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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. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
equity capital; personal capital
ADA
Income trends in the community
corporation
2. A common business credit/sales tern is...
Equal Pay Act of 1963
description
2/10 - N30
merchandising business
3. Factors associated with evaluating a credit risk
controlling; actuating
an entrepreneur
inventory control considerations
Legal restrictions on activities
4. The principal government agency concerned with the financing - operation - and management of small businesses is the
Small Business Administration
mark-up
equity capital
proprietorship
5. An interview whereby the applicant is asked a pre-determined set of questions is known as...
partnership
markdown
inventory control considerations
a structured interview
6. A factor to be considered with the evaluation of a credit risk would be the...
credit application
Chamber of Commerce
Ease of starting; Profit incentive
Tax burdens; Human resource planning
7. The simplest and most common legal form of business ownership is...
entrepreneur
consumer credit
Income trends in the community
sole proprietorship
8. A business that purchases finished goods for resale is referred to as a...
ADA
economic base
Equal Pay Act of 1963
merchandising business
9. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
trade credit
lost income
Income trends in the community
partnership
10. The form of legal organization that is owned and operated by one person is the...
Income trends in the community
proprietorship
Efficiency of labor; Combined management - talent and capital
description
11. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
corporation
ADA
advertising
Large financial capacity; Limited liability of each owner (stockholder)
12. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
description
Civil Rights Act
fixed capital
demographics
13. Long-term capital that is invested in a business is referred to as...
a qualification that is absolutely necessary
fixed capital
Tax burdens; Human resource planning
the employment interview
14. Which of the following is NOT included on the employment application?
15. Long term capital invested in the business is...
advertising
fixed capital
Chamber of Commerce
partnership
16. Which of the following are advantages of a partnership?
consumer credit
equity capital
credit application
Efficiency of labor; Combined management - talent and capital
17. The difference between current assets and current liabilities is...
a structured interview
working capital; circulating capital
fixed expense
trade credit
18. Which of the following are disadvantages of a sole proprietorship?
Civil Rights Act
Unlimited liability; Limited management ability
commercial loans
Installment credit
19. Which of the following is a requirement for a building layout?
Accessibility
Small Business Administration
controlling; actuating
corporation
20. A BFOQ is...
a qualification that is absolutely necessary
credit application
Tax burdens; Human resource planning
description
21. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
Census of banking
CBD
new venture plan; business plan
sole proprietorship
22. 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
trade credit
working capital; circulating capital
23. Capital that is investe4d in the business by the owner(s) is known as...
Proprietorship
equity capital; personal capital
markdown
circulating capital
24. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
lost income
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
to determine where the potential customers are
manufacturing business
25. An external problem that can lead to small business failure is...
inventory turnover
Small Business Administration
consumerism
a qualification that is absolutely necessary
26. The difference between merchandise cost and the selling price is known as the...
CBD
mark-up
Chamber of Commerce
Accessibility
27. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
Actively managed by stockholders
economic order quantity
Installment credit
28. Which of the following are advantages of extending credit?
equity capital
factoring
Sales are increased; Goodwill is built-up and easily maintained
inventory turnover
29. Business interruption insurance covers
lost income
to self-insure
fixed capital
demographics
30. Which of the following are functions of management?
markdown
Sales are increased; Goodwill is built-up and easily maintained
credit application
controlling; actuating
31. Which of the following is NOT a way to reduce risks?
a structured interview
credit application
Take on more risks
market
32. Which of the following are disadvantages of a partnership?
consumerism
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
inventory control considerations
demographics
33. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
service business
Civil Rights Act
34. Life insurance that protects a firm against losses due to the death of a key employee is known as...
break-even point
key person insurance
Accessibility
inventory turnover
35. The quantity to be purchased which minimizes total cost is referred to as the...
Large financial capacity; Limited liability of each owner (stockholder)
consumerism
economic order quantity
Sales are increased; Goodwill is built-up and easily maintained
36. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
entrepreneur
Repairs
consumerism
OSHA
37. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Efficiency of labor; Combined management - talent and capital
entrepreneur
working capital; circulating capital
controlling
38. Which of the following is not a consideration concerning the selection of suppliers?
circulating capital
Whether or not they have an acceptable accounts receivable ratio
Actively managed by stockholders
new venture plan; business plan
39. The main objective in a market survey is...
Lack of expertise
to determine where the potential customers are
a structured interview
evaluating; controlling
40. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Actively managed by stockholders
revolving account; open-end credit
Installment credit
variable expense
41. A strategy to minimize risk would be to...
Indemnity
Civil Rights Act
partnership
have good management
42. Which of the following is NOT a type of consumer credit?
Personal checks
proprietorship
Legal restrictions on activities
economic base
43. One who organizes - manages - and assumes the risk of a business form or venture is known as...
an entrepreneur
Directing
fixed expense
commercial loans
44. All of the following are factors which can affect the recruitment and selection of employees except
inventory turnover
2/10 - N30
Indemnity
the religion of the applicant
45. 2/10 - N/30 means...
OSHA
a 2% discount if invoice is paid within 10 days - net due in 30 days
Some losses from bad debts and customers with fraudulent intentions are bound to occur
inventory turnover
46. Any capital that is invested in a business by the owner(s) can be called...
Ease of starting; Profit incentive
Legal restrictions on activities
equity capital
Name of the business; Goodwill
47. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
manufacturing business
Repairs
Directing
variable expense
48. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
inventory control considerations
a business plan
demographics
Proprietorship
49. Which of the following are disadvantages of a corporation?
Credit customers are more interested in quality and service than price
consumerism
Legal restrictions on activities; Lack of personal interest
inventory turnover
50. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
key person insurance
inventory turnover
market
service business