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Small Business Management- FSE Questions
with Detailed Verified Answers
A business that makes finished goods from raw materials by hand or
machinery Ans: manufacturing business
a business that purchases finished goods for resale is referred to as a
Ans: merchandising business
a particular business that provides a service as opposed to a product is
referred to as a Ans: service business
an individual that assumes the risks associated with a new venture
startup can be referred to as an Ans: entrepreneur
A group of potential customers possessing purchasing power and
unsatisfied needs Ans: market
main objective of market survey Ans: to determine where the potential
customers are
Any capital that is invested in a business by the owner(s) can be called
Ans: equity capital
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Any credit that is extended from one business to another in order to help
finance the distribution of goods from the producer is called Ans: trade
credit
long term capital that is invested in a business is referred to as Ans:
fixed capital
In a business, the number of times the average inventory is sold or used
up can be referred to as Ans: inventory turnover
A point in business operations whereby total sales revenue equals total
costs Ans: break even point
if a prospective business owner attempts to statistically study such
factors as human population size, density, distribution, and wealth, we
would refer to this as Ans: demographics
The art of making the public aware of one's products and/or services that
are for sale can be referred to as Ans: advertising
Any effort undertaken to retain and preserve the assets and earning
power of a business is called Ans: risk management
factors associated with evaluating a credit risk would involve all the
following except Ans: inventory control considerations
In business, a reduction of selling price below the original selling price is
referred to as Ans: mark down
In business, the name, goodwill, copyrights, and patents are referred to
as Ans: intangible assets
Small Business Management- FSE Questions
with Detailed Verified Answers
A business that makes finished goods from raw materials by hand or
machinery Ans: manufacturing business
a business that purchases finished goods for resale is referred to as a
Ans: merchandising business
a particular business that provides a service as opposed to a product is
referred to as a Ans: service business
an individual that assumes the risks associated with a new venture
startup can be referred to as an Ans: entrepreneur
A group of potential customers possessing purchasing power and
unsatisfied needs Ans: market
main objective of market survey Ans: to determine where the potential
customers are
Any capital that is invested in a business by the owner(s) can be called
Ans: equity capital
, Page | 2
Any credit that is extended from one business to another in order to help
finance the distribution of goods from the producer is called Ans: trade
credit
long term capital that is invested in a business is referred to as Ans:
fixed capital
In a business, the number of times the average inventory is sold or used
up can be referred to as Ans: inventory turnover
A point in business operations whereby total sales revenue equals total
costs Ans: break even point
if a prospective business owner attempts to statistically study such
factors as human population size, density, distribution, and wealth, we
would refer to this as Ans: demographics
The art of making the public aware of one's products and/or services that
are for sale can be referred to as Ans: advertising
Any effort undertaken to retain and preserve the assets and earning
power of a business is called Ans: risk management
factors associated with evaluating a credit risk would involve all the
following except Ans: inventory control considerations
In business, a reduction of selling price below the original selling price is
referred to as Ans: mark down
In business, the name, goodwill, copyrights, and patents are referred to
as Ans: intangible assets
