Small Business Management

Listening to feedback from customers is important in any business

• Customer Focus
• Customer Idea
• Customer Knowledge
• Control

On the Job Learning are general features of small businesses

• True
• False

A mill will always sew my garments for me.

• True
• False

Which of the following is an expense account?

• Common Stock
• Retained Earnings
• Rent
• Dividends

Company XYZ Inc has variable costs associated with delivering widgets to customers. In December, delivery driving went up 30%. Total variable costs for December increased by:

• 10%
• 20%
• 30%
• Nothing

The amount of money one puts into a business is called a(n):

• Market
• Investment
• Profit
• Capital

What is referred to as "borrowed for personal use"?

• Assets
• Net Pay
• Profit
• Owner's Equity

Which of the following is NOT a measure of liquidity?

• Debt to total assets ratio
• Working Capital
• Current Ratio
• Current cash debt coverage

If a small change in the price of an item causes a significant change in the quantity demanded, we say that the demand for the item is:

• Inelastic
• Scarce
• High
• Elastic

Lack of access to markets and procurement

• Advantage
• Disadvantage

How is the money that a company earns called?

Small businesses do not have economies of scale, the ability to cut costs by increasing production.

• Advantage
• Disadvantage

In the basic accounting equation, Assets= Liabilities + ________?

• Long - term investments
• Current assets
• Stockholders’ Equity
• Retained Earnings

If I am working out of my house sewing items, I do not need insurance.

• True
• False

Joe is a manager of a local business. He is faced with an ethical dilemma in the accounting department. According to the three steps to follow when facing ethical dilemmas, which of the following is NOT a step he should follow to analyze the situation?

• Recognize the ethical situation and the issues involved
• Contact the head supervisor and ask for help
• Identify the principal elements in the situation
• Identify all alternatives and how they affect stakeholders

Small business support networks are general features of small businesses

• True
• False

Which of the following is NOT considered a primary management function?

• Financing
• Planning
• Directing
• Controlling

FeelMe and Patent Club are whose fashion brands?

• Pantaloons
• Koutons
• Jockey Inner ware

Small businesses ownership do not gives the independence and the freedom not enjoyed in the corporate world.

• True
• False

Which of the following is a financial statement used to indicate how successfully the business performed during a period of time?

• Income Statement
• Retained Earnings Statement
• Statement of Cash flows
• Balance Sheet

Being proactive is as important as being reactive in the world of PR (public relations).

• True
• False

Indulge in Style is the base line of which automobile brand?

• Rolls Royce
• BMW
• Indigo Manza

It is essential part of buying inventory, paying employees, marketing the business, buying or repairing business tools and paying his own salary.

• Financial Management
• Financing
• Funding

What is the method used to determine the minimum sales volume needed to cover all costs?

[BLANK] taxation occurs when profits of a business are taxed at the entity level before profits are distributed to owners, distributions are reported on the individual tax returns as dividends and are taxed a second time.

• Dual, Corporate

An individual who undertakes the creation, organization and ownership of a business is called (an):

• Investor
• Business broke
• Role model
• Entrepreneur

Neighborhood loyalty.

• Advantage
• Disadvantage

Remington provided the following information about its balance sheet. Based on the information provided, how much are Remington's liabilities? Cash = $100Accounts receivable = $500Stockholders' equity = $700Accounts payable = $200Bank loans = $1000

Which of the following is a characteristic of a corporation?

• Easy to start - up
• Owned by 1 individual, or a small group of individuals
• Separate legal existence
• Liability is tied to a single individual or small group of individuals

Which term describes an amount owed by a business?

In bookkeeping, if you have limited purchases and/or sales and they come out of one bank account, this is called:

• Double entry bookkeeping
• Dual bookkeeping
• Pass entry bookkeeping
• Single entry bookkeeping

What is the country of origin of Aegon which has a tie up with Religare in India for Insurance?

