Small Business Management

A business that makes a finished goods from raw materials by hand or machinery is referred to as a

Manufacturing business

The difference between merchandise cost and the selling price is know as the

Mark-up

In a business, a reduction of selling price below the original selling price is referred to as

Markdown

A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines

Market

A business that purchases finished goods for resale is referred to as a

Merchandising business

Which of the following is an intangible asset?

Name of the business. Goodwill.

A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business is known as a

New venture plan. Business plan.

A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees, is known as

OSHA

A for 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

Partnership

The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership is known as a

Partnership

Which of the following is NOT a type of consumer credit?

Personal checks

The form of legal organization that is owned and operated by the one person is the

Proprietorship

Which of the following has the disadvantage of no limit being placed on the owner's personal liability?

Proprietorship

Which of the following is an example of a variable expense?

Repairs

A line of credit that may be used over and over again up to a certain borrowing limit is called

Revolving account. Open-end credit.

Any effort undertaken to retain and preserve the assets and earning power of a business is called

Risk Management

Which of the following are advantages of extending credit?

Sales are increased. Goodwill is built-up and easily maintained

A plan which provides inducements to potential purchasers of products and/or services is called

Sales promotions

A particular business that provides a service as opposed to a produce is referred to as a

Service business

The principal government agency concerned with the financing, operation, and management of small businesses is the

Small business Administration

The simplest and most common legal form of business ownership is

Sole proprietorship

Which of the following is recognized as a disadvantage of extending credit?

Some losses from bad debts and customers with fraudulent intentions are bound to occur

Which of the following is NOT a way to reduce risk?

Take on more risks

Which of the following is an external problem and risk of business ownership?

Tax burdens. Human resource planning.

Which of the following would NOT be an insurance risk to consider?

Terms of sale

When selecting employees, the applicant's appearance, poise, speech, and other characteristics may best be determined by

The employment interview

A common business credit/sales term is

2/10, N30

Whenever a business must pay for the merchandise before delivery, which of the sales terms apply?

CBD

Which of the following is normally NOT a source of published market data?

Census of banking

An association of business people who attempt to protect and promote the commercial interests in a community is known as the

Chamber of Commerce

The current asset items consisting of cash, inventories, and accounts receivables is known as

Circulating capital

Which of the following acts outlaws discrimination in employment based on race, color, religion, sex, pregnancy or natural origin?

Civil Rights Act

Which of the following are advantages of a partnership?

Combined management, talent and capital. Continuity in existence.

A source of debt capital would include

Commercial loans

Which of the following are examples of debit capital?

Commercial loans. Venture Capitalists

The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as

Competition

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

An external problem that can lead to small business failure is

Consumerism

A management function which compares organizational and individual performance with predetermined standards or expected results is

Controlling

Which of the following are functions of management?

Controlling. Actuating.

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

Corporation

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

Corporation

A factor to be considered with the evaluation of a credit risk would be the

Credit application

Which of the following statement is TRUE concerning consumer credit?

Credit customers are more interested in quality and service than price

Selling a business's accounts receivable for cash to a third party is referred to as

Factoring

Which of the following is an internal problem that can contribute to the failure of a business?

Financial shortage

Long term capital invested in the business is

Fixed capital

Long-term capital that is invested in a business is referred to as

Fixed capital

Rent is an example of a

Fixed expense

A strategy to minimize a risk would be to

Have good management

Life insurance that protects a firm against losses due to the death of a key employee is known as

Key person insurance

Which of the following is an internal problem that can lead to business failure?

Lack of expertise

Which of the following are advantages of a corporation?

Large financial capability. Limited liability of each owner (stockholder)

Which of the following is NOT an advantage of a corporation?

Legal restrictions on activities

Which of the following are disadvantages of a corporation?

Legal restrictions on activities. Lack of personal interest.

Business interruption insurance covers

Lost Income

All of the following are factors which can affect the recruitment and selection of employees except

The religion of the applicant

The main objective in a market survey is

To determine where the potential customers are

A strategy available to absorb risks would be

To self-insure

Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called

Trade credit

Which of the following are disadvantages of a sole proprietorship?

Unlimited liability. Limited management ability.

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

Which of the following is not a consideration concerning the selection of suppliers?

Whether or not they have an acceptable accounts receivable ratio

The difference between current assets and currents liabilities is

Working capital

The difference between current assets and current liabilities is

Working capital. Circulating capital.

2/10, N/30 means

A 2% discount if invoice is paid within 10 days, net due in 30 days

A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business is known as

A business plan

A BFOQ is

A qualification that is absolutely necessary

An interview whereby the applicant is asked a pre-determined set of questions is known as

A structured interview

Legislation that guarantees disabled people equal access to employment, as well as access to public places, is known as

ADA

Which of the following is a requirement for a building layout?

Accessibility

Which of the following is NOT a characteristic of a small business?

Actively managed by stockholders

The art of making the public aware of one's products and/or services that are for sale can be referred to as

Advertising

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

Americans with Disability Act

One who organizes, manages, and assumes the risk of a business firm or venture is known as

An entrepreneur

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

Applicants sex

The association of business firms that promotes ethical conduct by all business firms in a community is known as the

Better Business Bureau

A point in business operations whereyby total sales revenue equals total costs

Break-even point

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

If a prospective business owner attempts to statistically study such factors as human population size, density, distribution, and wealth, we would refer to this as

Demographics

The statistical study of human populations with respect to their size, density, distribution composition, and income is known as

Demographics

A document that lists the major responsibilities and tasks of the job is known as a job

Description

Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?

Directing

Which of the following are disadvantages of a partnership?

Divided authority among partners. Death or incapacity of one of the partners may end the partnership.

Which of the following are advantages of a sole proprietorship?

Ease of starting. Profit incentive.

The wealth produced in or near a community that provides employment and income to the local population is known as the

Economic Base

The quantity to be purchased which minimizes total cost is referred to as the

Economic Order Quantity

An individual that assumes the risk associated with a new venture start-up can be referred to as a(n)

Entrepreneur

Which of the following federal laws affecting employment concerns prohibiting wage discrimination based on the sex of the worker?

Equal pay act of 1963

Capital that is invested in the business by the owner(s) is known as

Equity

Any capital that is invested in a business by the owner(s) can be called

Equity Capital

Capital that is invested in the business by the owner(s) is known as

Equity capital. Personal capital.

A management function which compares organization and individual performances with a predetermined standards or expected results is know as

Evaluating. Controlling.

Which of the following is NOT used to measure the success of advertising?

Income trends in the community

Which of the following is NOT a consumer buying motive?

Indemnity

The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is

Installment credit

In a business, the name, goodwill, copyrights, and patents are referred to as

Intangible assets

Factors associated with evaluating a credit risk would involve all of the following except

Inventory control considerations

In a business, the number of times the average inventory is sold or used up can be referred to as

Inventory turnover

The number of times the average inventory has been sold or used up during a period is know as

Inventory turnover