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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. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
Large financial capacity; Limited liability of each owner (stockholder)
fixed capital
partnership

2. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Small Business Administration
Applicant's sex
entrepreneur
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

3. A source of debt capital would include
partnership
commercial loans
key person insurance
Indemnity

4. A strategy available to absorb risks would be...
to self-insure
lost income
mark-up
American's with Disabilities Act

5. 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
to self-insure
a 2% discount if invoice is paid within 10 days - net due in 30 days
controlling; actuating

6. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Small Business Administration
key person insurance
controlling
ADA

7. Which of the following is not a consideration concerning the selection of suppliers?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
working capital; circulating capital
Whether or not they have an acceptable accounts receivable ratio
economic base

8. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Proprietorship
break-even point
to determine where the potential customers are
Directing

9. The main objective in a market survey is...
new venture plan; business plan
to determine where the potential customers are
manufacturing business
Financial shortages

10. The difference between current assets and current liabilities is...
inventory control considerations
working capital; circulating capital
entrepreneur
an entrepreneur

11. Any capital that is invested in a business by the owner(s) can be called...
partnership
Lack of expertise
circulating capital
equity capital

12. Which of the following are advantages of a corporation?
Tax burdens; Human resource planning
Installment credit
merchandising business
Large financial capacity; Limited liability of each owner (stockholder)

13. Factors associated with evaluating a credit risk
a business plan
inventory control considerations
controlling; actuating
Take on more risks

14. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
2/10 - N30
lost income
factoring
consumer credit

15. One who organizes - manages - and assumes the risk of a business form or venture is known as...
consumerism
an entrepreneur
Civil Rights Act
Proprietorship

16. A strategy to minimize risk would be to...
Civil Rights Act
OSHA
risk management
have good management

17. On a chart which plots sales - fixed and variable costs for a given period of time - the point where the sales and the total cost lines intersect is called the...
break-even point
Ease of starting; Profit incentive
an entrepreneur
merchandising business

18. A point in business operations whereby total sales revenue equals total costs
Directing
American's with Disabilities Act
break-even point
variable expense

19. Which of the following is an intangible asset?
Name of the business; Goodwill
equity capital
consumerism
inventory turnover

20. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
trade credit
description
the religion of the applicant
Some losses from bad debts and customers with fraudulent intentions are bound to occur

21. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
Repairs
partnership
economic order quantity

22. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
fixed capital
to determine where the potential customers are
Unlimited liability; Limited management ability
a business plan

23. Which of the following are functions of management?
partnership
markdown
controlling; actuating
equity capital

24. Which of the following are disadvantages of a sole proprietorship?
fixed capital
break-even point
Unlimited liability; Limited management ability
to determine where the potential customers are

25. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
American's with Disabilities Act
advertising
Indemnity
inventory turnover

26. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
partnership
OSHA
Directing
description

27. 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
ADA
equity capital
entrepreneur

28. The difference between current assets and current liabilities is...
Lack of expertise
corporation
working capital
Unlimited liability; Limited management ability

29. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Actively managed by stockholders
Civil Rights Act
Installment credit
economic base

30. A management function which compares organizational and individual performance with predetermined standards or expected results is...
entrepreneur
the religion of the applicant
a structured interview
controlling

31. Which of the following is NOT used to measure the success of advertising?
service business
Income trends in the community
revolving account; open-end credit
an entrepreneur

32. In a business - the number of times the average inventory is sold or used up can be referred to as...
an entrepreneur
description
the religion of the applicant
inventory turnover

33. A common business credit/sales tern is...
equity capital
2/10 - N30
Name of the business; Goodwill
manufacturing business

34. Which of the following are advantages of a partnership?
revolving account; open-end credit
Efficiency of labor; Combined management - talent and capital
American's with Disabilities Act
key person insurance

35. Rent is an example of a...
Personal checks
fixed expense
to determine where the potential customers are
corporation

36. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
equity capital; personal capital
lost income
risk management
American's with Disabilities Act

37. Capital that is investe4d in the business by the owner(s) is known as...
equity capital; personal capital
working capital; circulating capital
demographics
Name of the business; Goodwill

38. Which of the following are disadvantages of a corporation?
Credit customers are more interested in quality and service than price
Large financial capacity; Limited liability of each owner (stockholder)
Legal restrictions on activities; Lack of personal interest
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

39. Which of the following is an internal problem that can lead to business failure?
variable expense
Proprietorship
Indemnity
Lack of expertise

40. Selling a business's accounts receivable for cash to a third party is referred to as...
to determine where the potential customers are
Proprietorship
factoring
to self-insure

41. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
description
corporation
Commercial loans; Venture capitalists
market

42. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities
markdown
a structured interview
demographics

43. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
Repairs
Credit customers are more interested in quality and service than price
manufacturing business
Personal checks

44. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
revolving account; open-end credit
variable expense
sales promotions

45. The principal government agency concerned with the financing - operation - and management of small businesses is the
commercial loans
Small Business Administration
factoring
Census of banking

46. Which of the following is NOT a way to reduce risks?
Ease of starting; Profit incentive
Take on more risks
Legal restrictions on activities; Lack of personal interest
competition

47. A BFOQ is...
equity capital; personal capital
equity capital
trade credit
a qualification that is absolutely necessary

48. The quantity to be purchased which minimizes total cost is referred to as the...
demographics
economic order quantity
partnership
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

49. 2/10 - N/30 means...
description
a business plan
a 2% discount if invoice is paid within 10 days - net due in 30 days
partnership

50. 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...
entrepreneur
risk management
economic order quantity
corporation