DECA Business Management and Administration Exam Questions and Answers

Business Management/Admin Cluster Exam (13-14) Score: 27/100 PLEASE NOTE:Questions answered incorrectly have an asterisk (*) to their left and are highlighted in RED.The correct answer(s) have a double asterisk (**) to their right and are highlighted in GREEN.* 1. Environmental regulations are often developed to encourage businesses to participate inA. ethical contracts.B. law enforcement.C. resource identification.D. recycling programs. *** 2. John would like to be a business owner, has money to invest, and wants to limit his liability. He does not have time to participate in the day-to-day operations of the business. What type of business ownership would you recommend?A. Sole proprietorshipB. Open corporation **C. Close corporationD. General partnership3. When your parents tell you to vacuum the living room, you are receivingA. written directions.B. social directions.C. nonverbal directions.D. oral directions. *** 4. Eye contact, facial expression, and body language are examples ofA. verbal acknowledgement responses.B. nonverbal cues. **C. distractions.D. listening skills.* 5. To enunciate when speaking to customers means toA. talk fast.B. talk slowly.C. run words together.D. pronounce words clearly. *** 6. Why is it important for business employees to ask relevant questions?A. To send messagesB. To clarify meanings **C. To offer suggestionsD. To make statements* 7. Which of the following is an example of formal communication in the workplace:A. Melinda meets with her manager to discuss a possible promotion. **B. Tessa asks Ken for his opinion about an article that she has written.C. Phil asks Mark if he has an extra product brochure that he can give to a customer.D. Susan tells a coworker that she thinks her manager is going to be fired.* 8. Dale is taking notes during a staff meeting. Dale shouldA. write his notes in complete sentences.B. organize his notes in a logical manner. **C. capture every word that is said.D. avoid abbreviations and symbols.* 9. In which of the following situations would a businessperson write a persuasive inquiry using an indirect format:A. A letter requesting the date and time of a professional development workshopB. A direct-mail letter asking for financial support to help a charitable organization **C. A memo asking for a detailed sales report for the previous six-month periodD. An e-mail message requesting membership eligibility requirements in an organization* 10. Managers often receive brief summaries of information about the status of activities within their departments in the form of __________ reports.A. simple progress **B. long researchC. detailed annualD. short biographical11. When analytical reports contain information that readers might disagree with, writers should back their conclusions withA. personal opinions.B. technical statistics.C. logical arguments. **D. enthusiastic statements.12. Which of the following is the last component of a research report:A. Background informationB. Purpose of the studyC. Recommendations **D. Methodology* 13. What can employees do to help provide good service to customers?A. Offer discountsB. Lower pricesC. Plan eventsD. Resolve problems *** 14. What is a factor that affects a business's selection of policies to guide its operations?A. Personal preferences of managementB. Nature of the business **C. Communication skills of employeesD. Space available to display policies15. Which of the following is an appropriate attitude for the salesperson to have toward customers' complaints:A. Complaints are the business's problem.B. Complaints should be handled by management.C. Complaints can often be opportunities. **D. Complaints can usually be prevented.* 16. Into what two categories can wants be divided?A. Economic and noneconomic **B. Unlimited and economicC. Unlimited and limitedD. Unlimited and noneconomic* 17. A lumber business cuts boards from tree trunks. This business gives the resource __________ utility.A. possessionB. timeC. placeD. form *** 18. Businesses can show their social responsibility by contributing toA. pollution.B. public interests. **C. promotion.D. private causes.19. Which of the following is a function that is an important part of the human resources management activities of business:A. SellingB. PricingC. Staffing **D. Promoting20. Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, andA. initiative.B. injunction.C. authority. **D. attrition.* 21. Calculate a business's gross profit based on the following information: $367,500 in income from sales, $105,250 in payroll, $25,700 in rent, and $140,125 in cost of goods.A. $122,125B. $227,375 **C. $96,425D. $236,550* 22. Prohibiting the use of asbestos in buildings is an example of government efforts toA. help the disadvantaged.B. provide public goods.C. stabilize the economy.D. protect public health. *** 23. A business manager realizes that the demand for his/her products now exceeds producers' capabilities, and producers have raised their prices to offset the high demand. Under these conditions, what phase of the business cycle should the manager begin to prepare for?A. TroughB. PeakC. Contraction **D. Expansion24. Which of the following scenarios represents a cultural difference involving personal space that may make an American businessperson feel uncomfortable:A. The person is seated in a conference room to discuss a contract with an international client.B. A foreign business associate stands several feet away when talking to the person.C. A European client greets the person with a kiss on each cheek. **D. The person is invited to dine in a busy restaurant following the meeting with an international client.* 25. While American businessperson Carolyn Alexander is traveling on business in Dresden, Germany, she plans to meet with a potential client named Rudolph Schmidt, who is a purchasing manager with Rhine Industries and speaks English fluently. How should Carolyn greet the client?A. How do you do, Schmidt.B. Good day, Sir Rudolph.C. It is a pleasure to meet you, Rudolph Schmidt.D. Hello, Mr. Schmidt. *** 26. Because Japanese people value loyalty, compliance, and teamwork in their personal and business relationships, Japan is considered a(n)A. explicit society.B. collectivist culture. **C. elitist nation.D. ceremonial civilization.