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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 BFOQ is...
break-even point
break-even point
a qualification that is absolutely necessary
proprietorship
2. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
OSHA
working capital; circulating capital
variable expense
inventory control considerations
3. A plan which provides inducements to potential purchasers of products and/or services is called...
Directing
sales promotions
Name of the business; Goodwill
Commercial loans; Venture capitalists
4. 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...
corporation
a 2% discount if invoice is paid within 10 days - net due in 30 days
service business
Census of banking
5. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
variable expense
corporation
new venture plan; business plan
entrepreneur
6. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
demographics
break-even point
a structured interview
7. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
2/10 - N30
controlling
revolving account; open-end credit
risk management
8. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
CBD
key person insurance
Repairs
Installment credit
9. Which of the following are functions of management?
controlling; actuating
Whether or not they have an acceptable accounts receivable ratio
Proprietorship
Name of the business; Goodwill
10. Rent is an example of a...
markdown
revolving account; open-end credit
fixed expense
Name of the business; Goodwill
11. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
risk management
Name of the business; Goodwill
CBD
sales promotions
12. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Efficiency of labor; Combined management - talent and capital
Civil Rights Act
corporation
13. The current asset items consisting of cash - inventories - and accounts receivables is known as...
circulating capital
to determine where the potential customers are
equity capital; personal capital
description
14. Which of the following is not a consideration concerning the selection of suppliers?
American's with Disabilities Act
Credit customers are more interested in quality and service than price
Whether or not they have an acceptable accounts receivable ratio
Better Business Bureau
15. An interview whereby the applicant is asked a pre-determined set of questions is known as...
risk management
a structured interview
partnership
Chamber of Commerce
16. Which of the following statements is TRUE concerning consumer credit?
partnership
evaluating; controlling
break-even point
Credit customers are more interested in quality and service than price
17. Which of the following is NOT a type of consumer credit?
entrepreneur
key person insurance
fixed capital
Personal checks
18. The principal government agency concerned with the financing - operation - and management of small businesses is the
have good management
Small Business Administration
a 2% discount if invoice is paid within 10 days - net due in 30 days
Income trends in the community
19. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
break-even point
entrepreneur
OSHA
market
20. The difference between current assets and current liabilities is...
Civil Rights Act
Better Business Bureau
working capital; circulating capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
21. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
a 2% discount if invoice is paid within 10 days - net due in 30 days
commercial loans
Income trends in the community
market
22. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
Name of the business; Goodwill
manufacturing business
equity capital
2/10 - N30
23. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
mark-up
manufacturing business
demographics
evaluating; controlling
24. Which of the following is a requirement for a building layout?
Accessibility
sole proprietorship
Tax burdens; Human resource planning
to determine where the potential customers are
25. A document that lists the major responsibilities and tasks of the job is known as a job
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
a business plan
inventory control considerations
description
26. A form of legal organization in which a business association made up of two or more persons is formed for the purpose of carrying on as co-owners is known as a...
commercial loans
equity capital
partnership
corporation
27. Which of the following are advantages of a partnership?
inventory turnover
Efficiency of labor; Combined management - talent and capital
Lack of expertise
the religion of the applicant
28. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Applicant's sex
consumer credit
Some losses from bad debts and customers with fraudulent intentions are bound to occur
economic base
29. Which of the following would NOT be an insurance risk to consider?
Terms of the sale
risk management
corporation
fixed expense
30. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
inventory control considerations
Commercial loans; Venture capitalists
a structured interview
31. A common business credit/sales tern is...
the employment interview
2/10 - N30
Chamber of Commerce
fixed capital
32. In business - the name - goodwill - copyrights - and patents are referred to as...
trade credit
intangible assets
Small Business Administration
mark-up
33. Which of the following is NOT included on the employment application?
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34. Which of the following is recognized as a disadvantage of extending credit?
intangible assets
fixed capital
working capital; circulating capital
Some losses from bad debts and customers with fraudulent intentions are bound to occur
35. A factor to be considered with the evaluation of a credit risk would be the...
controlling; actuating
entrepreneur
credit application
break-even point
36. Which of the following laws prohibits discrimination against any qualified individual with a disability?
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37. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Civil Rights Act
a structured interview
partnership
partnership
38. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
a business plan
consumer credit
competition
Better Business Bureau
39. Which of the following is NOT a way to reduce risks?
Take on more risks
evaluating; controlling
trade credit
manufacturing business
40. 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
inventory turnover
equity capital
Take on more risks
41. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
an entrepreneur
risk management
Repairs
controlling; actuating
42. Factors associated with evaluating a credit risk
inventory control considerations
Take on more risks
the religion of the applicant
corporation
43. Business interruption insurance covers
markdown
lost income
Ease of starting; Profit incentive
Some losses from bad debts and customers with fraudulent intentions are bound to occur
44. Which of the following is NOT used to measure the success of advertising?
inventory turnover
break-even point
intangible assets
Income trends in the community
45. The number of times the average inventory has been sold or used up during a period is known as...
a qualification that is absolutely necessary
inventory turnover
service business
Chamber of Commerce
46. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
the employment interview
markdown
factoring
47. The main objective in a market survey is...
economic base
to determine where the potential customers are
circulating capital
Small Business Administration
48. Which of the following is an internal problem that can contribute to the failure of a business?
Efficiency of labor; Combined management - talent and capital
a 2% discount if invoice is paid within 10 days - net due in 30 days
Financial shortages
Ease of starting; Profit incentive
49. The form of legal organization that is owned and operated by one person is the...
proprietorship
Whether or not they have an acceptable accounts receivable ratio
Census of banking
competition
50. 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...
markdown
working capital
Some losses from bad debts and customers with fraudulent intentions are bound to occur
break-even point