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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 type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
controlling; actuating
2/10 - N30
American's with Disabilities Act
consumer credit
2. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Installment credit
manufacturing business
proprietorship
Terms of the sale
3. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
working capital
ADA
Take on more risks
an entrepreneur
4. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
working capital; circulating capital
new venture plan; business plan
equity capital
5. Which of the following are advantages of a partnership?
corporation
American's with Disabilities Act
fixed capital
Efficiency of labor; Combined management - talent and capital
6. The quantity to be purchased which minimizes total cost is referred to as the...
revolving account; open-end credit
economic order quantity
Accessibility
markdown
7. The simplest and most common legal form of business ownership is...
sole proprietorship
Legal restrictions on activities
Efficiency of labor; Combined management - talent and capital
2/10 - N30
8. A BFOQ is...
break-even point
Applicant's sex
a qualification that is absolutely necessary
Installment credit
9. Which of the following are advantages of extending credit?
Sales are increased; Goodwill is built-up and easily maintained
economic order quantity
ADA
commercial loans
10. Which of the following is an intangible asset?
Name of the business; Goodwill
partnership
corporation
break-even point
11. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
economic base
Equal Pay Act of 1963
new venture plan; business plan
merchandising business
12. Which of the following are advantages of a sole proprietorship?
fixed capital
partnership
Ease of starting; Profit incentive
variable expense
13. An interview whereby the applicant is asked a pre-determined set of questions is known as...
factoring
a structured interview
partnership
the employment interview
14. Which of the following would NOT be an insurance risk to consider?
entrepreneur
new venture plan; business plan
Terms of the sale
fixed capital
15. Which of the following is NOT an advantage of a corporation?
fixed expense
working capital
new venture plan; business plan
Legal restrictions on activities
16. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
working capital; circulating capital
a qualification that is absolutely necessary
Financial shortages
17. The number of times the average inventory has been sold or used up during a period is known as...
Name of the business; Goodwill
inventory turnover
corporation
Some losses from bad debts and customers with fraudulent intentions are bound to occur
18. In business - the name - goodwill - copyrights - and patents are referred to as...
a 2% discount if invoice is paid within 10 days - net due in 30 days
intangible assets
credit application
commercial loans
19. 2/10 - N/30 means...
equity capital; personal capital
description
a 2% discount if invoice is paid within 10 days - net due in 30 days
variable expense
20. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
a qualification that is absolutely necessary
credit application
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
new venture plan; business plan
21. The difference between current assets and current liabilities is...
Lack of expertise
Legal restrictions on activities
revolving account; open-end credit
working capital
22. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
competition
entrepreneur
Chamber of Commerce
lost income
23. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
advertising
Efficiency of labor; Combined management - talent and capital
break-even point
sole proprietorship
24. Which of the following is NOT a type of consumer credit?
break-even point
inventory turnover
Personal checks
key person insurance
25. Which of the following is an internal problem that can lead to business failure?
commercial loans
key person insurance
fixed capital
Lack of expertise
26. 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...
Small Business Administration
break-even point
controlling
fixed capital
27. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
have good management
variable expense
the employment interview
equity capital; personal capital
28. The difference between current assets and current liabilities is...
American's with Disabilities Act
working capital; circulating capital
partnership
Credit customers are more interested in quality and service than price
29. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Civil Rights Act
fixed capital
controlling; actuating
Ease of starting; Profit incentive
30. Selling a business's accounts receivable for cash to a third party is referred to as...
a qualification that is absolutely necessary
factoring
inventory control considerations
mark-up
31. A business that purchases finished goods for resale is referred to as a...
credit application
merchandising business
entrepreneur
Take on more risks
32. A factor to be considered with the evaluation of a credit risk would be the...
equity capital; personal capital
inventory control considerations
credit application
controlling
33. Which of the following is not a consideration concerning the selection of suppliers?
equity capital
to determine where the potential customers are
to self-insure
Whether or not they have an acceptable accounts receivable ratio
34. Any capital that is invested in a business by the owner(s) can be called...
Ease of starting; Profit incentive
equity capital
Indemnity
Census of banking
35. The difference between merchandise cost and the selling price is known as the...
manufacturing business
Some losses from bad debts and customers with fraudulent intentions are bound to occur
sales promotions
mark-up
36. A plan which provides inducements to potential purchasers of products and/or services is called...
demographics
sales promotions
key person insurance
break-even point
37. A management function which compares organizational and individual performance with predetermined standards or expected results is...
Efficiency of labor; Combined management - talent and capital
controlling
inventory turnover
commercial loans
38. Long term capital invested in the business is...
fixed capital
partnership
Credit customers are more interested in quality and service than price
commercial loans
39. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
revolving account; open-end credit
Sales are increased; Goodwill is built-up and easily maintained
equity capital
equity capital
40. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
inventory control considerations
demographics
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Legal restrictions on activities
41. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
inventory control considerations
sales promotions
Proprietorship
competition
42. Which of the following statements is TRUE concerning consumer credit?
new venture plan; business plan
inventory control considerations
lost income
Credit customers are more interested in quality and service than price
43. A strategy to minimize risk would be to...
have good management
Sales are increased; Goodwill is built-up and easily maintained
break-even point
Take on more risks
44. Business interruption insurance covers
have good management
demographics
lost income
corporation
45. Capital that is investe4d in the business by the owner(s) is known as...
equity capital; personal capital
Directing
revolving account; open-end credit
service business
46. In a business - the number of times the average inventory is sold or used up can be referred to as...
equity capital
Financial shortages
inventory turnover
entrepreneur
47. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
Census of banking
Directing
CBD
Actively managed by stockholders
48. Which of the following are disadvantages of a sole proprietorship?
factoring
Unlimited liability; Limited management ability
to self-insure
a 2% discount if invoice is paid within 10 days - net due in 30 days
49. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
the employment interview
Installment credit
partnership
50. 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...
Better Business Bureau
demographics
Directing
Legal restrictions on activities; Lack of personal interest