Test your basic knowledge |

Small Business Management

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. Rent is an example of a...
fixed expense
corporation
equity capital
credit application

2. The difference between current assets and current liabilities is...
ADA
controlling; actuating
merchandising business
working capital; circulating capital

3. Which of the following is NOT included on the employment application?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

4. The difference between merchandise cost and the selling price is known as the...
mark-up
Chamber of Commerce
Applicant's sex
Financial shortages

5. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
Better Business Bureau
Chamber of Commerce
Personal checks
the employment interview

6. Which of the following is an example of a variable expense?
equity capital; personal capital
consumerism
a business plan
Repairs

7. A document that lists the major responsibilities and tasks of the job is known as a job
service business
economic order quantity
equity capital
description

8. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
equity capital
Directing
Better Business Bureau
Terms of the sale

9. Capital that is investe4d in the business by the owner(s) is known as...
intangible assets
key person insurance
equity capital; personal capital
inventory turnover

10. Which of the following is an intangible asset?
Name of the business; Goodwill
Legal restrictions on activities; Lack of personal interest
corporation
equity capital; personal capital

11. Which of the following are disadvantages of a sole proprietorship?
Terms of the sale
Unlimited liability; Limited management ability
competition
consumer credit

12. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
controlling
CBD
working capital
revolving account; open-end credit

13. Which of the following is not a consideration concerning the selection of suppliers?
economic base
new venture plan; business plan
Installment credit
Whether or not they have an acceptable accounts receivable ratio

14. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
2/10 - N30
Civil Rights Act
to determine where the potential customers are

15. Any capital that is invested in a business by the owner(s) can be called...
Actively managed by stockholders
CBD
Sales are increased; Goodwill is built-up and easily maintained
equity capital

16. The difference between current assets and current liabilities is...
working capital
key person insurance
Installment credit
Whether or not they have an acceptable accounts receivable ratio

17. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
a business plan
Indemnity
partnership
evaluating; controlling

18. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
corporation
Efficiency of labor; Combined management - talent and capital
controlling

19. A business that purchases finished goods for resale is referred to as a...
a qualification that is absolutely necessary
American's with Disabilities Act
markdown
merchandising business

20. In a business - the number of times the average inventory is sold or used up can be referred to as...
fixed capital
partnership
inventory turnover
intangible assets

21. Which of the following laws prohibits discrimination against any qualified individual with a disability?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

22. A source of debt capital would include
economic order quantity
commercial loans
consumer credit
market

23. 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...
Lack of expertise
Commercial loans; Venture capitalists
sole proprietorship
break-even point

24. Which of the following is NOT an advantage of a corporation?
corporation
Proprietorship
an entrepreneur
Legal restrictions on activities

25. Which of the following is NOT a way to reduce risks?
Take on more risks
equity capital; personal capital
economic base
demographics

26. Which of the following are examples of debt capital?
trade credit
Commercial loans; Venture capitalists
sole proprietorship
economic base

27. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Ease of starting; Profit incentive
Unlimited liability; Limited management ability
partnership
consumer credit

28. The principal government agency concerned with the financing - operation - and management of small businesses is the
Applicant's sex
advertising
Commercial loans; Venture capitalists
Small Business Administration

29. Which of the following are advantages of extending credit?
partnership
Sales are increased; Goodwill is built-up and easily maintained
demographics
Repairs

30. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
Equal Pay Act of 1963
equity capital
partnership

31. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
competition
Name of the business; Goodwill
a qualification that is absolutely necessary

32. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
entrepreneur
Equal Pay Act of 1963
sole proprietorship
inventory control considerations

33. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
controlling; actuating
Income trends in the community
Unlimited liability; Limited management ability
Installment credit

34. A small business is not...
demographics
Actively managed by stockholders
Take on more risks
2/10 - N30

35. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Legal restrictions on activities
Installment credit
a structured interview
competition

36. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
Census of banking
fixed capital
Tax burdens; Human resource planning

37. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
corporation
controlling
Better Business Bureau
credit application

38. Which of the following is recognized as a disadvantage of extending credit?
Proprietorship
risk management
Name of the business; Goodwill
Some losses from bad debts and customers with fraudulent intentions are bound to occur

39. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Civil Rights Act
Repairs
advertising
partnership

40. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Better Business Bureau
a 2% discount if invoice is paid within 10 days - net due in 30 days
Proprietorship
Small Business Administration

41. Factors associated with evaluating a credit risk
inventory control considerations
Applicant's sex
intangible assets
service business

42. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Whether or not they have an acceptable accounts receivable ratio
mark-up
Terms of the sale
key person insurance

43. A BFOQ is...
a qualification that is absolutely necessary
a structured interview
Legal restrictions on activities
risk management

44. Which of the following statements is TRUE concerning consumer credit?
Personal checks
Large financial capacity; Limited liability of each owner (stockholder)
manufacturing business
Credit customers are more interested in quality and service than price

45. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
have good management
equity capital
variable expense
demographics

46. Long term capital invested in the business is...
fixed capital
lost income
manufacturing business
mark-up

47. All of the following are factors which can affect the recruitment and selection of employees except
Some losses from bad debts and customers with fraudulent intentions are bound to occur
controlling; actuating
the religion of the applicant
intangible assets

48. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
market
Chamber of Commerce
Applicant's sex

49. The main objective in a market survey is...
Terms of the sale
a qualification that is absolutely necessary
have good management
to determine where the potential customers are

50. Which of the following are advantages of a corporation?
CBD
commercial loans
Large financial capacity; Limited liability of each owner (stockholder)
advertising