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. The form of legal organization that is owned and operated by one person is the...
2/10 - N30
Sales are increased; Goodwill is built-up and easily maintained
Ease of starting; Profit incentive
proprietorship

2. One who organizes - manages - and assumes the risk of a business form or venture is known as...
inventory turnover
an entrepreneur
economic order quantity
a structured interview

3. A common business credit/sales tern is...
2/10 - N30
Terms of the sale
Civil Rights Act
an entrepreneur

4. The principal government agency concerned with the financing - operation - and management of small businesses is the
market
Small Business Administration
markdown
merchandising business

5. A point in business operations whereby total sales revenue equals total costs
controlling; actuating
competition
break-even point
credit application

6. The quantity to be purchased which minimizes total cost is referred to as the...
economic order quantity
Income trends in the community
Installment credit
intangible assets

7. 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...
partnership
Indemnity
Better Business Bureau
variable expense

8. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Applicant's sex
Chamber of Commerce
demographics
Ease of starting; Profit incentive

9. The difference between current assets and current liabilities is...
merchandising business
working capital
2/10 - N30
Actively managed by stockholders

10. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
ADA
market
Actively managed by stockholders
inventory turnover

11. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
risk management
Ease of starting; Profit incentive
markdown

12. Which of the following is an intangible asset?
markdown
sales promotions
inventory control considerations
Name of the business; Goodwill

13. The current asset items consisting of cash - inventories - and accounts receivables is known as...
sales promotions
circulating capital
OSHA
corporation

14. Which of the following are advantages of extending credit?
Directing
have good management
Sales are increased; Goodwill is built-up and easily maintained
2/10 - N30

15. A factor to be considered with the evaluation of a credit risk would be the...
Tax burdens; Human resource planning
partnership
fixed capital
credit application

16. Factors associated with evaluating a credit risk
inventory control considerations
Equal Pay Act of 1963
fixed expense
Indemnity

17. A document that lists the major responsibilities and tasks of the job is known as a job
entrepreneur
description
markdown
trade credit

18. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
Indemnity
American's with Disabilities Act
Small Business Administration

19. Any capital that is invested in a business by the owner(s) can be called...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
equity capital
inventory control considerations
intangible assets

20. A management function which compares organizational and individual performance with predetermined standards or expected results is...
entrepreneur
lost income
Large financial capacity; Limited liability of each owner (stockholder)
controlling

21. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
proprietorship
break-even point
inventory turnover
trade credit

22. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
Terms of the sale
the employment interview
inventory control considerations

23. Which of the following is NOT a way to reduce risks?
service business
Small Business Administration
Take on more risks
an entrepreneur

24. Capital that is invested in the business by the owner(s) is known as...
equity capital
manufacturing business
Name of the business; Goodwill
Chamber of Commerce

25. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
markdown
a business plan
inventory turnover
Financial shortages

26. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
working capital
Proprietorship
partnership
market

27. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
key person insurance
Equal Pay Act of 1963
market

28. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
service business
trade credit
Large financial capacity; Limited liability of each owner (stockholder)
the employment interview

29. In business - a reduction of selling price below the original selling price is referred to as...
working capital; circulating capital
markdown
Lack of expertise
fixed capital

30. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Accessibility
Whether or not they have an acceptable accounts receivable ratio
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

31. A source of debt capital would include
fixed capital
a qualification that is absolutely necessary
economic base
commercial loans

32. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Sales are increased; Goodwill is built-up and easily maintained
a 2% discount if invoice is paid within 10 days - net due in 30 days
Civil Rights Act
variable expense

33. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
partnership
credit application
advertising
Small Business Administration

34. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
risk management
inventory turnover
evaluating; controlling
equity capital

35. Which of the following is an example of a variable expense?
equity capital
corporation
Repairs
competition

36. 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...
the religion of the applicant
partnership
controlling; actuating
Divided authority among partners; Death or incapacity of one of the partners may end the partnership

37. Capital that is investe4d in the business by the owner(s) is known as...
equity capital; personal capital
controlling; actuating
trade credit
CBD

38. Which of the following are advantages of a sole proprietorship?
a 2% discount if invoice is paid within 10 days - net due in 30 days
sole proprietorship
Efficiency of labor; Combined management - talent and capital
Ease of starting; Profit incentive

39. A BFOQ is...
a qualification that is absolutely necessary
sales promotions
Legal restrictions on activities
2/10 - N30

40. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
economic order quantity
Unlimited liability; Limited management ability
OSHA

41. Long term capital invested in the business is...
fixed capital
Whether or not they have an acceptable accounts receivable ratio
CBD
Ease of starting; Profit incentive

42. Which of the following is NOT a type of consumer credit?
corporation
Personal checks
demographics
variable expense

43. Long-term capital that is invested in a business is referred to as...
demographics
CBD
fixed capital
partnership

44. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Lack of expertise
fixed capital
the religion of the applicant
Equal Pay Act of 1963

45. Business interruption insurance covers
ADA
economic order quantity
Lack of expertise
lost income

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

47. The difference between merchandise cost and the selling price is known as the...
inventory turnover
have good management
sales promotions
mark-up

48. The number of times the average inventory has been sold or used up during a period is known as...
Actively managed by stockholders
consumer credit
inventory turnover
controlling; actuating

49. Which of the following are disadvantages of a sole proprietorship?
description
Unlimited liability; Limited management ability
break-even point
Directing

50. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
Whether or not they have an acceptable accounts receivable ratio
working capital
market