23. Which of the following would NOT be an insurance risk to consider?
corporation
Terms of the sale
Unlimited liability; Limited management ability
risk management

24. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Directing
revolving account; open-end credit
competition
Applicant's sex

25. The difference between merchandise cost and the selling price is known as the...
mark-up
key person insurance
revolving account; open-end credit
Chamber of Commerce

26. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Sales are increased; Goodwill is built-up and easily maintained
Civil Rights Act
key person insurance
Financial shortages

27. A particular business that provides a service as opposed to a product is referred to as a...
service business
advertising
an entrepreneur
Income trends in the community

28. All of the following are factors which can affect the recruitment and selection of employees except
2/10 - N30
the religion of the applicant
Census of banking
Income trends in the community

29. A strategy to minimize risk would be to...
Unlimited liability; Limited management ability
controlling; actuating
CBD
have good management

30. A document that lists the major responsibilities and tasks of the job is known as a job
Actively managed by stockholders
a business plan
revolving account; open-end credit
description

31. 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...
Terms of the sale
equity capital
partnership
Census of banking

32. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
Income trends in the community
competition
working capital; circulating capital

33. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
ADA
evaluating; controlling
service business
markdown

34. Factors associated with evaluating a credit risk
Commercial loans; Venture capitalists
Terms of the sale
a 2% discount if invoice is paid within 10 days - net due in 30 days
inventory control considerations

35. Capital that is investe4d in the business by the owner(s) is known as...
Applicant's sex
equity capital; personal capital
Income trends in the community
consumer credit

36. In business - the name - goodwill - copyrights - and patents are referred to as...
CBD
working capital; circulating capital
intangible assets
American's with Disabilities Act

37. Which of the following are advantages of extending credit?
Sales are increased; Goodwill is built-up and easily maintained
to determine where the potential customers are
Whether or not they have an acceptable accounts receivable ratio
market

38. A small business is not...
Census of banking
inventory turnover
Actively managed by stockholders
merchandising business

39. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
corporation
intangible assets
partnership

40. In a business - the number of times the average inventory is sold or used up can be referred to as...
factoring
inventory turnover
Directing
ADA

41. A factor to be considered with the evaluation of a credit risk would be the...
Unlimited liability; Limited management ability
credit application
circulating capital
Small Business Administration

42. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
trade credit
Equal Pay Act of 1963
Large financial capacity; Limited liability of each owner (stockholder)
description

43. A common business credit/sales tern is...
Sales are increased; Goodwill is built-up and easily maintained
2/10 - N30
competition
service business

44. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
Personal checks
Income trends in the community
a business plan
to self-insure

45. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
the employment interview
equity capital
variable expense

46. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Efficiency of labor; Combined management - talent and capital
trade credit
key person insurance
Better Business Bureau

47. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
Census of banking
Commercial loans; Venture capitalists
working capital; circulating capital

48. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
mark-up
Take on more risks
new venture plan; business plan
the employment interview

49. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
Actively managed by stockholders
a 2% discount if invoice is paid within 10 days - net due in 30 days
commercial loans

50. Which of the following statements is TRUE concerning consumer credit?
factoring
Actively managed by stockholders
Credit customers are more interested in quality and service than price
merchandising business