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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. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
entrepreneur
sales promotions
manufacturing business
corporation

2. The current asset items consisting of cash - inventories - and accounts receivables is known as...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
circulating capital
fixed capital
commercial loans

3. Which of the following are advantages of a sole proprietorship?
mark-up
break-even point
Ease of starting; Profit incentive
Better Business Bureau

4. Which of the following is not a consideration concerning the selection of suppliers?
inventory turnover
advertising
demographics
Whether or not they have an acceptable accounts receivable ratio

5. Long term capital invested in the business is...
economic order quantity
American's with Disabilities Act
fixed capital
key person insurance

6. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
a qualification that is absolutely necessary
advertising
credit application

7. The principal government agency concerned with the financing - operation - and management of small businesses is the
corporation
Small Business Administration
Terms of the sale
a business plan

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

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9. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
break-even point
Installment credit
Large financial capacity; Limited liability of each owner (stockholder)
Civil Rights Act

10. The difference between merchandise cost and the selling price is known as the...
demographics
mark-up
sole proprietorship
have good management

11. Which of the following are disadvantages of a sole proprietorship?
Lack of expertise
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Ease of starting; Profit incentive
Unlimited liability; Limited management ability

12. Which of the following is a requirement for a building layout?
Accessibility
inventory control considerations
sales promotions
Ease of starting; Profit incentive

13. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
corporation
Better Business Bureau
partnership
Name of the business; Goodwill

14. Which of the following are advantages of a corporation?
the religion of the applicant
Large financial capacity; Limited liability of each owner (stockholder)
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
an entrepreneur

15. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
corporation
Census of banking
evaluating; controlling
consumer credit

16. Rent is an example of a...
merchandising business
corporation
Equal Pay Act of 1963
fixed expense

17. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
merchandising business
have good management
competition

18. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Small Business Administration
advertising
variable expense

19. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
2/10 - N30
to self-insure
new venture plan; business plan

20. Which of the following is NOT an advantage of a corporation?
fixed capital
Census of banking
Legal restrictions on activities
break-even point

21. Which of the following are advantages of extending credit?
Efficiency of labor; Combined management - talent and capital
equity capital
Sales are increased; Goodwill is built-up and easily maintained
corporation

22. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
mark-up
evaluating; controlling
Large financial capacity; Limited liability of each owner (stockholder)
sales promotions

23. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
demographics
Applicant's sex
partnership
ADA

24. A point in business operations whereby total sales revenue equals total costs
Actively managed by stockholders
Equal Pay Act of 1963
break-even point
partnership

25. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
Some losses from bad debts and customers with fraudulent intentions are bound to occur
break-even point
American's with Disabilities Act

26. Which of the following is NOT a type of consumer credit?
Personal checks
OSHA
advertising
demographics

27. Long-term capital that is invested in a business is referred to as...
2/10 - N30
fixed capital
Installment credit
ADA

28. Which of the following is NOT a way to reduce risks?
demographics
working capital; circulating capital
Census of banking
Take on more risks

29. The difference between current assets and current liabilities is...
Accessibility
Directing
controlling
working capital; circulating capital

30. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
revolving account; open-end credit
Equal Pay Act of 1963
Efficiency of labor; Combined management - talent and capital
competition

31. Which of the following are advantages of a partnership?
service business
Efficiency of labor; Combined management - talent and capital
Proprietorship
equity capital

32. Which of the following is an intangible asset?
credit application
inventory turnover
Name of the business; Goodwill
Civil Rights Act

33. The form of legal organization that is owned and operated by one person is the...
revolving account; open-end credit
proprietorship
Terms of the sale
markdown

34. An external problem that can lead to small business failure is...
consumerism
Indemnity
revolving account; open-end credit
proprietorship

35. A management function which compares organizational and individual performance with predetermined standards or expected results is...
Applicant's sex
controlling
partnership
Civil Rights Act

36. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
Unlimited liability; Limited management ability
commercial loans
corporation

37. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
an entrepreneur
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Whether or not they have an acceptable accounts receivable ratio

38. Which of the following would NOT be an insurance risk to consider?
break-even point
Terms of the sale
Income trends in the community
Ease of starting; Profit incentive

39. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
2/10 - N30
key person insurance
Some losses from bad debts and customers with fraudulent intentions are bound to occur
market

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

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41. Which of the following are disadvantages of a partnership?
Repairs
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
mark-up
Lack of expertise

42. Which of the following are examples of debt capital?
a 2% discount if invoice is paid within 10 days - net due in 30 days
Legal restrictions on activities
merchandising business
Commercial loans; Venture capitalists

43. Factors associated with evaluating a credit risk
proprietorship
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Commercial loans; Venture capitalists
inventory control considerations

44. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
markdown
merchandising business
Credit customers are more interested in quality and service than price
CBD

45. Which of the following are functions of management?
Tax burdens; Human resource planning
Legal restrictions on activities
controlling; actuating
inventory turnover

46. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Accessibility
Proprietorship
merchandising business
economic base

47. A particular business that provides a service as opposed to a product is referred to as a...
service business
working capital
the employment interview
consumerism

48. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
revolving account; open-end credit
Legal restrictions on activities; Lack of personal interest
corporation

49. In business - a reduction of selling price below the original selling price is referred to as...
Chamber of Commerce
circulating capital
variable expense
markdown

50. The simplest and most common legal form of business ownership is...
break-even point
sole proprietorship
service business
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