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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. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
a business plan
2/10 - N30
have good management
2. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
trade credit
entrepreneur
equity capital; personal capital
partnership
3. 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...
to self-insure
break-even point
Efficiency of labor; Combined management - talent and capital
controlling
4. Which of the following are disadvantages of a partnership?
break-even point
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
revolving account; open-end credit
Ease of starting; Profit incentive
5. Selling a business's accounts receivable for cash to a third party is referred to as...
corporation
have good management
factoring
Legal restrictions on activities
6. Which of the following are advantages of extending credit?
Sales are increased; Goodwill is built-up and easily maintained
controlling; actuating
2/10 - N30
risk management
7. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
sole proprietorship
Unlimited liability; Limited management ability
Equal Pay Act of 1963
8. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
intangible assets
Indemnity
Directing
9. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Sales are increased; Goodwill is built-up and easily maintained
Proprietorship
a structured interview
to determine where the potential customers are
10. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
controlling
Equal Pay Act of 1963
Personal checks
risk management
11. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
equity capital
Better Business Bureau
credit application
12. Which of the following is an external problem and risk of business ownership?
economic base
equity capital; personal capital
sales promotions
Tax burdens; Human resource planning
13. The main objective in a market survey is...
Civil Rights Act
economic base
to determine where the potential customers are
inventory turnover
14. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
the employment interview
Whether or not they have an acceptable accounts receivable ratio
Directing
fixed expense
15. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
have good management
a structured interview
ADA
corporation
16. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Commercial loans; Venture capitalists
Chamber of Commerce
intangible assets
trade credit
17. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
controlling
the religion of the applicant
competition
merchandising business
18. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Tax burdens; Human resource planning
a structured interview
Take on more risks
economic order quantity
19. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
Civil Rights Act
to self-insure
markdown
20. A small business is not...
Whether or not they have an acceptable accounts receivable ratio
Actively managed by stockholders
revolving account; open-end credit
partnership
21. The difference between current assets and current liabilities is...
Income trends in the community
working capital; circulating capital
the religion of the applicant
proprietorship
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...
consumer credit
fixed capital
demographics
the religion of the applicant
23. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
break-even point
evaluating; controlling
manufacturing business
the religion of the applicant
24. A common business credit/sales tern is...
2/10 - N30
Indemnity
entrepreneur
a 2% discount if invoice is paid within 10 days - net due in 30 days
25. One who organizes - manages - and assumes the risk of a business form or venture is known as...
fixed expense
an entrepreneur
Accessibility
fixed capital
26. Which of the following are advantages of a partnership?
Ease of starting; Profit incentive
Efficiency of labor; Combined management - talent and capital
variable expense
partnership
27. The quantity to be purchased which minimizes total cost is referred to as the...
fixed capital
economic order quantity
a 2% discount if invoice is paid within 10 days - net due in 30 days
Civil Rights Act
28. Factors associated with evaluating a credit risk
equity capital
inventory control considerations
credit application
have good management
29. Which of the following is not a consideration concerning the selection of suppliers?
merchandising business
Proprietorship
Legal restrictions on activities
Whether or not they have an acceptable accounts receivable ratio
30. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
lost income
market
Lack of expertise
working capital; circulating capital
31. 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...
variable expense
risk management
OSHA
evaluating; controlling
32. A legal form of organization whereby a legal entity is authorized by a state to operate a business under the entity's charter or articles of incorporation is known as a...
corporation
Civil Rights Act
entrepreneur
the religion of the applicant
33. 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...
demographics
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
a structured interview
advertising
34. 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...
working capital; circulating capital
working capital
corporation
commercial loans
35. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
Repairs
evaluating; controlling
Take on more risks
36. A particular business that provides a service as opposed to a product is referred to as a...
Census of banking
Financial shortages
commercial loans
service business
37. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities
Unlimited liability; Limited management ability
intangible assets
Installment credit
38. A document that lists the major responsibilities and tasks of the job is known as a job
competition
description
Name of the business; Goodwill
Small Business Administration
39. A point in business operations whereby total sales revenue equals total costs
variable expense
break-even point
Civil Rights Act
manufacturing business
40. 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...
Financial shortages
Applicant's sex
partnership
Actively managed by stockholders
41. Which of the following are examples of debt capital?
break-even point
Small Business Administration
Commercial loans; Venture capitalists
Terms of the sale
42. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
CBD
fixed capital
the employment interview
advertising
43. Which of the following are advantages of a sole proprietorship?
OSHA
Ease of starting; Profit incentive
economic order quantity
fixed capital
44. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
proprietorship
market
Lack of expertise
partnership
45. 2/10 - N/30 means...
new venture plan; business plan
a business plan
a 2% discount if invoice is paid within 10 days - net due in 30 days
demographics
46. A business that purchases finished goods for resale is referred to as a...
advertising
evaluating; controlling
merchandising business
to determine where the potential customers are
47. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Legal restrictions on activities
entrepreneur
inventory turnover
48. Business interruption insurance covers
Financial shortages
description
Commercial loans; Venture capitalists
lost income
49. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
working capital; circulating capital
the employment interview
key person insurance
50. Which of the following is NOT a type of consumer credit?
Income trends in the community
Personal checks
sole proprietorship
variable expense