* 27. Which of the following is a factor related to appearance that foreign businesspeople must consider when doing business in Middle Eastern countries:A. Most Middle Easterners are Muslim, and pray five times a day.B. Both men and woman are expected to wear modest clothing in public. **C. Crossing one's legs is an offensive gesture to Middle Easterners.D. It is common for Middle Easterners to communicate slowly with periods of silence.28. Hilda Vanderspiel is a German businesswoman who is hosting a dinner for business executives from Delphi, India. When planning the menu for her guests, Hilda should consider theirA. seating preferences.B. dietary habits. **C. table manners.D. physical differences.* 29. Jamie and Todd work in a local stationery store. When business is slow, Jamie tends to talk on the phone and stand around, while Todd tends to straighten the shelves and restock items that are needed. Which of the following traits is Todd demonstrating:A. ReceptivityB. EmpathyC. LoyaltyD. Initiative *** 30. Which of the following is an example of unethical work behavior:A. Texting friends during a work shift **B. Arriving at work 15 minutes earlyC. Using supplies to complete work tasksD. Taking responsibility for mistakes* 31. Tim is the technology manager for the MSJ Company. Tim is responsible for backing up the computer system each evening to make sure that the company has a copy of each day's computer activities and transactions. On Tuesday evening, Tim was running late for a meeting and decided not to conduct the backup activities. Later that night, the computer system crashed and all of Tuesday's computer data was lost. By apologizing to his boss for making a poor decision and offering to work extra hours to help fix the problem, Tim wasA. taking the time to make informed decisions.B. blaming others for the consequences of his actions.C. promising not to make any mistakes in the future.D. accepting the consequences for the decision he made. *** 32. To effectively manage various work commitments, employees shouldA. schedule enough time to complete activities. **B. first focus on the least important tasks.C. ask coworkers to complete important activities.D. reorganize work goals.* 33. To advance in a career in the future, you will probably have a greater need forA. artistic ability.B. biological knowledge.C. mathematics.D. training. *** 34. Employees who send and receive messages through the business's electronic mail system should assume thatA. no one reads their memos.B. privacy does not exist. **C. privacy is not an issue.D. monitoring is not allowed.35. Assertive people believe that they have the right to ask other people to respond to theirA. whims.B. directions.C. needs. **D. orders.* 36. Two people are in a conflict because both of them want to be the group's leader. What is the reason for the conflict?A. MotivationB. ResentmentC. CreativityD. Authority *** 37. The XYZ Company has a committee whose members are appointed for three-year terms to review the company's hiring policies. This committee is an example of a(n) __________ committee.A. multi-functionalB. ad-hocC. volunteerD. standing *** 38. Matthias regularly talks to other team leaders in the industry to keep up with current trends that may affect his team vision. Which guideline of sharing a vision does this illustrate?A. Being flexibleB. Being a good listener **C. Being an exampleD. Being enthusiastic* 39. If you like to feel as though you are an important member of the team, you will probably work best under a(n) __________ manager.A. democratic **B. hands-offC. laissez-faireD. authoritarian40. Which of the following is the opportunity cost for a person who decides to place $500 in the bank rather than purchase something s/he really wants but does not need:A. Long-term dissatisfactionB. Higher discretionary incomeC. Lower salary or wagesD. Immediate gratification **41. A credit plan that requires a signed contract, a down payment, and the balance to be paid over a specific period of time is called __________ credit.A. regularB. revolvingC. openD. installment *** 42. Insurance is a key element in lifelong financial planning thatA. guarantees a solid financial future.B. protects a person from unethical salespeople.C. provides protection against financial losses. **D. is available only to property owners.* 43. Which of the following is the most effective way to avoid excessive credit-card debt:A. Pay off your balance each month **B. Pay off low-interest credit cards firstC. Choose a credit card with a high limitD. Use credit-card cash advances to pay debt* 44. When preparing a personal income tax form, parents report some of their childcare expenses to receiveA. capital gains.B. tax deductions. **C. dividends.D. tax rebates.45. A business has an inventory valued at $750,000. This amount would appear in the business's balance sheet underA. income.B. liabilities.C. capital gains.D. current assets. *** 46. Which of the following are common security concerns associated with using a computerized accounting system:A. Viruses and loss of data **B. Fraud and pollutionC. Variances and vested interestsD. Viruses and pollution47. Which of the following is an example of current liabilities that a business should include in its balance sheet:A. Mortgage loansB. Accounts receivableC. Owner's equityD. Employees' salaries **48. Most businesses provide employee orientation as soon as new employees report for work becauseA. employees can't work until they have been oriented.B. orientation focuses on specific job tasks.C. employees can learn everything in the beginning.D. that is when employees are anxious to learn. *** 49. Julie just got a promotion and will be transferring to another city, so she plans to spend some time with her replacement, passing on some of her tacit knowledge before she leaves. This is an example of knowledge management being necessary due toA. turnover. **B. information overload.C. globalization.D. innovation.* 50. Shannon has worked at the XBO Company for two years in the production department. During a weekly meeting, the staff was brainstorming ideas to resolve a problem the department has been experiencing on the production line. During the meeting, Shannon told the staff about some changes that her previous company made to its production process, which increased its efficiency and outputs. Shannon's manager liked the idea, and thought that it might work at XBO. This situation illustrates the concept ofA. limited confidentiality.B. inevitable disclosure. **C. competitive obstruction.D. trade-character infringement.