Test your basic knowledge |

Business Fundamentals

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Cash and items that can be turned into cash within one year






2. A form of collusion - agree to charge the same prices - usually higher than the price set by competition






3. Ratio between net income after taxes and net sales; also known as profit margin






4. The state of being certain that adverse effects will not be caused by some agent under defined conditions






5. A phase marked by a prolonged period of high unemployment - weak sales of goods and services - and business failure






6. Managers and workers cooperating as a team






7. Any 12 consecutive months used as an accounting period






8. Being accountable or being able to justify an action






9. Direct communication other than personal sales contacts designed to effect a measurable response






10. Certificates that offer discounts on particular items and are redeemed at the time of purchase






11. Strategy by which managers in specific areas decide how best to achieve corporate goals through productivity






12. Economy in which individuals control production and allocation decisions through supply and demand






13. Obtain goods they cannot produce - reflect comparative advantage - and create jobs






14. Method of calculating the minimum volume of sales needed at a given price to cover all costs






15. Deliver quality products - and provide effective customer service; keeps customers satisfied and helps retain long-term loyalty






16. A business that grows products or takes raw material from nature






17. Strategies that deal with the most important aspects of the company's operations and provide overall direction for the company are known as ____.






18. Advertising that seeks to create goodwill and to build a desired image for a company rather than to sell specific products






19. Customer value created when someone takes ownership of a product






20. Form - time - place - possession






21. Corporation whose stock is widely held and available for sale to the general public






22. Goal set for the very near future






23. Manager responsible for supervising the work of employees






24. Introducing a new product at a low price in hopes of building sales volume quickly






25. Approach to business management that stresses customer needs and wants - seeks long-term profitability - and integrates marketing with other functional units within the organization






26. Measures income earned on owners' investment - formula: Net income/total owners' equity






27. Agreement to produce and market another company's product in exchange for a royalty or fee






28. Power of a good or services to satisfy a human need






29. Market or industry in which there is only one producer that can therefore set the prices on all of its products






30. Diagram depicting a company's structure and showing employees where they fit into its operations






31. Developing and implementing a firm's financial plan - monitoring cash flow - decided how to create or use excess funds - budgeting for current and future expenditures - recommending specific investments - raising capital to finance the enterpris






32. Media: networks - audience: potential buyers - intensity: passive/active - purpose: inform - persuade - remind






33. Amounts that are currently due to a company






34. Customer value created by converting raw materials and other inputs into finished goods and services






35. Promotional strategy that stimulates consumer demand - which then exerts pressure on wholesalers and retailers to carry a product






36. Media: person to person - telephone - web; audience: small groups; intensity: high; purpose: inform - persuade






37. Advertising intended to remind existing customers of a product's availability and benefits






38. Applying a successful brand name to a new product category






39. Marketers focus on stimulating demand for the new product






40. Organization's statement of how it will achieve its purpose in the environment in which it conducts business






41. Cost of goods sold = beginning inventory + net purchases - ending inventory






42. Product that is dissimilar from those of competitors but than can fulfill the same need






43. The level of joblessness among people actively seeking work in an economic system






44. A statement of what is to be accomplished that is expressed in singular - specific - and measurable terms with a target date






45. Profit earned or loss incurred by a firm - determined by subtracting expenses from revenues; also called the bottom line






46. In a ____ authority originates at the top and moves downward in a line.






47. Roles of shareholders - directors - and other managers in corporate decision making and accountability






48. Obligation employees have to their manager for the successful completion of an assigned task






49. profitability - liquidity - activities - and leverage/debt






50. Process of dealing with employees who are represented by a union