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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. Selling a business's accounts receivable for cash to a third party is referred to as...
trade credit
corporation
competition
factoring
2. Which of the following is normally NOT a source of published market data?
description
Directing
Census of banking
Installment credit
3. A small business is not...
equity capital; personal capital
Actively managed by stockholders
partnership
Lack of expertise
4. The difference between merchandise cost and the selling price is known as the...
Indemnity
Financial shortages
revolving account; open-end credit
mark-up
5. A plan which provides inducements to potential purchasers of products and/or services is called...
mark-up
Efficiency of labor; Combined management - talent and capital
sales promotions
Income trends in the community
6. Life insurance that protects a firm against losses due to the death of a key employee is known as...
Lack of expertise
key person insurance
inventory control considerations
credit application
7. A document that lists the major responsibilities and tasks of the job is known as a job
description
Directing
corporation
Credit customers are more interested in quality and service than price
8. Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker?
description
Equal Pay Act of 1963
break-even point
fixed capital
9. An external problem that can lead to small business failure is...
working capital; circulating capital
Financial shortages
consumerism
intangible assets
10. 2/10 - N/30 means...
Applicant's sex
proprietorship
a 2% discount if invoice is paid within 10 days - net due in 30 days
Installment credit
11. A common business credit/sales tern is...
a structured interview
description
entrepreneur
2/10 - N30
12. Which of the following is NOT a type of consumer credit?
proprietorship
Ease of starting; Profit incentive
to determine where the potential customers are
Personal checks
13. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
demographics
evaluating; controlling
economic order quantity
Income trends in the community
14. Which of the following is NOT included on the employment application?
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15. Which of the following are advantages of extending credit?
fixed capital
Sales are increased; Goodwill is built-up and easily maintained
ADA
economic order quantity
16. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
entrepreneur
partnership
the religion of the applicant
2/10 - N30
17. Which of the following are disadvantages of a sole proprietorship?
fixed capital
economic order quantity
Unlimited liability; Limited management ability
inventory turnover
18. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
controlling; actuating
manufacturing business
Directing
a business plan
19. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
Actively managed by stockholders
Ease of starting; Profit incentive
ADA
the employment interview
20. Which of the following is NOT an advantage of a corporation?
Sales are increased; Goodwill is built-up and easily maintained
demographics
Legal restrictions on activities
equity capital; personal capital
21. The difference between current assets and current liabilities is...
working capital
proprietorship
economic order quantity
Unlimited liability; Limited management ability
22. 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...
Lack of expertise
fixed capital
partnership
OSHA
23. Which of the following are examples of debt capital?
consumerism
Commercial loans; Venture capitalists
risk management
Chamber of Commerce
24. One who organizes - manages - and assumes the risk of a business form or venture is known as...
Civil Rights Act
an entrepreneur
factoring
merchandising business
25. 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...
Ease of starting; Profit incentive
ADA
equity capital
corporation
26. Which of the following are advantages of a partnership?
Terms of the sale
Personal checks
description
Efficiency of labor; Combined management - talent and capital
27. A factor to be considered with the evaluation of a credit risk would be the...
Terms of the sale
demographics
credit application
American's with Disabilities Act
28. Which of the following is a requirement for a building layout?
sole proprietorship
key person insurance
lost income
Accessibility
29. A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as...
break-even point
competition
consumer credit
Chamber of Commerce
30. Which of the following are functions of management?
to determine where the potential customers are
mark-up
controlling; actuating
have good management
31. Which of the following is NOT used to measure the success of advertising?
have good management
Directing
an entrepreneur
Income trends in the community
32. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
equity capital
fixed expense
economic order quantity
33. 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...
corporation
lost income
Terms of the sale
risk management
34. Capital that is invested in the business by the owner(s) is known as...
Census of banking
Applicant's sex
Chamber of Commerce
equity capital
35. A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees - is known as...
demographics
OSHA
fixed capital
risk management
36. Long term capital invested in the business is...
inventory control considerations
fixed capital
Legal restrictions on activities; Lack of personal interest
lost income
37. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as a...
the employment interview
market
new venture plan; business plan
advertising
38. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
consumer credit
the employment interview
revolving account; open-end credit
American's with Disabilities Act
39. 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...
consumer credit
lost income
the religion of the applicant
variable expense
40. The current asset items consisting of cash - inventories - and accounts receivables is known as...
advertising
Some losses from bad debts and customers with fraudulent intentions are bound to occur
circulating capital
Financial shortages
41. The number of times the average inventory has been sold or used up during a period is known as...
economic order quantity
inventory turnover
a qualification that is absolutely necessary
equity capital
42. A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines...
service business
market
fixed expense
evaluating; controlling
43. A particular business that provides a service as opposed to a product is referred to as a...
service business
the employment interview
American's with Disabilities Act
Whether or not they have an acceptable accounts receivable ratio
44. The difference between current assets and current liabilities is...
working capital; circulating capital
advertising
Commercial loans; Venture capitalists
2/10 - N30
45. Which of the following is an internal problem that can lead to business failure?
Lack of expertise
Proprietorship
inventory control considerations
Commercial loans; Venture capitalists
46. A strategy to minimize risk would be to...
Actively managed by stockholders
American's with Disabilities Act
to self-insure
have good management
47. A strategy available to absorb risks would be...
trade credit
have good management
to self-insure
Legal restrictions on activities; Lack of personal interest
48. Which of the following is an example of a variable expense?
Repairs
an entrepreneur
Legal restrictions on activities; Lack of personal interest
factoring
49. In business - a reduction of selling price below the original selling price is referred to as...
sole proprietorship
equity capital
markdown
description
50. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
OSHA
circulating capital
manufacturing business
Proprietorship