* 51. One tool that businesses can use to allow employees and customers to share knowledge through their websites is by postingA. meta tags.B. message boards. **C. bots.D. interesting content.52. A business might ask its employees to sign a nondisclosure agreement toA. prevent copyright infringement.B. avoid discrimination lawsuits.C. ensure its employees' privacy.D. protect its trade secrets. *** 53. If a business lowers the price of a product for the purpose of taking business away from competitors, the result of this action often is a(n)A. increase in profit.B. gain in market share. **C. decrease in cost.D. reduction in staff.* 54. Which of the following is an example of factual information:A. It seems that we have a problem.B. I believe that the product is defective.C. Last quarter, sales increased by 12%. **D. Kerry and Dean are the nicest managers.* 55. Melissa is thinking about setting up her growing business as a corporation. Which of the following online sources is most likely to have relevant information about how to establish a corporation:A. Nolo Legal Encyclopedia **B. Wall Street JournalC. MarketWatchD. Wikipedia56. Why is it important for businesses to manage employee information in a way that keeps it secure?A. To avoid publicityB. To be secretiveC. To beat the competitionD. To be ethical **57. Which of the following is a standard capability of spreadsheet software:A. To manage filesB. To create slidesC. To prepare textD. To graph data **58. A primary use of project-management software is toA. evaluate the quality of deliverables.B. define the project's purpose.C. develop project standards.D. allocate project resources. *** 59. A business is mostly likely to review customer invoices from the previous year toA. execute promotions.B. evaluate ideas.C. forecast sales. **D. improve service.* 60. Natalie needs to compile a list of her retail business's suppliers, along with the products that the business purchases from each. Which of the following internal records is most likely to contain the information that she needs:A. Human-resources recordsB. Quality recordsC. Inventory records **D. Payroll records* 61. What do businesses often analyze when making decisions about how to improve the company?A. Statistical findings **B. Training methodsC. Information skillsD. Privacy factors* 62. Running out of inventory can result inA. lost sales. **B. higher taxes.C. higher productivity.D. more satisfied customers.63. A city in the southwestern region of the country requires community businesses to undergo health and safety inspections to determine if the businesses are complying withA. consumer-protection laws.B. free-trade agreements.C. securities regulations.D. local ordinances. *** 64. Steve recently purchased a used laptop computer for work, but it didn't come with a user's manual. Where is Steve most likely to find a copy of the manual?A. A used-book storeB. A public libraryC. The Internet **D. An office-supply store* 65. Employees who take home pencils, notepaper, and other office supplies for personal use are guilty ofA. robbery.B. fraud.C. pilferage. **D. shoplifting.66. Because Kendra must finish a task and submit her work to Joshua so he can complete his part of the project by next Thursday, these two team members' jobs areA. bureaucratic.B. complex.C. autonomous.D. interdependent. **67. When managing projects, which of the following is an important activity:A. Obeying ordersB. Changing objectivesC. Following directionsD. Tracking deadlines *** 68. Ingrid must analyze various aspects of the completed project by comparing the results with the objectives. What process is Ingrid likely to use to obtain all of the information for analysis?A. Team reviewB. Administrative appraisalC. Internal audit **D. Productivity evaluation69. Reviewing activity-status reports helps a project manager toA. develop specifications.B. create barriers.C. determine project scope.D. control the project. *** 70. What is required to maintain favorable relationships with vendors?A. Limited communicationB. Ongoing cooperation **C. Occasional interactionD. Full disclosure* 71. Because the Frederick Company has space limitations in its warehouse, it needs to have a shelving unit custom made. What type of order is the Frederick Company likely to place with the shelving manufacturer?A. Special **B. OpenC. BlanketD. Reorder* 72. A business orders 10% more widgets than it needs because the supply of and the demand for widgets have been difficult to forecast in recent months. This is an example of a business ordering __________ inventory.A. perpetualB. maintenanceC. buffer **D. customary* 73. What is the key to effective use of concessions during a negotiation with a vendor?A. Allow minimal room for concessions before negotiations begin.B. Obtain leverage by refusing to give up anything.C. Concede on minor points before major points. **D. Portray important concessions as more valuable than they really are.74. Why do many businesses follow up after production to ensure that products meet standards set by outside organizations?A. To estimate future salesB. To determine raises for production workersC. To comply with the lawD. To remain competitive *** 75. A business that inspects its equipment on a regular basis is practicingA. vendor analysis.B. preventive maintenance. **C. form utility.D. physical inventory.* 76. Luke is reviewing several internal and external reports to compare his company's sales and market share in relation to other companies in the industry. What type of business analysis is Luke conducting?A. ProductivityB. PromotionalC. FinancialD. Competitive *** 77. One of the major reasons that good posture is important is that it canA. help to prevent medical problems. **B. eliminate clothing alterations.C. improve your ability to relax.D. make you look taller than you are.* 78. As Vanessa walked into the library, Jeremy and Sam were just closing a drawer on the librarian's desk. Later, Vanessa described the incident to the librarian--and included her own conclusion that the boys had probably stolen something. Vanessa's account is an example of which of the following:A. Framing **B. LogicC. InputD. Style* 79. The Dewberry Company pays both its female employees and its male employees the same salary range for the same type of work. Dewberry is providing its employees withA. the right to privacy.B. a safe work environment.C. fair treatment. **D. the option to buy stock.