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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. Which of the following is normally NOT a source of published market data?
an entrepreneur
Census of banking
advertising
Indemnity

2. In business - a reduction of selling price below the original selling price is referred to as...
service business
ADA
Applicant's sex
markdown

3. 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...
Applicant's sex
Name of the business; Goodwill
variable expense
inventory turnover

4. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Chamber of Commerce
controlling; actuating
risk management
Equal Pay Act of 1963

5. The number of times the average inventory has been sold or used up during a period is known as...
Whether or not they have an acceptable accounts receivable ratio
to determine where the potential customers are
inventory turnover
variable expense

6. Which of the following is NOT an advantage of a corporation?
inventory turnover
Legal restrictions on activities
working capital; circulating capital
sales promotions

7. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
evaluating; controlling
factoring
proprietorship
entrepreneur

8. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
the religion of the applicant
consumerism
new venture plan; business plan
market

9. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
ADA
sole proprietorship
Large financial capacity; Limited liability of each owner (stockholder)
a business plan

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

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11. Which of the following is an example of a variable expense?
Credit customers are more interested in quality and service than price
Repairs
competition
evaluating; controlling

12. Factors associated with evaluating a credit risk
Large financial capacity; Limited liability of each owner (stockholder)
inventory control considerations
Personal checks
corporation

13. Which of the following are examples of debt capital?
risk management
a structured interview
Commercial loans; Venture capitalists
American's with Disabilities Act

14. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
description
American's with Disabilities Act
Small Business Administration
OSHA

15. The quantity to be purchased which minimizes total cost is referred to as the...
2/10 - N30
equity capital
economic order quantity
a structured interview

16. Which of the following is an external problem and risk of business ownership?
Accessibility
inventory turnover
a qualification that is absolutely necessary
Tax burdens; Human resource planning

17. 2/10 - N/30 means...
a qualification that is absolutely necessary
Indemnity
corporation
a 2% discount if invoice is paid within 10 days - net due in 30 days

18. A small business is not...
consumer credit
Actively managed by stockholders
consumerism
revolving account; open-end credit

19. The main objective in a market survey is...
Legal restrictions on activities
working capital; circulating capital
Name of the business; Goodwill
to determine where the potential customers are

20. The difference between current assets and current liabilities is...
the employment interview
working capital
a business plan
variable expense

21. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
Terms of the sale
Applicant's sex
equity capital

22. Selling a business's accounts receivable for cash to a third party is referred to as...
Installment credit
economic base
factoring
merchandising business

23. Life insurance that protects a firm against losses due to the death of a key employee is known as...
entrepreneur
key person insurance
Lack of expertise
partnership

24. Which of the following is recognized as a disadvantage of extending credit?
Better Business Bureau
Some losses from bad debts and customers with fraudulent intentions are bound to occur
break-even point
trade credit

25. A strategy available to absorb risks would be...
fixed expense
Census of banking
to self-insure
entrepreneur

26. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
inventory control considerations
demographics
Proprietorship
working capital

27. A strategy to minimize risk would be to...
Accessibility
working capital; circulating capital
risk management
have good management

28. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
Actively managed by stockholders
inventory turnover
an entrepreneur

29. A common business credit/sales tern is...
revolving account; open-end credit
2/10 - N30
Civil Rights Act
American's with Disabilities Act

30. 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...
working capital; circulating capital
competition
risk management
corporation

31. One who organizes - manages - and assumes the risk of a business form or venture is known as...
an entrepreneur
to determine where the potential customers are
Applicant's sex
market

32. The difference between merchandise cost and the selling price is known as the...
Credit customers are more interested in quality and service than price
Accessibility
markdown
mark-up

33. Which of the following are advantages of a sole proprietorship?
the religion of the applicant
Ease of starting; Profit incentive
Take on more risks
inventory turnover

34. Which of the following are disadvantages of a partnership?
Proprietorship
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
2/10 - N30
inventory turnover

35. The form of legal organization that is owned and operated by one person is the...
Repairs
a business plan
controlling; actuating
proprietorship

36. The current asset items consisting of cash - inventories - and accounts receivables is known as...
inventory control considerations
economic base
Better Business Bureau
circulating capital

37. Which of the following is an internal problem that can contribute to the failure of a business?
fixed capital
Financial shortages
controlling
Census of banking

38. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
inventory control considerations
market
sales promotions
consumerism

39. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
risk management
inventory turnover
Civil Rights Act
trade credit

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

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41. In business - the name - goodwill - copyrights - and patents are referred to as...
equity capital
intangible assets
inventory turnover
Repairs

42. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
merchandising business
Chamber of Commerce
sales promotions
Personal checks

43. 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...
controlling
Income trends in the community
corporation
to determine where the potential customers are

44. 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...
controlling
controlling; actuating
credit application
break-even point

45. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Sales are increased; Goodwill is built-up and easily maintained
factoring
a structured interview
service business

46. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
fixed expense
manufacturing business
break-even point
lost income

47. Which of the following is NOT a type of consumer credit?
to determine where the potential customers are
Personal checks
sole proprietorship
economic base

48. All of the following are factors which can affect the recruitment and selection of employees except
break-even point
the religion of the applicant
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Income trends in the community

49. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
to determine where the potential customers are
Proprietorship
manufacturing business
OSHA

50. Business interruption insurance covers
inventory turnover
2/10 - N30
lost income
controlling