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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. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
description
sales promotions
a business plan
Legal restrictions on activities
2. Which of the following would NOT be an insurance risk to consider?
Terms of the sale
Applicant's sex
corporation
manufacturing business
3. The principal government agency concerned with the financing - operation - and management of small businesses is the
break-even point
Small Business Administration
OSHA
Chamber of Commerce
4. Business interruption insurance covers
manufacturing business
equity capital
circulating capital
lost income
5. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
advertising
partnership
sales promotions
inventory control considerations
6. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
new venture plan; business plan
Income trends in the community
OSHA
proprietorship
7. A business that purchases finished goods for resale is referred to as a...
Legal restrictions on activities; Lack of personal interest
credit application
Equal Pay Act of 1963
merchandising business
8. The quantity to be purchased which minimizes total cost is referred to as the...
manufacturing business
the religion of the applicant
economic order quantity
working capital; circulating capital
9. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
demographics
proprietorship
Small Business Administration
10. A particular business that provides a service as opposed to a product is referred to as a...
break-even point
Actively managed by stockholders
service business
Credit customers are more interested in quality and service than price
11. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Directing
markdown
circulating capital
12. 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...
circulating capital
working capital
partnership
a qualification that is absolutely necessary
13. The current asset items consisting of cash - inventories - and accounts receivables is known as...
consumer credit
Census of banking
circulating capital
Chamber of Commerce
14. Which of the following are disadvantages of a corporation?
Directing
Indemnity
Legal restrictions on activities; Lack of personal interest
Civil Rights Act
15. A source of debt capital would include
Accessibility
factoring
Whether or not they have an acceptable accounts receivable ratio
commercial loans
16. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
consumerism
Proprietorship
Small Business Administration
17. Which of the following are examples of debt capital?
Commercial loans; Venture capitalists
corporation
Chamber of Commerce
equity capital
18. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
a business plan
proprietorship
entrepreneur
working capital
19. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
credit application
partnership
OSHA
Name of the business; Goodwill
20. Which of the following are disadvantages of a sole proprietorship?
the employment interview
factoring
Terms of the sale
Unlimited liability; Limited management ability
21. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
fixed capital
to self-insure
Applicant's sex
22. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
an entrepreneur
sole proprietorship
Legal restrictions on activities; Lack of personal interest
23. A strategy available to absorb risks would be...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
to self-insure
demographics
Applicant's sex
24. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
Efficiency of labor; Combined management - talent and capital
consumer credit
revolving account; open-end credit
25. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Tax burdens; Human resource planning
advertising
a qualification that is absolutely necessary
Some losses from bad debts and customers with fraudulent intentions are bound to occur
26. Capital that is invested in the business by the owner(s) is known as...
a 2% discount if invoice is paid within 10 days - net due in 30 days
equity capital; personal capital
sales promotions
equity capital
27. Which of the following is NOT included on the employment application?
28. A document that lists the major responsibilities and tasks of the job is known as a job
risk management
corporation
description
OSHA
29. Which of the following is an external problem and risk of business ownership?
Repairs
commercial loans
ADA
Tax burdens; Human resource planning
30. A factor to be considered with the evaluation of a credit risk would be the...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
CBD
credit application
lost income
31. The difference between current assets and current liabilities is...
CBD
Small Business Administration
equity capital
working capital; circulating capital
32. All of the following are factors which can affect the recruitment and selection of employees except
Better Business Bureau
the religion of the applicant
demographics
factoring
33. Capital that is investe4d in the business by the owner(s) is known as...
circulating capital
revolving account; open-end credit
risk management
equity capital; personal capital
34. The form of legal organization that is owned and operated by one person is the...
proprietorship
Large financial capacity; Limited liability of each owner (stockholder)
entrepreneur
Legal restrictions on activities; Lack of personal interest
35. Rent is an example of a...
Indemnity
break-even point
demographics
fixed expense
36. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
the employment interview
Installment credit
service business
fixed capital
37. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
controlling
a qualification that is absolutely necessary
manufacturing business
credit application
38. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
Terms of the sale
controlling; actuating
Civil Rights Act
Installment credit
39. Which of the following is NOT a consumer buying motive?
Name of the business; Goodwill
risk management
Indemnity
lost income
40. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Credit customers are more interested in quality and service than price
inventory control considerations
service business
41. In business - the name - goodwill - copyrights - and patents are referred to as...
entrepreneur
intangible assets
Name of the business; Goodwill
risk management
42. In business - a reduction of selling price below the original selling price is referred to as...
equity capital; personal capital
markdown
new venture plan; business plan
partnership
43. Which of the following are advantages of a sole proprietorship?
Sales are increased; Goodwill is built-up and easily maintained
Legal restrictions on activities
Ease of starting; Profit incentive
Repairs
44. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
Unlimited liability; Limited management ability
fixed expense
Efficiency of labor; Combined management - talent and capital
45. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Terms of the sale
trade credit
Unlimited liability; Limited management ability
46. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Better Business Bureau
mark-up
a structured interview
Census of banking
47. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
working capital
description
Better Business Bureau
Indemnity
48. Which of the following is an example of a variable expense?
Repairs
circulating capital
variable expense
Census of banking
49. Which of the following are disadvantages of a partnership?
markdown
circulating capital
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Efficiency of labor; Combined management - talent and capital
50. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Actively managed by stockholders
consumer credit
to determine where the potential customers are
new venture plan; business plan