* 80. What department of a large company should a job seeker contact to find out whether the company has job openings?A. CreditB. PayrollC. Human resources **D. Training and development* 81. Which of the following would be out of place in a follow-up letter after a job interview:A. A comment about the work of the businessB. A question about salary or benefits **C. A desire to be hired for the jobD. A reference to the applicant's qualifications* 82. A group of persons in the same industry or geographic area who form a society to solve their common problems describes aA. corporation.B. trade association. **C. trade show.D. partnership.83. Which of the following statements is true regarding the rules of conduct in the workplace:A. Rules of conduct control the employees' behavior, but they don't affect the company's image.B. Company rules provide a fair and consistent working environment for some of the employees.C. Companies have the same rules of conduct, so it isn't necessary to explain them to employees.D. The purpose of the rules of conduct is to guide employees' behavior in relation to their jobs. **84. Who is most likely to report directly to a corporation's chief executive officer (CEO)?A. Board of DirectorsB. Regional marketing managerC. Production coordinatorD. Vice president of finance *** 85. The primary purpose of developing organizational goals is toA. provide direction. **B. ensure profitability.C. assign authority.D. establish loyalty.86. What is the primary action needed to ensure that employees understand their roles in meeting the business's overall goals?A. Peer evaluationB. Brainstorming activitiesC. Motivational speechesD. Ongoing communication **87. What section of the statement of work (SOW) defines what the project will produce?A. Schedule estimatesB. Purpose statementC. Benefits and risksD. Project deliverables *** 88. A project manager who wants a central location that contains relevant information about each component of the work breakdown structure (WBS) should develop aA. WBS dictionary. **B. WBS thesaurus.C. training chart.D. pie chart.* 89. When team members disagree about the best way to complete an activity, the project manager may need toA. help resolve the conflict. **B. negotiate with external sources.C. evaluate the reward system.D. change the project scope.* 90. Determine the type of project-closing report that would most likely contain the following statement: "In review, group members agreed that additional training before the project began and ongoing technical support during the course of the project would have increased overall efficiency."A. Stakeholder's expense auditB. Executive summaryC. Termination checklistD. Lessons learned document *** 91. Which of the following is a factor that keeps quality at the forefront of the modern business world:A. Weather patternsB. Consumer pressure **C. Outdated technologyD. Currency fluctuations* 92. The Six Sigma framework approaches the quality improvement of existing processes by implementing the DMAIC method, which includes the five steps of defining, measuring, analyzing,A. influencing, and collaborating.B. increasing, and counteracting.C. instigating, and correcting.D. improving, and controlling. *** 93. What step in the continuous improvement process will indicate if quality is increasing?A. Evaluation **B. DocumentationC. RecommendationD. Implementation* 94. During a heavy rainstorm, Save-Cents Discount Store suffered severe structural damages and flooding. The store's insurance company refused to pay for the store's damages because of an unclear anti-concurrent clause that was placed in the back of the written insurance policy. The anti-concurrent clause allowed the insurance company to deny the claim because there were two sources of damage for the same loss. This situation presents an ethical issue for the insurance company if theA. insurance company did not explain all of the policy's exclusions to the store. **B. store's owner failed to pay the insurance premium on time.C. store purchased the insurance policy only a few weeks before the storm occurred.D. insurance company refused to pay workers' compensation to the store's employees.* 95. The MIB Company uses protective computer-software programs to minimize losses associated with its customers' financial transactions. It is managing risks associated withA. purchasing.B. security. **C. overhead.D. performance.* 96. Which of the following is a business risk associated with a failure to follow laws:A. Increased inventoryB. Government fines **C. Decreased quotasD. Goal achievement* 97. Which of the following are characteristics of tactical planning:A. Short-range and vagueB. Long-term and vagueC. Short-range and specific **D. Long-term and specific* 98. What function of management involves developing a system for producing work?A. ArrangingB. Organizing **C. SupervisingD. Controlling* 99. What management function involves identifying qualified candidates to perform the business's work?A. LeadingB. Staffing **C. PersuadingD. Controlling* 100. The function of managerial control involves comparing what was planned with theA. primary goals.B. actual results. **C. operating policies.D. established strategies.

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Business Management/Administration Exam (12-13) Score: 21/100 PLEASE NOTE:Questions answered incorrectly have an asterisk (*) to their left and are highlighted in RED.The correct answer(s) have a double asterisk (**) to their right and are highlighted in GREEN.* 1. Pedro Sanchez works as a loan processor for the MON Company, which is located in Smithsville. Pedro has recently approved an application to extend a $10,000 line of credit to Mrs. Jones. Who is the creditor in this situation?A. Mrs. JonesB. Pedro SanchezC. MON Company **D. City of Smithsville* 2. A type of business ownership in which one or more of the owners does not have full liability is called aA. sole proprietorship.B. general partnership.C. limited partnership. **D. service organization.* 3. Which of the following is not a barrier to effective verbal communication:A. Asking for clarification **B. Thinking of what to say nextC. Interrupting the speakerD. Judging the speaker's appearance* 4. If an employee needs to do some research to answer a customer's telephone inquiry, the best action for the employee to take is to obtain the customer's telephone number and thenA. put the customer on hold until the research has been completed.B. ask the sales manager to call the customer back.C. send the customer literature about the business and its products.D. follow-up with the customer after obtaining the requested information. *** 5. In which of the following situations might it be difficult to give effective verbal directions:A. Information is complex. **B. Time is important.C. Managers are organized.D. Employees are focused.