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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 written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
trade credit
a business plan
Tax burdens; Human resource planning
new venture plan; business plan
2. 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...
service business
Proprietorship
variable expense
ADA
3. Which of the following are functions of management?
fixed capital
markdown
Ease of starting; Profit incentive
controlling; actuating
4. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Ease of starting; Profit incentive
new venture plan; business plan
Actively managed by stockholders
5. 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...
factoring
demographics
market
the religion of the applicant
6. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
American's with Disabilities Act
controlling
trade credit
Proprietorship
7. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Tax burdens; Human resource planning
Terms of the sale
entrepreneur
Better Business Bureau
8. A common business credit/sales tern is...
2/10 - N30
OSHA
circulating capital
Financial shortages
9. A business that purchases finished goods for resale is referred to as a...
Financial shortages
merchandising business
Credit customers are more interested in quality and service than price
an entrepreneur
10. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
description
Credit customers are more interested in quality and service than price
Equal Pay Act of 1963
a business plan
11. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
partnership
an entrepreneur
competition
equity capital
12. 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
Census of banking
sole proprietorship
market
13. Long-term capital that is invested in a business is referred to as...
Applicant's sex
fixed capital
consumerism
Installment credit
14. Which of the following is an intangible asset?
inventory turnover
fixed capital
trade credit
Name of the business; Goodwill
15. One who organizes - manages - and assumes the risk of a business form or venture is known as...
an entrepreneur
merchandising business
to determine where the potential customers are
revolving account; open-end credit
16. Which of the following is an internal problem that can contribute to the failure of a business?
Repairs
Financial shortages
market
Personal checks
17. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Installment credit
2/10 - N30
equity capital
service business
18. The difference between current assets and current liabilities is...
Large financial capacity; Limited liability of each owner (stockholder)
working capital; circulating capital
partnership
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
19. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
inventory turnover
a business plan
demographics
the employment interview
20. A management function which compares organizational and individual performance with predetermined standards or expected results is...
the employment interview
controlling
merchandising business
Efficiency of labor; Combined management - talent and capital
21. Which of the following are disadvantages of a sole proprietorship?
OSHA
risk management
Census of banking
Unlimited liability; Limited management ability
22. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
advertising
Small Business Administration
Directing
factoring
23. Which of the following is NOT a type of consumer credit?
inventory turnover
Large financial capacity; Limited liability of each owner (stockholder)
consumerism
Personal checks
24. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
Better Business Bureau
to determine where the potential customers are
Ease of starting; Profit incentive
25. Which of the following are advantages of a corporation?
partnership
Large financial capacity; Limited liability of each owner (stockholder)
an entrepreneur
Personal checks
26. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
the employment interview
Actively managed by stockholders
Large financial capacity; Limited liability of each owner (stockholder)
Chamber of Commerce
27. Which of the following are advantages of a partnership?
ADA
Efficiency of labor; Combined management - talent and capital
Unlimited liability; Limited management ability
to self-insure
28. Business interruption insurance covers
competition
circulating capital
Efficiency of labor; Combined management - talent and capital
lost income
29. Factors associated with evaluating a credit risk
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
inventory control considerations
Some losses from bad debts and customers with fraudulent intentions are bound to occur
advertising
30. An interview whereby the applicant is asked a pre-determined set of questions is known as...
demographics
inventory turnover
a structured interview
Directing
31. 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...
corporation
controlling
CBD
intangible assets
32. Capital that is investe4d in the business by the owner(s) is known as...
Take on more risks
equity capital; personal capital
Personal checks
working capital
33. A point in business operations whereby total sales revenue equals total costs
a business plan
working capital; circulating capital
Financial shortages
break-even point
34. The main objective in a market survey is...
Efficiency of labor; Combined management - talent and capital
to self-insure
Commercial loans; Venture capitalists
to determine where the potential customers are
35. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
corporation
sales promotions
CBD
trade credit
36. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
advertising
Census of banking
Lack of expertise
markdown
37. Which of the following statements is TRUE concerning consumer credit?
entrepreneur
trade credit
Credit customers are more interested in quality and service than price
Financial shortages
38. A BFOQ is...
to self-insure
markdown
a qualification that is absolutely necessary
a 2% discount if invoice is paid within 10 days - net due in 30 days
39. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
Applicant's sex
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
controlling
40. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
OSHA
corporation
Financial shortages
consumer credit
41. Any capital that is invested in a business by the owner(s) can be called...
consumerism
a qualification that is absolutely necessary
equity capital
equity capital; personal capital
42. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
new venture plan; business plan
OSHA
credit application
corporation
43. The principal government agency concerned with the financing - operation - and management of small businesses is the
Commercial loans; Venture capitalists
mark-up
Small Business Administration
inventory turnover
44. The difference between current assets and current liabilities is...
a structured interview
working capital
Terms of the sale
markdown
45. The difference between merchandise cost and the selling price is known as the...
sales promotions
Better Business Bureau
mark-up
controlling; actuating
46. In business - a reduction of selling price below the original selling price is referred to as...
description
merchandising business
Name of the business; Goodwill
markdown
47. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Small Business Administration
variable expense
demographics
economic base
48. 2/10 - N/30 means...
a qualification that is absolutely necessary
Take on more risks
consumerism
a 2% discount if invoice is paid within 10 days - net due in 30 days
49. Which of the following is NOT a consumer buying motive?
ADA
Financial shortages
entrepreneur
Indemnity
50. A strategy available to absorb risks would be...
Indemnity
to self-insure
controlling
economic order quantity