SBA SBA Business Operations & Management 1

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

SCORE is an SBA resource partner that provides free, confidential business mentoring and workshops to entrepreneurs and small business owners.

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

Small Business Development Centers (SBDCs) provide free one-on-one consulting and low-cost training including help with business plans and market research.

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

Cash flow management involves tracking and optimizing the timing of cash inflows and outflows to ensure a business can meet its financial obligations.

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

An LLC (Limited Liability Company) offers personal liability protection for owners while allowing business profits and losses to pass through to personal income tax returns.

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

A sole proprietorship is the simplest and least costly business structure to establish, with minimal regulatory requirements.

(SBA) Small Business Administration Certified Business Practice Test

(SBA) Small Business Administration Certified Business Practice Test

SBA SBA Business Operations & Management 1