• Korea
• Japan
• Netherlands

If you trademark a a business name, it will be good in Canada for 25 years.

• True
• False

choosing the right business partners is a critical success factor for new businesses.

• Work Place
• Workforce
• Location
• Work

Which of the following is typically the budget that is prepared first?

• Production Budget
• Sales Budget
• Direct Materials Budget
• Manufacturing Overhead Budget

The _ _ _ _ _ _ _ _ is a large computer network that links smaller computer networks worldwide.

They act as competitors to larger firms which will help improve their efficiency and lower the prices offered to the consumers.

• Advantage
• Disadvantage

Food-related businesses continued to grow modestly last year, particularly in what area?

• Wholesale distribution
• Farming
• Fast Food
• Grocery

During 2011, Softball Kingdom had its assets decrease $50,000. Which of the following transactions would ensure that the basic account equation would balance?

• A decrease in liabilities of $40,000
• An increase in assets of $50,000
• A decrease of assets of $50,000
• An increase in liabilities of $30,000

Which one of the following scenarios would most likely describe the accounting personnel for a small business?

• An accounting department that consists of 50 employees, 10 of whom are senior managers
• An accounting department made up of 4 employees there is one person for each function including accounts receivable, accounts payable, general ledger, and financial reporting
• An accounting department for each division consisting of 25 employees each
• An accounting manager for each line of service the company offers

What is the term used to define a computer that is accessed by a remote attacker and set up to forward transmissions (including spam and viruses) to other computers on the Internet. The purpose is usually either financial gain or malice?

• Superfast
• Zoozoo
• Zombie

Money left over after all expenses of running a business have been deducted from income revenue is:

• Investment
• Profit
• Capital
• Enterprise

Second in sales growth with an 11 percent gain are offices of non-physician health practitioners such as

• Nurses
• Optometrists
• Dentists
• Surgeons

What term is used for day-to-day dealings that involve the exchange of goods and services for cash?

• Bookkeeping
• Business Transactions
• Accounting
• Occasion

Choose appropriate location for your business.

• Location
• Place
• Workplace
• Workforce

Easier record management because of the fewer transactions compared to large businesses. Thus, most accounting responsibilities are highly manageable.

• Advantage
• Disadvantage

When expenses are more than income, it's a…

• Profit
• Revenue
• Liability
• Loss

What are the primary purpose of internal controls in accounting and financial reporting?

• To ensure timely reporting of financial data
• To mitigate the reporting of inaccurate financial data and fraud
• To make sure each employee performs the tasks they have been assigned, without deviation
• To make the accounting manager's job easier

essential in a factor in the beginning a life of a new business

• Finance
• Flexible
• Funding
• Adaptation

Putting an ad in the news paper is a form of digital marketing.

• True
• False

When income is greater than expenses, there is…

• Expense
• Revenue
• Profit
• Loss

Facebook is the best choice to use if you have a young target market and you want to show them photos.

• True
• False

Amongst the following, who is considered an external user of accounting?

• Supervisors of a business
• Customers
• Employees
• Managers of a corporation

A sole proprietor is entitled to 100% of the business profits

• True
• False

A company that handles overseas shipments for a fee is called a(n):

• Business broker
• Franchiser
• Freight forwarder
• Joint venture

There is no hierarchical boundary in levels of management or decision

• Customer Focus
• Control
• Effectiveness
• Funding

In the basic accounting equation, Assets= Liabilities +?

In 2013, XYZ Inc had sales revenues of $400,000, costs of goods sold: $310,000, and operating expenses of $60,000. What is the gross profit?

• $30,000
• $340,000
• $90,000
• $400,000

Whose mass market electric car is called the leaf?

• Mercedes Benz
• Nissan
• Hyundai

There are three requirements necessary for a company to pay out dividends. They are:

• Retained Earnings, Adequate Cash, Declared Dividends
• Retained Earnings, Adequate Cash, Stockholders’ Equity
• Adequate Cash, High Liquidity, Low Liabilities
• Stockholders’ Equity, Low Liquidities, Retained Earnings

Nordstrom is a luxury retailer brand in which country?

