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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. The difference between current assets and current liabilities is...
working capital; circulating capital
Unlimited liability; Limited management ability
variable expense
new venture plan; business plan
2. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Applicant's sex
Better Business Bureau
Installment credit
trade credit
3. Long-term capital that is invested in a business is referred to as...
fixed capital
equity capital
Accessibility
trade credit
4. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
mark-up
Income trends in the community
break-even point
5. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
manufacturing business
Accessibility
break-even point
6. Which of the following is NOT a way to reduce risks?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Take on more risks
Actively managed by stockholders
Equal Pay Act of 1963
7. An external problem that can lead to small business failure is...
consumerism
a 2% discount if invoice is paid within 10 days - net due in 30 days
Commercial loans; Venture capitalists
economic order quantity
8. The difference between merchandise cost and the selling price is known as the...
Actively managed by stockholders
the employment interview
mark-up
Equal Pay Act of 1963
9. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
manufacturing business
entrepreneur
sales promotions
10. Which of the following is NOT included on the employment application?
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11. In business - the name - goodwill - copyrights - and patents are referred to as...
Tax burdens; Human resource planning
Better Business Bureau
break-even point
intangible assets
12. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
competition
Chamber of Commerce
merchandising business
13. The simplest and most common legal form of business ownership is...
Chamber of Commerce
Proprietorship
mark-up
sole proprietorship
14. A point in business operations whereby total sales revenue equals total costs
break-even point
circulating capital
credit application
Equal Pay Act of 1963
15. Which of the following is an intangible asset?
working capital
Name of the business; Goodwill
inventory control considerations
market
16. The main objective in a market survey is...
to determine where the potential customers are
partnership
Sales are increased; Goodwill is built-up and easily maintained
description
17. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
demographics
variable expense
Applicant's sex
18. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Large financial capacity; Limited liability of each owner (stockholder)
Civil Rights Act
Commercial loans; Venture capitalists
lost income
19. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
Civil Rights Act
OSHA
Sales are increased; Goodwill is built-up and easily maintained
20. Which of the following is an example of a variable expense?
controlling
economic order quantity
Repairs
Small Business Administration
21. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
merchandising business
commercial loans
Accessibility
22. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
factoring
break-even point
lost income
Chamber of Commerce
23. A BFOQ is...
a qualification that is absolutely necessary
Accessibility
equity capital
commercial loans
24. Which of the following are advantages of extending credit?
corporation
Sales are increased; Goodwill is built-up and easily maintained
to self-insure
new venture plan; business plan
25. The principal government agency concerned with the financing - operation - and management of small businesses is the
Ease of starting; Profit incentive
intangible assets
a qualification that is absolutely necessary
Small Business Administration
26. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
Indemnity
2/10 - N30
circulating capital
27. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
credit application
manufacturing business
break-even point
ADA
28. Which of the following is an external problem and risk of business ownership?
a 2% discount if invoice is paid within 10 days - net due in 30 days
ADA
competition
Tax burdens; Human resource planning
29. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Lack of expertise
description
risk management
advertising
30. Which of the following are disadvantages of a corporation?
Commercial loans; Venture capitalists
Legal restrictions on activities; Lack of personal interest
lost income
equity capital
31. A source of debt capital would include
Some losses from bad debts and customers with fraudulent intentions are bound to occur
American's with Disabilities Act
commercial loans
equity capital
32. Factors associated with evaluating a credit risk
circulating capital
equity capital
sales promotions
inventory control considerations
33. A management function which compares organizational and individual performance with predetermined standards or expected results is...
Equal Pay Act of 1963
controlling
Indemnity
an entrepreneur
34. Long term capital invested in the business is...
fixed capital
partnership
key person insurance
equity capital; personal capital
35. A document that lists the major responsibilities and tasks of the job is known as a job
mark-up
Repairs
Whether or not they have an acceptable accounts receivable ratio
description
36. Which of the following is NOT a consumer buying motive?
OSHA
Civil Rights Act
proprietorship
Indemnity
37. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
a business plan
demographics
markdown
Ease of starting; Profit incentive
38. 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...
variable expense
partnership
commercial loans
Census of banking
39. A small business is not...
Large financial capacity; Limited liability of each owner (stockholder)
entrepreneur
sole proprietorship
Actively managed by stockholders
40. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
inventory turnover
risk management
Proprietorship
41. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
Census of banking
Accessibility
CBD
corporation
42. Which of the following is not a consideration concerning the selection of suppliers?
Better Business Bureau
competition
Whether or not they have an acceptable accounts receivable ratio
corporation
43. Life insurance that protects a firm against losses due to the death of a key employee is known as...
sole proprietorship
circulating capital
partnership
key person insurance
44. Which of the following is recognized as a disadvantage of extending credit?
Legal restrictions on activities; Lack of personal interest
Take on more risks
variable expense
Some losses from bad debts and customers with fraudulent intentions are bound to occur
45. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
revolving account; open-end credit
competition
to determine where the potential customers are
Some losses from bad debts and customers with fraudulent intentions are bound to occur
46. Which of the following is a requirement for a building layout?
markdown
Accessibility
to self-insure
Census of banking
47. Capital that is invested in the business by the owner(s) is known as...
sales promotions
equity capital
the religion of the applicant
competition
48. A strategy to minimize risk would be to...
American's with Disabilities Act
have good management
sole proprietorship
inventory turnover
49. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
fixed capital
have good management
OSHA
Lack of expertise
50. All of the following are factors which can affect the recruitment and selection of employees except
Take on more risks
revolving account; open-end credit
the religion of the applicant
evaluating; controlling