DECA Finance Cluster Sample Exam #2 of 5

An economy with a high unemployment level tends to have:

A lower rate of inflation. (When a lot of people are out of work, they lose their buying power, which means less money is in circulation. Because unemployed people have less disposable income, the demand for goods and services is low, which tends to slow or lower the rate of inflation (rise in prices). The amount of monetary policies that the government establishes does not affect unemployment rates. When the GDP grows, an economic expansion is occurring, which indicates that people and businesses are spending money and the unemployment levels are low.)

Which of the following people would make the best entrepreneur:

A risk-taker who has a strong work ethic. (Entrepreneurship requires risk-taking, a strong work ethic, and self-confidence. It often requires working much longer hours than 9-to-5. Entrepreneurs must work hard, but they are also in charge of protecting their own health. Getting sick means missing work and losing money.)

Barry's family is originally from Ireland. Their customs, habits, and traditions are known as their:

Culture. (The customs, habits, and traditions of a particular group of people are known as their culture. Stereotypes are set images or assumptions about people or things. Diversity is all the ways in which people differ. Religion is a fundamental set of beliefs.)

Insecure people are often afraid to become assertive because they think they will:

Damage their relationships. (Insecure people are often anxious about their interpersonal relationships. They are afraid if they become assertive, they may ruin a friendship or end a relationship. Assertiveness is a risk they are unwilling to take. These people are dependent rather than independent and may already be considered childish because of their passive behavior that focuses on pleasing others.)

One way that individuals exhibit self-confidence is by being:

Enthusiastic. (Self-confidence is a positive belief in your own talents, skills, and objectives. When people are positive and believe in themselves, they usually are enthusiastic and display great interest or excitement in what they do. Confident people have a good attitude and display that attitude by being enthusiastic. Individuals do not necessarily exhibit self-confidence by being creative, emotional, or reserved.)

One way a leader can encourage others to work toward a shared vision is by:

Explaining how they will benefit. (People tend to work harder to achieve a vision or goal if they understand how they will benefit. Therefore, a leader should explain the benefits they will receive so employees will be encouraged to work toward a shared vision. Simply describing the objective or reviewing the new assignment will not encourage employees to work unless they also understand how they will benefit. Generating a profit is a benefit to the business that will not necessarily encourage employees to work unless they will share in the profit.)

Jon decided to promote Bill instead of Maggie to regional manager because he thinks that women aren't assertive enough in business situations. Jon is stereotyping on the basis of:

Gender. (A stereotype is a set image or assumption about a person or thing. When people stereotype others, they tend to classify certain people as a group that possesses certain characteristics. These characteristics are often based on distorted beliefs or unreliable information. A person who stereotypes others often fails to see an individual who possesses unique skills, values, and attitudes. Gender is one characteristic by which people often stereotype others. Assuming men are more assertive than women in business situations is a distorted belief. In fact, many women are very assertive in business situations. Ethnic stereotyping involves having false beliefs about a person on the basis of his/her race or culture. Stereotypes about religion involve having distorted beliefs about a person's spiritual practices. An individual who stereotypes by age might feel that younger people do not possess needed knowledge or that older people are feeble and lack adaptability.)

The key factors involved in compounding growth are the amount of money you invest, how much your investment grows each year, and:

How long your money is invested. (The most important factors to consider in compounding growth are how much money you invest, how much your investment grows each year, and how long your money is invested. Investing is using money to make money, which means that if you invest money in the stock market, for example, you are likely to make an average of 10 percent each year. As the years pass, your investment will grow tremendously because you will be earning interest on interest. So, it is beneficial to invest for as long as possible to earn the largest amount of compound interest as possible. How you earn the money that you invest, your educational background and career, and your mutual fund manager's education have a much smaller impact on compounding growth than time does.)

Which of the following describes the matrix organizational structure:

It is a combination of two other organizational structures. (The matrix organizational structure is a combination of the functional structure and the divisional structure. It includes traditional departments, but it is also broken down by division (including, but not limited to, product lines). As organizational design goes, it is a newer, rather than older, structure.)

Maureen becomes angry and defensive whenever her supervisor asks Maureen to correct mistakes. Maureen's attitude is not a good response to criticism because:

It prevents Maureen from hearing the criticism clearly. (Defensiveness raises a barrier between you and the speaker. Most of us feel angry or resentful when we are criticized, especially when the criticism is unjust. However, we cannot afford to exhibit this kind of attitude on the job. If Maureen listened with an open mind to the supervisor, she might learn not only how to correct her mistakes but how to avoid the mistakes in the future. Maureen's attitude indicates immaturity rather than a desire to call attention to herself.)

