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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 combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
consumerism
partnership
2/10 - N30
Equal Pay Act of 1963
2. An interview whereby the applicant is asked a pre-determined set of questions is known as...
key person insurance
break-even point
a structured interview
entrepreneur
3. Which of the following is NOT a type of consumer credit?
Personal checks
corporation
inventory turnover
Repairs
4. A document that lists the major responsibilities and tasks of the job is known as a job
to determine where the potential customers are
description
fixed capital
Civil Rights Act
5. Which of the following are advantages of extending credit?
equity capital
Credit customers are more interested in quality and service than price
Sales are increased; Goodwill is built-up and easily maintained
Small Business Administration
6. A BFOQ is...
the religion of the applicant
Name of the business; Goodwill
Take on more risks
a qualification that is absolutely necessary
7. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
key person insurance
Proprietorship
Take on more risks
8. 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...
2/10 - N30
key person insurance
entrepreneur
variable expense
9. Long term capital invested in the business is...
fixed capital
Ease of starting; Profit incentive
demographics
demographics
10. A strategy available to absorb risks would be...
a business plan
to self-insure
Large financial capacity; Limited liability of each owner (stockholder)
competition
11. A strategy to minimize risk would be to...
have good management
trade credit
working capital; circulating capital
key person insurance
12. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
Credit customers are more interested in quality and service than price
Take on more risks
new venture plan; business plan
variable expense
13. A plan which provides inducements to potential purchasers of products and/or services is called...
consumer credit
Directing
sales promotions
American's with Disabilities Act
14. Which of the following are advantages of a corporation?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Large financial capacity; Limited liability of each owner (stockholder)
Take on more risks
entrepreneur
15. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
factoring
Credit customers are more interested in quality and service than price
the employment interview
16. Which of the following is normally NOT a source of published market data?
Directing
Chamber of Commerce
consumerism
Census of banking
17. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
an entrepreneur
Chamber of Commerce
merchandising business
18. An external problem that can lead to small business failure is...
equity capital
a business plan
a qualification that is absolutely necessary
consumerism
19. In business - a reduction of selling price below the original selling price is referred to as...
mark-up
Accessibility
controlling
markdown
20. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
fixed expense
factoring
equity capital; personal capital
CBD
21. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
credit application
intangible assets
trade credit
controlling
22. The current asset items consisting of cash - inventories - and accounts receivables is known as...
Better Business Bureau
circulating capital
Lack of expertise
consumerism
23. The difference between current assets and current liabilities is...
Lack of expertise
a business plan
consumerism
working capital
24. The principal government agency concerned with the financing - operation - and management of small businesses is the
description
Small Business Administration
consumerism
equity capital; personal capital
25. In business - the name - goodwill - copyrights - and patents are referred to as...
markdown
sole proprietorship
intangible assets
a 2% discount if invoice is paid within 10 days - net due in 30 days
26. Any capital that is invested in a business by the owner(s) can be called...
break-even point
Unlimited liability; Limited management ability
equity capital
market
27. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
manufacturing business
fixed capital
working capital; circulating capital
entrepreneur
28. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
variable expense
Sales are increased; Goodwill is built-up and easily maintained
competition
29. Which of the following laws prohibits discrimination against any qualified individual with a disability?
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30. Long-term capital that is invested in a business is referred to as...
Personal checks
Census of banking
American's with Disabilities Act
fixed capital
31. A factor to be considered with the evaluation of a credit risk would be the...
variable expense
Repairs
credit application
Credit customers are more interested in quality and service than price
32. All of the following are factors which can affect the recruitment and selection of employees except
competition
lost income
the religion of the applicant
Equal Pay Act of 1963
33. Capital that is investe4d in the business by the owner(s) is known as...
CBD
equity capital; personal capital
new venture plan; business plan
sales promotions
34. Which of the following is an intangible asset?
Name of the business; Goodwill
Indemnity
merchandising business
economic order quantity
35. Which of the following is NOT included on the employment application?
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36. A business that purchases finished goods for resale is referred to as a...
Better Business Bureau
Repairs
a structured interview
merchandising business
37. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Whether or not they have an acceptable accounts receivable ratio
an entrepreneur
fixed expense
Proprietorship
38. Which of the following is not a consideration concerning the selection of suppliers?
risk management
Whether or not they have an acceptable accounts receivable ratio
Legal restrictions on activities; Lack of personal interest
Installment credit
39. 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...
competition
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
corporation
Actively managed by stockholders
40. Which of the following statements is TRUE concerning consumer credit?
Financial shortages
Chamber of Commerce
working capital
Credit customers are more interested in quality and service than price
41. A point in business operations whereby total sales revenue equals total costs
break-even point
risk management
Sales are increased; Goodwill is built-up and easily maintained
Name of the business; Goodwill
42. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
factoring
lost income
corporation
43. Which of the following are disadvantages of a corporation?
variable expense
Legal restrictions on activities; Lack of personal interest
Legal restrictions on activities
CBD
44. Which of the following is NOT a consumer buying motive?
market
sole proprietorship
Indemnity
Civil Rights Act
45. Selling a business's accounts receivable for cash to a third party is referred to as...
to determine where the potential customers are
have good management
Better Business Bureau
factoring
46. Which of the following are disadvantages of a sole proprietorship?
trade credit
proprietorship
Accessibility
Unlimited liability; Limited management ability
47. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
market
trade credit
a 2% discount if invoice is paid within 10 days - net due in 30 days
variable expense
48. Which of the following are functions of management?
credit application
Chamber of Commerce
controlling; actuating
the employment interview
49. Life insurance that protects a firm against losses due to the death of a key employee is known as...
break-even point
consumer credit
Efficiency of labor; Combined management - talent and capital
key person insurance
50. 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...
economic order quantity
circulating capital
fixed capital
corporation