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Management > Compend Test > Flashcards

Compend Test Flashcards

1
Q

A business that makes finished goods from raw materials by hand or machinery is referred to as a

A

Manufacturing business

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2
Q

A business that purchases finished goods for resale is referred to as a

A

Merchandising Business

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3
Q

A particular business that provides a service as opposed to a product is referred to as a

A

Service Business

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4
Q

An individual that assumes the risks associated with a new venture start up can be referred to as an

A

Entrepreneur

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5
Q

A group of potential customers that are recognized as possessing purchasing power and unsatisfied needs defines

A

Market

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6
Q

The main objective in a market survey is

A

To determine where the potential customers are

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7
Q

Any capital that is invested in a business by the owner can be called

A

Equity capital

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8
Q

Any credit that is extended from one business to another in order to help finance the distribution of goods from the producer is called

A

Trade Credit

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9
Q

Long-term capital that is invested in a business is referred to as

A

Fixed Capital

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10
Q

In a business, the number of times the average inventory is sold or used up can be referred to as

A

Inventory turnover

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11
Q

A point in business operations whereby total sales revenue equals total costs

A

Break-Even Point

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12
Q

If a prospective business owner attempts to statistically study such factors as human population size, density, and wealth, we would refer to this as

A

Demographics

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13
Q

The art of making the public aware of one’s products and/or services that are for sale can be referred to as

A

Advertising

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14
Q

Any effort undertaken to retain and preserve the assets and earning power of a business is called

A

Risk Management

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15
Q

Factors associated with evaluating a credit risk would involve all of the following except

A

Inventory control considerations

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16
Q

In business, a reduction of selling price below original selling price is referred to as

A

Markdown

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17
Q

In a business, the name, goodwill, copyrights, and patents are referred to as

A

Intangible Assets

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18
Q

In organizing a business, a legal form of organization that is authorized by a state to operate a business under a stat charter is referred to as a

A

Corporation

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19
Q

A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business is known as a

A

New Venture Plan and Business Plan

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20
Q

A management function which compares organization and individual performance with predetermined standards or expected results is known as

A

Evaluating and Controlling

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21
Q

A line of credit that may be used over and over again up to a certain borrowing limit is called

A

Revolving or Open end Credit

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22
Q

Capital that is invested in the business by the owner is known as

A

Equity Capital or Personal Capital

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23
Q

The difference between current assets and current liabilities is

A

Working or Circulating Capital

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24
Q

Which of the following are functions of management

A

Controlling and Actuating

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25
Q

Which of the following is an external problem and risk of business ownership

A

Tax Burdens and Human Resource Planning

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26
Q

Which of the following is an intangible asset?

A

Name of the business and Goodwill

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27
Q

Which of the following are advantages of a sole proprietorship?

A

Efficiency of labor and Ease of starting

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28
Q

Which of the following are disadvantages of a sole proprietorship?

A

Unlimited Liability and Limited Management Ability

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29
Q

Which of the following are advantages of a partnership?

A

Combined management, talent, and capital, and Continuity in existence

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30
Q

Which of the following are disadvantages of a partnership

A

Death or incapacity of one of the partners may end the partnership and Double Taxation

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31
Q

Which of the following are advantages of a corporation

A

Large financial capability and limited liability of each owner

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32
Q

Which of the following are disadvantages of a corporation

A

Legal restrictions on activities and Lack or personal interest

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33
Q

Which of the following are examples of debt capital

A

Commercial loans and Venture Capitalists

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34
Q

Which of the following are advantages of extending credit

A

Sales are increase and Goodwill is built-up and easily maintained

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35
Q

Legislation guarantees disabled people equal access to employment, as well as access to public places, is known as

A

ADA

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36
Q

A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most US employees is known as

A

OSHA

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37
Q

A type of credit granted by retailers that is used by individuals or families for the satisfaction of their own wants is known as

A

Consumer Credit

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38
Q

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

A

Partnership

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39
Q

One who organizes, manages, and assumes the risk of a business firm or venture is known as

A

An Entreprenuer

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40
Q

The current asset items consisting of cash, inventories, and accounts receivables is known as

A

Circulating Capital

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41
Q

The number of times the average inventory has been sold or used up during a period is known as

A

Inventory Turnover

42
Q

Which of the following is NOT a consumer buying motive

A

Indemnity

43
Q

A document that lists the major responsibilities and tasks of the job is known as a job

A

Description

44
Q

The form of legal organization that is owned and operated by one person is the

A

Proprietorship

45
Q

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

A

Corporation

46
Q

The combination of two or more individual’s talents and capital serves as an advantage of the legal form of ownership known as a

