Small Business Management compend

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

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Small Business Management compend

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