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Business Management Quiz 2

Total questions: 75

Worksheet time: 38mins

Name
Class
Date
1.

What does 'Accounts Payable' refer to in business management?

a)

An unwritten promise to pay creditors for property or services received on credit.

b)

An unwritten promise by a customer to pay for goods sold or services rendered.

c)

The process of guiding and supervising activities in an organization.

d)

A formal financial statement illustrating assets and liabilities.

2.

Which term describes an unwritten promise by a customer to pay for goods sold or services rendered at a later date?

a)

Accounts Payable

b)

Accounts Receivable

c)

Acquisition

d)

Advertising

3.

What is the purpose of the Age Discrimination in Employment Act?

a)

To measure the average time to collect receivables.

b)

To ensure employers treat applicants and employees equally regardless of age.

c)

To guarantee disabled people equal access to employment.

d)

To protect companies during recovery from insured perils.

4.

What does the American with Disabilities Act (ADA) guarantee?

a)

Equal access to employment and public places for disabled people.

b)

Equal treatment of employees regardless of age.

c)

Protection of companies during recovery from insured perils.

d)

Financing for risky small venture startups.

5.

What is the definition of 'Balance Sheet' in business management?

a)

A method of applying verbal or symbolic means to identify a product or service.

b)

A formal financial statement illustrating assets, liabilities, and owner's equity as of a specific date.

c)

A qualification necessary for a job, approved as a reason for discrimination.

d)

A written description of a new idea projecting marketing and financial aspects.

6.

What does 'Break-even analysis' determine?

a)

The average time required to sell inventory.

b)

The point at which total sales revenue equals total operating costs.

c)

The process of guiding and supervising activities in an organization.

d)

Insurance coverage for property damaged by an insured peril.

7.

What is 'Business interruption insurance' designed to protect?

a)

Companies during recovery from insured perils.

b)

The average time required to collect receivables.

c)

The process of guiding activities in an organization.

d)

Private investors financing risky startups.

8.

What is a 'Business plan (New venture plan)'?

a)

A qualification necessary for a job.

b)

A written description of a new idea projecting marketing, operational, and financial aspects.

c)

A method of applying verbal or symbolic means to identify a product or service.

d)

A formal financial statement illustrating assets and liabilities.

9.

What does 'Amortization' refer to in business management?

a)

The paying of a debt in regular installments over time.

b)

The process of guiding activities in an organization.

c)

Insurance coverage for property damaged by an insured peril.

d)

A written description of a new idea projecting marketing aspects.

10.

What is the role of 'Angels' in business management?

a)

To measure the average time required to sell inventory.

b)

To provide financing for new or risky small venture startups.

c)

To ensure equal treatment of employees regardless of age.

d)

To protect companies during recovery from insured perils.

11.

What is the definition of Accounts Payable?

a)

An unwritten promise by a customer to pay at a later date for goods sold or services rendered.

b)

An unwritten promise to pay creditors for property, merchandise, supplies, or equipment purchased on credit.

c)

The amount by which total assets exceed total liabilities of a business.

d)

A financial report showing a firm's sources of cash as well as its uses of cash.

12.

What does the term "Cash Flow" refer to?

a)

The amount of cash a company generates and uses during a period.

b)

A financial report showing a firm's sources of cash as well as its uses of cash.

c)

The difference between current assets and current liabilities.

d)

A type of credit granted by retailers for individual or family satisfaction.

13.

Which of the following best describes a C Corporation?

a)

A corporation taxed by the federal government as a separate legal entity.

b)

A source of market data explaining where certain businesses are located.

c)

A financial report showing a firm's sources of cash.

d)

An association of business people promoting commercial interests.

14.

What is the purpose of the Civil Rights Act?

a)

To provide monetary benefits to businesses that experience unforeseen perils.

b)

To prohibit discrimination based on race, color, religion, sex, pregnancy, or natural origin.

c)

To explain where certain manufacturers are located.

d)

To compile population statistics by region and area.

15.

What does the term "Circulating Capital" or "Working Capital" mean?

a)

The balance of costly goods paid for in small monthly payments.

b)

The difference between current assets and current liabilities.

c)

The amount of cash a company generates during a period.

d)

A financial report showing a firm's sources of cash.