• Germany
• USA
• France

Which is the most important feature of bookkeeping?

• Finding out the profit
• Recording songs
• Summarising the transactions
• Recording transactions

Which of the following would not be held personally liable?

• Sole propriter
• Partnership
• Corporation

Which of the following is NOT a reason a company would hold Treasury Stock for future use?

• To reissue the shares to officers and employees
• To have additional shares available in order to acquire another company
• To increase trading of the company’s stock
• To decrease earnings per share

A partnership created by two or more companies for a specific purpose over a set period of time is called a(n):

• Franchise
• Joint venture
• Investment
• Strategic alliance

What is an example of a charge back.

• It was required that you send an item with hangers and you did not
• When an item is returned to the store but is still sellable
• If an item they bought doesn't merchandise well in their store

Small Businesses are not the backbone of the economy.

• True
• False

I do not need to put together a contract with my factory. I should just let them do what they think is best and assume it will work out.

• True
• False

Which of the following is considered an external user of accounting?

• Managers of a corporation
• Employees
• Customers
• Supervisors of a business

Which of the following is a period cost?

• Selling Expenses
• Direct Materials
• Direct Labor
• Manufacturing Overhead

Most small business operators do what they enjoy or love doing as the business may be out of a hobby or part- time job

• Advantage
• Disadvantage

If a factory knows how to sew one thing, then they can pretty much sew anything.

• True
• False

Which of the following is NOT one of the 3 main business activities?

• Financing
• Investing
• Advertising
• Operating

Small businesses have the ability to better connect with the __________ since many customers are suspicious of big business.

• local community

Wholesale is when you sell your items at full price directly to customers.

• True
• False

Which of the following is NOT a function of a journal entry?

• Journal entries show the complete effect of a transaction
• Journal entries show profitability of the company as an overall unit
• Journal entries provide a chronological order of transactions
• Journal entries prevent all accounting errors

The seller of a franchise is called a:

• Partner
• Competitor
• Entrepreneur
• Franchiser

Whois the author of a book titled 10-10-10?

• Bo Derek
• Suzy Welch
• Jack Welch

The location of my factory should not impact my decision if I use the factory or not.

• True
• False

The _____________ must be independent in terms of ownership and operation.

• business

Lack of commitment / Inability to Commit are some mistakes to many owners of small business

• True
• False

Small businesses provide employment to people who want to work near their homes and to spend time with their families.

• Advantage
• Disadvantage

The cost of maintaining and operating a business is called?

• Revenue
• Expense
• Risk
• Loss

What does PK stand for?

• Project knowledge
• Product knowledge
• Pattern knowledge
• Prospect knowledge

If you were going to be creating a Facebook ad, what would be the best way to start?

• Make one ad and run it for a long period of time
• Make a bunch of ads for different things and put them at the same time
• Create a few ads and test them for short periods of time at different times in the week
• Make a bunch of ads for a long period of time

Which of the following is included in the content for reports for Managerial Accounting?

• Relevant data for each sub-unit of the company
• GAAP Accounting
• Double entry accounting and costs
• Condensed financial information for the company as a whole

High failure rate are mistakes to many owners of small businesses

• True
• False

What is a Sukuk?

• Stock Exchange in Arabic
• Equity Share in Arabic
• A Bond as per Islamic Banking

For accounting and financial reporting purposes, smaller businesses...

When did the BSE Sensexreach its all time high of 21206.77?

• Dec 2007
• Jan 2009
• Jan 2008

Fueled by federal money from the stimulus bill, environmental jobs are forecast to grow in the coming year. What job would best be an environmental job?

• Landscaper
• Railroad engineer
• Water tretment technician
• Solar-photovoltaic installers

Management of the assets and liabilities of the business is not a difficult task.

