Compend - Small Business Management
a 2% discount if invoice is paid within 10 days, net due in 30 days
2/10,N/30 means
a qualification that is absolutely necessary
A BFOQ is
manufacturing business
A business that makes finished goods from raw materials by hand or machinery is referred to as a
merchandising business
A business that purchases finished goods for resale is referred to as a
2/10, N30
A common business credit/sales tern is
variable expense
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
description
A document that lists the major responsibilities and tasks of the job is known as a job
credit application
A factor to be considered with the evaluation of a credit risk would be the
partnership
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
OSHA
A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees, is known as
market
A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines
corporation
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
revolving account; open-end credit
A line of credit that may b e used over and over again up to a certain borrowing limit is called
evaluating; controlling
A management function which compares organization and individual performance with predetermined standards or expected results is known as
controlling
A management function which compares organizational and individual performance with predetermined standards or expected results is
service business
A particular business that provides a service as opposed to a product is referred to as a
sales promotions
A plan which provides inducements to potential purchasers of products and/or services is called
break-even point
A point in business operations whereby total sales revenue equals total costs
commercial loans
A source of debt capital would include
to self-insure
A strategy available to absorb risks would be
have good management
A strategy to minimize risk would be to
consumer credit
A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as
a business plan
A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business is known as
new venture plan; business plan
A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business is known as a
demographics
If a prospective business owner attempts to statistically study such factors as human population size, density, distribution, and wealth, we should refer to this as
inventory turnover
In a business, the number of times the average inventory is sold or used up can be referred to as
markdown
In business, a reduction of selling price below the original selling price is referred to as
intangible assets
In business, the name, goodwill, copyrights, and patents are referred to 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
lost income
Business interruption insurance covers
equity capital; personal capital
Capital that is investe4d in the business by the owner(s) is known as
equity capital
Capital that is invested in the business by the owner(s) is known as
inventory control considerations
Factors associated with evaluating a credit risk
the religion of the applicant
All of the following are factors which can affect the recruitment and selection of employees except
Chamber of Commerce
An association of business people who attempt to protect and promote the commercial interests in a community is known as the
consumerism
An external problem that can lead to small business failure is
entrepreneur
An individual that assumes the risks associated with a new venture start-up can be referred to as a(n)
a structured interview
An interview whereby the applicant is asked a pre-determined set of questions is known as
equity capital
Any capital that is invested in a business by the owner(s) can be called
trade credit
Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called
risk management
Any effort undertaken to retain and preserve the assets and earning power of a business is called
ADA
Legislation that guarantees disabled people equal access to employment, as well as access to public places, is known as
key person insurance
Life insurance that protects a firm against losses due to the death of a key employee is known as
fixed capital
Long term capital invested in the business is
fixed capital
Long-term capital that is invested in a business is referred to as
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
an entrepreneur
One who organizes, manages, and assumes the risk of a business form or venture is known as
fixed expense
Rent is an example of a
factoring
Selling a business's accounts receivable for cash to a third party is referred to as
advertising
The art of making the public aware of one's products and/or services that are for sale can be referred to as
Better Business Bureau
The association of business firms that promotes ethical conduct by all business firms in a community is known as the
partnership
The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a
circulating capital
The current asset items consisting of cash, inventories, and accounts receivables is known as
working capital
The difference between current assets and current liabilities is
working capital; circulating capital
The difference between current assets and current liabilities is
mark-up
The difference between merchandise cost and the selling price is known as the
proprietorship
The form of legal organization that is owned and operated by one person is the
to determine where the potential customers are
The main objective in a market survey is
inventory turnover
The number of times the average inventory has been sold or used up during a period is known as
competition
The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as
Small Business Administration
The principal government agency concerned with the financing, operation, and management of small businesses is the
economic order quantity
The quantity to be purchased which minimizes total cost is referred to as the
sole proprietorship
The simplest and most common legal form of business ownership is
demographics
The statistical study of human populations with respect to their size, density, distribution, composition, and income is known as
Installment credit
The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is
economic base
The wealth produced in or near a community that provides employment and income to the local population is known as the
the employment interview
When selecting employees, the applicant's appearance, poise, speech, and other characteristics may best be determined by
CBD
Whenever a business must pay for the merchandise before its delivery, which of the sales terms apply?
Civil Rights Act
Which of the following acts outlaws discrimination in employment based on race, color, religion, sex, pregnancy, or natural origin?
Large financial capacity; Limited liability of each owner (stockholder)
Which of the following are advantages of a corporation?
Efficiency of labor; Combined management, talent and capital
Which of the following are advantages of a partnership?
Ease of starting; Profit incentive
Which of the following are advantages of a sole proprietorship?
Sales are increased; Goodwill is built-up and easily maintained
Which of the following are advantages of extending credit?
Legal restrictions on activities; Lack of personal interest
Which of the following are disadvantages of a corporation?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Which of the following are disadvantages of a partnership?
Unlimited liability; Limited management ability
Which of the following are disadvantages of a sole proprietorship?
Commercial loans; Venture capitalists
Which of the following are examples of debt capital?
controlling; actuating
Which of the following are functions of management?
Equal Pay Act of 1963
Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Proprietorship
Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Actively managed by stockholders
Which of the following is NOT a characteristic of a small business?
Indemnity
Which of the following is NOT a consumer buying motive?
Personal checks
Which of the following is NOT a type of consumer credit?
Take on more risks
Which of the following is NOT a way to reduce risks?
Legal restrictions on activities
Which of the following is NOT an advantage of a corporation?
Applicant's sex
Which of the following is NOT included on the employment application?
Income trends in the community
Which of the following is NOT used to measure the success of advertising?
Accessibility
Which of the following is a requirement for a building layout?
Repairs
Which of the following is an example of a variable expense?
Tax burdens; Human resource planning
Which of the following is an external problem and risk of business ownership?
Name of the business; Goodwill
Which of the following is an intangible asset?
Financial shortages
Which of the following is an internal problem that can contribute to the failure of a business?
Lack of expertise
Which of the following is an internal problem that can lead to business failure?
Census of banking
Which of the following is normally NOT a source of published market data?
Whether or not they have an acceptable accounts receivable ratio
Which of the following is not a consideration concerning the selection of suppliers?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Which of the following is recognized as a disadvantage of extending credit?
American's with Disabilities Act
Which of the following laws prohibits discrimination against any qualified individual with a disability?
Directing
Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Credit customers are more interested in quality and service than price
Which of the following statements is TRUE concerning consumer credit?
Terms of the sale
Which of the following would NOT be an insurance risk to consider?
