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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 management function which compares organization and individual performance with predetermined standards or expected results is known as...
evaluating; controlling
sales promotions
corporation
Census of banking
2. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
credit application
key person insurance
consumer credit
Large financial capacity; Limited liability of each owner (stockholder)
3. A common business credit/sales tern is...
Small Business Administration
Income trends in the community
2/10 - N30
a qualification that is absolutely necessary
4. The wealth produced in or near a community that provides employment and income to the local population is known as the...
Applicant's sex
economic base
Income trends in the community
Name of the business; Goodwill
5. A document that lists the major responsibilities and tasks of the job is known as a job
Lack of expertise
description
break-even point
Actively managed by stockholders
6. 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...
corporation
American's with Disabilities Act
Terms of the sale
consumerism
7. 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...
key person insurance
working capital; circulating capital
corporation
Credit customers are more interested in quality and service than price
8. Business interruption insurance covers
controlling
Lack of expertise
CBD
lost income
9. 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...
new venture plan; business plan
Better Business Bureau
variable expense
Installment credit
10. Long term capital invested in the business is...
fixed capital
break-even point
Census of banking
ADA
11. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
demographics
Directing
corporation
Personal checks
12. Any capital that is invested in a business by the owner(s) can be called...
CBD
equity capital
Legal restrictions on activities; Lack of personal interest
merchandising business
13. The main objective in a market survey is...
to determine where the potential customers are
mark-up
revolving account; open-end credit
lost income
14. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
Unlimited liability; Limited management ability
markdown
risk management
an entrepreneur
15. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
an entrepreneur
revolving account; open-end credit
Directing
partnership
16. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
have good management
partnership
Legal restrictions on activities
Installment credit
17. A small business is not...
Actively managed by stockholders
break-even point
a qualification that is absolutely necessary
partnership
18. A business that purchases finished goods for resale is referred to as a...
fixed capital
market
consumer credit
merchandising business
19. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
partnership
Census of banking
market
risk management
20. Factors associated with evaluating a credit risk
advertising
markdown
demographics
inventory control considerations
21. Which of the following is not a consideration concerning the selection of suppliers?
risk management
Whether or not they have an acceptable accounts receivable ratio
partnership
Directing
22. A BFOQ is...
Chamber of Commerce
a qualification that is absolutely necessary
evaluating; controlling
Financial shortages
23. A strategy to minimize risk would be to...
inventory turnover
have good management
Name of the business; Goodwill
equity capital; personal capital
24. Capital that is invested in the business by the owner(s) is known as...
equity capital
Financial shortages
corporation
Some losses from bad debts and customers with fraudulent intentions are bound to occur
25. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
variable expense
inventory control considerations
equity capital; personal capital
26. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
Better Business Bureau
Equal Pay Act of 1963
partnership
Terms of the sale
27. Which of the following are advantages of a partnership?
Efficiency of labor; Combined management - talent and capital
inventory turnover
Indemnity
partnership
28. The difference between current assets and current liabilities is...
working capital
trade credit
Large financial capacity; Limited liability of each owner (stockholder)
commercial loans
29. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
consumer credit
Equal Pay Act of 1963
CBD
Accessibility
30. Which of the following is an intangible asset?
ADA
to determine where the potential customers are
revolving account; open-end credit
Name of the business; Goodwill
31. 2/10 - N/30 means...
variable expense
sales promotions
a 2% discount if invoice is paid within 10 days - net due in 30 days
inventory turnover
32. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Legal restrictions on activities
Ease of starting; Profit incentive
Census of banking
entrepreneur
33. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
Chamber of Commerce
Legal restrictions on activities; Lack of personal interest
mark-up
trade credit
34. A strategy available to absorb risks would be...
to self-insure
working capital
Large financial capacity; Limited liability of each owner (stockholder)
mark-up
35. Which of the following are disadvantages of a partnership?
2/10 - N30
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
consumerism
Applicant's sex
36. Which of the following are disadvantages of a sole proprietorship?
Income trends in the community
Unlimited liability; Limited management ability
Better Business Bureau
sole proprietorship
37. A plan which provides inducements to potential purchasers of products and/or services is called...
evaluating; controlling
CBD
inventory control considerations
sales promotions
38. The difference between merchandise cost and the selling price is known as the...
sole proprietorship
Directing
equity capital
mark-up
39. 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...
break-even point
ADA
American's with Disabilities Act
Installment credit
40. A particular business that provides a service as opposed to a product is referred to as a...
Some losses from bad debts and customers with fraudulent intentions are bound to occur
service business
Credit customers are more interested in quality and service than price
competition
41. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
factoring
Civil Rights Act
equity capital; personal capital
markdown
42. A management function which compares organizational and individual performance with predetermined standards or expected results is...
the religion of the applicant
controlling
fixed capital
competition
43. Which of the following are advantages of a sole proprietorship?
Personal checks
Ease of starting; Profit incentive
a business plan
service business
44. Which of the following is NOT a way to reduce risks?
trade credit
a qualification that is absolutely necessary
Take on more risks
Proprietorship
45. Which of the following laws prohibits discrimination against any qualified individual with a disability?
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46. Selling a business's accounts receivable for cash to a third party is referred to as...
merchandising business
fixed expense
Tax burdens; Human resource planning
factoring
47. Which of the following is NOT used to measure the success of advertising?
Income trends in the community
entrepreneur
Name of the business; Goodwill
Financial shortages
48. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
ADA
Accessibility
inventory turnover
a qualification that is absolutely necessary
49. 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...
demographics
OSHA
Sales are increased; Goodwill is built-up and easily maintained
variable expense
50. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
controlling
American's with Disabilities Act
OSHA
to determine where the potential customers are