Which of the following is an example of an employee respecting the privacy of a coworker:

Leaving the room when a salesperson takes a telephone call. (Successful employees realize the importance of respecting others' privacy in the workplace. When employees respect others' privacy, they are likely to gain the trust and respect of coworkers and managers. An employee who respects others' privacy would leave the room when a coworker (e.g., salesperson) takes a telephone call. Speaking up for a coworker, providing feedback, and answering a coworker's phone call are not necessarily situations in which privacy is being violated; there is not enough information provided to determine if intervention was requested.)

The general economic growth of a country is supported by its:

Level of productivity. (The general economic growth of a country depends upon its level of productivity. For example, the level of productivity in the United States has given the country a wealth of goods and services which allows its citizens to reach a certain standard of living. Gross domestic product is the final, total value of all goods and services produced within a country's geographic boundaries during a year's time. GDP serves as a measure of economic growth.)

Coaching is mostly about:

Listening. (Coaching is mostly about listening. It isn't really about talking or instructing. Listening is important because coaches must truly understand what the other person is saying and where s/he's coming from. Although organization is certainly helpful, it is not the most important skill in coaching.)

Determining what consumers want in order to promote and sell those goods and services is a function of the business activity of:

Marketing. (Marketing is a primary business activity that involves creating, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders. Marketing is an important business activity because it identifies what consumers want and plans how to promote and sell those goods and services to the consumers. Management is the process of planning, organizing, directing, and controlling business activities to achieve objectives. Production is the process or activity of producing goods and services wanted by consumers. Risk management is the business activity that involves the planning, controlling, preventing, and procedures involved in limiting business losses. It optimizes the relationship of potential loss to gain.)

When the U.S. federal government owes money to a contracted employee or business, the government must pay the employee or business according to the:

Prompt Payment Act. (When the U.S. federal government owes money to a contracted employee or business, the government must pay the employee or business according to the Prompt Payment Act. There are no U.S. legal requirements for financial exchange called "Early Bird," "Secure Contracting," or "Government Guidelines.")

Financial planning can be described as a way to:

Realize what it takes to get the things you really want. (Financial planning is a good way to realize what it takes to get the things you really want. It is not a method for stopping all impulsive purchases nor is it a way to achieve your professional goals. And, even the best financial planning can't guarantee you'll retire with a substantial amount of money in the bank.)

Which of the following is an example of a change in the relative price ratio when the original price of red apples is $0.60 per pound and the original price of green apples is $0.80 per pound:

Red apples @ $0.90 per pound; green apples @ $0.80 per pound. (This is the only combination that resulted in a change in the relative price ratio. When red apples sold for $0.30 per pound and green apples for $0.40 per pound, the price of each was cut in half, and the ratio remained the same. When red apples sold for $1.20 per pound and green apples for $1.60 per pound, the price of each was doubled and the ratio remained the same. When red apples sold for $0.45 per pound and green apples for $0.60, the price of each was cut one-fourth, and the ratio remained the same.)

Keeping the end goal in mind refers to which standard of excellence that achievement-oriented people set?

Results. (Keeping the end goal in mind refers to being results-oriented, a characteristic of achievement-oriented people. They like being able to objectively evaluate their successes. They also value improvement, trying something new, and competition; however, these standards don't necessarily relate to keeping the end goal in mind.)

Seeing the big picture instead of smaller, individual parts is an organizational learning concept known as:

Systems thinking. (Systems thinking is an organizational learning concept that focuses on the big picture rather than seeing smaller, individual parts. Team learning means thinking and working together as a group. Shared organizational vision refers to sharing a mutual commitment to the future the firm seeks to create. Personal mastery is striving for individual learning as a means of advancing the organization.)

Colleen will vote next week on the new contract that her union has negotiated with management. Union and management are in the __________ stage of the collective-bargaining process.

Tentative agreement. (Tentative agreement is the stage at which union and management have agreed on the terms of a contract but still need union members to approve or reject the contract. Preparation and research occur before labor negotiations begin. A ratified contract is one that union members have approved. Contract settlement occurs when a ratified contract has been signed by union and management.)