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. A strategy to minimize risk would be to...
Actively managed by stockholders
an entrepreneur
manufacturing business
have good management

2. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Credit customers are more interested in quality and service than price
Some losses from bad debts and customers with fraudulent intentions are bound to occur
the religion of the applicant
an entrepreneur

3. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
trade credit
markdown
Unlimited liability; Limited management ability

4. The principal government agency concerned with the financing - operation - and management of small businesses is the
equity capital
Small Business Administration
Census of banking
revolving account; open-end credit

5. Which of the following is NOT an advantage of a corporation?
controlling
variable expense
ADA
Legal restrictions on activities

6. 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...
Chamber of Commerce
variable expense
partnership
commercial loans

7. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Civil Rights Act
mark-up
advertising
Repairs

8. Which of the following is an example of a variable expense?
demographics
Repairs
CBD
a business plan

9. Which of the following is normally NOT a source of published market data?
intangible assets
controlling; actuating
Census of banking
the religion of the applicant

10. Which of the following is a requirement for a building layout?
demographics
Accessibility
risk management
ADA

11. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
circulating capital
a business plan
CBD
inventory turnover

12. Which of the following is an internal problem that can contribute to the failure of a business?
equity capital
Indemnity
Financial shortages
working capital

13. Which of the following statements is TRUE concerning consumer credit?
commercial loans
economic base
Credit customers are more interested in quality and service than price
Small Business Administration

14. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
OSHA
market
consumer credit
American's with Disabilities Act

15. 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
Applicant's sex
Census of banking
trade credit

16. Which of the following is an intangible asset?
manufacturing business
risk management
Name of the business; Goodwill
Better Business Bureau

17. Which of the following is an external problem and risk of business ownership?
Accessibility
Directing
Tax burdens; Human resource planning
market

18. Long-term capital that is invested in a business is referred to as...
Large financial capacity; Limited liability of each owner (stockholder)
economic order quantity
break-even point
fixed capital

19. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
fixed capital
evaluating; controlling
Chamber of Commerce

20. 2/10 - N/30 means...
Take on more risks
a 2% discount if invoice is paid within 10 days - net due in 30 days
demographics
break-even point

21. Which of the following is recognized as a disadvantage of extending credit?
the religion of the applicant
break-even point
Some losses from bad debts and customers with fraudulent intentions are bound to occur
circulating capital

22. A particular business that provides a service as opposed to a product is referred to as a...
break-even point
demographics
credit application
service business

23. A point in business operations whereby total sales revenue equals total costs
break-even point
proprietorship
Actively managed by stockholders
lost income

24. Rent is an example of a...
Actively managed by stockholders
fixed expense
corporation
mark-up

25. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
Credit customers are more interested in quality and service than price
risk management
economic order quantity

26. In business - a reduction of selling price below the original selling price is referred to as...
markdown
Repairs
Take on more risks
Name of the business; Goodwill

27. Which of the following are disadvantages of a sole proprietorship?
Legal restrictions on activities; Lack of personal interest
Equal Pay Act of 1963
Repairs
Unlimited liability; Limited management ability

28. Which of the following is NOT a consumer buying motive?
CBD
Efficiency of labor; Combined management - talent and capital
risk management
Indemnity

29. Which of the following is NOT a way to reduce risks?
sales promotions
economic order quantity
Take on more risks
the employment interview

30. Which of the following are advantages of extending credit?
revolving account; open-end credit
evaluating; controlling
Sales are increased; Goodwill is built-up and easily maintained
fixed capital

31. The quantity to be purchased which minimizes total cost is referred to as the...
new venture plan; business plan
Better Business Bureau
economic order quantity
advertising

32. A plan which provides inducements to potential purchasers of products and/or services is called...
Terms of the sale
Chamber of Commerce
Legal restrictions on activities; Lack of personal interest
sales promotions

33. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
Installment credit
a qualification that is absolutely necessary
equity capital

34. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Unlimited liability; Limited management ability
key person insurance
factoring
partnership

35. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
American's with Disabilities Act
Some losses from bad debts and customers with fraudulent intentions are bound to occur
OSHA
new venture plan; business plan

36. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
economic order quantity
Census of banking
inventory turnover

37. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
the religion of the applicant
inventory control considerations
partnership
Accessibility

38. Long term capital invested in the business is...
fixed capital
a business plan
demographics
Personal checks

39. Which of the following are advantages of a sole proprietorship?
inventory control considerations
revolving account; open-end credit
Ease of starting; Profit incentive
mark-up

40. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
Name of the business; Goodwill
factoring
Personal checks

41. Which of the following are disadvantages of a corporation?
proprietorship
a qualification that is absolutely necessary
Legal restrictions on activities; Lack of personal interest
inventory control considerations

42. A business that purchases finished goods for resale is referred to as a...
merchandising business
mark-up
Take on more risks
manufacturing business

43. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Repairs
sole proprietorship

44. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
circulating capital
Equal Pay Act of 1963
Installment credit
Proprietorship

45. 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
OSHA
market
Efficiency of labor; Combined management - talent and capital

46. Capital that is investe4d in the business by the owner(s) is known as...
revolving account; open-end credit
a business plan
equity capital; personal capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

47. Capital that is invested in the business by the owner(s) is known as...
equity capital
Take on more risks
inventory turnover
a structured interview

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...
Take on more risks
economic order quantity
working capital
corporation

49. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Chamber of Commerce
lost income
ADA
corporation

50. Which of the following is not a consideration concerning the selection of suppliers?
controlling; actuating
Whether or not they have an acceptable accounts receivable ratio
corporation
Proprietorship