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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. Whenever a business must pay for the merchandise before its delivery - which of the sales terms apply?
trade credit
Legal restrictions on activities
CBD
Credit customers are more interested in quality and service than price
2. Which of the following is an example of a variable expense?
Income trends in the community
fixed capital
Repairs
to determine where the potential customers are
3. Long term capital invested in the business is...
factoring
Ease of starting; Profit incentive
Repairs
fixed capital
4. The form of legal organization that is owned and operated by one person is the...
equity capital
proprietorship
description
fixed expense
5. A point in business operations whereby total sales revenue equals total costs
equity capital; personal capital
economic order quantity
credit application
break-even point
6. Long-term capital that is invested in a business is referred to as...
fixed capital
partnership
ADA
Proprietorship
7. Which of the following is an intangible asset?
Name of the business; Goodwill
OSHA
American's with Disabilities Act
Proprietorship
8. An individual that assumes the risks associated with a new venture start-up can be referred to as a...
controlling
demographics
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
entrepreneur
9. 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...
consumerism
fixed capital
partnership
equity capital; personal capital
10. Any effort undertaken to retain and preserve the assets and earning power of a business is called...
risk management
corporation
proprietorship
Civil Rights Act
11. Any capital that is invested in a business by the owner(s) can be called...
an entrepreneur
equity capital
consumerism
Unlimited liability; Limited management ability
12. Which of the following has the disadvantage of no limit being placed on the owner's personal liability?
Proprietorship
sole proprietorship
economic order quantity
circulating capital
13. The number of times the average inventory has been sold or used up during a period is known as...
CBD
partnership
Small Business Administration
inventory turnover
14. 2/10 - N/30 means...
Take on more risks
controlling
Sales are increased; Goodwill is built-up and easily maintained
a 2% discount if invoice is paid within 10 days - net due in 30 days
15. A business that purchases finished goods for resale is referred to as a...
equity capital
merchandising business
Credit customers are more interested in quality and service than price
Income trends in the community
16. Capital that is investe4d in the business by the owner(s) is known as...
equity capital; personal capital
Installment credit
circulating capital
2/10 - N30
17. Which of the following is NOT a consumer buying motive?
Commercial loans; Venture capitalists
Unlimited liability; Limited management ability
Indemnity
Accessibility
18. The association of business firms that promotes ethical conduct by all business firms in a community is known as the...
OSHA
Better Business Bureau
credit application
Income trends in the community
19. The difference between merchandise cost and the selling price is known as the...
manufacturing business
equity capital
markdown
mark-up
20. Which of the following is recognized as a disadvantage of extending credit?
lost income
Lack of expertise
Some losses from bad debts and customers with fraudulent intentions are bound to occur
service business
21. All of the following are factors which can affect the recruitment and selection of employees except
the religion of the applicant
inventory turnover
Better Business Bureau
intangible assets
22. Legislation that guarantees disabled people equal access to employment - as well as access to public places - is known as...
ADA
trade credit
description
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
23. 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
Unlimited liability; Limited management ability
Indemnity
Commercial loans; Venture capitalists
24. Which of the following is an internal problem that can contribute to the failure of a business?
trade credit
Tax burdens; Human resource planning
Financial shortages
fixed capital
25. Which of the following acts outlaws discrimination in employment based on race - color - religion - sex - pregnancy - or natural origin?
demographics
Unlimited liability; Limited management ability
advertising
Civil Rights Act
26. In a business - the number of times the average inventory is sold or used up can be referred to as...
inventory turnover
equity capital; personal capital
description
sales promotions
27. Which of the following is an external problem and risk of business ownership?
merchandising business
fixed capital
Tax burdens; Human resource planning
Efficiency of labor; Combined management - talent and capital
28. Which of the following is NOT an advantage of a corporation?
Legal restrictions on activities; Lack of personal interest
equity capital; personal capital
Income trends in the community
Legal restrictions on activities
29. The statistical study of human populations with respect to their size - density - distribution - composition - and income is known as...
market
demographics
equity capital; personal capital
a qualification that is absolutely necessary
30. Selling a business's accounts receivable for cash to a third party is referred to as...
equity capital
partnership
Indemnity
factoring
31. A written description of a new idea that projects marketing - operational - and financial aspects of a proposed business is known as...
factoring
Small Business Administration
a business plan
Proprietorship
32. A plan which provides inducements to potential purchasers of products and/or services is called...
controlling
Lack of expertise
Small Business Administration
sales promotions
33. Life insurance that protects a firm against losses due to the death of a key employee is known as...
working capital
Accessibility
key person insurance
demographics
34. An external problem that can lead to small business failure is...
service business
consumerism
break-even point
Legal restrictions on activities; Lack of personal interest
35. A document that lists the major responsibilities and tasks of the job is known as a job
Equal Pay Act of 1963
description
Commercial loans; Venture capitalists
circulating capital
36. Which of the following are advantages of a corporation?
Large financial capacity; Limited liability of each owner (stockholder)
demographics
Whether or not they have an acceptable accounts receivable ratio
Legal restrictions on activities
37. Which of the following are disadvantages of a corporation?
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
entrepreneur
Legal restrictions on activities; Lack of personal interest
partnership
38. Which of the following is not a consideration concerning the selection of suppliers?
manufacturing business
Directing
variable expense
Whether or not they have an acceptable accounts receivable ratio
39. A management function which compares organization and individual performance with predetermined standards or expected results is known as...
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
have good management
the employment interview
evaluating; controlling
40. The art of making the public aware of one's products and/or services that are for sale can be referred to as...
partnership
advertising
Sales are increased; Goodwill is built-up and easily maintained
Legal restrictions on activities; Lack of personal interest
41. A source of debt capital would include
fixed capital
commercial loans
Better Business Bureau
markdown
42. 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...
lost income
working capital
corporation
service business
43. A business that makes finished goods from raw materials by hand or machinery is referred to as a...
Ease of starting; Profit incentive
manufacturing business
the religion of the applicant
Some losses from bad debts and customers with fraudulent intentions are bound to occur
44. An interview whereby the applicant is asked a pre-determined set of questions is known as...
inventory turnover
a structured interview
merchandising business
Efficiency of labor; Combined management - talent and capital
45. In business - the name - goodwill - copyrights - and patents are referred to as...
fixed capital
intangible assets
revolving account; open-end credit
economic order quantity
46. Which of the following are disadvantages of a partnership?
to determine where the potential customers are
manufacturing business
Name of the business; Goodwill
Divided authority among partners; Death or incapacity of one of the partners may end the partnership
47. Which of the following are functions of management?
controlling; actuating
Tax burdens; Human resource planning
demographics
equity capital
48. Factors associated with evaluating a credit risk
inventory control considerations
Chamber of Commerce
proprietorship
Credit customers are more interested in quality and service than price
49. When selecting employees - the applicant's appearance - poise - speech - and other characteristics may best be determined by...
sales promotions
markdown
the employment interview
OSHA
50. The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as...
Unlimited liability; Limited management ability
Take on more risks
competition
proprietorship