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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. Which of the following are disadvantages of a sole proprietorship?
trade credit
Unlimited liability; Limited management ability
American's with Disabilities Act
break-even point
2. Which of the following is NOT an advantage of a corporation?
break-even point
service business
manufacturing business
Legal restrictions on activities
3. Which of the following would NOT be an insurance risk to consider?
demographics
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Legal restrictions on activities; Lack of personal interest
Terms of the sale
4. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
manufacturing business
Income trends in the community
working capital; circulating capital
equity capital; personal capital
5. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Proprietorship
sales promotions
Name of the business; Goodwill
entrepreneur
6. 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
circulating capital
working capital
Applicant's sex
7. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Installment credit
inventory control considerations
credit application
Large financial capacity; Limited liability of each owner (stockholder)
8. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Indemnity
controlling; actuating
working capital
Proprietorship
9. The quantity to be purchased which minimizes total cost is referred to as the...
corporation
economic order quantity
Income trends in the community
break-even point
10. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
consumer credit
proprietorship
Some losses from bad debts and customers with fraudulent intentions are bound to occur
11. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
inventory control considerations
revolving account; open-end credit
competition
demographics
12. Which of the following are examples of debt capital?
Accessibility
Financial shortages
Commercial loans; Venture capitalists
corporation
13. A factor to be considered with the evaluation of a credit risk would be the...
Efficiency of labor; Combined management - talent and capital
Financial shortages
credit application
sole proprietorship
14. Which of the following is an intangible asset?
Credit customers are more interested in quality and service than price
Name of the business; Goodwill
service business
Better Business Bureau
15. Which of the following are disadvantages of a corporation?
partnership
the religion of the applicant
Legal restrictions on activities; Lack of personal interest
corporation
16. A small business is not...
Actively managed by stockholders
Directing
controlling
Terms of the sale
17. A plan which provides inducements to potential purchasers of products and/or services is called...
Proprietorship
break-even point
sales promotions
mark-up
18. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
Legal restrictions on activities
Whether or not they have an acceptable accounts receivable ratio
controlling
19. 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...
break-even point
variable expense
entrepreneur
new venture plan; business plan
20. Rent is an example of a...
Proprietorship
consumer credit
fixed expense
have good management
21. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
trade credit
Credit customers are more interested in quality and service than price
Equal Pay Act of 1963
22. A particular business that provides a service as opposed to a product is referred to as a...
consumer credit
service business
entrepreneur
equity capital
23. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
equity capital; personal capital
service business
new venture plan; business plan
the employment interview
24. A source of debt capital would include
Lack of expertise
entrepreneur
commercial loans
have good management
25. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Terms of the sale
key person insurance
Take on more risks
credit application
26. The simplest and most common legal form of business ownership is...
demographics
Large financial capacity; Limited liability of each owner (stockholder)
equity capital; personal capital
sole proprietorship
27. Which of the following are advantages of extending credit?
consumerism
Sales are increased; Goodwill is built-up and easily maintained
inventory turnover
market
28. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
equity capital
ADA
Legal restrictions on activities
advertising
29. 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...
Terms of the sale
markdown
partnership
corporation
30. Which of the following is an internal problem that can contribute to the failure of a business?
to determine where the potential customers are
circulating capital
Legal restrictions on activities; Lack of personal interest
Financial shortages
31. A point in business operations whereby total sales revenue equals total costs
Whether or not they have an acceptable accounts receivable ratio
consumerism
Sales are increased; Goodwill is built-up and easily maintained
break-even point
32. The form of legal organization that is owned and operated by one person is the...
Better Business Bureau
proprietorship
corporation
Census of banking
33. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
Whether or not they have an acceptable accounts receivable ratio
markdown
risk management
Accessibility
34. The difference between current assets and current liabilities is...
working capital; circulating capital
market
working capital
trade credit
35. Which of the following is an external problem and risk of business ownership?
Tax burdens; Human resource planning
Financial shortages
the employment interview
equity capital
36. The difference between current assets and current liabilities is...
Installment credit
working capital
fixed capital
Accessibility
37. A strategy available to absorb risks would be...
Large financial capacity; Limited liability of each owner (stockholder)
controlling; actuating
OSHA
to self-insure
38. 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...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
break-even point
manufacturing business
have good management
39. Which of the following is NOT a type of consumer credit?
corporation
description
competition
Personal checks
40. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
Ease of starting; Profit incentive
market
OSHA
the employment interview
41. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
Legal restrictions on activities; Lack of personal interest
CBD
Lack of expertise
42. The wealth produced in or near a community that provides employment and income to the local population is known as the...
a structured interview
an entrepreneur
economic base
service business
43. Which of the following is not a consideration concerning the selection of suppliers?
lost income
Whether or not they have an acceptable accounts receivable ratio
Legal restrictions on activities
mark-up
44. Which of the following is NOT a consumer buying motive?
Ease of starting; Profit incentive
risk management
Indemnity
economic base
45. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Sales are increased; Goodwill is built-up and easily maintained
2/10 - N30
Personal checks
trade credit
46. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
evaluating; controlling
break-even point
market
Equal Pay Act of 1963
47. Business interruption insurance covers
lost income
a business plan
new venture plan; business plan
description
48. Long-term capital that is invested in a business is referred to as...
fixed capital
Small Business Administration
lost income
OSHA
49. The principal government agency concerned with the financing - operation - and management of small businesses is the
a business plan
Small Business Administration
advertising
CBD
50. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
Financial shortages
fixed expense
factoring