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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 statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
circulating capital
corporation
demographics
Civil Rights Act
2. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
credit application
fixed capital
a business plan
Equal Pay Act of 1963
3. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
equity capital
mark-up
Credit customers are more interested in quality and service than price
4. The principal government agency concerned with the financing - operation - and management of small businesses is the
Small Business Administration
key person insurance
to determine where the potential customers are
equity capital; personal capital
5. In business - a reduction of selling price below the original selling price is referred to as...
proprietorship
markdown
revolving account; open-end credit
ADA
6. A strategy to minimize risk would be to...
Indemnity
description
Legal restrictions on activities
have good management
7. Which of the following is NOT used to measure the success of advertising?
Income trends in the community
manufacturing business
Legal restrictions on activities
intangible assets
8. Which of the following are advantages of extending credit?
intangible assets
Legal restrictions on activities
have good management
Sales are increased; Goodwill is built-up and easily maintained
9. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Lack of expertise
partnership
inventory turnover
10. Which of the following are advantages of a sole proprietorship?
inventory control considerations
Ease of starting; Profit incentive
corporation
Efficiency of labor; Combined management - talent and capital
11. Which of the following would NOT be an insurance risk to consider?
Terms of the sale
break-even point
risk management
proprietorship
12. Which of the following is not a consideration concerning the selection of suppliers?
markdown
trade credit
Name of the business; Goodwill
Whether or not they have an acceptable accounts receivable ratio
13. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
demographics
controlling
ADA
Census of banking
14. The difference between current assets and current liabilities is...
working capital; circulating capital
sole proprietorship
Sales are increased; Goodwill is built-up and easily maintained
an entrepreneur
15. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
trade credit
Chamber of Commerce
new venture plan; business plan
advertising
16. A source of debt capital would include
Equal Pay Act of 1963
key person insurance
commercial loans
Installment credit
17. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
Better Business Bureau
Accessibility
demographics
18. Capital that is investe4d in the business by the owner(s) is known as...
Efficiency of labor; Combined management - talent and capital
fixed capital
the religion of the applicant
equity capital; personal capital
19. 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
Efficiency of labor; Combined management - talent and capital
manufacturing business
the employment interview
20. Which of the following are functions of management?
controlling; actuating
a structured interview
circulating capital
economic base
21. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
demographics
circulating capital
risk management
working capital; circulating capital
22. Which of the following is a requirement for a building layout?
Personal checks
Equal Pay Act of 1963
Accessibility
market
23. Which of the following is NOT a consumer buying motive?
Legal restrictions on activities
commercial loans
Indemnity
fixed capital
24. A plan which provides inducements to potential purchasers of products and/or services is called...
sales promotions
Accessibility
demographics
working capital; circulating capital
25. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
2/10 - N30
competition
key person insurance
26. The main objective in a market survey is...
Applicant's sex
to determine where the potential customers are
Legal restrictions on activities
Legal restrictions on activities; Lack of personal interest
27. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
Indemnity
Installment credit
equity capital; personal capital
28. Any capital that is invested in a business by the owner(s) can be called...
equity capital
Lack of expertise
Civil Rights Act
lost income
29. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
Some losses from bad debts and customers with fraudulent intentions are bound to occur
a business plan
CBD
30. Life insurance that protects a firm against losses due to the death of a key employee is known as...
inventory turnover
CBD
have good management
key person insurance
31. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
corporation
an entrepreneur
Legal restrictions on activities
Proprietorship
32. A document that lists the major responsibilities and tasks of the job is known as a job
a structured interview
fixed capital
Ease of starting; Profit incentive
description
33. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
ADA
Efficiency of labor; Combined management - talent and capital
market
break-even point
34. The difference between merchandise cost and the selling price is known as the...
mark-up
Efficiency of labor; Combined management - talent and capital
variable expense
have good management
35. 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...
Terms of the sale
inventory turnover
corporation
fixed capital
36. Long-term capital that is invested in a business is referred to as...
Unlimited liability; Limited management ability
CBD
description
fixed capital
37. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
fixed expense
the religion of the applicant
controlling
38. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
risk management
Census of banking
39. A factor to be considered with the evaluation of a credit risk would be the...
to self-insure
manufacturing business
credit application
key person insurance
40. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Better Business Bureau
Directing
sales promotions
competition
41. Long term capital invested in the business is...
proprietorship
fixed capital
service business
equity capital
42. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
economic base
Actively managed by stockholders
advertising
43. The simplest and most common legal form of business ownership is...
Census of banking
Personal checks
Installment credit
sole proprietorship
44. 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...
working capital; circulating capital
proprietorship
partnership
variable expense
45. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
risk management
working capital
manufacturing business
Installment credit
46. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
Indemnity
Better Business Bureau
risk management
47. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
factoring
sole proprietorship
corporation
manufacturing business
48. A common business credit/sales tern is...
trade credit
2/10 - N30
CBD
Personal checks
49. Which of the following are examples of debt capital?
Accessibility
partnership
Commercial loans; Venture capitalists
inventory turnover
50. Business interruption insurance covers
competition
partnership
lost income
Better Business Bureau