WorksheetsBusiness Management Post-Test Review/Practice Part 1
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
1. Which of the following should not be an objective of a company’s collection procedure?
a)
Converting credit customers to cash customers
b)
Collecting the amount due
c)
Maintaining the goodwill of customers
d)
Resolving collection problems as quickly as possible
2.
2. To determine the creditworthiness of people or organizations, businesses apply the ___.
a)
Four Cs of credit
b)
80/20 rule
c)
“Keep it simple” policy
d)
Minimum approval rate standard
3.
3. One advantage an entrepreneur gains by forming a corporation to raise capital is ___.
a)
The number of owners remains the same
b)
The entrepreneur's personal assets have greater protection
c)
The entrepreneur still retains all profits earned
d)
The corporation has no need for using debt capital
4.
4. The number of shares of stock to be issued by a corporation is determined by ___.
a)
Common stockholders
b)
Preferred stockholders
c)
Company executives
d)
The board of directors
5.
5. The best policy regarding the use of profits for a corporation in most years is to ___.
a)
Avoid making a profit so no dividends have to be distributed
b)
Distribute all profits as dividends to increase stockholder satisfaction
c)
Distribute some profits as dividends and keep some profits as retained earnings.
d)
Keep all profits as retained earnings to build the value of the company quickly.
6.
6. Another name for investment bank is ___.
a)
Underwriter
b)
Commercial bank
c)
Factor
d)
Venture capitalist
7.
7. Ownership of a corporation is divided into parts called ___.
a)
Shares
b)
Corporation parts
c)
Memberships
d)
Partnerships
8.
8. Juanita wants to be the sole owner of a web design business. The simplest form she could choose would be a ___.
a)
Proprietorship
b)
Joint venture
c)
Partnership
d)
Corporation
9.
9. In automated accounting, an audit___.
a)
checks the accuracy of processed information
b)
is generated on a yearly basis
c)
is always stored using electronic media
d)
corrects the data
10.
10. Which of the following is NOT a reason businesses need to maintain financial records?
a)
To determine the kinds and values of assets
b)
To track the financial progress of the business
c)
To prepare financial forms and reports required by the government
d)
To provide financial information to competitors
11.
11. Expensive assets of a business that are expected to last and be used for a long time are known as ___.
a)
Fixed assets
b)
Depreciated assets
c)
Obsolete assets
d)
Stable assets
12.
12. A financial plan for replacing fixed assets or acquiring new ones is known as a(n) ___.
a)
Start-up budget
b)
Capital budget
c)
Operating budget
d)
Cash budget
13.
13. Which of the following statements about the role of managers is true?
a)
Managers are responsible for the success and failure of the company
b)
Managers make up the greatest percentage of employees in a business
c)
Managers are responsible for completing day-to-day work of a business
d)
Managers spend most of their time planning for the future
14.
14. If a manager sees that actual expenses are exceeding budgeted amounts, he or she should immediately ___.
a)
Do nothing and see if things change
b)
Discard the old budget and develop a new one
c)
Review expenses to see what can be done to reduce them
d)
Increase the prices of products to improve sales
15.
15. Select the sentence below that has been correctly written ___.
a)
The stock was too expensive for me to buy.
b)
I think she said she worked there.
c)
Jim’s patients was wearing thin by the end of the day.
d)
I left the correspondence on the manager’s desk.
16.
16. Effective leaders have certain qualities that are helpful in creating a productive work environment. These qualities include ___.
a)
Integrity
b)
Team oriented
c)
Perseverance
d)
All of the above
17.
17. Which of the following is not one of the five functions of management?
a)
Planning
b)
Budgeting
c)
Staffing
d)
controlling
18.
18. Which act regulates Social Security?
a)
Fair Labor Standards Act
b)
Federal Unemployment Tax Act
c)
Federal Insurance Contributions Act
d)
State Unemployment Tax Act
19.
19. Choose the statement that gives the best advice about completing a job application ___.
a)
Use colorful ink, because it will make your application stand out
b)
Never answer questions about previous law violations
c)
List previous employment beginning with your most recent job
d)
Inflate your previous salary level, as they may give you more money.
20.
20. The basic accounting equation is ___.
a)
Income-expenses = profit or loss
b)
Liabilities = assets + capital
c)
Assets = liabilities + capital
d)
Income = profit or loss – expenses
21.
21. An effective mentor is a person who ___.
a)
has mastered the skills and experience an employee needs
b)
is a good friend of the employee
c)
is external to the employee’s company
d)
has been given salary raises in the past
22.
22. An example of an important ratio is ___
a)
Current ratio
b)
Debt ratio
c)
Start-up ratio
d)
Profit ratio
23.
23. Factors of production include ___.
a)
Money only
b)
Labor and capital goods only
c)
Land (natural resources), labor, and capital goods only
d)
Land (natural resources), labor, capital goods, and entrepreneurship
24.
24. Assume that the current currency exchange rate for US Dollars and Euros is 1 US Dollar = .736 Euros. Brad is making a purchase in Germany that costs 25 Euros. How much will this cost him in US Dollars?
a)
$18.40
b)
$25.74
c)
$33.97
d)
$42.50
25.
25. The accumulated knowledge and skills of human beings and the total value of each person’s education and acquired skills are called ___
a)
Human capital
b)
Human potential
c)
Human knowledge
d)
Human labor
100 %