A

Partnership

47
Q

A common business credit/sales term is

A

2/10, n30

48
Q

Rent is an example of a

A

Fixed expense

49
Q

Which of the following is NOT a characteristic of a small business

A

Actively managed by stockholders

50
Q

The simplest and most common legal form of business ownership is

A

Sole Proprietorship

51
Q

The statistical study of human populations with respect to their size, density, distribution composition, and income is known as

A

Demographics

52
Q

Capital that is invested in the business by the owner is known as

A

Equity Capital

53
Q

A source of debt capital would include

A

Commercial loans

54
Q

A plan which provides inducements to potential purchasers of products and/or services is called

A

Sales Promotions

55
Q

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

A

Variable Expense

56
Q

An interview whereby the applicant is asked a predetermined set of questions is known as

A

A structured interview

57
Q

Which of the following is an internal problem that can lead to business failure

A

Lack of Expertise

58
Q

An external problem that can lead to small business failure is

A

Consumerism

59
Q

A factor to be considered with the evaluation of a credit risk would be the

A

Credit Application

60
Q

Which of the following would not be an insurance risk to consider

A

Terms of the sale

61
Q

Which of the following is not a way to reduce the risks

A

Take on more risks

62
Q

Which of the following is a requirement for a building layout

A

Accessibility

63
Q

A BFQQ is

A

A qualification that is absolutely necessary

64
Q

Which of the following is not a type of consumer credit

A

Personal Checks

65
Q

The type of consumer credit where the balance is paid in small monthly (fractional) payments over a period of time is

A

Installment Credit

66
Q

When selecting employees, the applicant’s appearance, poise, speech, and other characteristics may best be determined by

A

The employment interview

67
Q

The difference between merchandise cost and the selling price is known as the

A

Mark-up

68
Q

Which of the following is not included in the employment application

A

Applicant’s sex

69
Q

Which of the following is an example of a variable expense

A

Repairs

70
Q

The difference between current assets and current liabilities is

A

Working capital

71
Q

Long term capital invested in the business is

A

Fixed Capital

72
Q

Which of the following is not an advantage of a corporation

A

Legal restrictions of activities

73
Q

Which of the following is recognized as a disadvantage of extending credit

A

Some losses from bad debts and customers with fraudulent intentions are bound to occur

74
Q

Which of the following has the disadvantage of no limit being placed on the owner’s personal liability

A

Proprietorship

75
Q

Which of the following is not used to measure the success of advertising

A

Income trends in the community

76
Q

Which of the following statements is true concerning consumer credit

A

Credit customers are more interested in quality and service than price

77
Q

A strategy available to absorb risks would be

A

To remove the cause

78
Q

A strategy to minimize risk would be to

A

Purchase outside insurance

79
Q

Whenever a business must pay for the merchandise before its delivery, which of the sales terms apply

A

CBD

80
Q

Which of the following federal laws affecting employment concerns prohibits wage discrimination based on the sex of the worker

A

Equal Pay Act of 1963

81
Q

The wealth produced in or near a community that provides employment and income to the local population is known as the

A

Economic Base

82
Q

The practice of trying to get something that is being sought by others under similar circumstances at the same time is known as

A

Competition

83
Q

Which of the following is an internal problem that can contribute to the failure of a business

A

Financial Shortages

84
Q

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

A

Break Even Point

85
Q

2/10, n30 means

A

A 2% discount if invoice is paid within 10 days, net due in 30 days

86
Q

Which of the following is not a consideration concerning the selection of suppliers

A

Whether or not they have an acceptable accounts receivable ratio

87
Q

All of the following are factors which can affect the recruitment and selection of employees except

A

The religion of the applicant

88
Q

The principal government agency concerned with the financing, operation, and management of small businesses is the

A

Small Business Administration

89
Q

A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business is known as

A

A business plan

90
Q

Which of the following is normally not a source of published market data

A

Census of banking

91
Q

Which of the following laws prohibits discrimination against any qualified individual with a disibility

A

Americans with Disability ACt

92
Q

Which of the following acts outlaws discrimination in employment based on race, color, religion, sex, pregnancy, or natural origin?

A

Civil Rights Act

93
Q

The quantity to be purchased which minimized total cost is referred to as the

A

Economic Order Quantity

94
Q

Business interruption insurance covers

A

Lost income

95
Q

Life insurance that protects a firm against losses due to the death of a key employee is known as

A

Key Person insurance

96
Q

The association of business firms that promotes ethical conduct by all business firms in a community is known as the

A

Better Business Bureau

97
Q

An association of business people who attempt to protect and promote the commercial interests in a community is known as the

A

Chamber of Commerce

98
Q

A management function which compares organizational and individual performance with predetermined standards or expected results is

A

Controlling

99
Q

Which of the following refers to those activities which encourage subordinates to work toward the achievement of the company’s goals

A

Directing

100
Q

Selling a business’s accounts receivable for cash to a third party is referred to as

A

Factoring

Management (20 decks)

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