Business Management exam
questions and answers graded A+
Which of the following is not a characteristic of a small business, as defined by the Small Business
Act of 1953:
a) they are sources of experimentation and innovaton
b) they are owned by only 5 or fewer people
c) they are not dominant in their field of operation
d) none of the above - ANS✅✅They are sources of experimentation and innovation
Which of the following is a misconception in our society regarding business and ethics:
a) profit and morality are incompatible
b) all ehtical problems have simple solutions
c) ethics is simply a matter of complying with law and regulations
d) all of the above - ANS✅✅all of the above
Which of the following is not an essential contribution that small business make to the U.S.
economy?
a) they are sources of experimentation and innovation
b) they allow their owners an abundance of lesiure time
c) they create opportunities for women, minorities, and recent immigrants
d) none of the above - ANS✅✅They allow their owners an abundance of leisure time
Which of the following is not a misconception in our society regarding business ethics?
a) profit and morality are incompatible
b) all ethical problems have simple solutions
c) unethical behavior in business does take place
d) ethics is simply a matter of complying with aws and regulations - ANS✅✅Unethical behavior in
business does take place
According to the Council for Economic development, which of the following characterizes a typical
small business:
,a) management is independent because the manager usuallly owns the firm
b) capital is supplied by, and ownership is held by, one or a few individuals
c) the area of operations is primarily local
d) all of the above - ANS✅✅all of the above
Which of the following benefits can be attained by creating and running a small business?
a) competition
b) risk of failure
c) challenge
d) laws and regulations - ANS✅✅Challenge
Which of the following covers what small businesses do to complement large businesses?
a) introduce new goods and services to the marketplace
b) purchase, use, and revitalize used capital equipment
c) help ensure the mobility of capital resources
d) all of the above - ANS✅✅all of the above
Which of the following is a common management trap that can lead to business failure?
a) failute to diversify market
b) absentee management
c) lack of marketing research
d) all of the above - ANS✅✅all of the above
Which of the following is not a major disadvantage of going into business?
a) challenge
b) laws and regulations
c) competition
d) risk of failure - ANS✅✅challenge
Which of the following is not a common cause of small business failure
a) fraud
,b) incompetence
c) disaster
d) communications breakdown - ANS✅✅Communications breakdown
Which of the following is not true about code of conducts?
a) they are a written statement of ethical guidelines to which an enterprise adheres
b) they are becoming more common in industry
c) recent ones are more meaningful with regards to societal developments
d) they describe only practices mandated by laws and regulations - ANS✅✅They describe only
practices mandated by laws and regulations
Which of the following is not an advantage of owning a small business?
a) it offers a high level of indpendence
b) it appeals to people who prefer minimal flexibility in their schedules
c) if offers an opportunity to provide jobs to family members
d) it provides an opportunity to make more money than working for someone else - ANS✅✅It
appeals to people who prefer minimal flexibility in their schedules
Which of the following is not a way that small businesses play an important role in the U.S.
economy?
a) they act as market demand "shock absorbers"
b) they are more likely to employ less sklled workers
c) they prevent the mobility of capital resources
d) they purchase, use, and revitalize used capital equipment - ANS✅✅They prevent the mobility of
capital resources
Which of the following is not an advantage of owning a small business?
a) independence
b) job security
c) competition
d) flexibility - ANS✅✅Competition
, Which of the following is what many home-based business operators used as an approach to select
their business?
a) solving a problem
b) tapping a hidden talent
c) using resources from the home
d) all of the above - ANS✅✅all of the above
When considering a home-based business, which of the following steps should be considered to help
assure maximizing the use of time?
a) staying organized
b) fight procrastination
c) learn to be alone
d) all of the above - ANS✅✅all of the above
Which of the following areas should be covered in the action plan?
a) the owner as a person
b) the financial picture
c) other key factors, such as marketing, insurance, building, etc
d) all of the above - ANS✅✅all of the above
The prospective business owner might use a consumer surveys in one of the following stages of the
market analysis. Which stage is it?
a) analyzing the facts
b) implementing an action plan
c) gathering the facts
d) organizing the facts - ANS✅✅Analyzing the facts
Which of the following is considered an intangible asset?