16.

What is the definition of Consumer Credit?

a)

A type of credit granted by retailers used by individuals or families for satisfaction of their own wants.

b)

A balance of costly goods paid for in small monthly payments.

c)

A financial report showing a firm's sources of cash.

d)

A source of market data explaining where certain businesses are located.

17.

What is the function of the Chamber of Commerce?

a)

To compile population statistics by region and area.

b)

To attempt to protect and promote the commercial interest in a community.

c)

To explain where certain manufacturers are located.

d)

To provide monetary benefits to businesses that experience unforeseen perils.

18.

What does Casualty Insurance provide?

a)

Monetary benefits to a business that has experienced an unforeseen peril such as flood or fire.

b)

A financial report showing a firm's sources of cash.

c)

A type of credit granted by retailers for individual satisfaction.

d)

The difference between current assets and current liabilities.

19.

What is the purpose of a Cash Flow Statement?

a)

To show a firm's sources of cash as well as its uses of cash.

b)

To explain where certain manufacturers are located.

c)

To compile population statistics by region and area.

d)

To provide monetary benefits to businesses that experience unforeseen perils.

20.

What does the Census of Business provide?

a)

Source of market data explaining where certain businesses are located.

b)

Source of market data explaining where new home sales occur.

c)

Source of market data explaining population statistics.

d)

Source of market data explaining where certain manufacturers are located.

21.

What is the definition of 'Accounts Payable'?

a)

An unwritten promise by a customer to pay for goods or services rendered.

b)

An unwritten promise to pay creditors for property, merchandise, supplies, or equipment purchased on credit.

c)

A registered right of a creator to reproduce, publish, and sell their work.

d)

A movement that seeks to strengthen the rights of consumers relative to sellers.

22.

What does 'Depreciation' refer to?

a)

The statistical study of human populations with respect to their size, density, and composition.

b)

The loss in value of a fixed asset due to wear and tear or the passage of time.

c)

The wealth produced in or near a community that provides employment and income.

d)

The quantity to be purchased which minimizes total costs.

23.

What is the primary purpose of 'Directing (Actuating)' in an organization?

a)

To regulate the activities of an organization and guide or supervise them.

b)

To estimate the amount of potential income produced by a business.

c)

To minimize total costs in purchasing.

d)

To study human populations statistically.

24.

What does 'Earnings Before Interest, Taxation, Depreciation, and Amortization (EDITDA)' measure?

a)

A firm's profits after subtracting cost of goods sold and cash operating expenses, but before subtracting interest expense, taxes, depreciation, and amortization.

b)

The wealth produced in a community that provides employment and income.

c)

The registered right of a creator to reproduce, publish, and sell their work.

d)

The loss in value of a fixed asset due to wear and tear.

25.

Who is an 'Entrepreneur'?

a)

A person who organizes, manages, and assumes the risk of a business firm or venture.

b)

A person who studies human populations statistically.

c)

A person who regulates the activities of an organization.

d)

A person who provides employment applications for job seekers.

26.

What is 'Debt Equity'?

a)

Any borrowed or loaned capital invested in the business that must be repaid to creditors.

b)

The statistical study of human populations with respect to their size, density, and composition.

c)

The loss in value of a fixed asset due to wear and tear.

d)

The wealth produced in a community that provides employment and income.

27.

What does 'Economic Order Quantity (EOQ)' aim to achieve?

a)

To minimize total costs in purchasing.

b)

To regulate the activities of an organization.

c)

To estimate the amount of potential income produced by a business.

d)

To study human populations statistically.

28.

What is the definition of 'Corporation'?

a)

An artificial being, invisible, intangible, and existing only in contemplation of law.

b)

A registered right of a creator to reproduce, publish, and sell their work.

c)

A movement that seeks to strengthen the rights of consumers relative to sellers.

d)

A record of statements made at the time the applicant first seeks employment.

29.

What is the definition of 'Accounts Payable'?

a)

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

b)

An unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit.

c)

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

d)

A governmental agency with environment protection regulatory and enforcement authority.

