SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 factor to be considered with the evaluation of a credit risk would be the...
credit application
Tax burdens; Human resource planning
markdown
Proprietorship
2. Which of the following is not a consideration concerning the selection of suppliers?
a structured interview
Whether or not they have an acceptable accounts receivable ratio
new venture plan; business plan
Equal Pay Act of 1963
3. Which of the following are advantages of extending credit?
Sales are increased; Goodwill is built-up and easily maintained
Actively managed by stockholders
corporation
Lack of expertise
4. Business interruption insurance covers
Proprietorship
working capital; circulating capital
break-even point
lost income
5. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
intangible assets
Accessibility
a business plan
Indemnity
6. An external problem that can lead to small business failure is...
economic base
an entrepreneur
Take on more risks
consumerism
7. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
commercial loans
Proprietorship
description
entrepreneur
8. A BFOQ is...
break-even point
a qualification that is absolutely necessary
Installment credit
Some losses from bad debts and customers with fraudulent intentions are bound to occur
9. Which of the following is an external problem and risk of business ownership?
partnership
Tax burdens; Human resource planning
Small Business Administration
merchandising business
10. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
service business
Civil Rights Act
CBD
Terms of the sale
11. A point in business operations whereby total sales revenue equals total costs
break-even point
markdown
new venture plan; business plan
demographics
12. A plan which provides inducements to potential purchasers of products and/or services is called...
variable expense
economic order quantity
sales promotions
new venture plan; business plan
13. The simplest and most common legal form of business ownership is...
sole proprietorship
a qualification that is absolutely necessary
Equal Pay Act of 1963
Lack of expertise
14. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
Tax burdens; Human resource planning
demographics
proprietorship
15. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Large financial capacity; Limited liability of each owner (stockholder)
consumerism
Income trends in the community
trade credit
16. Any capital that is invested in a business by the owner(s) can be called...
equity capital
key person insurance
working capital
corporation
17. Which of the following are examples of debt capital?
entrepreneur
Commercial loans; Venture capitalists
Tax burdens; Human resource planning
Legal restrictions on activities
18. Capital that is investe4d in the business by the owner(s) is known as...
American's with Disabilities Act
Sales are increased; Goodwill is built-up and easily maintained
working capital
equity capital; personal capital
19. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Large financial capacity; Limited liability of each owner (stockholder)
entrepreneur
proprietorship
a structured interview
20. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
working capital; circulating capital
Chamber of Commerce
consumer credit
risk management
21. One who organizes - manages - and assumes the risk of a business form or venture is known as...
fixed capital
Directing
Legal restrictions on activities; Lack of personal interest
an entrepreneur
22. Capital that is invested in the business by the owner(s) is known as...
fixed capital
trade credit
equity capital
factoring
23. In business - the name - goodwill - copyrights - and patents are referred to as...
partnership
Income trends in the community
intangible assets
Unlimited liability; Limited management ability
24. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
credit application
equity capital
ADA
25. Which of the following is NOT a way to reduce risks?
advertising
Take on more risks
Large financial capacity; Limited liability of each owner (stockholder)
a business plan
26. Long-term capital that is invested in a business is referred to as...
Actively managed by stockholders
a business plan
fixed capital
variable expense
27. A common business credit/sales tern is...
merchandising business
manufacturing business
2/10 - N30
working capital; circulating capital
28. 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...
Better Business Bureau
lost income
demographics
a structured interview
29. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
break-even point
corporation
Directing
Name of the business; Goodwill
30. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
revolving account; open-end credit
commercial loans
competition
sales promotions
31. Which of the following are disadvantages of a partnership?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
corporation
have good management
Small Business Administration
32. The difference between current assets and current liabilities is...
OSHA
Applicant's sex
working capital; circulating capital
controlling
33. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Credit customers are more interested in quality and service than price
break-even point
inventory turnover
Installment credit
34. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Equal Pay Act of 1963
Applicant's sex
inventory turnover
Better Business Bureau
35. The wealth produced in or near a community that provides employment and income to the local population is known as the...
credit application
economic base
economic order quantity
partnership
36. Which of the following is an internal problem that can contribute to the failure of a business?
key person insurance
Tax burdens; Human resource planning
Financial shortages
fixed expense
37. A management function which compares organizational and individual performance with predetermined standards or expected results is...
controlling
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
equity capital
sales promotions
38. A business that purchases finished goods for resale is referred to as a...
a 2% discount if invoice is paid within 10 days - net due in 30 days
demographics
merchandising business
Terms of the sale
39. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
fixed capital
Ease of starting; Profit incentive
the employment interview
Applicant's sex
40. Long term capital invested in the business is...
proprietorship
Legal restrictions on activities
fixed capital
to self-insure
41. 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...
Accessibility
have good management
Whether or not they have an acceptable accounts receivable ratio
variable expense
42. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
trade credit
Sales are increased; Goodwill is built-up and easily maintained
evaluating; controlling
a business plan
43. The principal government agency concerned with the financing - operation - and management of small businesses is the
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Indemnity
economic order quantity
Small Business Administration
44. 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...
credit application
an entrepreneur
Unlimited liability; Limited management ability
corporation
45. A strategy to minimize risk would be to...
Terms of the sale
Small Business Administration
have good management
equity capital
46. Which of the following is an intangible asset?
Civil Rights Act
Census of banking
Name of the business; Goodwill
sole proprietorship
47. The quantity to be purchased which minimizes total cost is referred to as the...
to determine where the potential customers are
competition
economic order quantity
risk management
48. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
sole proprietorship
consumer credit
ADA
revolving account; open-end credit
49. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
American's with Disabilities Act
partnership
Directing
credit application
50. Which of the following are disadvantages of a sole proprietorship?
Actively managed by stockholders
proprietorship
Income trends in the community
Unlimited liability; Limited management ability