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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 corporation?
inventory turnover
factoring
Large financial capacity; Limited liability of each owner (stockholder)
risk management
2. In business - a reduction of selling price below the original selling price is referred to as...
markdown
Name of the business; Goodwill
intangible assets
merchandising business
3. Life insurance that protects a firm against losses due to the death of a key employee is known as...
trade credit
key person insurance
consumerism
Unlimited liability; Limited management ability
4. Which of the following is an example of a variable expense?
risk management
Financial shortages
Repairs
fixed capital
5. Selling a business's accounts receivable for cash to a third party is referred to as...
inventory turnover
factoring
trade credit
sales promotions
6. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
2/10 - N30
corporation
corporation
a business plan
7. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
Personal checks
a business plan
factoring
8. A business that purchases finished goods for resale is referred to as a...
merchandising business
a 2% discount if invoice is paid within 10 days - net due in 30 days
break-even point
risk management
9. The simplest and most common legal form of business ownership is...
sole proprietorship
2/10 - N30
Small Business Administration
Personal checks
10. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
2/10 - N30
Accessibility
Unlimited liability; Limited management ability
CBD
11. Which of the following statements is TRUE concerning consumer credit?
Credit customers are more interested in quality and service than price
Legal restrictions on activities; Lack of personal interest
fixed expense
Equal Pay Act of 1963
12. The quantity to be purchased which minimizes total cost is referred to as the...
economic base
have good management
economic order quantity
Terms of the sale
13. Which of the following is an intangible asset?
Actively managed by stockholders
Name of the business; Goodwill
sales promotions
Chamber of Commerce
14. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
sole proprietorship
OSHA
Repairs
15. Which of the following are advantages of a partnership?
Sales are increased; Goodwill is built-up and easily maintained
Efficiency of labor; Combined management - talent and capital
fixed capital
a qualification that is absolutely necessary
16. The number of times the average inventory has been sold or used up during a period is known as...
markdown
inventory turnover
partnership
new venture plan; business plan
17. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Accessibility
ADA
economic order quantity
Proprietorship
18. Which of the following would NOT be an insurance risk to consider?
to determine where the potential customers are
Proprietorship
Terms of the sale
service business
19. A factor to be considered with the evaluation of a credit risk would be the...
economic base
economic order quantity
credit application
controlling
20. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Actively managed by stockholders
Lack of expertise
ADA
Applicant's sex
21. In business - the name - goodwill - copyrights - and patents are referred to as...
Actively managed by stockholders
ADA
intangible assets
Legal restrictions on activities; Lack of personal interest
22. A strategy to minimize risk would be to...
have good management
working capital
Accessibility
Small Business Administration
23. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
a qualification that is absolutely necessary
inventory control considerations
revolving account; open-end credit
consumer credit
24. An external problem that can lead to small business failure is...
economic order quantity
demographics
consumerism
fixed expense
25. A management function which compares organizational and individual performance with predetermined standards or expected results is...
working capital
controlling
Ease of starting; Profit incentive
Census of banking
26. A common business credit/sales tern is...
markdown
Chamber of Commerce
economic order quantity
2/10 - N30
27. A source of debt capital would include
economic order quantity
evaluating; controlling
commercial loans
intangible assets
28. 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...
American's with Disabilities Act
break-even point
a structured interview
commercial loans
29. Which of the following is not a consideration concerning the selection of suppliers?
credit application
service business
Whether or not they have an acceptable accounts receivable ratio
consumerism
30. Which of the following is NOT a way to reduce risks?
Take on more risks
American's with Disabilities Act
competition
consumerism
31. Which of the following is NOT included on the employment application?
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32. Long-term capital that is invested in a business is referred to as...
fixed capital
Ease of starting; Profit incentive
merchandising business
corporation
33. Which of the following is NOT a consumer buying motive?
inventory turnover
Indemnity
a qualification that is absolutely necessary
Applicant's sex
34. A small business is not...
Actively managed by stockholders
Small Business Administration
key person insurance
competition
35. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Personal checks
an entrepreneur
2/10 - N30
variable expense
36. A strategy available to absorb risks would be...
to self-insure
demographics
merchandising business
Small Business Administration
37. A particular business that provides a service as opposed to a product is referred to as a...
equity capital
risk management
service business
economic base
38. In a business - the number of times the average inventory is sold or used up can be referred to as...
the religion of the applicant
inventory turnover
demographics
corporation
39. Capital that is investe4d in the business by the owner(s) is known as...
Commercial loans; Venture capitalists
credit application
equity capital; personal capital
Actively managed by stockholders
40. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Civil Rights Act
key person insurance
partnership
41. Which of the following is an external problem and risk of business ownership?
Indemnity
to self-insure
factoring
Tax burdens; Human resource planning
42. Which of the following is recognized as a disadvantage of extending credit?
consumerism
Some losses from bad debts and customers with fraudulent intentions are bound to occur
equity capital
Repairs
43. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
entrepreneur
Legal restrictions on activities
new venture plan; business plan
Name of the business; Goodwill
44. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Unlimited liability; Limited management ability
consumer credit
factoring
evaluating; controlling
45. The difference between current assets and current liabilities is...
working capital
Actively managed by stockholders
entrepreneur
an entrepreneur
46. Which of the following are disadvantages of a corporation?
the religion of the applicant
merchandising business
Legal restrictions on activities; Lack of personal interest
to self-insure
47. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
a qualification that is absolutely necessary
commercial loans
economic order quantity
48. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
Take on more risks
corporation
partnership
service business
49. The difference between merchandise cost and the selling price is known as the...
Actively managed by stockholders
mark-up
2/10 - N30
Large financial capacity; Limited liability of each owner (stockholder)
50. A plan which provides inducements to potential purchasers of products and/or services is called...
an entrepreneur
competition
Census of banking
sales promotions