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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 management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
Equal Pay Act of 1963
credit application
Indemnity
2. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Legal restrictions on activities
Large financial capacity; Limited liability of each owner (stockholder)
sales promotions
Directing
3. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
service business
Take on more risks
partnership
credit application
4. Which of the following laws prohibits discrimination against any qualified individual with a disability?
5. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
working capital
Small Business Administration
trade credit
description
6. Which of the following is NOT a type of consumer credit?
a business plan
Personal checks
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Whether or not they have an acceptable accounts receivable ratio
7. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
inventory turnover
Unlimited liability; Limited management ability
Efficiency of labor; Combined management - talent and capital
competition
8. The simplest and most common legal form of business ownership is...
consumerism
sole proprietorship
merchandising business
Lack of expertise
9. A small business is not...
service business
OSHA
Actively managed by stockholders
competition
10. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Directing
revolving account; open-end credit
Take on more risks
Lack of expertise
11. Which of the following are examples of debt capital?
have good management
Commercial loans; Venture capitalists
Some losses from bad debts and customers with fraudulent intentions are bound to occur
inventory turnover
12. Which of the following is normally NOT a source of published market data?
variable expense
key person insurance
sole proprietorship
Census of banking
13. Which of the following is NOT a way to reduce risks?
CBD
inventory control considerations
Take on more risks
sales promotions
14. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
demographics
new venture plan; business plan
sales promotions
15. Rent is an example of a...
Installment credit
evaluating; controlling
fixed expense
advertising
16. Which of the following are functions of management?
controlling; actuating
Installment credit
Small Business Administration
the employment interview
17. Which of the following is NOT included on the employment application?
18. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
circulating capital
proprietorship
sales promotions
19. The difference between current assets and current liabilities is...
equity capital
break-even point
working capital
Sales are increased; Goodwill is built-up and easily maintained
20. Long-term capital that is invested in a business is referred to as...
fixed capital
description
merchandising business
entrepreneur
21. A business that purchases finished goods for resale is referred to as a...
trade credit
merchandising business
ADA
consumer credit
22. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
risk management
Sales are increased; Goodwill is built-up and easily maintained
partnership
23. A factor to be considered with the evaluation of a credit risk would be the...
credit application
Efficiency of labor; Combined management - talent and capital
Ease of starting; Profit incentive
circulating capital
24. Which of the following are disadvantages of a sole proprietorship?
Unlimited liability; Limited management ability
OSHA
break-even point
Legal restrictions on activities; Lack of personal interest
25. The main objective in a market survey is...
to determine where the potential customers are
ADA
new venture plan; business plan
an entrepreneur
26. Which of the following is a requirement for a building layout?
a 2% discount if invoice is paid within 10 days - net due in 30 days
Accessibility
Some losses from bad debts and customers with fraudulent intentions are bound to occur
to determine where the potential customers are
27. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
a 2% discount if invoice is paid within 10 days - net due in 30 days
CBD
revolving account; open-end credit
Census of banking
28. A plan which provides inducements to potential purchasers of products and/or services is called...
to self-insure
sales promotions
market
variable expense
29. Which of the following is an example of a variable expense?
Repairs
an entrepreneur
entrepreneur
consumerism
30. A document that lists the major responsibilities and tasks of the job is known as a job
corporation
description
equity capital
Chamber of Commerce
31. 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...
break-even point
sales promotions
market
fixed capital
32. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
Personal checks
Ease of starting; Profit incentive
markdown
33. The principal government agency concerned with the financing - operation - and management of small businesses is the
inventory control considerations
a structured interview
demographics
Small Business Administration
34. Any capital that is invested in a business by the owner(s) can be called...
equity capital
revolving account; open-end credit
to determine where the potential customers are
sole proprietorship
35. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
sole proprietorship
2/10 - N30
Credit customers are more interested in quality and service than price
Installment credit
36. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
equity capital; personal capital
Name of the business; Goodwill
manufacturing business
corporation
37. In business - the name - goodwill - copyrights - and patents are referred to as...
markdown
equity capital
intangible assets
Income trends in the community
38. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
OSHA
advertising
a 2% discount if invoice is paid within 10 days - net due in 30 days
Take on more risks
39. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
market
partnership
Proprietorship
to self-insure
40. Factors associated with evaluating a credit risk
Financial shortages
inventory control considerations
Chamber of Commerce
working capital; circulating capital
41. Which of the following is recognized as a disadvantage of extending credit?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Efficiency of labor; Combined management - talent and capital
risk management
have good management
42. A strategy available to absorb risks would be...
corporation
to self-insure
Installment credit
merchandising business
43. Capital that is investe4d in the business by the owner(s) is known as...
consumer credit
Better Business Bureau
equity capital; personal capital
Terms of the sale
44. The quantity to be purchased which minimizes total cost is referred to as the...
Take on more risks
economic order quantity
CBD
working capital
45. An external problem that can lead to small business failure is...
Proprietorship
Directing
Terms of the sale
consumerism
46. The difference between merchandise cost and the selling price is known as the...
Chamber of Commerce
equity capital; personal capital
mark-up
evaluating; controlling
47. The number of times the average inventory has been sold or used up during a period is known as...
inventory turnover
break-even point
break-even point
controlling
48. Capital that is invested in the business by the owner(s) is known as...
Better Business Bureau
equity capital
Small Business Administration
economic order quantity
49. Which of the following is not a consideration concerning the selection of suppliers?
mark-up
Name of the business; Goodwill
working capital
Whether or not they have an acceptable accounts receivable ratio
50. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
factoring
ADA
Legal restrictions on activities; Lack of personal interest