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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. The difference between merchandise cost and the selling price is known as the...
mark-up
Accessibility
description
break-even point
2. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities
evaluating; controlling
break-even point
equity capital
3. A factor to be considered with the evaluation of a credit risk would be the...
inventory turnover
credit application
Large financial capacity; Limited liability of each owner (stockholder)
Ease of starting; Profit incentive
4. Which of the following is NOT a type of consumer credit?
break-even point
Personal checks
OSHA
controlling
5. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
key person insurance
Better Business Bureau
Income trends in the community
Terms of the sale
6. A business that purchases finished goods for resale is referred to as a...
American's with Disabilities Act
trade credit
2/10 - N30
merchandising business
7. Which of the following is NOT a consumer buying motive?
ADA
Income trends in the community
Legal restrictions on activities
Indemnity
8. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
competition
CBD
intangible assets
9. 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...
Repairs
corporation
economic base
Actively managed by stockholders
10. Any capital that is invested in a business by the owner(s) can be called...
demographics
equity capital
circulating capital
new venture plan; business plan
11. A point in business operations whereby total sales revenue equals total costs
a structured interview
break-even point
corporation
Name of the business; Goodwill
12. If a prospective business owner attempts to statistically study such factors as human population size - density - distribution - and wealth - we should refer to this as...
Whether or not they have an acceptable accounts receivable ratio
Name of the business; Goodwill
Lack of expertise
demographics
13. Which of the following is a requirement for a building layout?
economic order quantity
Accessibility
Take on more risks
fixed capital
14. 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...
circulating capital
Applicant's sex
break-even point
Commercial loans; Venture capitalists
15. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
key person insurance
have good management
factoring
16. Which of the following are disadvantages of a corporation?
factoring
the religion of the applicant
Legal restrictions on activities
Legal restrictions on activities; Lack of personal interest
17. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
markdown
merchandising business
Installment credit
entrepreneur
18. The principal government agency concerned with the financing - operation - and management of small businesses is the
an entrepreneur
Small Business Administration
ADA
Income trends in the community
19. The current asset items consisting of cash - inventories - and accounts receivables is known as...
Ease of starting; Profit incentive
circulating capital
Chamber of Commerce
fixed capital
20. One who organizes - manages - and assumes the risk of a business form or venture is known as...
controlling
Personal checks
an entrepreneur
credit application
21. In business - a reduction of selling price below the original selling price is referred to as...
Credit customers are more interested in quality and service than price
a structured interview
variable expense
markdown
22. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
Directing
Legal restrictions on activities; Lack of personal interest
a qualification that is absolutely necessary
23. Which of the following are examples of debt capital?
Proprietorship
Accessibility
corporation
Commercial loans; Venture capitalists
24. All of the following are factors which can affect the recruitment and selection of employees except
commercial loans
break-even point
the religion of the applicant
consumer credit
25. Long-term capital that is invested in a business is referred to as...
Ease of starting; Profit incentive
2/10 - N30
fixed capital
circulating capital
26. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
inventory control considerations
have good management
merchandising business
27. The quantity to be purchased which minimizes total cost is referred to as the...
Lack of expertise
economic order quantity
risk management
Commercial loans; Venture capitalists
28. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
merchandising business
markdown
OSHA
to determine where the potential customers are
29. A common business credit/sales tern is...
circulating capital
proprietorship
2/10 - N30
fixed expense
30. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
partnership
a business plan
American's with Disabilities Act
Ease of starting; Profit incentive
31. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Legal restrictions on activities
competition
consumer credit
Ease of starting; Profit incentive
32. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
partnership
new venture plan; business plan
Sales are increased; Goodwill is built-up and easily maintained
33. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
corporation
economic base
key person insurance
34. Business interruption insurance covers
Chamber of Commerce
a qualification that is absolutely necessary
revolving account; open-end credit
lost income
35. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Credit customers are more interested in quality and service than price
advertising
a qualification that is absolutely necessary
fixed capital
36. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Take on more risks
trade credit
fixed capital
advertising
37. A management function which compares organizational and individual performance with predetermined standards or expected results is...
revolving account; open-end credit
controlling
credit application
intangible assets
38. A plan which provides inducements to potential purchasers of products and/or services is called...
Tax burdens; Human resource planning
a business plan
the employment interview
sales promotions
39. Which of the following is NOT a way to reduce risks?
trade credit
working capital; circulating capital
Take on more risks
credit application
40. The number of times the average inventory has been sold or used up during a period is known as...
Census of banking
advertising
inventory turnover
fixed capital
41. A source of debt capital would include
Financial shortages
fixed capital
controlling; actuating
commercial loans
42. Which of the following is an external problem and risk of business ownership?
trade credit
an entrepreneur
Tax burdens; Human resource planning
economic order quantity
43. Which of the following is recognized as a disadvantage of extending credit?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
the religion of the applicant
Civil Rights Act
Better Business Bureau
44. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Better Business Bureau
Lack of expertise
competition
corporation
45. A document that lists the major responsibilities and tasks of the job is known as a job
Whether or not they have an acceptable accounts receivable ratio
description
Ease of starting; Profit incentive
commercial loans
46. The main objective in a market survey is...
to determine where the potential customers are
Accessibility
competition
fixed capital
47. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
Whether or not they have an acceptable accounts receivable ratio
Accessibility
Directing
48. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Name of the business; Goodwill
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
description
economic base
49. Which of the following are functions of management?
controlling; actuating
to self-insure
Installment credit
demographics
50. 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...
to self-insure
Census of banking
corporation
sales promotions