30.

Which of the following best describes the role of the Environmental Protection Agency (EPA)?

a)

A governmental agency with environment protection regulatory and enforcement authority.

b)

A management function that compares organizational and individual performance with predetermined standards.

c)

A process of acquiring, training, developing, motivating, and appraising employees.

d)

A federal legislation requiring employers to check job applicants' papers to ensure they are authorized to work in the U.S.

31.

What does the Equal Pay Act aim to achieve?

a)

Outlaws discrimination in pay against those who are over forty years old.

b)

Outlaws discriminatory practices in pay and requires employers to pay a minimum wage.

c)

Outlaws discrimination in pay based on race, color, religion, sex, or national origin.

d)

Outlaws discrimination in pay against those who are over forty years old.

32.

What is the primary purpose of Human Resource Planning?

a)

To develop a comprehensive strategy for meeting future human resource needs.

b)

To compare organizational and individual performance with predetermined standards.

c)

To obtain cash before payments are received from customers by selling accounts receivable to a third party.

d)

To invest in long-term assets such as land, building, and machinery.

33.

What is the definition of 'Fixed Expenses'?

a)

A cost that, for a given period of time and range of activity, does not change in total but becomes progressively smaller on a per-unit basis as volume increases.

b)

A cost that increases with declining business activity.

c)

A cost that is directly proportional to the level of production or sales.

d)

A cost that is invested in long-term assets such as land, building, and machinery.

34.

What is the purpose of the Immigration Reform Act?

a)

To outlaw discrimination in pay against those who are over forty years old.

b)

To require employers to check job applicants' papers to ensure they are authorized to work in the U.S.

c)

To regulate and enforce environmental protection laws.

d)

To develop a comprehensive strategy for meeting future human resource needs.

35.

What is 'Equity Capital'?

a)

A management function that compares organizational and individual performance with predetermined standards.

b)

Capital that is invested or available for investment in the ownership of a business.

c)

A cost that does not change in total but becomes progressively smaller on a per-unit basis as volume increases.

d)

An intangible asset such as the name or reputation of a funeral home.

36.

What does the Fair Labor Standards Act (wage and hour) require employers to do?

a)

Pay employees a minimum wage and overtime for hours worked beyond forty in a week.

b)

Ensure that employees are authorized to work in the U.S.

c)

Develop a comprehensive strategy for meeting future human resource needs.

d)

Invest in long-term assets such as land, building, and machinery.

37.

What is the definition of Accounts Payable?

a)

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

b)

An unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit.

c)

A formal financial statement which presents the income, expenses, and resulting net profit or net loss for a given period.

d)

The introduction of something new; a new idea, method, or device.

38.

What does Accounts Receivable refer to?

a)

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

b)

Balance of costly goods paid for in small monthly payments over a period of time.

c)

Those goods or stock of goods which are held for resale.

d)

Life insurance that protects a firm against losses due to a death of a key employee.

39.

Which financial statement presents the income, expenses, and resulting net profit or net loss for a given period?

a)

Inventory turnover

b)

Income Statement

c)

Job specification

d)

Limited Liability Company (LLC)

40.

What is the definition of Innovation?

a)

The introduction of something new; a new idea, method, or device.

b)

A document that lists the major responsibilities and tasks of the job.

c)

The process of determining the critical components of a job for purposes of selecting, training, and rewarding personnel.

d)

The anticipated value of an asset that would be realized in case of liquidation of the business.

41.

What does Installment Credit (closed end credit) mean?

a)

Balance of costly goods paid for in small monthly payments over a period of time.

b)

Uneventful protection for the small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced.

c)

Partnerships with limited liability of a corporation; owners known as members.

d)

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

42.

What is the purpose of Job Analysis?

a)

To determine the critical components of a job for purposes of selecting, training, and rewarding personnel.

b)

To list the major responsibilities and tasks of the job.

c)

To list the knowledge, skills, abilities, and personal characteristics a job holder must possess to perform effectively.

d)

To protect a firm against losses due to a death of a key employee.

43.

