SMALL BUSINESS MANAGEMENT EXAM 2 [2026]
UPDATED ACTUAL Exam | Question and Answer |
STEP-BY-STEP SOLUTIONS
• agent -✓✓ A _ refers to a middleman business which represents a manufacturer's
products or services to other business-to-business middleman firms
• renovation options are limited in a leasing property -✓✓ Which of the following
is a disadvantage of leasing?
• target market customers are essential factors for selecting business locations -✓✓
which of the following is true of business locations?
• true -✓✓ access for employees and reasonable cost are critical for businesses
with low customer contact
• indirect exporting -✓✓ uses agents, export management companies, or export
trading companies as intermediaries to handle most of the exporting process
• production line -✓✓ In a _ layout, material flows in on one side of the operation
and continues to the other end of the operation
• markup pricing -✓✓ _ is probably the most widely used of the many pricing
methods available
• up-front cash payment is a risk to the customers -✓✓ which of the following is
true of payment procedures
,• true -✓✓ Skimming, odd-even pricing, and price lining are three possible pricing
strategies available to small businesses
• legal offices -✓✓ Which of the following is an example of a high customer
contact business?
• true -✓✓ It is good to opt for distributors when a whole line of products need to
be bought or warehoused.
• fulfillment center -✓✓ A _ will warehouse products, pack and ship them, and
send an automated email to customers to let them know the product is on its way
• a products' final price is more than the manufacturing cost if intermediaries are
invovled -✓✓ Which of the following statements is true of non direct distribution?
• intermediaries -✓✓ Wholesalers, retailers, distributors, agents are commonly
referred to as
• true -✓✓ Radio advertisements provide both geographic and demographic
segmentation of a product or service
• sales promotion -✓✓ _ is a form of communication that encourages the customer
to act immediately, such as coupons, sales, or contests
• false -✓✓ Traditionally, manufacturing processes are laid out in one of the two
formats: grid layout and free-form layout
, • false -✓✓ A direct mail approach needs major inventory investment
• manufacturing business -✓✓ A _ is an example of a low customer contact
business
• current ratio -✓✓ Which of the following ratios is used to estimate the liquidity
of a business?
• it records provision of credit to customers -✓✓ In the context of accounting
functions, which of the following is true of accounts receivable?
• master budget -✓✓ A comprehensive budget is also referred to as the:
• payroll records -✓✓ Which of the following accounting functions ensures that the
employment taxes are kept current?
• permanent accounts -✓✓ _ are the accounts of assets, liabilities, and owners'
equity, excluding accounts for revenues and expenses
• false -✓✓ Formal summaries of the content of an accounting system's records of
transactions are called financial instruments
• the business entity idea -✓✓ Juan has an accounting philosophy according to
which he keeps the loans borrowed from the business separate from the loans he
takes from banks for his own purposes. Which of the following basic accounting
concepts is reflected in Juans' accounting philosophy?
UPDATED ACTUAL Exam | Question and Answer |
STEP-BY-STEP SOLUTIONS
• agent -✓✓ A _ refers to a middleman business which represents a manufacturer's
products or services to other business-to-business middleman firms
• renovation options are limited in a leasing property -✓✓ Which of the following
is a disadvantage of leasing?
• target market customers are essential factors for selecting business locations -✓✓
which of the following is true of business locations?
• true -✓✓ access for employees and reasonable cost are critical for businesses
with low customer contact
• indirect exporting -✓✓ uses agents, export management companies, or export
trading companies as intermediaries to handle most of the exporting process
• production line -✓✓ In a _ layout, material flows in on one side of the operation
and continues to the other end of the operation
• markup pricing -✓✓ _ is probably the most widely used of the many pricing
methods available
• up-front cash payment is a risk to the customers -✓✓ which of the following is
true of payment procedures
,• true -✓✓ Skimming, odd-even pricing, and price lining are three possible pricing
strategies available to small businesses
• legal offices -✓✓ Which of the following is an example of a high customer
contact business?
• true -✓✓ It is good to opt for distributors when a whole line of products need to
be bought or warehoused.
• fulfillment center -✓✓ A _ will warehouse products, pack and ship them, and
send an automated email to customers to let them know the product is on its way
• a products' final price is more than the manufacturing cost if intermediaries are
invovled -✓✓ Which of the following statements is true of non direct distribution?
• intermediaries -✓✓ Wholesalers, retailers, distributors, agents are commonly
referred to as
• true -✓✓ Radio advertisements provide both geographic and demographic
segmentation of a product or service
• sales promotion -✓✓ _ is a form of communication that encourages the customer
to act immediately, such as coupons, sales, or contests
• false -✓✓ Traditionally, manufacturing processes are laid out in one of the two
formats: grid layout and free-form layout
, • false -✓✓ A direct mail approach needs major inventory investment
• manufacturing business -✓✓ A _ is an example of a low customer contact
business
• current ratio -✓✓ Which of the following ratios is used to estimate the liquidity
of a business?
• it records provision of credit to customers -✓✓ In the context of accounting
functions, which of the following is true of accounts receivable?
• master budget -✓✓ A comprehensive budget is also referred to as the:
• payroll records -✓✓ Which of the following accounting functions ensures that the
employment taxes are kept current?
• permanent accounts -✓✓ _ are the accounts of assets, liabilities, and owners'
equity, excluding accounts for revenues and expenses
• false -✓✓ Formal summaries of the content of an accounting system's records of
transactions are called financial instruments
• the business entity idea -✓✓ Juan has an accounting philosophy according to
which he keeps the loans borrowed from the business separate from the loans he
takes from banks for his own purposes. Which of the following basic accounting
concepts is reflected in Juans' accounting philosophy?
