SBA Regulatory Compliance & Risk Management 3

Question 1

A small business with federal contracts must comply with which regulation requiring affirmative action plans if it has 50 or more employees and contracts of $50,000 or more?

Accepted Answer

Executive Order 11246

Answer

Executive Order 11246 requires federal contractors meeting the thresholds to develop written affirmative action plans and prohibits employment discrimination.

Question 2

Under the Sarbanes-Oxley Act (SOX), which provision most directly affects small businesses that are publicly traded?

Accepted Answer

Internal controls over financial reporting (Section 404)

Answer

SOX Section 404 requires management to assess and report on the effectiveness of internal controls over financial reporting for public companies.

Question 3

A business continuity plan (BCP) differs from a disaster recovery plan (DRP) primarily because the BCP:

Accepted Answer

Covers the entire organization's operations during disruption, not just IT

Answer

A BCP addresses how the whole business continues operating during any disruption, while a DRP is typically a subset focused on restoring IT and data systems.

Question 4

The Environmental Protection Agency (EPA) requires small businesses that generate hazardous waste to register as which category if they generate between 100 and 1,000 kg per month?

Accepted Answer

Small Quantity Generator (SQG)

Answer

Businesses generating 100–1,000 kg of hazardous waste per month are classified as Small Quantity Generators under RCRA, with specific storage and reporting rules.

Question 5

Which practice best describes a 'compliance audit' in a small business context?

Accepted Answer

A systematic review of business operations to ensure adherence to applicable laws and regulations

Answer

A compliance audit systematically examines whether a business's practices, records, and policies conform to relevant legal and regulatory requirements.

(SBA) Small Business Administration Certified Business Practice Test

(SBA) Small Business Administration Certified Business Practice Test

SBA Regulatory Compliance & Risk Management 3