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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 association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
Efficiency of labor; Combined management - talent and capital
Credit customers are more interested in quality and service than price
market

2. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Large financial capacity; Limited liability of each owner (stockholder)
trade credit
Whether or not they have an acceptable accounts receivable ratio
an entrepreneur

3. Which of the following would NOT be an insurance risk to consider?
OSHA
inventory turnover
Terms of the sale
Installment credit

4. Which of the following is NOT a consumer buying motive?
Indemnity
equity capital; personal capital
inventory control considerations
equity capital

5. Capital that is investe4d in the business by the owner(s) is known as...
Large financial capacity; Limited liability of each owner (stockholder)
Commercial loans; Venture capitalists
entrepreneur
equity capital; personal capital

6. In a business - the number of times the average inventory is sold or used up can be referred to as...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
inventory turnover
Applicant's sex
Income trends in the community

7. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
Unlimited liability; Limited management ability
a qualification that is absolutely necessary
commercial loans

8. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Legal restrictions on activities; Lack of personal interest
Repairs
Civil Rights Act
revolving account; open-end credit

9. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
Directing
CBD
intangible assets

10. Which of the following are advantages of a corporation?
Legal restrictions on activities
controlling
equity capital
Large financial capacity; Limited liability of each owner (stockholder)

11. Which of the following is an intangible asset?
Installment credit
credit application
Name of the business; Goodwill
description

12. A business that purchases finished goods for resale is referred to as a...
merchandising business
Commercial loans; Venture capitalists
working capital; circulating capital
Directing

13. 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...
manufacturing business
partnership
Name of the business; Goodwill
inventory control considerations

14. Which of the following is an external problem and risk of business ownership?
service business
key person insurance
trade credit
Tax burdens; Human resource planning

15. Which of the following is NOT a type of consumer credit?
break-even point
economic base
Census of banking
Personal checks

16. Which of the following is recognized as a disadvantage of extending credit?
Unlimited liability; Limited management ability
corporation
lost income
Some losses from bad debts and customers with fraudulent intentions are bound to occur

17. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
CBD
Directing
trade credit
advertising

18. The form of legal organization that is owned and operated by one person is the...
factoring
proprietorship
markdown
Directing

19. Capital that is invested in the business by the owner(s) is known as...
circulating capital
break-even point
equity capital
Credit customers are more interested in quality and service than price

20. Which of the following are advantages of a sole proprietorship?
Credit customers are more interested in quality and service than price
Ease of starting; Profit incentive
Whether or not they have an acceptable accounts receivable ratio
economic order quantity

21. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
equity capital
OSHA
intangible assets
Legal restrictions on activities

22. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
Name of the business; Goodwill
Terms of the sale
market

23. A factor to be considered with the evaluation of a credit risk would be the...
circulating capital
credit application
Sales are increased; Goodwill is built-up and easily maintained
lost income

24. The difference between merchandise cost and the selling price is known as the...
partnership
mark-up
Commercial loans; Venture capitalists
fixed capital

25. Long-term capital that is invested in a business is referred to as...
fixed capital
to determine where the potential customers are
Chamber of Commerce
Terms of the sale

26. A BFOQ is...
a qualification that is absolutely necessary
Proprietorship
Accessibility
inventory control considerations

27. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
economic base
commercial loans
mark-up

28. Factors associated with evaluating a credit risk
inventory control considerations
equity capital
sole proprietorship
ADA

29. In business - a reduction of selling price below the original selling price is referred to as...
a 2% discount if invoice is paid within 10 days - net due in 30 days
corporation
Small Business Administration
markdown

30. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
Tax burdens; Human resource planning
description
demographics
advertising

31. A strategy to minimize risk would be to...
have good management
competition
fixed capital
manufacturing business

32. A strategy available to absorb risks would be...
Census of banking
to self-insure
Chamber of Commerce
to determine where the potential customers are

33. A common business credit/sales tern is...
a 2% discount if invoice is paid within 10 days - net due in 30 days
working capital; circulating capital
2/10 - N30
fixed capital

34. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
partnership
consumer credit
OSHA
sole proprietorship

35. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
a structured interview
risk management
Name of the business; Goodwill
controlling; actuating

36. Which of the following is a requirement for a building layout?
Accessibility
2/10 - N30
Credit customers are more interested in quality and service than price
economic base

37. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
Accessibility
Personal checks
new venture plan; business plan
working capital; circulating capital

38. Which of the following are advantages of extending credit?
advertising
Large financial capacity; Limited liability of each owner (stockholder)
Sales are increased; Goodwill is built-up and easily maintained
a structured interview

39. Rent is an example of a...
fixed expense
entrepreneur
description
inventory turnover

40. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
entrepreneur
Directing
inventory control considerations
markdown

41. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
controlling
2/10 - N30
Legal restrictions on activities

42. Which of the following is an internal problem that can lead to business failure?
fixed expense
Lack of expertise
evaluating; controlling
key person insurance

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

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44. The simplest and most common legal form of business ownership is...
an entrepreneur
Census of banking
sole proprietorship
consumer credit

45. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities
break-even point
Financial shortages
markdown

46. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
Legal restrictions on activities; Lack of personal interest
evaluating; controlling
inventory control considerations
demographics

47. 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...
Sales are increased; Goodwill is built-up and easily maintained
to determine where the potential customers are
Repairs
variable expense

48. 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
factoring
inventory turnover
Repairs

49. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
markdown
Indemnity
Legal restrictions on activities

50. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
a 2% discount if invoice is paid within 10 days - net due in 30 days
fixed expense
Proprietorship
risk management