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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?
Large financial capacity; Limited liability of each owner (stockholder)
factoring
circulating capital
variable expense
2. 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...
Applicant's sex
a 2% discount if invoice is paid within 10 days - net due in 30 days
corporation
Unlimited liability; Limited management ability
3. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
a 2% discount if invoice is paid within 10 days - net due in 30 days
evaluating; controlling
Directing
4. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
lost income
trade credit
Proprietorship
ADA
5. An interview whereby the applicant is asked a pre-determined set of questions is known as...
a structured interview
an entrepreneur
sales promotions
the employment interview
6. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
Accessibility
Ease of starting; Profit incentive
controlling; actuating
7. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
mark-up
Accessibility
ADA
Lack of expertise
8. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
break-even point
proprietorship
Applicant's sex
advertising
9. The simplest and most common legal form of business ownership is...
market
Tax burdens; Human resource planning
sole proprietorship
Whether or not they have an acceptable accounts receivable ratio
10. Which of the following laws prohibits discrimination against any qualified individual with a disability?
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11. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
consumerism
OSHA
evaluating; controlling
Some losses from bad debts and customers with fraudulent intentions are bound to occur
12. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
new venture plan; business plan
intangible assets
description
demographics
13. A factor to be considered with the evaluation of a credit risk would be the...
a qualification that is absolutely necessary
credit application
evaluating; controlling
equity capital
14. The number of times the average inventory has been sold or used up during a period is known as...
markdown
Take on more risks
inventory turnover
break-even point
15. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
economic order quantity
partnership
2/10 - N30
Commercial loans; Venture capitalists
16. A source of debt capital would include
commercial loans
Sales are increased; Goodwill is built-up and easily maintained
Terms of the sale
inventory turnover
17. 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...
Better Business Bureau
variable expense
Installment credit
Personal checks
18. A document that lists the major responsibilities and tasks of the job is known as a job
corporation
description
fixed capital
Sales are increased; Goodwill is built-up and easily maintained
19. Life insurance that protects a firm against losses due to the death of a key employee is known as...
mark-up
a qualification that is absolutely necessary
key person insurance
controlling
20. Which of the following is normally NOT a source of published market data?
break-even point
Census of banking
Applicant's sex
a business plan
21. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
sole proprietorship
Income trends in the community
fixed expense
new venture plan; business plan
22. Which of the following is NOT included on the employment application?
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23. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
2/10 - N30
inventory turnover
competition
24. 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...
service business
partnership
fixed expense
revolving account; open-end credit
25. The difference between current assets and current liabilities is...
working capital
partnership
new venture plan; business plan
OSHA
26. An external problem that can lead to small business failure is...
description
Installment credit
consumerism
Repairs
27. A strategy to minimize risk would be to...
revolving account; open-end credit
have good management
Whether or not they have an acceptable accounts receivable ratio
economic order quantity
28. Which of the following is an external problem and risk of business ownership?
Tax burdens; Human resource planning
equity capital
fixed expense
credit application
29. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
the employment interview
a business plan
fixed expense
Name of the business; Goodwill
30. Which of the following is an intangible asset?
mark-up
advertising
Name of the business; Goodwill
equity capital; personal capital
31. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Applicant's sex
Better Business Bureau
Terms of the sale
trade credit
32. Capital that is invested in the business by the owner(s) is known as...
markdown
CBD
equity capital
revolving account; open-end credit
33. The form of legal organization that is owned and operated by one person is the...
a qualification that is absolutely necessary
Repairs
proprietorship
sales promotions
34. Which of the following is NOT a way to reduce risks?
Better Business Bureau
Take on more risks
trade credit
Actively managed by stockholders
35. Which of the following is NOT an advantage of a corporation?
trade credit
American's with Disabilities Act
a structured interview
Legal restrictions on activities
36. Which of the following are functions of management?
controlling; actuating
credit application
Efficiency of labor; Combined management - talent and capital
evaluating; controlling
37. Rent is an example of a...
Commercial loans; Venture capitalists
fixed capital
Installment credit
fixed expense
38. Which of the following is an example of a variable expense?
Commercial loans; Venture capitalists
fixed expense
Repairs
Accessibility
39. Any capital that is invested in a business by the owner(s) can be called...
Name of the business; Goodwill
equity capital
equity capital; personal capital
controlling; actuating
40. Which of the following is NOT used to measure the success of advertising?
ADA
Income trends in the community
demographics
a structured interview
41. The principal government agency concerned with the financing - operation - and management of small businesses is the
Small Business Administration
trade credit
working capital; circulating capital
Tax burdens; Human resource planning
42. Which of the following are disadvantages of a corporation?
sales promotions
Some losses from bad debts and customers with fraudulent intentions are bound to occur
working capital; circulating capital
Legal restrictions on activities; Lack of personal interest
43. Which of the following are disadvantages of a sole proprietorship?
demographics
Personal checks
Unlimited liability; Limited management ability
CBD
44. Long-term capital that is invested in a business is referred to as...
Applicant's sex
fixed capital
corporation
economic order quantity
45. The current asset items consisting of cash - inventories - and accounts receivables is known as...
Legal restrictions on activities; Lack of personal interest
circulating capital
partnership
fixed capital
46. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
sole proprietorship
equity capital
competition
partnership
47. A small business is not...
have good management
Actively managed by stockholders
working capital
proprietorship
48. A strategy available to absorb risks would be...
break-even point
to self-insure
Some losses from bad debts and customers with fraudulent intentions are bound to occur
intangible assets
49. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
credit application
Chamber of Commerce
Take on more risks
factoring
50. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
manufacturing business
new venture plan; business plan
Better Business Bureau
fixed expense