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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 strategy available to absorb risks would be...
break-even point
Unlimited liability; Limited management ability
CBD
to self-insure
2. The quantity to be purchased which minimizes total cost is referred to as the...
American's with Disabilities Act
economic order quantity
credit application
inventory turnover
3. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Tax burdens; Human resource planning
Terms of the sale
ADA
have good management
4. Which of the following is an internal problem that can contribute to the failure of a business?
equity capital
advertising
Financial shortages
fixed capital
5. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
Income trends in the community
Small Business Administration
lost income
6. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
controlling
working capital; circulating capital
Credit customers are more interested in quality and service than price
7. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
equity capital
the employment interview
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Actively managed by stockholders
8. A small business is not...
Actively managed by stockholders
Lack of expertise
ADA
proprietorship
9. 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
Installment credit
controlling; actuating
Efficiency of labor; Combined management - talent and capital
10. 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
2/10 - N30
mark-up
sole proprietorship
11. A particular business that provides a service as opposed to a product is referred to as a...
Proprietorship
partnership
service business
partnership
12. The principal government agency concerned with the financing - operation - and management of small businesses is the
Small Business Administration
have good management
intangible assets
fixed capital
13. 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...
equity capital
risk management
corporation
sole proprietorship
14. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
Actively managed by stockholders
variable expense
Proprietorship
15. The simplest and most common legal form of business ownership is...
sole proprietorship
inventory control considerations
merchandising business
new venture plan; business plan
16. A management function which compares organizational and individual performance with predetermined standards or expected results is...
intangible assets
controlling
commercial loans
controlling; actuating
17. Which of the following are functions of management?
an entrepreneur
the religion of the applicant
Personal checks
controlling; actuating
18. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
advertising
Financial shortages
sole proprietorship
trade credit
19. The difference between current assets and current liabilities is...
corporation
Unlimited liability; Limited management ability
Commercial loans; Venture capitalists
working capital
20. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
mark-up
inventory turnover
Directing
Credit customers are more interested in quality and service than price
21. The main objective in a market survey is...
demographics
to determine where the potential customers are
Name of the business; Goodwill
description
22. A common business credit/sales tern is...
equity capital
2/10 - N30
Financial shortages
an entrepreneur
23. A business that purchases finished goods for resale is referred to as a...
description
a 2% discount if invoice is paid within 10 days - net due in 30 days
merchandising business
corporation
24. Which of the following is an internal problem that can lead to business failure?
the employment interview
Efficiency of labor; Combined management - talent and capital
Lack of expertise
equity capital
25. 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
trade credit
partnership
consumerism
26. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
a business plan
inventory control considerations
risk management
have good management
27. An interview whereby the applicant is asked a pre-determined set of questions is known as...
the religion of the applicant
merchandising business
a structured interview
Applicant's sex
28. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
a 2% discount if invoice is paid within 10 days - net due in 30 days
fixed capital
partnership
description
29. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
Accessibility
Sales are increased; Goodwill is built-up and easily maintained
a business plan
American's with Disabilities Act
30. Which of the following are advantages of a partnership?
inventory control considerations
mark-up
Efficiency of labor; Combined management - talent and capital
Better Business Bureau
31. A document that lists the major responsibilities and tasks of the job is known as a job
partnership
description
Financial shortages
ADA
32. Business interruption insurance covers
controlling
lost income
key person insurance
market
33. A factor to be considered with the evaluation of a credit risk would be the...
credit application
a business plan
key person insurance
sales promotions
34. Rent is an example of a...
description
fixed expense
a qualification that is absolutely necessary
Chamber of Commerce
35. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Proprietorship
Unlimited liability; Limited management ability
break-even point
intangible assets
36. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
new venture plan; business plan
Lack of expertise
Legal restrictions on activities
description
37. 2/10 - N/30 means...
Equal Pay Act of 1963
variable expense
a 2% discount if invoice is paid within 10 days - net due in 30 days
commercial loans
38. Which of the following is normally NOT a source of published market data?
Repairs
key person insurance
Tax burdens; Human resource planning
Census of banking
39. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
Equal Pay Act of 1963
sales promotions
evaluating; controlling
a structured interview
40. In business - the name - goodwill - copyrights - and patents are referred to as...
Installment credit
to self-insure
intangible assets
sales promotions
41. Which of the following are advantages of a corporation?
inventory turnover
working capital; circulating capital
advertising
Large financial capacity; Limited liability of each owner (stockholder)
42. The form of legal organization that is owned and operated by one person is the...
Ease of starting; Profit incentive
to determine where the potential customers are
a qualification that is absolutely necessary
proprietorship
43. Which of the following is NOT a way to reduce risks?
Take on more risks
service business
proprietorship
evaluating; controlling
44. An external problem that can lead to small business failure is...
to determine where the potential customers are
consumerism
a qualification that is absolutely necessary
Large financial capacity; Limited liability of each owner (stockholder)
45. 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...
credit application
have good management
a business plan
partnership
46. Long term capital invested in the business is...
Commercial loans; Venture capitalists
Personal checks
fixed capital
OSHA
47. Which of the following is an external problem and risk of business ownership?
Repairs
Tax burdens; Human resource planning
fixed expense
demographics
48. The number of times the average inventory has been sold or used up during a period is known as...
American's with Disabilities Act
break-even point
inventory turnover
Name of the business; Goodwill
49. In business - a reduction of selling price below the original selling price is referred to as...
Civil Rights Act
Efficiency of labor; Combined management - talent and capital
sales promotions
markdown
50. The difference between current assets and current liabilities is...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
working capital; circulating capital
Small Business Administration
Income trends in the community