What does Limited Liability Company (LLC) combine?

a)

Aspects of partnerships with limited liability of a corporation; owners known as members.

b)

The anticipated value of an asset that would be realized in case of liquidation of the business.

c)

Uneventful protection for the small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced.

d)

The introduction of something new; a new idea, method, or device.

44.

What is the meaning of Liquidation Value Approach?

a)

The anticipated value of an asset that would be realized in case of liquidation of the business.

b)

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

c)

A document that lists the major responsibilities and tasks of the job.

d)

Life insurance that protects a firm against losses due to a death of a key employee.

45.

What is the definition of Accounts Payable?

a)

An unwritten promise by a customer to pay at a later date for goods sold or services rendered.

b)

An unwritten promise to pay creditors for property, merchandise, supplies, or equipment purchased on credit.

c)

A document designed to communicate the organization's goals for the future.

d)

A reduction of selling price below the original selling place.

46.

Which term refers to a document designed to communicate an organization's goals for the future?

a)

Accounts Receivable

b)

Long-Range Plan (Strategic Plan)

c)

Market Value Approach

d)

Net Worth

47.

What is the difference between merchandise cost and selling price called?

a)

Markdown

b)

Markup

c)

Net Profit

d)

Market Value Approach

48.

What is the primary function of Occupational Safety and Health (OSHA)?

a)

To provide incentives to supply the proper quantities of demanded products or services.

b)

To enforce safety and health matters for most United States employees.

c)

To determine where potential customers are located.

d)

To execute the development, pricing, promotion, and distribution of goods/services.

49.

What is the term for a line of credit that may be used over and over again up to a certain borrowing limit?

a)

Open-end credit (revolving account)

b)

Accounts Payable

c)

Net Income

d)

Market Value Approach

50.

Which term refers to a business that makes finished goods from raw materials by hand or machinery?

a)

Merchandising business

b)

Manufacturing business

c)

Marketing Management

d)

Market survey

51.

What is the process of planning and executing the development, pricing, promotion, and distribution of goods/services called?

a)

Marketing

b)

Market Value Approach

c)

Motivating

d)

Accounts Receivable

52.

What is the difference between gross profit and expenses when gross profit is larger called?

a)

Net Worth

b)

Net Income (Net Profit)

c)

Markup

d)

Markdown

53.

What does "Accounts Payable" refer to in business terminology?

a)

A promise by a customer to pay for goods sold or services rendered at a later date.

b)

A promise to pay creditors for property, merchandise, supplies, or equipment purchased on credit.

c)

A comparison of profit and expenses expressed as a percentage of sales income.

d)

The voluntary association of two or more people to carry on as co-owners of a lawful enterprise.

54.

What is the definition of "Operating Ratios" in business?

a)

A comparison of profit and each item of expense expressed as a percentage of sales income.

b)

Expenses incurred in the normal operation of a business.

c)

The registered right of an inventor to make, use, and sell an invention.

d)

Capital invested in the business by the owner(s).

55.

Which term refers to the arrangement and distribution of work among members of an organization?

a)

Organizing

b)

Planning

c)

Recruitment

d)

Partnership

56.

What is "Product Liability Insurance" designed to protect against?

a)

Claims that a product caused bodily injury or property damage to the user.

b)

Expenses incurred in the normal operation of a business.

c)

The fair market price to purchase similar products in similar condition.

d)

The voluntary association of two or more people for joint profit.

57.

What does "Ratio Analysis" help determine in a company?

a)

The fair market price to purchase similar products in similar condition.

b)

The overall financial strength of a business.

c)

The arrangement and distribution of work among members of an organization.

d)

The registered right of an inventor to make, use, and sell an invention.

58.

What is the meaning of "Proprietorship" in business terms?

a)

A business owned by one person who bears unlimited liability for the enterprise.

b)

A voluntary association of two or more people for joint profit.

c)

A process of forming a pool of qualified applicants for tasks that need to be filled.

d)

A written summary of one's personal, educational, and professional achievements.

59.

What does "Replacement Value Approach" refer to in business valuation?

a)

The fair market price to purchase similar products in similar condition.

b)

A comparison of profit and expenses expressed as a percentage of sales income.

c)

Capital invested in the business by the owner(s).

d)

The process of forming a pool of qualified applicants for tasks that need to be filled.

