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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. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
Income trends in the community
inventory turnover
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2. Which of the following is not a consideration concerning the selection of suppliers?
Small Business Administration
Whether or not they have an acceptable accounts receivable ratio
break-even point
equity capital

3. The main objective in a market survey is...
inventory turnover
Tax burdens; Human resource planning
to determine where the potential customers are
Lack of expertise

4. A point in business operations whereby total sales revenue equals total costs
break-even point
new venture plan; business plan
Credit customers are more interested in quality and service than price
economic order quantity

5. A common business credit/sales tern is...
break-even point
2/10 - N30
inventory turnover
service business

6. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
Unlimited liability; Limited management ability
manufacturing business
market
Commercial loans; Venture capitalists

7. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
consumer credit
Lack of expertise
Installment credit
circulating capital

8. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
the employment interview
inventory turnover
mark-up

9. Which of the following are functions of management?
controlling; actuating
merchandising business
Small Business Administration
Proprietorship

10. Long term capital invested in the business is...
Accessibility
Personal checks
fixed capital
Financial shortages

11. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
credit application
fixed capital
ADA
competition

12. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Directing
inventory turnover
Terms of the sale

13. Business interruption insurance covers
lost income
Equal Pay Act of 1963
Tax burdens; Human resource planning
inventory control considerations

14. Which of the following are examples of debt capital?
Financial shortages
equity capital
Commercial loans; Venture capitalists
credit application

15. Any capital that is invested in a business by the owner(s) can be called...
partnership
controlling
Large financial capacity; Limited liability of each owner (stockholder)
equity capital

16. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
service business
new venture plan; business plan
working capital
controlling

17. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities
consumerism
Tax burdens; Human resource planning
CBD

18. The difference between current assets and current liabilities is...
Terms of the sale
entrepreneur
working capital
Large financial capacity; Limited liability of each owner (stockholder)

19. A strategy available to absorb risks would be...
working capital; circulating capital
economic base
evaluating; controlling
to self-insure

20. The form of legal organization that is owned and operated by one person is the...
CBD
break-even point
to self-insure
proprietorship

21. Capital that is invested in the business by the owner(s) is known as...
Small Business Administration
Credit customers are more interested in quality and service than price
Accessibility
equity capital

22. Which of the following is an intangible asset?
Name of the business; Goodwill
key person insurance
Large financial capacity; Limited liability of each owner (stockholder)
Some losses from bad debts and customers with fraudulent intentions are bound to occur

23. The current asset items consisting of cash - inventories - and accounts receivables is known as...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
an entrepreneur
the religion of the applicant
circulating capital

24. In business - a reduction of selling price below the original selling price is referred to as...
American's with Disabilities Act
factoring
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intangible assets

25. A document that lists the major responsibilities and tasks of the job is known as a job
Name of the business; Goodwill
key person insurance
sole proprietorship
description

26. Which of the following are advantages of a sole proprietorship?
variable expense
inventory control considerations
Ease of starting; Profit incentive
economic order quantity

27. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Proprietorship
new venture plan; business plan
manufacturing business

28. A source of debt capital would include
sole proprietorship
a 2% discount if invoice is paid within 10 days - net due in 30 days
commercial loans
Actively managed by stockholders

29. Which of the following is an internal problem that can contribute to the failure of a business?
Applicant's sex
Financial shortages
trade credit
risk management

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...
competition
Commercial loans; Venture capitalists
corporation
the employment interview

31. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
sales promotions
2/10 - N30
Proprietorship

32. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
merchandising business
Large financial capacity; Limited liability of each owner (stockholder)
break-even point

33. In business - the name - goodwill - copyrights - and patents are referred to as...
a business plan
Chamber of Commerce
intangible assets
Accessibility

34. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
OSHA
fixed capital
variable expense

35. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
break-even point
Proprietorship
Income trends in the community
a business plan

36. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
Sales are increased; Goodwill is built-up and easily maintained
risk management
economic base
market

37. Which of the following is recognized as a disadvantage of extending credit?
Credit customers are more interested in quality and service than price
Terms of the sale
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Ease of starting; Profit incentive

38. 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...
variable expense
break-even point
CBD
Small Business Administration

39. Which of the following are disadvantages of a partnership?
intangible assets
manufacturing business
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
inventory turnover

40. An external problem that can lead to small business failure is...
Sales are increased; Goodwill is built-up and easily maintained
consumerism
manufacturing business
market

41. Which of the following is an internal problem that can lead to business failure?
to determine where the potential customers are
Civil Rights Act
Better Business Bureau
Lack of expertise

42. Long-term capital that is invested in a business is referred to as...
a business plan
consumerism
fixed capital
break-even point

43. Which of the following is NOT used to measure the success of advertising?
Installment credit
Name of the business; Goodwill
Income trends in the community
Indemnity

44. Which of the following is normally NOT a source of published market data?
Census of banking
Installment credit
Credit customers are more interested in quality and service than price
sole proprietorship

45. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Tax burdens; Human resource planning
Repairs
key person insurance
Chamber of Commerce

46. In a business - the number of times the average inventory is sold or used up can be referred to as...
the religion of the applicant
inventory turnover
CBD
Actively managed by stockholders

47. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Civil Rights Act
manufacturing business
OSHA
Repairs

48. 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
Terms of the sale
merchandising business
economic order quantity

49. One who organizes - manages - and assumes the risk of a business form or venture is known as...
demographics
Proprietorship
an entrepreneur
Unlimited liability; Limited management ability

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

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