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Test your basic knowledge |
Small Business Management
Start Test
Study First
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. A common business credit/sales tern is...
trade credit
an entrepreneur
risk management
2/10 - N30
2. Which of the following are disadvantages of a corporation?
Credit customers are more interested in quality and service than price
Legal restrictions on activities; Lack of personal interest
partnership
description
3. Selling a business's accounts receivable for cash to a third party is referred to as...
Credit customers are more interested in quality and service than price
factoring
new venture plan; business plan
equity capital
4. The difference between current assets and current liabilities is...
working capital
have good management
service business
proprietorship
5. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
entrepreneur
Legal restrictions on activities; Lack of personal interest
equity capital
6. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
Ease of starting; Profit incentive
description
variable expense
7. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
demographics
service business
the employment interview
demographics
8. The number of times the average inventory has been sold or used up during a period is known as...
circulating capital
inventory turnover
Legal restrictions on activities; Lack of personal interest
description
9. All of the following are factors which can affect the recruitment and selection of employees except
demographics
the religion of the applicant
consumer credit
commercial loans
10. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
2/10 - N30
competition
revolving account; open-end credit
Name of the business; Goodwill
11. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
revolving account; open-end credit
advertising
demographics
12. One who organizes - manages - and assumes the risk of a business form or venture is known as...
credit application
equity capital; personal capital
an entrepreneur
revolving account; open-end credit
13. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
Actively managed by stockholders
Sales are increased; Goodwill is built-up and easily maintained
ADA
manufacturing business
14. A source of debt capital would include
key person insurance
competition
commercial loans
to self-insure
15. The difference between current assets and current liabilities is...
working capital; circulating capital
Legal restrictions on activities
OSHA
2/10 - N30
16. An external problem that can lead to small business failure is...
OSHA
fixed expense
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
consumerism
17. A form of legal organization in which a business association made up of two or more persons is formed for the purpose of carrying on as co-owners is known as a...
Legal restrictions on activities
Indemnity
OSHA
partnership
18. The simplest and most common legal form of business ownership is...
Large financial capacity; Limited liability of each owner (stockholder)
the employment interview
corporation
sole proprietorship
19. The difference between merchandise cost and the selling price is known as the...
mark-up
Civil Rights Act
risk management
economic base
20. Which of the following is NOT an advantage of a corporation?
corporation
Legal restrictions on activities
Civil Rights Act
description
21. A management function which compares organizational and individual performance with predetermined standards or expected results is...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Small Business Administration
controlling
2/10 - N30
22. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Equal Pay Act of 1963
consumer credit
Lack of expertise
corporation
23. A particular business that provides a service as opposed to a product is referred to as a...
Proprietorship
advertising
equity capital
service business
24. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
manufacturing business
Chamber of Commerce
inventory turnover
ADA
25. Which of the following is NOT a consumer buying motive?
a structured interview
to self-insure
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Indemnity
26. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
controlling; actuating
American's with Disabilities Act
Unlimited liability; Limited management ability
Chamber of Commerce
27. In organizing a business - a legal form of organization that is authorized by a state to operate a business under a state charter is referred to as a...
Repairs
corporation
Chamber of Commerce
commercial loans
28. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
markdown
Indemnity
competition
to self-insure
29. Capital that is invested in the business by the owner(s) is known as...
Credit customers are more interested in quality and service than price
equity capital
Chamber of Commerce
consumer credit
30. Capital that is investe4d in the business by the owner(s) is known as...
equity capital; personal capital
Installment credit
the religion of the applicant
break-even point
31. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
fixed capital
sole proprietorship
market
Some losses from bad debts and customers with fraudulent intentions are bound to occur
32. A cost which is uniform per unit - but fluctuates in total - in direct proportion to change in the related total activity or volume is known as...
evaluating; controlling
a qualification that is absolutely necessary
variable expense
risk management
33. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Credit customers are more interested in quality and service than price
American's with Disabilities Act
a structured interview
Chamber of Commerce
34. Which of the following is an external problem and risk of business ownership?
Tax burdens; Human resource planning
Income trends in the community
economic base
Large financial capacity; Limited liability of each owner (stockholder)
35. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
Civil Rights Act
a 2% discount if invoice is paid within 10 days - net due in 30 days
factoring
36. Business interruption insurance covers
market
Directing
lost income
Civil Rights Act
37. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
variable expense
evaluating; controlling
a business plan
38. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
Small Business Administration
fixed capital
sales promotions
39. Which of the following is an intangible asset?
2/10 - N30
sales promotions
Name of the business; Goodwill
mark-up
40. Which of the following is NOT a type of consumer credit?
break-even point
Census of banking
Personal checks
partnership
41. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Proprietorship
evaluating; controlling
Chamber of Commerce
Indemnity
42. A small business is not...
Lack of expertise
risk management
Actively managed by stockholders
sales promotions
43. If a prospective business owner attempts to statistically study such factors as human population size - density - distribution - and wealth - we should refer to this as...
CBD
fixed capital
sales promotions
demographics
44. Which of the following are advantages of extending credit?
Commercial loans; Venture capitalists
the employment interview
a qualification that is absolutely necessary
Sales are increased; Goodwill is built-up and easily maintained
45. Which of the following is recognized as a disadvantage of extending credit?
2/10 - N30
proprietorship
Some losses from bad debts and customers with fraudulent intentions are bound to occur
fixed capital
46. In a business - the number of times the average inventory is sold or used up can be referred to as...
controlling
inventory turnover
Directing
factoring
47. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
partnership
fixed capital
Sales are increased; Goodwill is built-up and easily maintained
consumerism
48. On a chart which plots sales - fixed and variable costs for a given period of time - the point where the sales and the total cost lines intersect is called the...
Applicant's sex
break-even point
demographics
entrepreneur
49. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
a qualification that is absolutely necessary
circulating capital
merchandising business
Installment credit
50. Any capital that is invested in a business by the owner(s) can be called...
equity capital
mark-up
Large financial capacity; Limited liability of each owner (stockholder)
Directing