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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. The combination of two or more individual's talents and capital serves as an advantage of the legal form of ownership known as a...
lost income
new venture plan; business plan
partnership
trade credit
2. Which of the following is NOT an advantage of a corporation?
Sales are increased; Goodwill is built-up and easily maintained
Equal Pay Act of 1963
Legal restrictions on activities
Repairs
3. Which of the following laws prohibits discrimination against any qualified individual with a disability?
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4. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
Repairs
description
risk management
trade credit
5. A small business is not...
Actively managed by stockholders
Personal checks
the employment interview
consumer credit
6. One who organizes - manages - and assumes the risk of a business form or venture is known as...
an entrepreneur
sole proprietorship
Sales are increased; Goodwill is built-up and easily maintained
CBD
7. Capital that is investe4d in the business by the owner(s) is known as...
market
Name of the business; Goodwill
equity capital; personal capital
equity capital
8. Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company's goals?
Directing
inventory turnover
intangible assets
partnership
9. 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...
ADA
corporation
working capital; circulating capital
market
10. Which of the following is NOT a way to reduce risks?
an entrepreneur
Take on more risks
credit application
Large financial capacity; Limited liability of each owner (stockholder)
11. The current asset items consisting of cash - inventories - and accounts receivables is known as...
revolving account; open-end credit
Terms of the sale
circulating capital
controlling
12. Which of the following is NOT a type of consumer credit?
equity capital
Chamber of Commerce
Personal checks
Ease of starting; Profit incentive
13. The form of legal organization that is owned and operated by one person is the...
entrepreneur
market
variable expense
proprietorship
14. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
Efficiency of labor; Combined management - talent and capital
entrepreneur
circulating capital
a business plan
15. A line of credit that may b e used over and over again up to a certain borrowing limit is called...
Directing
to self-insure
revolving account; open-end credit
corporation
16. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
CBD
a qualification that is absolutely necessary
an entrepreneur
OSHA
17. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
corporation
entrepreneur
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Equal Pay Act of 1963
18. 2/10 - N/30 means...
a 2% discount if invoice is paid within 10 days - net due in 30 days
Large financial capacity; Limited liability of each owner (stockholder)
Chamber of Commerce
equity capital
19. Selling a business's accounts receivable for cash to a third party is referred to as...
factoring
Legal restrictions on activities; Lack of personal interest
Legal restrictions on activities
a qualification that is absolutely necessary
20. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Name of the business; Goodwill
ADA
competition
circulating capital
21. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
market
service business
economic order quantity
Terms of the sale
22. A point in business operations whereby total sales revenue equals total costs
new venture plan; business plan
Unlimited liability; Limited management ability
break-even point
fixed expense
23. Which of the following is a requirement for a building layout?
Installment credit
proprietorship
Accessibility
corporation
24. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
key person insurance
ADA
controlling; actuating
Ease of starting; Profit incentive
25. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
demographics
Ease of starting; Profit incentive
new venture plan; business plan
equity capital; personal capital
26. The number of times the average inventory has been sold or used up during a period is known as...
manufacturing business
inventory turnover
a qualification that is absolutely necessary
fixed capital
27. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
Proprietorship
Repairs
working capital
28. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
partnership
the employment interview
risk management
consumerism
29. A plan which provides inducements to potential purchasers of products and/or services is called...
economic order quantity
fixed expense
Civil Rights Act
sales promotions
30. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
new venture plan; business plan
advertising
inventory control considerations
corporation
31. An external problem that can lead to small business failure is...
Repairs
a structured interview
variable expense
consumerism
32. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
demographics
Proprietorship
Credit customers are more interested in quality and service than price
manufacturing business
33. The difference between merchandise cost and the selling price is known as the...
inventory control considerations
mark-up
consumer credit
revolving account; open-end credit
34. In business - the name - goodwill - copyrights - and patents are referred to as...
intangible assets
2/10 - N30
Proprietorship
working capital; circulating capital
35. The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is...
inventory turnover
Installment credit
fixed capital
Efficiency of labor; Combined management - talent and capital
36. Which of the following are advantages of a sole proprietorship?
Ease of starting; Profit incentive
Financial shortages
corporation
Applicant's sex
37. The wealth produced in or near a community that provides employment and income to the local population is known as the...
merchandising business
Repairs
economic base
to self-insure
38. All of the following are factors which can affect the recruitment and selection of employees except
trade credit
the religion of the applicant
Chamber of Commerce
a structured interview
39. Which of the following are examples of debt capital?
Directing
have good management
Commercial loans; Venture capitalists
a 2% discount if invoice is paid within 10 days - net due in 30 days
40. Which of the following would NOT be an insurance risk to consider?
circulating capital
Terms of the sale
Personal checks
Ease of starting; Profit incentive
41. Factors associated with evaluating a credit risk
inventory control considerations
revolving account; open-end credit
equity capital
equity capital; personal capital
42. A management function which compares organizational and individual performance with predetermined standards or expected results is...
fixed capital
advertising
partnership
controlling
43. 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...
Legal restrictions on activities; Lack of personal interest
Tax burdens; Human resource planning
partnership
credit application
44. Which of the following are disadvantages of a corporation?
Better Business Bureau
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
Lack of expertise
Legal restrictions on activities; Lack of personal interest
45. Life insurance that protects a firm against losses due to the death of a key employee is known as...
working capital; circulating capital
key person insurance
economic order quantity
variable expense
46. The main objective in a market survey is...
to determine where the potential customers are
Large financial capacity; Limited liability of each owner (stockholder)
economic order quantity
the employment interview
47. Which of the following are advantages of extending credit?
ADA
Sales are increased; Goodwill is built-up and easily maintained
controlling
equity capital
48. The quantity to be purchased which minimizes total cost is referred to as the...
Terms of the sale
working capital; circulating capital
Large financial capacity; Limited liability of each owner (stockholder)
economic order quantity
49. Long-term capital that is invested in a business is referred to as...
fixed capital
credit application
partnership
Financial shortages
50. A business that purchases finished goods for resale is referred to as a...
variable expense
Commercial loans; Venture capitalists
mark-up
merchandising business