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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 a...
new venture plan; business plan
a qualification that is absolutely necessary
Repairs
Better Business Bureau
2. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Civil Rights Act
merchandising business
American's with Disabilities Act
ADA
3. A source of debt capital would include
break-even point
Equal Pay Act of 1963
commercial loans
inventory turnover
4. 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...
mark-up
fixed expense
markdown
demographics
5. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
the employment interview
fixed capital
manufacturing business
Sales are increased; Goodwill is built-up and easily maintained
6. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
competition
intangible assets
commercial loans
revolving account; open-end credit
7. 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
economic base
have good management
Installment credit
8. Which of the following are advantages of a partnership?
American's with Disabilities Act
partnership
Better Business Bureau
Efficiency of labor; Combined management - talent and capital
9. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
working capital; circulating capital
the employment interview
Proprietorship
Credit customers are more interested in quality and service than price
10. Which of the following is NOT a way to reduce risks?
manufacturing business
consumer credit
Repairs
Take on more risks
11. 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...
trade credit
corporation
Whether or not they have an acceptable accounts receivable ratio
variable expense
12. Which of the following would NOT be an insurance risk to consider?
Terms of the sale
Credit customers are more interested in quality and service than price
partnership
Civil Rights Act
13. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
lost income
market
partnership
the religion of the applicant
14. A plan which provides inducements to potential purchasers of products and/or services is called...
demographics
a structured interview
sales promotions
risk management
15. 2/10 - N/30 means...
circulating capital
a 2% discount if invoice is paid within 10 days - net due in 30 days
markdown
Installment credit
16. Which of the following is a requirement for a building layout?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
OSHA
Better Business Bureau
Accessibility
17. 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
Financial shortages
a business plan
break-even point
18. Which of the following are disadvantages of a sole proprietorship?
description
Sales are increased; Goodwill is built-up and easily maintained
service business
Unlimited liability; Limited management ability
19. Which of the following is recognized as a disadvantage of extending credit?
Some losses from bad debts and customers with fraudulent intentions are bound to occur
controlling; actuating
controlling
Commercial loans; Venture capitalists
20. The simplest and most common legal form of business ownership is...
Whether or not they have an acceptable accounts receivable ratio
sole proprietorship
proprietorship
OSHA
21. Which of the following is NOT a consumer buying motive?
Indemnity
merchandising business
Installment credit
Repairs
22. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
Indemnity
Lack of expertise
mark-up
advertising
23. Capital that is investe4d in the business by the owner(s) is known as...
Terms of the sale
equity capital; personal capital
Lack of expertise
demographics
24. The number of times the average inventory has been sold or used up during a period is known as...
Ease of starting; Profit incentive
Tax burdens; Human resource planning
corporation
inventory turnover
25. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
Efficiency of labor; Combined management - talent and capital
OSHA
partnership
controlling; actuating
26. Which of the following statements is TRUE concerning consumer credit?
Financial shortages
manufacturing business
equity capital; personal capital
Credit customers are more interested in quality and service than price
27. Which of the following are advantages of a corporation?
Name of the business; Goodwill
working capital
Large financial capacity; Limited liability of each owner (stockholder)
demographics
28. A document that lists the major responsibilities and tasks of the job is known as a job
2/10 - N30
Indemnity
description
Name of the business; Goodwill
29. The difference between current assets and current liabilities is...
factoring
break-even point
working capital
fixed capital
30. Rent is an example of a...
demographics
fixed expense
Unlimited liability; Limited management ability
Financial shortages
31. Which of the following laws prohibits discrimination against any qualified individual with a disability?
32. An association of business people who attempt to protect and promote the commercial interests in a community is known as the...
Lack of expertise
equity capital; personal capital
Chamber of Commerce
Commercial loans; Venture capitalists
33. In business - a reduction of selling price below the original selling price is referred to as...
CBD
markdown
Indemnity
manufacturing business
34. Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called...
consumer credit
trade credit
Efficiency of labor; Combined management - talent and capital
economic base
35. A common business credit/sales tern is...
Efficiency of labor; Combined management - talent and capital
2/10 - N30
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
economic base
36. The principal government agency concerned with the financing - operation - and management of small businesses is the
lost income
the employment interview
Small Business Administration
sales promotions
37. Business interruption insurance covers
partnership
break-even point
lost income
Better Business Bureau
38. 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...
Personal checks
Chamber of Commerce
revolving account; open-end credit
break-even point
39. A BFOQ is...
Chamber of Commerce
economic base
Applicant's sex
a qualification that is absolutely necessary
40. Capital that is invested in the business by the owner(s) is known as...
proprietorship
a 2% discount if invoice is paid within 10 days - net due in 30 days
factoring
equity capital
41. Which of the following is NOT a type of consumer credit?
Personal checks
evaluating; controlling
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
a business plan
42. A point in business operations whereby total sales revenue equals total costs
credit application
manufacturing business
description
break-even point
43. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
fixed capital
partnership
Better Business Bureau
a business plan
44. 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...
market
credit application
inventory turnover
variable expense
45. A small business is not...
Credit customers are more interested in quality and service than price
CBD
Actively managed by stockholders
Lack of expertise
46. All of the following are factors which can affect the recruitment and selection of employees except
Directing
the religion of the applicant
Lack of expertise
sole proprietorship
47. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
fixed capital
Unlimited liability; Limited management ability
the employment interview
Financial shortages
48. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
controlling; actuating
Census of banking
partnership
mark-up
49. A factor to be considered with the evaluation of a credit risk would be the...
Installment credit
credit application
2/10 - N30
factoring
50. The difference between current assets and current liabilities is...
working capital; circulating capital
Actively managed by stockholders
Installment credit
economic order quantity