SBA SBA Business Operations & Management

Question 1

What is the primary purpose of an SBA resource partner called a SCORE mentor?

Accepted Answer

Offer free business mentoring and workshops to small business owners

Answer

Provide SBA loans

Answer

Certify businesses for government contracts

Answer

Inspect businesses for compliance

Question 2

Which SBA resource provides free consulting, market research, and business plan assistance to small businesses in local communities?

Accepted Answer

Small Business Development Center (SBDC)

Answer

SCORE

Answer

Women's Business Center (WBC)

Answer

Veteran Business Outreach Center (VBOC)

Question 3

What does cash flow management primarily involve for a small business?

Accepted Answer

Monitoring and controlling the timing of money coming in and going out

Answer

Maximizing annual profit

Answer

Reducing inventory levels

Answer

Increasing marketing spend

Question 4

Which legal structure provides owners with personal liability protection while allowing profits to pass through to personal tax returns?

Accepted Answer

Limited Liability Company (LLC)

Answer

Sole proprietorship

Answer

General partnership

Answer

C-Corporation

Question 5

What is the primary advantage of a sole proprietorship for a small business owner?

Accepted Answer

Easiest and least expensive to form and operate

Answer

Personal liability protection

Answer

Ability to issue stock

Answer

Unlimited number of owners allowed

Question 6

What does an operating agreement define in an LLC?

Accepted Answer

The ownership structure, member roles, and operating procedures of the LLC

Answer

The business's tax identification number

Answer

The business's marketing strategy

Answer

The loan terms for SBA financing