* 6. When preparing to deliver an oral presentation, the most important step isA. practicing the delivery. **B. conducting research.C. writing useful note cards.D. choosing the best visual aid.* 7. The business manager tried to write a promotional letter that was simple, clear, and interesting so that customers who received it wouldA. easily understand it. **B. need to read it many times.C. find it entertaining.D. ask what it really meant.8. Which of the following is a formatting characteristic of a full-block business letter:A. Indented first paragraphB. Double-spacing within the paragraphC. No paragraph indents **D. All paragraphs use right justification.* 9. What component is important to include in all types of inquiry letters?A. Contact information **B. Personal qualificationsC. Project specificationsD. Attention-getting title* 10. Which of the following might a manager send to corporate management on a regular basis to briefly summarize the work accomplished:A. Business planB. Project proposalC. Strategic planD. Weekly activity report *** 11. Jacob is determining the writing style to use for an analytical report. If most of readers are likely to support the report's content, Jacob should format the report for a(n) __________audience.A. intellectualB. indecisiveC. argumentativeD. receptive *** 12. In which component of a research report should the writer place the following statement:"Based on our findings, we believe that it is imperative that PNJ Corporation make the necessary adjustments."A. MethodologyB. AnalysesC. AssumptionsD. Recommendations *** 13. Which of the following is an example of an employee using nonverbal communication effectively to reinforce his/her service orientation:A. Molly nodded and maintained eye contact as Ms. West explained the problem with her computer. **B. When Mrs. Jones complained that her steak was not cooked the way she wanted it, Leah rolled her eyes.C. Tristan answered his office telephone and said, "Blanton Industries. How can I help you?"D. Paul crossed his arms and tapped his foot impatiently as Mr. Cook asked about a charge on his bank statement.14. In order for a business's handling of complaints to be satisfactory to customers, the business's rules should beA. rigid.B. strict.C. flexible. **D. firm.* 15. Having clear customer relationship management goals before putting a program into place helps businesses to avoidA. having unsatisfied customers.B. purchasing irrelevant technology. **C. having to lay off employees.D. spending any money.16. People are considered to be __________ resources.A. capitalB. naturalC. human **D. physical* 17. One of the factors that would help a business provide place utility to customers is itsA. low prices.B. location. **C. helpful salespeople.D. merchandise selection.* 18. Which of the following is a true statement about trade industries:A. Trade industries have very little flexibility because of their size.B. Most trade industries are large and employ many people.C. Trade industries modify or change the form of products.D. The main types of trade industries are retailers and wholesalers. *** 19. The technology that has had the most influence on globalization has beenA. the Internet. **B. television.C. inexpensive telephone service.D. wireless connections.* 20. John's business has been very successful the past year, and profits increased 15% over the previous year. John has decided to expand and to hire additional employees. This is an example of how profitsA. provide necessary training for new employees.B. guarantee longevity of the business.C. increase the sales in a business.D. benefit society as well as business. *** 21. Every pay period, Sarah's employer withholds a certain percentage of her earnings, which her employer forwards to various government agencies. What type of tax is Sarah's employer withholding?A. ExciseB. EstateC. PropertyD. Income **22. Which of the following terms are related to the concept of productivity:A. Profit and lossB. Supply and demandC. Inputs and outputs **D. Competition and monopoly* 23. In calculating gross domestic product, the goods and services that schools and churches purchase for their own use are considered to be part ofA. foreign trade deficits.B. private domestic investment.C. government transfer payments.D. personal consumption expenditures. **24. Native New Yorker, Carolyn Hendricks is in London to finalize a business contract with British entrepreneur, Nigel Westwood. After their meeting, Nigel said, "Say, Carolyn. I'm feeling a tad peckish. Would yeh fancy to go out for a starter, or perhaps a sarnie and crisps?" An astonished Carolyn had no idea how to respond. What does this example illustrate?A. Because minimal vocabulary differences exist between American and Queen's English, few misunderstandings occur.B. Although Americans and British people speak English, the variations of the language can create barriers. **C. Americans use proper grammar, while the British tend to use more slang.D. Americans tend to speak more slowly and pronounce words more clearly than the British.* 25. While in Rio de Janeiro, Brazil, German businessperson Hans Dieseldorf wanted to greet an important Brazilian businessperson in Portuguese. Instead of saying, "Hello, Brazil is a beautiful country," Hans said, "Hello, Brazil smells like onions." This is an example of a(n)A. translation problem. **B. inappropriate use of humor.C. ethnocentrism issue.D. offensive gesture.26. Irish businessperson Nicole McMurray wanted to give Mrs. Fukushima, the wife of a well-known Japanese business executive, a small token of appreciation for inviting her to dinner. Nicole carefully selected a gift, wrapped it in white paper, and placed a red bow on top of the package. When Nicole presented the gift, Mr. and Mrs. Fukushima responded with looks of confusion and frowns. Later, Nicole learned that the color white signifies death to the Japanese, while red signifies luck. This situation illustrates thatA. the Japanese culture prefers dark colors, such as gray.B. the concept of color is similar throughout the world.C. color is not an important concept in most cultures.D. different cultures associate different meanings with color. *** 27. What issue is associated with product names that businesses often encounter when they start to sell their products internationally?A. ReadabilityB. Length of the product namesC. Pronunciation issuesD. Translation issues *** 28. Paige is a Canadian businessperson who is attending a meeting in India. What should Paige wear to the meeting to make a positive, professional impression?A. Conservative pantsuit **B. Ornate