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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 point in business operations whereby total sales revenue equals total costs
to self-insure
inventory turnover
fixed capital
break-even point
2. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
variable expense
have good management
Whether or not they have an acceptable accounts receivable ratio
trade credit
3. 2/10 - N/30 means...
Proprietorship
a 2% discount if invoice is paid within 10 days - net due in 30 days
lost income
Terms of the sale
4. Which of the following is NOT a consumer buying motive?
key person insurance
Indemnity
to determine where the potential customers are
the employment interview
5. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
fixed capital
inventory turnover
Directing
sole proprietorship
6. 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
intangible assets
Legal restrictions on activities
service business
7. A factor to be considered with the evaluation of a credit risk would be the...
Large financial capacity; Limited liability of each owner (stockholder)
inventory turnover
merchandising business
credit application
8. A strategy to minimize risk would be to...
service business
have good management
Name of the business; Goodwill
a business plan
9. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
equity capital
a structured interview
Unlimited liability; Limited management ability
10. Which of the following is NOT a way to reduce risks?
Better Business Bureau
Take on more risks
demographics
inventory turnover
11. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
manufacturing business
CBD
the employment interview
American's with Disabilities Act
12. A BFOQ is...
manufacturing business
Efficiency of labor; Combined management - talent and capital
a qualification that is absolutely necessary
Proprietorship
13. All of the following are factors which can affect the recruitment and selection of employees except
market
the religion of the applicant
new venture plan; business plan
a qualification that is absolutely necessary
14. A document that lists the major responsibilities and tasks of the job is known as a job
lost income
a business plan
description
equity capital
15. Which of the following is NOT a type of consumer credit?
mark-up
break-even point
Chamber of Commerce
Personal checks
16. Which of the following is normally NOT a source of published market data?
Credit customers are more interested in quality and service than price
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
partnership
Census of banking
17. Any capital that is invested in a business by the owner(s) can be called...
partnership
a business plan
manufacturing business
equity capital
18. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
manufacturing business
Equal Pay Act of 1963
a 2% discount if invoice is paid within 10 days - net due in 30 days
revolving account; open-end credit
19. Which of the following are examples of debt capital?
American's with Disabilities Act
a 2% discount if invoice is paid within 10 days - net due in 30 days
Commercial loans; Venture capitalists
a structured interview
20. 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...
Personal checks
Indemnity
partnership
fixed expense
21. In a business - the number of times the average inventory is sold or used up can be referred to as...
an entrepreneur
Chamber of Commerce
inventory turnover
market
22. An external problem that can lead to small business failure is...
consumerism
sole proprietorship
trade credit
working capital
23. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
commercial loans
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
consumer credit
competition
24. The main objective in a market survey is...
have good management
a structured interview
working capital
to determine where the potential customers are
25. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
merchandising business
Name of the business; Goodwill
fixed capital
26. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Better Business Bureau
a structured interview
Accessibility
entrepreneur
27. Which of the following is not a consideration concerning the selection of suppliers?
OSHA
Terms of the sale
Whether or not they have an acceptable accounts receivable ratio
service business
28. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
entrepreneur
mark-up
advertising
29. 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
Ease of starting; Profit incentive
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Take on more risks
30. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
fixed capital
economic base
consumerism
31. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
market
OSHA
Lack of expertise
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
32. 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
American's with Disabilities Act
equity capital; personal capital
Take on more risks
33. 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
lost income
advertising
factoring
34. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Legal restrictions on activities
key person insurance
partnership
Installment credit
35. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
revolving account; open-end credit
lost income
36. Factors associated with evaluating a credit risk
inventory control considerations
factoring
Financial shortages
working capital; circulating capital
37. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Repairs
credit application
an entrepreneur
circulating capital
38. A source of debt capital would include
consumer credit
commercial loans
key person insurance
a business plan
39. Long term capital invested in the business is...
Legal restrictions on activities
sales promotions
fixed capital
break-even point
40. Which of the following is NOT an advantage of a corporation?
Lack of expertise
Credit customers are more interested in quality and service than price
Large financial capacity; Limited liability of each owner (stockholder)
Legal restrictions on activities
41. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
evaluating; controlling
Chamber of Commerce
advertising
working capital; circulating capital
42. The difference between current assets and current liabilities is...
working capital; circulating capital
new venture plan; business plan
circulating capital
Lack of expertise
43. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Chamber of Commerce
fixed capital
Repairs
44. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
equity capital; personal capital
Better Business Bureau
Commercial loans; Venture capitalists
lost income
45. The quantity to be purchased which minimizes total cost is referred to as the...
Applicant's sex
consumer credit
economic order quantity
Whether or not they have an acceptable accounts receivable ratio
46. A particular business that provides a service as opposed to a product is referred to as a...
Whether or not they have an acceptable accounts receivable ratio
intangible assets
service business
lost income
47. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
to determine where the potential customers are
market
Proprietorship
Name of the business; Goodwill
48. Which of the following is an external problem and risk of business ownership?
a 2% discount if invoice is paid within 10 days - net due in 30 days
Legal restrictions on activities
Tax burdens; Human resource planning
Personal checks
49. The difference between current assets and current liabilities is...
risk management
working capital
economic order quantity
demographics
50. The simplest and most common legal form of business ownership is...
sole proprietorship
an entrepreneur
American's with Disabilities Act
key person insurance