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 federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
commercial loans
a business plan
Income trends in the community

2. A document that lists the major responsibilities and tasks of the job is known as a job
description
to self-insure
Large financial capacity; Limited liability of each owner (stockholder)
partnership

3. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
advertising
competition
Income trends in the community
Better Business Bureau

4. 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...
corporation
lost income
Ease of starting; Profit incentive
intangible assets

5. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Unlimited liability; Limited management ability
inventory turnover
Directing
Repairs

6. In business - a reduction of selling price below the original selling price is referred to as...
consumerism
Name of the business; Goodwill
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circulating capital

7. A BFOQ is...
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a qualification that is absolutely necessary
have good management
Commercial loans; Venture capitalists

8. 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...
ADA
demographics
competition
partnership

9. Which of the following are advantages of a partnership?
Indemnity
evaluating; controlling
new venture plan; business plan
Efficiency of labor; Combined management - talent and capital

10. Which of the following statements is TRUE concerning consumer credit?
American's with Disabilities Act
proprietorship
Credit customers are more interested in quality and service than price
fixed capital

11. The difference between current assets and current liabilities is...
inventory turnover
working capital
equity capital; personal capital
Credit customers are more interested in quality and service than price

12. The difference between current assets and current liabilities is...
working capital; circulating capital
corporation
inventory turnover
CBD

13. The form of legal organization that is owned and operated by one person is the...
proprietorship
Repairs
revolving account; open-end credit
2/10 - N30

14. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
Legal restrictions on activities
new venture plan; business plan
Ease of starting; Profit incentive

15. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
inventory turnover
2/10 - N30
Directing

16. One who organizes - manages - and assumes the risk of a business form or venture is known as...
manufacturing business
economic base
an entrepreneur
description

17. Which of the following is an internal problem that can lead to business failure?
service business
Terms of the sale
Lack of expertise
ADA

18. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
Directing
Actively managed by stockholders
sole proprietorship

19. 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...
working capital; circulating capital
entrepreneur
demographics
Commercial loans; Venture capitalists

20. Which of the following are advantages of extending credit?
OSHA
have good management
Sales are increased; Goodwill is built-up and easily maintained
fixed capital

21. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
Actively managed by stockholders
evaluating; controlling
Some losses from bad debts and customers with fraudulent intentions are bound to occur

22. A small business is not...
to self-insure
Actively managed by stockholders
Small Business Administration
Installment credit

23. Capital that is invested in the business by the owner(s) is known as...
CBD
ADA
Some losses from bad debts and customers with fraudulent intentions are bound to occur
equity capital

24. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
to determine where the potential customers are
the religion of the applicant
competition
Proprietorship

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

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

27. Which of the following is NOT a way to reduce risks?
economic order quantity
Take on more risks
Name of the business; Goodwill
ADA

28. In organizing a business - a legal form of organization that is authorized by a state to operate a business under a state charter is referred to as a...
inventory turnover
Civil Rights Act
corporation
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

29. Which of the following are disadvantages of a partnership?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
sole proprietorship
demographics
Chamber of Commerce

30. Which of the following are advantages of a corporation?
proprietorship
Large financial capacity; Limited liability of each owner (stockholder)
partnership
Tax burdens; Human resource planning

31. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
the religion of the applicant
ADA
Name of the business; Goodwill
a business plan

32. 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...
revolving account; open-end credit
variable expense
a structured interview
Whether or not they have an acceptable accounts receivable ratio

33. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
Whether or not they have an acceptable accounts receivable ratio
corporation
CBD

34. Factors associated with evaluating a credit risk
key person insurance
inventory control considerations
proprietorship
Chamber of Commerce

35. A plan which provides inducements to potential purchasers of products and/or services is called...
sales promotions
Census of banking
have good management
equity capital

36. A factor to be considered with the evaluation of a credit risk would be the...
service business
Indemnity
credit application
Better Business Bureau

37. A common business credit/sales tern is...
2/10 - N30
a business plan
working capital
Financial shortages

38. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
economic base
2/10 - N30
Installment credit
Repairs

39. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
sole proprietorship
Income trends in the community
proprietorship
trade credit

40. Which of the following are functions of management?
a structured interview
Commercial loans; Venture capitalists
sole proprietorship
controlling; actuating

41. Long term capital invested in the business is...
economic order quantity
key person insurance
fixed capital
manufacturing business

42. Which of the following is an intangible asset?
key person insurance
Large financial capacity; Limited liability of each owner (stockholder)
to determine where the potential customers are
Name of the business; Goodwill

43. An external problem that can lead to small business failure is...
evaluating; controlling
a 2% discount if invoice is paid within 10 days - net due in 30 days
consumerism
risk management

44. A strategy available to absorb risks would be...
Income trends in the community
to self-insure
equity capital; personal capital
service business

45. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
a business plan
corporation
working capital

46. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
revolving account; open-end credit
American's with Disabilities Act
Terms of the sale
Unlimited liability; Limited management ability

47. Capital that is investe4d in the business by the owner(s) is known as...
inventory control considerations
variable expense
equity capital; personal capital
evaluating; controlling

48. Which of the following is an external problem and risk of business ownership?
Terms of the sale
Tax burdens; Human resource planning
an entrepreneur
circulating capital

49. Which of the following is not a consideration concerning the selection of suppliers?
the religion of the applicant
Whether or not they have an acceptable accounts receivable ratio
Small Business Administration
CBD

50. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Census of banking
evaluating; controlling
Better Business Bureau
risk management