jewelryC. Leather beltD. Sleeveless dress* 29. Determine whether the following statement is true or false: Humor is a desirable personality trait for a businessperson.A. False, humor makes being an effective leader more difficult.B. False, humor detracts from your professional image.C. True, humor can make you appear more dependable.D. True, humor can make people around you more comfortable. *** 30. Individuals with initiative usually do __________ they are asked to do.A. less thanB. more than **C. exactly whatD. little of what* 31. Which of the following is an example of an employee who is behaving in an unethical manner:A. Taking credit for others' work **B. Using benefits appropriatelyC. Telling the truth to managersD. Admitting to all mistakes* 32. Jack, a manager, said to his staff, "I know that many of you think that this is a risky course of action. But, I've decided that we should proceed. If this is successful, it could greatly benefit the company. If it fails, I'll accept the consequences and work to find a new solution." What is Jack doing?A. Accepting responsibility for his decision **B. Indicating that he doesn't think he's made a good decisionC. Asking his staff to share the blame, if the action failsD. Requesting that his staff support his decision* 33. Jana has a meeting with her boss for two hours at 10:00 Monday morning and is leading a videoconference at 4:30 that afternoon. Susan, a potential investor, calls Jana early Monday morning and says that she will be flying in from Portland Monday morning at 11:30. After she picks up her rental car, Susan wants to meet with Jana early Monday afternoon. Jana knows that meetings with her boss tend to last longer than expected, and that Susan will have a 45-minute drive from the airport to her office. The investor could really help the company, so Jana feels that it is important to meet with Susan. What should Jana tell this important potential investor about meeting on Monday afternoon?A. Ask Susan to meet her at her office at noon for a lunch meetingB. Tell Susan that Monday is a very bad day and suggest that they schedule a meeting the following weekC. Suggest that they meet for lunch at 1:15 p.m. at a restaurant located between the airport and her office **D. Advise Susan that she can meet her at the airport lounge at 3:15* 34. An employee who has good feelings about the company, always looks on the bright side of things, and who is optimistic that the business will succeed is said to have a(n) __________ attitude.A. positive **B. neutralC. negativeD. indifferent* 35. Which of the following demonstrates a salesperson's empathy for customers:A. Showing an understanding of customers' feelings **B. Creating a favorable impression with customersC. Giving customers reasons to purchase a good or serviceD. Selling customers an item to go with what they already bought* 36. Ali wants to negotiate with her boss to take on more job responsibilities. Before approaching her boss, Ali needs to determine her boss's position andA. procedures.B. abilities.C. standards.D. interests. *** 37. A leader who imagines a better way of doing things is exhibiting the trait ofA. empathy.B. awareness.C. discipline.D. creativity. *** 38. One way that team leaders can show enthusiasm while enlisting others to work toward a shared vision is byA. applying for promotions within the organization.B. recognizing and rewarding progress toward the vision. **C. sharing the vision with only certain team members.D. avoiding contact with vendors and suppliers.* 39. Because the United States is made up of people from all parts of the world, it has many differentA. sanctions.B. governments.C. courts.D. cultures. *** 40. Which of the following is NOT a name for a medium of exchange accepted and backed by the government as payment for goods and services:A. Credit cards **B. Legal tenderC. CurrencyD. Bonds41. Which of the following statements about understanding your spending habits is true:A. A key aspect of opening a bank accountB. A key aspect in exceeding financial goalsC. The first step in creating a financial plan **D. The last step in creating a financial plan* 42. Matt is balancing his checkbook for the first time. He compares the checks he has written over the last month with those listed on his statement and finds that all of his checks have cleared. Next, he verifies that his latest paycheck, which he deposited the previous day, is on the list. It is not, so he adds it to his statement balance. After this, he shouldA. subtract any interest.B. subtract fees and charges. **C. call the bank for a new statement.D. consider everything done.* 43. When Stefanie receives her credit-card statement at the end of the month, she sees that she was charged for a down-payment on a new car that she hadn't purchased. Which of the following is NOT something she should do:A. File a police reportB. Call the car dealership **C. Contact her credit-card companyD. Check her credit report* 44. If a business chooses not to do something that it considers risky, it is __________ the risk.A. transferringB. avoiding **C. mitigatingD. accepting45. Which of the following is one way that small businesses use technology to perform accounting tasks:A. Establishing tax codesB. Requesting quotes by e-mailC. Filing tax returns online **D. Developing institutional policies46. Which of the following is one of the components of a business's cash payments:A. Total credit salesB. Previous month's balanceC. Cost of goods **D. Interest from loans47. Balancing the business's objective to make a profit with the interests of all the business's stakeholders is a primary consideration related to the business'sA. maintenance activities.B. creative processes.C. financial ethics. **D. forecasting methods.* 48. Which of the following is a benefit to businesses of orienting new employees:A. Increases profitB. Reduces turnover **C. Provides informationD. Eliminates training* 49. What is the foundation of knowledge management?A. An unresolved conflict or problemB. An intangible product to marketC. A place to store unrelated dataD. A willingness to share expertise **50. Camilla is being promoted and is training Cecily to take over her current position. To help Cecily acclimate to her new job, Camilla gives Cecily some tips that might help her process her work more efficiently. What does this example illustrate?A. Camilla is providing too much information and is likely to confuse and frustrate Cecily.B. Cecily should be cautious about the information that Camilla is giving her because it is probably incorrect.C. Camilla is exhibiting ethical behavior by passing along personal knowledge to help Cecily learn how to do her job. **D. Cecily should develop her own way of doing things because it is likely to be better than Camilla's way.