• Advantage
• Disadvantage

Which of the following is put in place to protect a consumer from a business causing harm to either themselves or their property?

• Business deregulation
• Insolvency act
• Tort's law
• Bankruptcy

MOQ stands for

• Most Order Quantity
• Maximum Order Quantity
• Minimum Order Quantity
• Maximum Order Quality

Having no sales plan are common mistakes to many owners

• True
• False
• Maybe

How often are reports created in managerial accounting?

• Quarterly
• As needed by management
• Annually
• Weekly

Assets minus liabilities equals…

The best way to build content that will improve your SEO within your website would be to:

• Tell people by word of mouth how great your site is
• Put up well edited photos
• Write a weekly blog article on your site that relates to your clothing
• Write a weekly blog article on a separate site

the blueprint you should use to operate your business

• Business
• Marketing Plan
• Business Plan

What are the three components of manufacturing costs?

• Direct Labor, Direct Materials, Building Rental
• Direct Materials, Direct Labor, Manufacturing Overhead
• Manufacturing Overhead, Direct Labor, Works in Process
• Direct Materials, Cost of Goods Sold, Direct Labor

To identify consumer markets, you have to be aware of:

• Services
• Demographc changes
• Technology
• Investors

Identify and serve customers who are likely to patronize your business more often.

• Customers
• Target the Right Customers
• Customer Satisfaction

Email List is not a good area of marketing because you might loose all your contacts one day.

• True
• False

A certified public accountant is called?

Which of the following is a liabilities account?

• Current Assets
• Long - term investments
• Property, plant, equipment
• Mortgages Payable

SEO stands for:

• Search Entry Optimization
• Search Engine Optimization
• Simple Example Organization
• Standard Entry Organization

MV Nair is the Chairman ofwhich Bank?

• union Bank
• Dena Bank
• Corporation Bank

One of the risks of being in business for yourself is:

• Being your own boss
• Competition
• Uncertain income
• Loss of prestige

All of the following are benefits of budgeting EXCEPT:

• It creates incentives for managers to be rewarded
• It requires management to plan ahead
• It gives definite objectives for all levels in the company
• It creates an early warning system to prevent potential problems

Which of the following are examples of digital marketing.

• Instagram, Facebook, Twitter, Emails
• Sponsored events, print ads, pop ups
• Fashion show, speaking event, hosting a party

In market research, primary data is second hand information that was already existing that you collected.

• True
• False

It is often very difficult for small businesses to find suitably premises for rent. The rents might be initially very high.

• Advantage
• Disadvantage

What is double entry accounting?

Lead time is the time that it takes for a mill to create your fabric and send it to you.

• True
• False

Small businesses employ just over half of all private-sector workers, according to the Small Business Administration, and they generated what percent of all net new jobs over the past 15 years

• 50%
• 45%
• 80%
• 64%

Which of the following is NOT a type of cost?

• Fixed
• Mixed
• Variable
• Percentage

Which of the following refers to organized summaries of business's financial activities?

this is mainly from personal savings, relatives at the initial stages and some secured credit later if the business is growing.

• Finance
• Financial Management
• Funding
• Financial

Small businesses are not a good risk are the biggest challenge in securing external credit by small businesses

• True
• False

Decision – making: is less formal and more personalized

• True
• False

A privately, independently owned, managed, and operated for profit

• Business
• Business Idea
• Business Plan
• Small Business

Selling and shipping products to another country is called:

• Importing
• Trade barriers
• Trade missions
• Exporting

Which of the following is a financial statement used to indicate how successfully the business performed during a period of time?

The point at which consumers buy all of a product that is supplied is called:

• Equilibrium
• Profit
• Capital
• Investment

To find local small businesses in your sector that are hiring, what is a good strategy?

• Network at business events
• Look on the internet
• Visit the chamber of commerce
• Ask the guidance counselor