a) oudated inventory
b) accounts payable
c) leasehold interest
d) goodwill - ANS✅✅Goodwill
questions and answers graded A+
Which of the following is not a characteristic of a small business, as defined by the Small Business
Act of 1953:
a) they are sources of experimentation and innovaton
b) they are owned by only 5 or fewer people
c) they are not dominant in their field of operation
d) none of the above - ANS✅✅They are sources of experimentation and innovation
Which of the following is a misconception in our society regarding business and ethics:
a) profit and morality are incompatible
b) all ehtical problems have simple solutions
c) ethics is simply a matter of complying with law and regulations
d) all of the above - ANS✅✅all of the above
Which of the following is not an essential contribution that small business make to the U.S.
economy?
a) they are sources of experimentation and innovation
b) they allow their owners an abundance of lesiure time
c) they create opportunities for women, minorities, and recent immigrants
d) none of the above - ANS✅✅They allow their owners an abundance of leisure time
Which of the following is not a misconception in our society regarding business ethics?
a) profit and morality are incompatible
b) all ethical problems have simple solutions
c) unethical behavior in business does take place
d) ethics is simply a matter of complying with aws and regulations - ANS✅✅Unethical behavior in
business does take place
According to the Council for Economic development, which of the following characterizes a typical
small business:
,a) management is independent because the manager usuallly owns the firm
b) capital is supplied by, and ownership is held by, one or a few individuals
c) the area of operations is primarily local
d) all of the above - ANS✅✅all of the above
Which of the following benefits can be attained by creating and running a small business?
a) competition
b) risk of failure
c) challenge
d) laws and regulations - ANS✅✅Challenge
Which of the following covers what small businesses do to complement large businesses?
a) introduce new goods and services to the marketplace
b) purchase, use, and revitalize used capital equipment
c) help ensure the mobility of capital resources
d) all of the above - ANS✅✅all of the above
Which of the following is a common management trap that can lead to business failure?
a) failute to diversify market
b) absentee management
c) lack of marketing research
d) all of the above - ANS✅✅all of the above
Which of the following is not a major disadvantage of going into business?
a) challenge
b) laws and regulations
c) competition
d) risk of failure - ANS✅✅challenge
Which of the following is not a common cause of small business failure
a) fraud
,b) incompetence
c) disaster
d) communications breakdown - ANS✅✅Communications breakdown
Which of the following is not true about code of conducts?
a) they are a written statement of ethical guidelines to which an enterprise adheres
b) they are becoming more common in industry
c) recent ones are more meaningful with regards to societal developments
d) they describe only practices mandated by laws and regulations - ANS✅✅They describe only
practices mandated by laws and regulations
Which of the following is not an advantage of owning a small business?
a) it offers a high level of indpendence
b) it appeals to people who prefer minimal flexibility in their schedules
c) if offers an opportunity to provide jobs to family members
d) it provides an opportunity to make more money than working for someone else - ANS✅✅It
appeals to people who prefer minimal flexibility in their schedules
Which of the following is not a way that small businesses play an important role in the U.S.
economy?
a) they act as market demand "shock absorbers"
b) they are more likely to employ less sklled workers
c) they prevent the mobility of capital resources
d) they purchase, use, and revitalize used capital equipment - ANS✅✅They prevent the mobility of
capital resources
Which of the following is not an advantage of owning a small business?
a) independence
b) job security
c) competition
d) flexibility - ANS✅✅Competition
, Which of the following is what many home-based business operators used as an approach to select
their business?
a) solving a problem
b) tapping a hidden talent
c) using resources from the home
d) all of the above - ANS✅✅all of the above
When considering a home-based business, which of the following steps should be considered to help
assure maximizing the use of time?
a) staying organized
b) fight procrastination
c) learn to be alone
d) all of the above - ANS✅✅all of the above
Which of the following areas should be covered in the action plan?
a) the owner as a person
b) the financial picture
c) other key factors, such as marketing, insurance, building, etc
d) all of the above - ANS✅✅all of the above
The prospective business owner might use a consumer surveys in one of the following stages of the
market analysis. Which stage is it?
a) analyzing the facts
b) implementing an action plan
c) gathering the facts
d) organizing the facts - ANS✅✅Analyzing the facts
Which of the following is considered an intangible asset?
a) oudated inventory
b) accounts payable
c) leasehold interest
d) goodwill - ANS✅✅Goodwill