* 51. How does the fragmentation of processes help to protect a company's trade secret?A. The company will not need to monitor any part of the process.B. It replaces the need to obtain a copyright for intellectual property.C. Employees' knowledge is limited to a specific part of the process. **D. The need for non-compete agreements is eliminated.* 52. The use of sorting techniques to capture knowledge involvesA. comparing and ordering concepts. **B. obtaining and storing confidential information.C. documenting relevant facts.D. setting long-term objectives.* 53. Which of the following situations is an example of an employee taking action to increase sales:A. Nigel increases the markup of the company's primary product from 25 percent to 35 percent.B. Kevin advises a customer that shipping charges will increase five percent for orders over $1,000.C. Nancy orders additional inventory from a vendor who was offering deep discounts for a limited time.D. Annabelle calls on her customers to determine if they need additional products. *** 54. The following statement appeared in an online journal article written by Dr. Lydia Garrett:"Dr. Sanderson has limited expertise in the area of biophysics, and I do not believe that he has conducted enough research to support his theory." This is an example ofA. supporting evidence.B. an opinion. **C. hearsay.D. a fact.* 55. Which of the following is a natural risk that businesses should consider when establishing their information-management procedures:A. Tax auditB. Fire **C. TechnologyD. Privacy* 56. Business people often use the calendar applications on their cellular telephones toA. obtain driving directions.B. track their appointments. **C. send text messages to clients.D. check their e-mail.* 57. Jamal wants to purchase software for his small business that allows him to create text documents, prepare presentations, maintain a customer database, and develop numerical charts. What type of software would best meet Jamal's needs?A. Word processingB. Integrated **C. SpreadsheetD. Trajectory* 58. Which of the following forms of communication is the most efficient way to bring four coworkers who are located in different cities together to simultaneously discuss a common business issue:A. SwitchboardB. Audio conferencing **C. Video cameraD. Teleprompter* 59. Project-management software can help businesspeople allocate necessary resources andA. hire contractors.B. schedule tasks. **C. establish credit.D. authorize payments.* 60. A customer sent the Webster Company a check in the amount of $1,725 as partial payment for a $2,456.29 purchase. During the current billing cycle, the customer made several purchases, totaling $466.23. Now, Webster must generate a new account statement to send to the customer. How much money does the customer owe Webster?A. $731.29B. $1,197.52 **C. $466.23D. $1,719.51* 61. Businesses often maintain records about vendors' pricing, delivery terms, and credit policies and use the information in the records toA. monitor inventory levels.B. negotiate higher discounts.C. award purchasing contracts. **D. follow safe shipping procedures.* 62. Which of the following facility components are inspected by authorized officials to ensure that safety ordinances are met:A. Computer networksB. PhotocopiersC. Elevators **D. Portable cameras* 63. A common cause of back injuries on the job isA. poor posture.B. improper lifting. **C. hard physical labor.D. sitting in one position.* 64. Why might a business obtain a trademark for its intellectual property?A. To prevent the publication of the business's written workB. To protect the integrity of the business's logo **C. To keep competitors from using the business's manufacturing processesD. To stop the unauthorized use of the business's inventions* 65. Luke is a purchasing-department employee who must complete his inventory report by 4:00 p.m. on Tuesday. He must also collect bids and place orders for staple items by Wednesday at noon. Because Luke knows that it will take a while to obtain the bids, he decides to start contacting vendors before he begins working on his inventory report. Luke is __________ his workload.A. prioritizing **B. delegatingC. communicatingD. simplifying* 66. Tom needs Allison to provide a status report, so he can review inventory levels. After Tom has reviewed the inventory report, he must tell Kayla which items the business needs, so she can contact the appropriate vendors to order stock. To achieve the business's goal of maintaining adequate inventory levels, each employee must perform his/her tasks in a(n) __________ order.A. sequential **B. reverseC. informalD. flexible67. What can you do if you will be unable to obtain the amount of financial support that you need to complete the project?A. Decrease timeB. Eliminate the projectC. Lower expectationsD. Cut costs **68. Purchasing can help manufacturing businesses to sharpen their competitive edge byA. promoting products to customers.B. maximizing inventory investment.C. limiting shipment of goods.D. keeping their prices down. *** 69. If the delivery date is an important factor when placing an order, a buyer must consider the vendor'sA. quantity discounts.B. lead time. **C. unit pricing.D. billing process.* 70. Which of the following actions will help a business maintain positive, long-term relationships with its vendors:A. Negotiating aggressivelyB. Limiting communicationC. Solving problems together **D. Withholding information* 71. The Colbert Company ships 19 cases of model number 328 bolts to SOA Manufacturing Company every other week. This is an example of a(n) ___________ purchase order.A. advanceB. standing **C. seasonalD. open* 72. Which of the following items would a clothing manufacturer classify as raw-materials inventory:A. Zippers, sewing machines, and clothB. Buttons, cloth, and thread **C. Thread, zippers, and sewing machinesD. Cloth, zippers, and shirts* 73. What should businesses do before negotiating with vendors?A. Make minor concessionsB. Implement aggressive tacticsC. Assess vendors' strengths and weaknesses **D. Adopt a win-lose attitude74. The Six Sigma model involves continuously implementing activities thatA. influence regulation and decrease outputs.B. promote consistency and eliminate resources.C. stimulate revenue and lessen decision making.D. improve quality and reduce inefficiencies. *** 75. Determine whether the following statement is true or false: Employees can help the business to control expenses by being as productive as possible.A. False, employee productivity does not help the business.B. True, when an employee wastes time, the company is losing money. **C. True, employees should be productive even when they are ill.D. False, employee productivity does not affect expenses.