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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. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Chamber of Commerce
merchandising business
equity capital
fixed capital
2. Capital that is investe4d in the business by the owner(s) is known as...
working capital; circulating capital
Terms of the sale
the religion of the applicant
equity capital; personal capital
3. 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
service business
Small Business Administration
Unlimited liability; Limited management ability
4. The principal government agency concerned with the financing - operation - and management of small businesses is the
break-even point
sole proprietorship
Small Business Administration
Ease of starting; Profit incentive
5. Which of the following is NOT used to measure the success of advertising?
Census of banking
CBD
corporation
Income trends in the community
6. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
OSHA
Directing
Unlimited liability; Limited management ability
Chamber of Commerce
7. The difference between current assets and current liabilities is...
mark-up
factoring
working capital
Legal restrictions on activities
8. The form of legal organization that is owned and operated by one person is the...
2/10 - N30
Take on more risks
OSHA
proprietorship
9. Life insurance that protects a firm against losses due to the death of a key employee is known as...
a structured interview
Lack of expertise
key person insurance
revolving account; open-end credit
10. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
controlling
market
economic order quantity
Sales are increased; Goodwill is built-up and easily maintained
11. Any capital that is invested in a business by the owner(s) can be called...
the employment interview
demographics
equity capital
key person insurance
12. Which of the following is an internal problem that can contribute to the failure of a business?
Equal Pay Act of 1963
circulating capital
Financial shortages
demographics
13. Which of the following are advantages of a partnership?
mark-up
Efficiency of labor; Combined management - talent and capital
Census of banking
working capital
14. Which of the following is not a consideration concerning the selection of suppliers?
lost income
service business
Whether or not they have an acceptable accounts receivable ratio
Small Business Administration
15. Which of the following laws prohibits discrimination against any qualified individual with a disability?
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16. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
consumer credit
equity capital
new venture plan; business plan
fixed capital
17. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
commercial loans
break-even point
the religion of the applicant
18. Which of the following is NOT a type of consumer credit?
Personal checks
inventory turnover
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Equal Pay Act of 1963
19. The number of times the average inventory has been sold or used up during a period is known as...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
commercial loans
to self-insure
inventory turnover
20. A business that purchases finished goods for resale is referred to as a...
merchandising business
an entrepreneur
break-even point
Unlimited liability; Limited management ability
21. A common business credit/sales tern is...
sales promotions
2/10 - N30
an entrepreneur
Lack of expertise
22. Which of the following are examples of debt capital?
break-even point
equity capital; personal capital
American's with Disabilities Act
Commercial loans; Venture capitalists
23. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
circulating capital
Actively managed by stockholders
revolving account; open-end credit
proprietorship
24. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
break-even point
2/10 - N30
corporation
risk management
25. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
commercial loans
Tax burdens; Human resource planning
partnership
controlling
26. Which of the following are disadvantages of a sole proprietorship?
Income trends in the community
Unlimited liability; Limited management ability
Legal restrictions on activities
equity capital
27. A plan which provides inducements to potential purchasers of products and/or services is called...
sales promotions
economic order quantity
equity capital; personal capital
a 2% discount if invoice is paid within 10 days - net due in 30 days
28. The simplest and most common legal form of business ownership is...
break-even point
sole proprietorship
2/10 - N30
Sales are increased; Goodwill is built-up and easily maintained
29. The difference between merchandise cost and the selling price is known as the...
equity capital
working capital
an entrepreneur
mark-up
30. 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...
Take on more risks
Small Business Administration
variable expense
American's with Disabilities Act
31. In business - a reduction of selling price below the original selling price is referred to as...
fixed capital
the employment interview
Applicant's sex
markdown
32. Rent is an example of a...
sales promotions
Financial shortages
circulating capital
fixed expense
33. A factor to be considered with the evaluation of a credit risk would be the...
Better Business Bureau
credit application
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Proprietorship
34. All of the following are factors which can affect the recruitment and selection of employees except
circulating capital
equity capital
the religion of the applicant
variable expense
35. 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...
demographics
controlling; actuating
manufacturing business
corporation
36. 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...
Credit customers are more interested in quality and service than price
corporation
evaluating; controlling
fixed capital
37. Which of the following is an example of a variable expense?
risk management
economic base
Repairs
competition
38. 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...
Name of the business; Goodwill
Unlimited liability; Limited management ability
credit application
break-even point
39. Which of the following statements is TRUE concerning consumer credit?
Legal restrictions on activities
risk management
the religion of the applicant
Credit customers are more interested in quality and service than price
40. Which of the following are advantages of a sole proprietorship?
revolving account; open-end credit
trade credit
break-even point
Ease of starting; Profit incentive
41. A document that lists the major responsibilities and tasks of the job is known as a job
description
proprietorship
Income trends in the community
Repairs
42. Which of the following are disadvantages of a corporation?
Lack of expertise
Actively managed by stockholders
manufacturing business
Legal restrictions on activities; Lack of personal interest
43. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
break-even point
factoring
competition
Proprietorship
44. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
key person insurance
partnership
inventory control considerations
Installment credit
45. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
Equal Pay Act of 1963
Lack of expertise
Chamber of Commerce
equity capital
46. 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
Directing
Some losses from bad debts and customers with fraudulent intentions are bound to occur
sales promotions
47. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
Chamber of Commerce
an entrepreneur
2/10 - N30
a business plan
48. Long term capital invested in the business is...
fixed capital
manufacturing business
proprietorship
inventory control considerations
49. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
risk management
Better Business Bureau
break-even point
50. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
manufacturing business
demographics
factoring
entrepreneur