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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 is not a consideration concerning the selection of suppliers?
equity capital
Whether or not they have an acceptable accounts receivable ratio
new venture plan; business plan
variable expense
2. All of the following are factors which can affect the recruitment and selection of employees except
Lack of expertise
the religion of the applicant
factoring
Financial shortages
3. The principal government agency concerned with the financing - operation - and management of small businesses is the
break-even point
Small Business Administration
consumer credit
description
4. In business - a reduction of selling price below the original selling price is referred to as...
inventory turnover
a business plan
ADA
markdown
5. A BFOQ is...
markdown
a qualification that is absolutely necessary
intangible assets
the religion of the applicant
6. A document that lists the major responsibilities and tasks of the job is known as a job
have good management
Actively managed by stockholders
Equal Pay Act of 1963
description
7. 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...
the religion of the applicant
ADA
demographics
advertising
8. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
Indemnity
partnership
a business plan
Lack of expertise
9. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
Tax burdens; Human resource planning
an entrepreneur
Census of banking
10. A factor to be considered with the evaluation of a credit risk would be the...
equity capital
mark-up
fixed capital
credit application
11. The difference between merchandise cost and the selling price is known as the...
new venture plan; business plan
Income trends in the community
market
mark-up
12. A particular business that provides a service as opposed to a product is referred to as a...
ADA
fixed capital
service business
risk management
13. 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
Sales are increased; Goodwill is built-up and easily maintained
demographics
sole proprietorship
14. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
variable expense
risk management
evaluating; controlling
Indemnity
15. Selling a business's accounts receivable for cash to a third party is referred to as...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
factoring
sales promotions
Civil Rights Act
16. The main objective in a market survey is...
Efficiency of labor; Combined management - talent and capital
Legal restrictions on activities; Lack of personal interest
fixed capital
to determine where the potential customers are
17. 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...
Income trends in the community
corporation
sole proprietorship
demographics
18. A management function which compares organizational and individual performance with predetermined standards or expected results is...
inventory control considerations
controlling
Efficiency of labor; Combined management - talent and capital
Proprietorship
19. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Applicant's sex
Chamber of Commerce
Equal Pay Act of 1963
entrepreneur
20. Which of the following is normally NOT a source of published market data?
Census of banking
key person insurance
Tax burdens; Human resource planning
break-even point
21. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
proprietorship
an entrepreneur
ADA
break-even point
22. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
OSHA
Legal restrictions on activities; Lack of personal interest
circulating capital
Tax burdens; Human resource planning
23. 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...
commercial loans
partnership
Accessibility
demographics
24. Which of the following would NOT be an insurance risk to consider?
new venture plan; business plan
Ease of starting; Profit incentive
Terms of the sale
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
25. Long term capital invested in the business is...
corporation
an entrepreneur
fixed capital
Whether or not they have an acceptable accounts receivable ratio
26. The simplest and most common legal form of business ownership is...
sole proprietorship
lost income
revolving account; open-end credit
Better Business Bureau
27. 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...
controlling; actuating
Chamber of Commerce
Repairs
variable expense
28. 2/10 - N/30 means...
key person insurance
the employment interview
a 2% discount if invoice is paid within 10 days - net due in 30 days
Equal Pay Act of 1963
29. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Census of banking
markdown
Directing
lost income
30. An interview whereby the applicant is asked a pre-determined set of questions is known as...
partnership
a structured interview
factoring
American's with Disabilities Act
31. Which of the following is NOT a way to reduce risks?
to self-insure
Take on more risks
Some losses from bad debts and customers with fraudulent intentions are bound to occur
have good management
32. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
Take on more risks
demographics
Installment credit
partnership
33. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
controlling
Civil Rights Act
to determine where the potential customers are
manufacturing business
34. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
revolving account; open-end credit
Large financial capacity; Limited liability of each owner (stockholder)
advertising
Better Business Bureau
35. Which of the following is an internal problem that can contribute to the failure of a business?
a 2% discount if invoice is paid within 10 days - net due in 30 days
credit application
Financial shortages
Applicant's sex
36. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
fixed expense
Civil Rights Act
variable expense
sales promotions
37. The difference between current assets and current liabilities is...
have good management
working capital; circulating capital
proprietorship
inventory control considerations
38. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Installment credit
Chamber of Commerce
demographics
2/10 - N30
39. Which of the following are disadvantages of a corporation?
economic base
Whether or not they have an acceptable accounts receivable ratio
an entrepreneur
Legal restrictions on activities; Lack of personal interest
40. Which of the following are disadvantages of a partnership?
Legal restrictions on activities
consumer credit
economic base
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
41. A small business is not...
Actively managed by stockholders
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
intangible assets
Personal checks
42. Business interruption insurance covers
sole proprietorship
lost income
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
OSHA
43. Which of the following are functions of management?
demographics
Equal Pay Act of 1963
controlling; actuating
markdown
44. The number of times the average inventory has been sold or used up during a period is known as...
break-even point
Ease of starting; Profit incentive
Equal Pay Act of 1963
inventory turnover
45. Which of the following is NOT used to measure the success of advertising?
consumerism
Census of banking
break-even point
Income trends in the community
46. Which of the following are advantages of a partnership?
Legal restrictions on activities; Lack of personal interest
Efficiency of labor; Combined management - talent and capital
Take on more risks
variable expense
47. Which of the following statements is TRUE concerning consumer credit?
risk management
Credit customers are more interested in quality and service than price
demographics
markdown
48. Which of the following is NOT a consumer buying motive?
advertising
2/10 - N30
revolving account; open-end credit
Indemnity
49. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Repairs
inventory turnover
an entrepreneur
Indemnity
50. Capital that is investe4d in the business by the owner(s) is known as...
risk management
working capital
equity capital; personal capital
Civil Rights Act