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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. Which of the following are advantages of a partnership?
partnership
ADA
Efficiency of labor; Combined management - talent and capital
Equal Pay Act of 1963
2. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
commercial loans
Actively managed by stockholders
key person insurance
3. Which of the following is a requirement for a building layout?
Accessibility
working capital
partnership
credit application
4. Any capital that is invested in a business by the owner(s) can be called...
to determine where the potential customers are
equity capital
sole proprietorship
fixed capital
5. The difference between merchandise cost and the selling price is known as the...
intangible assets
mark-up
an entrepreneur
economic order quantity
6. In business - the name - goodwill - copyrights - and patents are referred to as...
Terms of the sale
markdown
intangible assets
to self-insure
7. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
corporation
new venture plan; business plan
CBD
commercial loans
8. Long-term capital that is invested in a business is referred to as...
Legal restrictions on activities
Equal Pay Act of 1963
fixed capital
description
9. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Income trends in the community
Better Business Bureau
Efficiency of labor; Combined management - talent and capital
Unlimited liability; Limited management ability
10. The principal government agency concerned with the financing - operation - and management of small businesses is the
the religion of the applicant
demographics
factoring
Small Business Administration
11. The form of legal organization that is owned and operated by one person is the...
proprietorship
a qualification that is absolutely necessary
Whether or not they have an acceptable accounts receivable ratio
Sales are increased; Goodwill is built-up and easily maintained
12. A strategy available to absorb risks would be...
to self-insure
ADA
inventory turnover
corporation
13. Long term capital invested in the business is...
fixed capital
Legal restrictions on activities; Lack of personal interest
risk management
demographics
14. The wealth produced in or near a community that provides employment and income to the local population is known as the...
fixed expense
OSHA
economic base
Accessibility
15. Business interruption insurance covers
to determine where the potential customers are
Large financial capacity; Limited liability of each owner (stockholder)
lost income
fixed expense
16. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Large financial capacity; Limited liability of each owner (stockholder)
a qualification that is absolutely necessary
controlling
Directing
17. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
Proprietorship
the religion of the applicant
factoring
market
18. 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...
partnership
Take on more risks
key person insurance
Commercial loans; Venture capitalists
19. Which of the following would NOT be an insurance risk to consider?
Personal checks
Terms of the sale
Civil Rights Act
circulating capital
20. Which of the following is an intangible asset?
a qualification that is absolutely necessary
Name of the business; Goodwill
Accessibility
Whether or not they have an acceptable accounts receivable ratio
21. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
the employment interview
Income trends in the community
Chamber of Commerce
22. Which of the following are disadvantages of a partnership?
Commercial loans; Venture capitalists
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
sales promotions
inventory turnover
23. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
an entrepreneur
advertising
Equal Pay Act of 1963
intangible assets
24. The difference between current assets and current liabilities is...
Name of the business; Goodwill
working capital
to determine where the potential customers are
Efficiency of labor; Combined management - talent and capital
25. Which of the following are disadvantages of a sole proprietorship?
to determine where the potential customers are
break-even point
Unlimited liability; Limited management ability
Applicant's sex
26. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
sole proprietorship
Name of the business; Goodwill
OSHA
Efficiency of labor; Combined management - talent and capital
27. A document that lists the major responsibilities and tasks of the job is known as a job
entrepreneur
break-even point
corporation
description
28. The quantity to be purchased which minimizes total cost is referred to as the...
Census of banking
advertising
new venture plan; business plan
economic order quantity
29. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Civil Rights Act
revolving account; open-end credit
manufacturing business
Lack of expertise
30. Selling a business's accounts receivable for cash to a third party is referred to as...
ADA
break-even point
factoring
Personal checks
31. Which of the following are disadvantages of a corporation?
a business plan
inventory turnover
Legal restrictions on activities; Lack of personal interest
Tax burdens; Human resource planning
32. Which of the following laws prohibits discrimination against any qualified individual with a disability?
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33. 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...
manufacturing business
corporation
the religion of the applicant
OSHA
34. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
sole proprietorship
Take on more risks
factoring
35. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
Sales are increased; Goodwill is built-up and easily maintained
2/10 - N30
equity capital; personal capital
evaluating; controlling
36. Which of the following is recognized as a disadvantage of extending credit?
proprietorship
Commercial loans; Venture capitalists
a structured interview
Some losses from bad debts and customers with fraudulent intentions are bound to occur
37. A BFOQ is...
working capital; circulating capital
a qualification that is absolutely necessary
Financial shortages
Chamber of Commerce
38. Which of the following is normally NOT a source of published market data?
Census of banking
variable expense
Chamber of Commerce
Civil Rights Act
39. Which of the following is an example of a variable expense?
commercial loans
factoring
consumerism
Repairs
40. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
entrepreneur
inventory turnover
Installment credit
revolving account; open-end credit
41. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
to self-insure
equity capital
inventory turnover
consumer credit
42. A management function which compares organizational and individual performance with predetermined standards or expected results is...
Civil Rights Act
demographics
controlling
Tax burdens; Human resource planning
43. A plan which provides inducements to potential purchasers of products and/or services is called...
consumer credit
to self-insure
sales promotions
description
44. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
Name of the business; Goodwill
economic base
the religion of the applicant
45. The difference between current assets and current liabilities is...
sole proprietorship
circulating capital
working capital; circulating capital
Personal checks
46. Rent is an example of a...
a structured interview
2/10 - N30
fixed expense
controlling; actuating
47. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
mark-up
Civil Rights Act
corporation
Credit customers are more interested in quality and service than price
48. 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...
Commercial loans; Venture capitalists
OSHA
break-even point
inventory control considerations
49. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
Installment credit
inventory turnover
Large financial capacity; Limited liability of each owner (stockholder)
new venture plan; business plan
50. Capital that is investe4d in the business by the owner(s) is known as...
Large financial capacity; Limited liability of each owner (stockholder)
equity capital; personal capital
fixed expense
Indemnity