60.

What is the purpose of a "Resume" in professional settings?

a)

A written summary of one's personal, educational, and professional achievements.

b)

A promise to pay creditors for property purchased on credit.

c)

A quantitative evaluation of a company's financial statements.

d)

Insurance that protects a firm against claims of bodily injury or property damage.

61.

What is the definition of Accounts Payable?

a)

An unwritten promise by a customer to pay for goods or services rendered.

b)

A condition in which there is a possibility of an adverse deviation from a desired outcome.

c)

An unwritten promise to pay creditors for property, merchandise, supplies, or equipment purchased on credit.

d)

A plan which provides inducements to potential purchases of products and/or services.

62.

What does Risk Management aim to achieve?

a)

To provide a service as opposed to a product.

b)

To preserve assets and earning power associated with a business.

c)

To estimate the worth or price of a company.

d)

To finance distribution of producers' goods.

63.

Which type of corporation offers limited liability to its owners but is taxed as a partnership?

a)

Sole Proprietorship

b)

S Corporation

c)

Service Business

d)

Venture Capitalist

64.

What is the role of the Small Business Administration (SBA)?

a)

To provide exclusive rights to a distinct name, sign, or symbol.

b)

To finance, operate, and manage small businesses.

c)

To estimate the worth or price of a company.

d)

To select employees and assign them to tasks.

65.

What is the definition of Tangible Assets?

a)

Assets that can be appraised by value or seen or touched.

b)

An intangible asset that is a distinct name, sign, or symbol.

c)

A cost which is uniform per unit but fluctuates in direct proportion to activity.

d)

A form of credit extended by one business to another.

66.

What does the Vietnam Era Veterans Readjustment Act prohibit?

a)

Discrimination in employment against Vietnam Era veterans.

b)

Fluctuation in direct proportion to activity volume.

c)

Inducements to potential purchases of products and/or services.

d)

Financing of new business ventures.

67.

What is the purpose of a Trademark?

a)

To provide exclusive rights to a distinct name, sign, or symbol for a specified period of time.

b)

To estimate the worth or price of a company.

c)

To finance distribution of producers' goods.

d)

To preserve assets and earning power associated with a business.

68.

What is the definition of Variable Expense?

a)

A cost which is uniform per unit but fluctuates in direct proportion to activity volume.

b)

A form of risk management for individual loss categories.

c)

A plan which provides inducements to potential purchases of products and/or services.

d)

A business that is independently owned and operated.

69.

What is the role of a Venture Capitalist?

a)

To invest in or financially sponsor a new business.

b)

To provide exclusive rights to a distinct name, sign, or symbol.

c)

To estimate the worth or price of a company.

d)

To select employees and assign them to tasks.

70.

What is the definition of Trade Credit?

a)

A form of credit extended by one business to another to finance distribution of producers' goods.

b)

A cost which is uniform per unit but fluctuates in direct proportion to activity volume.

c)

An unwritten promise to pay creditors for property purchased on credit.

d)

A plan which provides inducements to potential purchases of products and/or services.

71.

What is the definition of "Accounts Payable"?

a)

An unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit.

b)

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

c)

The difference between current assets and current liabilities.

d)

The formal codification of land use policies by a unit of local government.

72.

What does "Accounts Receivable" refer to?

a)

The difference between current assets and current liabilities.

b)

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

c)

An unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit.

d)

The formal codification of land use policies by a unit of local government.

73.

What is "Working Capital" also known as?

a)

Accounts Payable.

b)

Circulating Capital.

c)

Accounts Receivable.

d)

Zoning Ordinance.

74.

What is the definition of "Working Capital"?

a)

The difference between current assets and current liabilities.

b)

An unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit.

c)

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

d)

The formal codification of land use policies by a unit of local government.

75.

What is the purpose of a "Zoning Ordinance"?

a)

To establish permitted uses for land and distinguish between different types of uses which may be incompatible.

b)

To calculate the difference between current assets and current liabilities.

c)

To define the Fair Labor Standards Act.

d)

To record unwritten promises to pay creditors for property purchased on credit.