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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. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
Legal restrictions on activities; Lack of personal interest
risk management
proprietorship
circulating capital
2. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
partnership
corporation
a business plan
have good management
3. Which of the following is NOT used to measure the success of advertising?
Income trends in the community
consumerism
variable expense
break-even point
4. A strategy to minimize risk would be to...
trade credit
credit application
Indemnity
have good management
5. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
Chamber of Commerce
manufacturing business
economic order quantity
Legal restrictions on activities; Lack of personal interest
6. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
equity capital
Personal checks
entrepreneur
CBD
7. The principal government agency concerned with the financing - operation - and management of small businesses is the
a structured interview
consumer credit
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Small Business Administration
8. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Chamber of Commerce
to determine where the potential customers are
corporation
competition
9. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
fixed expense
American's with Disabilities Act
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Proprietorship
10. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
market
Take on more risks
to determine where the potential customers are
consumer credit
11. An interview whereby the applicant is asked a pre-determined set of questions is known as...
competition
market
a structured interview
the employment interview
12. Which of the following is NOT included on the employment application?
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13. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
entrepreneur
controlling
Chamber of Commerce
14. Which of the following are advantages of a sole proprietorship?
a structured interview
Civil Rights Act
Ease of starting; Profit incentive
proprietorship
15. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
inventory turnover
corporation
the employment interview
16. Which of the following is not a consideration concerning the selection of suppliers?
advertising
credit application
Whether or not they have an acceptable accounts receivable ratio
inventory control considerations
17. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
ADA
trade credit
Directing
Income trends in the community
18. The main objective in a market survey is...
Proprietorship
intangible assets
break-even point
to determine where the potential customers are
19. 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
break-even point
Income trends in the community
fixed capital
20. Which of the following is an internal problem that can contribute to the failure of a business?
Financial shortages
partnership
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Chamber of Commerce
21. A common business credit/sales tern is...
competition
Applicant's sex
2/10 - N30
to self-insure
22. Which of the following are advantages of extending credit?
a business plan
Whether or not they have an acceptable accounts receivable ratio
to determine where the potential customers are
Sales are increased; Goodwill is built-up and easily maintained
23. The difference between current assets and current liabilities is...
intangible assets
controlling
Repairs
working capital; circulating capital
24. Which of the following is an intangible asset?
Whether or not they have an acceptable accounts receivable ratio
Directing
Efficiency of labor; Combined management - talent and capital
Name of the business; Goodwill
25. 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
Name of the business; Goodwill
trade credit
have good management
26. One who organizes - manages - and assumes the risk of a business form or venture is known as...
consumerism
sole proprietorship
inventory turnover
an entrepreneur
27. Which of the following are advantages of a partnership?
Commercial loans; Venture capitalists
inventory turnover
Efficiency of labor; Combined management - talent and capital
Legal restrictions on activities; Lack of personal interest
28. Which of the following is NOT a consumer buying motive?
ADA
merchandising business
Efficiency of labor; Combined management - talent and capital
Indemnity
29. 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...
a 2% discount if invoice is paid within 10 days - net due in 30 days
corporation
Tax burdens; Human resource planning
ADA
30. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Directing
key person insurance
corporation
Indemnity
31. Which of the following are disadvantages of a corporation?
Legal restrictions on activities; Lack of personal interest
Unlimited liability; Limited management ability
entrepreneur
Repairs
32. A source of debt capital would include
Lack of expertise
new venture plan; business plan
commercial loans
trade credit
33. The current asset items consisting of cash - inventories - and accounts receivables is known as...
a 2% discount if invoice is paid within 10 days - net due in 30 days
circulating capital
merchandising business
risk management
34. Long-term capital that is invested in a business is referred to as...
fixed capital
sales promotions
have good management
Ease of starting; Profit incentive
35. A business that purchases finished goods for resale is referred to as a...
merchandising business
fixed capital
working capital; circulating capital
Accessibility
36. The difference between merchandise cost and the selling price is known as the...
fixed capital
advertising
mark-up
the religion of the applicant
37. Capital that is invested in the business by the owner(s) is known as...
Repairs
Credit customers are more interested in quality and service than price
equity capital
controlling; actuating
38. An external problem that can lead to small business failure is...
market
trade credit
consumerism
a structured interview
39. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
working capital
credit application
merchandising business
new venture plan; business plan
40. A factor to be considered with the evaluation of a credit risk would be the...
working capital
Name of the business; Goodwill
credit application
advertising
41. 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; Venture capitalists
partnership
ADA
the religion of the applicant
42. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
revolving account; open-end credit
Installment credit
controlling; actuating
equity capital
43. 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...
Proprietorship
demographics
inventory turnover
Ease of starting; Profit incentive
44. A particular business that provides a service as opposed to a product is referred to as a...
partnership
service business
Terms of the sale
Some losses from bad debts and customers with fraudulent intentions are bound to occur
45. Capital that is investe4d in the business by the owner(s) is known as...
Indemnity
description
demographics
equity capital; personal capital
46. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
advertising
markdown
the employment interview
commercial loans
47. A small business is not...
demographics
Unlimited liability; Limited management ability
Actively managed by stockholders
equity capital
48. Which of the following is an example of a variable expense?
Repairs
manufacturing business
entrepreneur
Whether or not they have an acceptable accounts receivable ratio
49. Which of the following are disadvantages of a partnership?
Repairs
Indemnity
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
lost income
50. Any capital that is invested in a business by the owner(s) can be called...
fixed capital
controlling
proprietorship
equity capital