Test your basic knowledge |

Small Business Management

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 organizational and individual performance with predetermined standards or expected results is...
controlling
working capital
a qualification that is absolutely necessary
Chamber of Commerce

2. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Large financial capacity; Limited liability of each owner (stockholder)
Efficiency of labor; Combined management - talent and capital
a structured interview
ADA

3. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
description
Credit customers are more interested in quality and service than price
Equal Pay Act of 1963
inventory turnover

4. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
market
Sales are increased; Goodwill is built-up and easily maintained
new venture plan; business plan
Actively managed by stockholders

5. Which of the following laws prohibits discrimination against any qualified individual with a disability?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

6. Long-term capital that is invested in a business is referred to as...
consumerism
Repairs
key person insurance
fixed capital

7. 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...
lost income
demographics
a qualification that is absolutely necessary
break-even point

8. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
Equal Pay Act of 1963
Lack of expertise
competition
risk management

9. The number of times the average inventory has been sold or used up during a period is known as...
Commercial loans; Venture capitalists
inventory turnover
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
American's with Disabilities Act

10. An external problem that can lead to small business failure is...
Income trends in the community
consumerism
consumer credit
the employment interview

11. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
manufacturing business
CBD
working capital; circulating capital
competition

12. Which of the following are advantages of a partnership?
CBD
Census of banking
Financial shortages
Efficiency of labor; Combined management - talent and capital

13. Which of the following are advantages of a corporation?
corporation
Large financial capacity; Limited liability of each owner (stockholder)
Financial shortages
Equal Pay Act of 1963

14. Which of the following is a requirement for a building layout?
key person insurance
Accessibility
Name of the business; Goodwill
fixed capital

15. In a business - the number of times the average inventory is sold or used up can be referred to as...
Better Business Bureau
Directing
inventory turnover
controlling

16. Which of the following would NOT be an insurance risk to consider?
Terms of the sale
key person insurance
CBD
evaluating; controlling

17. In business - a reduction of selling price below the original selling price is referred to as...
Repairs
corporation
markdown
demographics

18. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
ADA
the employment interview
Actively managed by stockholders
Proprietorship

19. Selling a business's accounts receivable for cash to a third party is referred to as...
market
risk management
factoring
consumerism

20. A source of debt capital would include
Some losses from bad debts and customers with fraudulent intentions are bound to occur
Terms of the sale
the employment interview
commercial loans

21. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
economic base
Tax burdens; Human resource planning
Terms of the sale
Better Business Bureau

22. The difference between merchandise cost and the selling price is known as the...
mark-up
Small Business Administration
Directing
entrepreneur

23. The wealth produced in or near a community that provides employment and income to the local population is known as the...
economic base
corporation
controlling; actuating
Whether or not they have an acceptable accounts receivable ratio

24. Which of the following is an example of a variable expense?
advertising
lost income
Repairs
Commercial loans; Venture capitalists

25. Capital that is investe4d in the business by the owner(s) is known as...
Name of the business; Goodwill
equity capital; personal capital
Applicant's sex
economic base

26. A strategy to minimize risk would be to...
have good management
service business
controlling; actuating
market

27. Rent is an example of a...
Income trends in the community
Ease of starting; Profit incentive
controlling; actuating
fixed expense

28. Factors associated with evaluating a credit risk
an entrepreneur
new venture plan; business plan
equity capital; personal capital
inventory control considerations

29. A particular business that provides a service as opposed to a product is referred to as a...
Lack of expertise
variable expense
Personal checks
service business

30. Which of the following is NOT a way to reduce risks?
variable expense
Repairs
Take on more risks
American's with Disabilities Act

31. Which of the following is not a consideration concerning the selection of suppliers?
Whether or not they have an acceptable accounts receivable ratio
credit application
Legal restrictions on activities
working capital; circulating capital

32. 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...
mark-up
Take on more risks
consumer credit
corporation

33. The form of legal organization that is owned and operated by one person is the...
Take on more risks
Legal restrictions on activities; Lack of personal interest
proprietorship
Accessibility

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...
OSHA
trade credit
credit application
to determine where the potential customers are

35. Which of the following is NOT a consumer buying motive?
Applicant's sex
Indemnity
to self-insure
key person insurance

36. 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...
partnership
Large financial capacity; Limited liability of each owner (stockholder)
evaluating; controlling
Chamber of Commerce

37. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
Sales are increased; Goodwill is built-up and easily maintained
Whether or not they have an acceptable accounts receivable ratio
consumer credit
controlling

38. An interview whereby the applicant is asked a pre-determined set of questions is known as...
Name of the business; Goodwill
a structured interview
Indemnity
Accessibility

39. A strategy available to absorb risks would be...
commercial loans
inventory turnover
Civil Rights Act
to self-insure

40. 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
sole proprietorship
Take on more risks
mark-up

41. Which of the following is NOT a type of consumer credit?
Lack of expertise
Personal checks
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
economic base

42. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
demographics
Tax burdens; Human resource planning
OSHA
a qualification that is absolutely necessary

43. The difference between current assets and current liabilities is...
2/10 - N30
a 2% discount if invoice is paid within 10 days - net due in 30 days
advertising
working capital

44. Life insurance that protects a firm against losses due to the death of a key employee is known as...
key person insurance
Legal restrictions on activities; Lack of personal interest
Sales are increased; Goodwill is built-up and easily maintained
variable expense

45. A factor to be considered with the evaluation of a credit risk would be the...
credit application
break-even point
a 2% discount if invoice is paid within 10 days - net due in 30 days
a structured interview

46. 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
Personal checks
Large financial capacity; Limited liability of each owner (stockholder)
2/10 - N30

47. Which of the following is an intangible asset?
Lack of expertise
Commercial loans; Venture capitalists
Name of the business; Goodwill
key person insurance

48. Which of the following is NOT an advantage of a corporation?
circulating capital
inventory turnover
manufacturing business
Legal restrictions on activities

49. All of the following are factors which can affect the recruitment and selection of employees except
market
the religion of the applicant
Name of the business; Goodwill
CBD

50. Which of the following are examples of debt capital?
Personal checks
service business
fixed expense
Commercial loans; Venture capitalists