* 76. A businessperson conducted an analysis which indicated that the company's productivity increased15% last quarter after implementing a new production process. The purpose of the analysis was toA. reduce organizational waste.B. solve a problem.C. validate an action. **D. formulate a plan.* 77. A worker must remove jewelry while working with dangerous equipment. This is an example of a dress code that is influenced byA. the nature of the job. **B. business-image considerations.C. personal preferences.D. corporate-casual policies.* 78. Which of the following would not be scheduled on a daily "To Do" list:A. Activities that must be done next month **B. Required activities from the master listC. New activities that must be completed the next dayD. Activities that were previously scheduled for the day* 79. Which of the following is a career search tool for determining what you are capable of doing now and might be good at doing with additional training or education:A. Intelligence testB. Aptitude test **C. Interest surveyD. Personality test* 80. Employees who work in certain professions are required to pass an examination and obtain aA. license. **B. sponsor.C. charter.D. patent.* 81. Identify the weakness of the following opening paragraph used in a letter of application: Your recent advertisment in the Gazette for a customer service representative is of interest to me. I would like to aply for the position.A. Spelling **B. FormatC. GrammarD. Punctuation* 82. Membership in a professional association can contribute to your professional growth by helping you toA. develop leadership skills. **B. prepare for rejection.C. fund personal projects.D. eliminate stress.83. Employees who are unsure about workplace protocol and procedures shouldA. obtain suggestions from coworkers.B. follow their instincts.C. conduct a formal investigation.D. ask their managers to clarify the policies. *** 84. Tiffany Evans is the purchasing manager of a janitorial supply company. Which of the following employees reports directly to Tiffany:A. Elizabeth Curtis, assistant buyerB. Quinn Montgomery, accounts-receivable coordinatorC. Christopher Franklin, senior buyer **D. Logan Grear, shipping clerk* 85. What type of goal is designed to prevent or control internal organizational behavior?A. ProfitB. ProductC. Order **D. Short-term* 86. How can all workers help their employers achieve their organizational goals?A. Implement liberal spending habitsB. Perform their jobs in efficient ways **C. Develop a mission statementD. Delegate their workloads87. When Deidra was developing the statement of work (SOW) for a complex construction project, she included a statement that describes the things that the project will and won't include. This statement is defining the projectA. constraints.B. outcome.C. risks.D. scope. **88. Which of the following is the first step in developing a work breakdown structure (WBS) for a project:A. Determine how long it will take to complete each work taskB. Ensure that work tasks are being completed in the proper orderC. Evaluate the quality of completed activities in relation to the project goalsD. Divide the workload into independent work packages *** 89. So project-team members understand the project objectives and what is expected of them, project managers need toA. develop grievance procedures.B. communicate clearly. **C. eliminate conflict.D. make decisions.90. Which of the following is a question that should be answered when developing the "lessons learned" document:A. What are the risks?B. What equipment should we use?C. Who are our stakeholders?D. How can we improve? **91. A water-filtering company made some changes to its processes that resulted in better tasting water. This is an example ofA. market development.B. quality control.C. opportunity cost.D. quality improvement. *** 92. The overall purpose of the Six Sigma quality-management framework is to satisfy customers andA. lower costs. **B. simplify activities.C. improve technology.D. identify needs.* 93. What activity helps businesses identify the various opportunities for continuous quality improvement?A. Monitoring data **B. Setting goalsC. Establishing budgetsD. Rationing resources* 94. Which of the following is a true statement about the role of ethics and business risk:A. Businesses that follow ethical guidelines often damage their reputations in the marketplace.B. The unethical behaviors of a business's managers do not affect the business's employees.C. Businesses that provide ethics-training programs can reduce the business's level of risk. **D. Businesses are not at risk when they assume that their employees understand the importance of ethics.95. Which of the following is a form of technology that businesses use to reduce the risk of robbery and theft within their facilities:A. KiosksB. Deadbolt locksC. Electronic cash registersD. Surveillance cameras *** 96. When RWQ Corporation could not obtain insurance coverage to cover a specific type risk from commercial insurance companies, it formed an insurance company to provide coverage for the risk. This is an example of a company managing its risk through a(n)A. organic entity.B. captive insurer. **C. generic provider.D. lending institution.* 97. Which of the following is an activity associated with the organizing function of management:A. Inspecting the quality of outputsB. Developing a mission statementC. Determining the division of labor **D. Providing employees with feedback98. What is an important question that a manager must consider when hiring a new employee?A. What are the company's product quality standards?B. What is the company's vision?C. How should the workload be distributed?D. How will the company compensate this worker? *** 99. A primary activity of the directing function of management isA. evaluating performance.B. identifying skills.C. initiating action. **D. establishing authority.* 100. One of the functions of managerial control involves comparing the results of various business activities with theA. safety regulations.B. hiring procedures.C. established goals. **D. purchasing methods.

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