SBA SBA Business Operations & Management 2

Question 1

What is a break-even analysis used for in small business management?

Accepted Answer

Determining the sales volume needed to cover all costs

Answer

Calculating annual taxes owed

Answer

Evaluating employee performance

Answer

Planning marketing campaigns

Question 2

Which inventory management method assumes the most recently purchased items are sold first?

Accepted Answer

LIFO (Last In, First Out)

Answer

FIFO (First In, First Out)

Answer

Weighted Average

Answer

Specific Identification

Question 3

What is the purpose of an Employer Identification Number (EIN) for a small business?

Accepted Answer

Identify the business for federal tax purposes

Answer

Register the business with state authorities

Answer

Apply for a business license

Answer

Open a personal bank account

Question 4

What does accounts receivable represent on a small business balance sheet?

Accepted Answer

Money owed to the business by customers for goods or services delivered

Answer

Money owed by the business to suppliers

Answer

The business's fixed assets

Answer

Long-term debt obligations

Question 5

Which metric measures how efficiently a business converts sales into profit after all expenses?

Accepted Answer

Net profit margin

Answer

Gross profit margin

Answer

Current ratio

Answer

Debt-to-equity ratio

Question 6

What is the main purpose of a company's employee handbook?

Accepted Answer

Communicate policies, expectations, and procedures to employees

Answer

Track employee hours

Answer

File payroll taxes

Answer

Apply for business licenses