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. Utilitarianism: outcome oriented - focuses on the consequences of an action - not on the nature of the action itself or on any set of preestablished moral values or religious beliefs.






2. A period during which aggregate output - as measured by GDP - declines






3. The quantity of a good that an average worker can produce in an hour






4. Four basic stage through which a product progresses: introduction - growth - maturity - and decline






5. Measure of time a company takes to turn its accounts receivable into cash - calculated by divided sales by the average value of accounts receivable for a period






6. Economic system that allows individuals to pursue their own interests without undue governmental restriction






7. Single year; A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets - liabilities and equities) in a balance sheet is represented as a proportion of the total account; income statement






8. The four key elements of marketing strategy: product - price - distribution - and promotion






9. Manufacturing and selling costs - competition - the needs of wholesalers and retailers who distribute the product to the final customer - the firm's marketing objectives - government regulations - quality perceptions - and customer demand






10. Marketing efforts to attract people and organizations to a particular geographical area






11. Payments other than wages or salaries - other benefits






12. The principal that exchange rates are set so that the prices of similar products in different countries are about the same






13. Process of scanning the business environment for threats and opportunities






14. The company founder is no longer solely responsible for all decision making during the ____.






15. 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






16. Inexpensive good or service purchased and consumed rapidly and regularly






17. A formal pledge obligating the issuer (the company) to pay interest periodically and repay the principal at maturity






18. Alternative plans to be implemented if uncontrollable event occur






19. Within an organization essentially answers the question 'Who reports to whom?' - Specific flow of authority down through the levels of an organization's structure.






20. All costs of operation that are not included under cost of goods sold






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






22. Brands that have been given legal protection so that their owners have exclusive rights to their use






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






24. Market structure that does not meet all conditions of perfect competition - three catagories: monopolistic - oligopoly & monopoly






25. Strategy - at the business-unit or product-line level - focusing on improving a firm's competitive position






26. Because production occurs continuously throughout the year - the 3-M company can best be described as using ____.






27. Statement of a firm's financial position on a particular date; also known as a statement of financial position






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






29. Strategy whereby a firm sells one or more of its business units






30. Complete list of all products that a company offers for sale






31. Difference of revenues - costs - and profit from the planned amounts.






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






33. Transferring work to another country






34. Enactment of federal regulations to restore public trust in accounting practices by imposing new requirements on financial activities in publicly traded corporations






35. Leaders need vision that is realistic and feasible. The strategic vision should be clear - cohesive - consistent and flexible. Includes analysis of the agency's internal and external environments (strengths - weaknesses - opportunities - and thr






36. Private funds - partners/shareholders - bank loans - asset leasing and hire purchase - venture capital/business angels - merger capital - retained profits






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






38. Assets retained for long-term use - such as land - buildings - machinery - and equipment; also referred to as property - plant - and equipment






39. The way you live as measure by the kinds and quality of goods and services you can afford






40. Mechanism for exchange between buyers and sellers of a particular good or service






41. Organization for economic - social - and security cooperation among European nations






42. Promotional approach designed to motivate wholesalers and retailers to push a producer's products to end users






43. Media: tv - radio - internet - print; audience: broad - intensity: passive - purpose: inform - persuade






44. Expensive - rarely purchased good or service






45. Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located






46. The various appliances and devices for creating - storing - exchanging - and using information in diverse modes - including visual images - voice - multimedia - and business data






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






48. Protects art and literary work - give authors exclusive right to publish - sell and reproduce their work






49. People are internally motivated






50. Legal principal holding investors liable for a firm's debts only to the limits of their personal investments in it