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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 business that makes finished goods from raw materials by hand or machinery is referred to as a...
merchandising business
equity capital
manufacturing business
2/10 - N30
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...
break-even point
partnership
trade credit
circulating capital
3. Which of the following is an external problem and risk of business ownership?
Unlimited liability; Limited management ability
Tax burdens; Human resource planning
credit application
description
4. The main objective in a market survey is...
Credit customers are more interested in quality and service than price
to determine where the potential customers are
description
Applicant's sex
5. 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...
market
Legal restrictions on activities; Lack of personal interest
corporation
American's with Disabilities Act
6. Which of the following is NOT a way to reduce risks?
description
credit application
Take on more risks
lost income
7. An external problem that can lead to small business failure is...
consumerism
Equal Pay Act of 1963
commercial loans
Legal restrictions on activities; Lack of personal interest
8. Which of the following statements is TRUE concerning consumer credit?
revolving account; open-end credit
CBD
Credit customers are more interested in quality and service than price
competition
9. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Installment credit
demographics
have good management
a structured interview
10. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
manufacturing business
Census of banking
a 2% discount if invoice is paid within 10 days - net due in 30 days
11. Which of the following is an example of a variable expense?
have good management
lost income
Repairs
Lack of expertise
12. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
2/10 - N30
Directing
Installment credit
new venture plan; business plan
13. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
Commercial loans; Venture capitalists
Lack of expertise
description
14. The difference between merchandise cost and the selling price is known as the...
a qualification that is absolutely necessary
mark-up
sales promotions
Lack of expertise
15. Which of the following are advantages of a sole proprietorship?
have good management
service business
Ease of starting; Profit incentive
economic order quantity
16. Which of the following laws prohibits discrimination against any qualified individual with a disability?
17. A particular business that provides a service as opposed to a product is referred to as a...
consumerism
sales promotions
inventory turnover
service business
18. Which of the following would NOT be an insurance risk to consider?
revolving account; open-end credit
Terms of the sale
demographics
a business plan
19. Factors associated with evaluating a credit risk
Proprietorship
consumer credit
Small Business Administration
inventory control considerations
20. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
working capital
Repairs
partnership
market
21. 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...
corporation
Name of the business; Goodwill
demographics
variable expense
22. A point in business operations whereby total sales revenue equals total costs
Repairs
break-even point
Proprietorship
advertising
23. A business that purchases finished goods for resale is referred to as a...
merchandising business
evaluating; controlling
factoring
Small Business Administration
24. Long-term capital that is invested in a business is referred to as...
fixed capital
Income trends in the community
Legal restrictions on activities
2/10 - N30
25. Which of the following is an intangible asset?
working capital; circulating capital
Name of the business; Goodwill
evaluating; controlling
Legal restrictions on activities; Lack of personal interest
26. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Unlimited liability; Limited management ability
mark-up
Directing
a 2% discount if invoice is paid within 10 days - net due in 30 days
27. Which of the following are disadvantages of a sole proprietorship?
Unlimited liability; Limited management ability
CBD
Large financial capacity; Limited liability of each owner (stockholder)
market
28. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
evaluating; controlling
intangible assets
American's with Disabilities Act
29. The simplest and most common legal form of business ownership is...
Directing
inventory turnover
controlling
sole proprietorship
30. 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...
variable expense
controlling
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
inventory turnover
31. The difference between current assets and current liabilities is...
working capital; circulating capital
working capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
American's with Disabilities Act
32. A BFOQ is...
a structured interview
partnership
a qualification that is absolutely necessary
inventory turnover
33. Which of the following are advantages of extending credit?
key person insurance
Sales are increased; Goodwill is built-up and easily maintained
a structured interview
Efficiency of labor; Combined management - talent and capital
34. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
fixed capital
corporation
a structured interview
35. Rent is an example of a...
Installment credit
Credit customers are more interested in quality and service than price
fixed expense
equity capital
36. A common business credit/sales tern is...
economic base
Large financial capacity; Limited liability of each owner (stockholder)
2/10 - N30
fixed capital
37. The quantity to be purchased which minimizes total cost is referred to as the...
economic order quantity
revolving account; open-end credit
Efficiency of labor; Combined management - talent and capital
corporation
38. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Sales are increased; Goodwill is built-up and easily maintained
Chamber of Commerce
credit application
Actively managed by stockholders
39. Which of the following is recognized as a disadvantage of extending credit?
a structured interview
Credit customers are more interested in quality and service than price
mark-up
Some losses from bad debts and customers with fraudulent intentions are bound to occur
40. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
mark-up
entrepreneur
working capital
commercial loans
41. Business interruption insurance covers
controlling
lost income
inventory turnover
demographics
42. Which of the following is NOT an advantage of a corporation?
Equal Pay Act of 1963
Legal restrictions on activities
break-even point
competition
43. Which of the following is NOT a type of consumer credit?
Personal checks
consumerism
service business
inventory turnover
44. A plan which provides inducements to potential purchasers of products and/or services is called...
controlling
consumerism
sales promotions
CBD
45. A strategy to minimize risk would be to...
corporation
equity capital; personal capital
have good management
Sales are increased; Goodwill is built-up and easily maintained
46. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
revolving account; open-end credit
Better Business Bureau
Repairs
47. Capital that is invested in the business by the owner(s) is known as...
the religion of the applicant
equity capital
controlling; actuating
intangible assets
48. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
advertising
Accessibility
controlling; actuating
the religion of the applicant
49. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
factoring
a business plan
service business
CBD
50. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
service business
Unlimited liability; Limited management ability
advertising
consumer credit