Practice Test - Small Business Development

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Practice Test
Below are some sample questions to help give you an idea of the types of questions you will see on the written assessment. These exact
questions will NOT appear on the test, and how will you do on these questions is not necessarily a sign of how you will do on the test.
However, they WILL help give you an idea of what types of question s are asked on the test and how they are generally written. For each
item below, circle the answer you think is correct. Then check your work with the answer key on the last page.
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The balance according to the bank statement is $35,782. Outstanding checks total $19,573. Deposits in transit total $7,210.
What is the adjusted bank balance?
a. $8,999
b. $19,383
c. $23,419
d. $62,565
An invoice dated on March 10 with the terms 3/60, n/60 means that a three percent discount will be given if the invoice is paid
on or before
a. May 7
b. May 8
c. May 9
d. May 10
What is a check that has not been returned for processing to the financial institution from where it originated?
a. Outstanding
b. Voided
c. Cashed
d. Authorized
According to Federal Law, employees must be provided with W-2 forms no later than
a. January 31
b. January 15
c. March 31
d. April 15
Methods of estimating bad debts include aged accounts receivable, the total of uncollected accounts receivable, and taking a
percentage of
a. net sales
b. gross sales
c. accounts payable
d. total liabilities
Which of the following words is misspelled?
a. perpetuity
b. annuity
c. allocate
d. deversification
If total assets increased $35,000 during a period and total liabilities increase $14,000 during the same period, the amount and
direction (increase or decrease) of the change in owner’s equity for that period is
a. $21,000 increase
b. $21,000 decrease
c. $24,000 increase
d. $24,000 decrease
A business owes Bob’s Office Supply Store $2500 at the beginning of September. On September 15th, the business buys and
additional $400 worth of merchandise on the credit card. On September 21st, the firm returns $275 of the merchandise. How
much does the business owe Bob’s office Supply Store on September 30th?
a. $2225
b. $2625
c. $2900
d. $3175
Which of the following sentences is grammatically correct?
a. The accident victim was laying on the road until the ambulance arrived.
b. We arrived their at 3 PM to begin the meeting.
c. The manager busted into the wrong office by mistake.
d. Ann missed the meeting because she was lying in bed with the flu.
10. The business cycle refers to
a. the repeated movement from good economic times to bad and back
b. the inflation of prices over time
c. shifts in business laws as the government changes from Republican to Democrat and back
d. fluctuations in a company’s stock price throughout the year
11. What governmental program has the mission of promoting consumer protection and eliminating harm and anti-competitive
business practices?
a. Service Act
b. Business and Industry
c. Small Business Administration
d. Federal Trade Commission
12. A CEO urges employees to buy stock in the company and then sells his/her personal stock that will likely drop the stock prices.
The actions of the CEO showed
a. a keen business acuity
b. loyalty to the company
c. unethical behavior
d. honesty and integrity
13. Ms. Jameson applies for a job at ABC Company and indicates that she has completed a college degree. Discovering that she
attending college, but did not complete a degree, the company has concerns about her
a. grades
b. integrity
c. religion
d. age
14. An example of nonverbal communication is
a. speaking
b. nodding
c. writing
d. emailing
15. As a finance professional speaking with a client known as Susan Smith, address the client as
a. Ms. Smith
b. Susan
c. Sue
d. S.S.
16. Based on the chart displayed below, how many total cases of product code 101 are on this truck?
Number of Cases Per
Product Code
Product Description
Number of Pallets
Pallet
101
Pencils
5
12
108
Chalk
10
76
105
Notebooks
3
60
a. 60
b. 180
c. 1000
d. 2500
17. When an employee is giving an oral presentation he or she should speak clearly and
a. in a low voice
b. quickly
c. confidently
d. in a monotone voice
18. An example of active listening skills is
a. planning what to say next
b. paraphrasing what has been said
c. taking notes after the conversation
d. nodding during the conversation
19. What function command would calculate the annual average for the sheet of data average for the set of data shown on the
spreadsheet below
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a. =average(b3:b6)
b. =average(b8)
c. =average(a3:a6)
d. =average(a3:b6)
Sam is working on a long article, and wants to change the word “simplify” to “clarify” throughout the document. The most
efficient method to use would be
a. cut and paste
b. find and replace
c. select and change
d. backspace and retype
Company ABC sends an “anniversary” card to each client on the date they started working with the company. To maintain an
electronic record, they should use a
a. calendar
b. planner
c. card file
d. database
James wants to send a personalized letter to each of his sales clients. To do this, James should use
a. mail-merge
b. auto-formatting
c. design templates
d. auto-addressing
Which of the following questions is most likely to get a specific definition to a problem?
a. What was happening when the failure occurred?
b. Has the problem happened before?
c. What other problems have you had with this machine?
d. How often has this problem happened before?
When a group is _________________ possible solutions for a problem they should record all comments and suggestions.
a. brainstorming
b. forming
c. thinking
d. working out
Which of the following charts or diagrams is best used to help determine possible root causes of problems?
a. Pareto
b. Fishbone
c. Gantt
d. Pie
To be a good team leader, it is important to
a. be a technical expert in the field
b. recognize strengths of others
c. be autocratic and make all decisions alone
d. socialize with team members and be will liked
To hold an effective meeting, it is important to have a
a. projection system
b. large meeting room
c. notepad for each attendee
d. written agenda
Robert is a new employee and has joined a work team for the company. What is the best way the other team members can help
Robert to participate meaningfully in the team discussions?
a. Instruct Robert not to talk very much during the first meeting he attends, so he can learn as much as possible.
b. Assign Robert to watch the group during the first few meetings.
c. Let Robert fend for himself.
d. Tell Robert about the “ground rules” the team has created to guide the meetings and explain what the group has done
in recent meetings.
29. John is managing a team. He should tell the team members that
a. team's success depends on each person doing his or her part
b. it is acceptable for some team members to work on other things most of the time
c. team members should give their attention to the most opinionated team member
d. attendance at team meetings is not required
30. A _________ fire extinguisher should be used on a computer fire
a. Class A
b. Class B
c. Class C
d. Class D
31. The government organization whose purpose to to set and enforce worksite safety and health standards is
a. OPM
b. EEOC
c. NLRB
d. OSHA
32. Ergonomics is the study of implementing safety and ________ in the computer user’s workplace.
a. well being
b. comfort
c. cleanliness
d. health
33. The main purpose of an effective performance evaluation is to
a. help companies determine who to fire when times get hard
b. help workers to determine when they should ask for a salary raise
c. help workers develop their strengths and work on their weaknesses
d. help companies to determine what other jobs workers might be good at
34. When an employee gets a new job, he or she has to fill out a W-4 form. This is a/an
a. statement of earnings and deductions
b. withholding certificate for tax purposes
c. employment eligibility verification
d. authorization for direct deposit
35. When a company sends a packet of information and forms prior to the interview, be sure to
a. leave it at home since it is not needed at the interview
b. take the entire packet with you to the interview
c. bring information about competitors to the interview
d. bring your salary and benefit requirements to the interview
36. What is it called when an employee makes a list of tasks, determines due dates, and ranks the tasks by importance?
a. prioritizing
b. equalizing
c. consolidating
d. directing
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Answer Key
C
19
C
20
A
21
A
22
A
23
D
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A
25
B
26
D
27
A
28
D
29
C
30
B
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B
32
A
33
A
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C
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B
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A
B
D
A
A
A
B
B
D
D
A
C
D
B
C
B
B
A
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