DECA Practice Test

. Last year, several clients filed complaints with a government agency stating that TQS Company's employees used questionable tactics to get them to purchase financial products. One action that the company can take to lower risks associated with their employees' behavior is to A. provide ongoing ethics training for all employees. B. require accounting managers to develop a code of conduct. C. develop financial products that better meet clients' needs. D. encourage employees to use their best judgment in selling situations

A

. Which of the following is a main advantage of process performance management: A. Catching issues before they become problems B. Minimizing waste C. Saving time during manufacturing D. Improving product design

A

A company is making big changes to its database. When should the company make these changes? A. After work hours or when employees have downtime B. At the beginning of the work week C. Never—changes should not be made to a database. D. Over the employees' lunch breaks

A

A corporation is building a facility in the city's business district. The city requires that the facility meet certain size, style, structural, and usage requirements. These requirements are outlined in the town's A. zoning ordinances. C. partnership agreement. B. health regulations. D. tax code.

A

A farmer has 1,000 acres. They decide to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If they wanted to raise more cows, they would have to reduce the amount of land allotted to growing apples. This is an example of A. opportunity cost. C. efficiency. B. distribution. D. utility.

A

A music streaming service has two versions: one with advertisements and one without advertisements for a monthly fee. What business model does this describe? A. Freemium C. Auction B. Franchise D. Affiliate

A

Before Joe starts working on a new assignment, he thinks about the goals of the assignment, the resources he has available to him, and the activities that the project will entail. Joe is implementing A. business process thinking. C. business objective planning. B. personal accountability. D. inventory management

A

Corsica Steel Mill has developed a new process to reduce the time it takes to complete a phase of production. To legally protect this new process from unauthorized use, the company should obtain a A. patent. C. trademark. B. copyright. D. trade name.

A

In which section of the statement of work (SOW) document would you find the following information: "AJB International will be responsible for collecting the research for the project but will not interpret the results." A. Scope statement C. Purpose statement B. Communication plan D. Goals and objectives

A

Maggie owns an accounting firm and decides to maximize profit by reducing employee expenses. What disadvantage may this cause for Maggie's firm? A. Lower employee morale C. Higher cost of goods B. Lower profits D. Higher training costs

A

Many organizational changes fail because A. companies do not properly execute the change management life cycle. B. big changes cannot be executed throughout entire companies. C. most people are resistant to change. D. managers give their employees too much time to adjust to changes.

A

Red Ruby Jewelry is suing another jewelry company for an intellectual property violation. During which phase of the litigation process should Red Ruby Jewelry's lawyers interview potential witnesses? A. Discovery C. Trial B. Pleadings D. Appeal

A

Releasing equipment, materials, and team members are tasks that are completed during the __________ phase of a project. A. closing C. planning B. scheduling D. initiating

A

Ryan buys a car, but he stops making payments after a few months. The seller is able to repossess the car because it has a(n) __________ on the title. A. lien C. rating B. installment D. principal

A

Stress and fatigue are __________ factors that can affect business process design. A. human C. regulatory B. technological D. government

A

The cost associated with throwing out defective products as they come off the production line is a(n) __________ cost. A. internal failure C. appraisal B. prevention D. external failure

A

The formula for calculating gross profit is A. income from sales minus cost of merchandise. B. net profit plus cost of merchandise. C. income from sales minus net profit. D. income from sales minus operating expenses.

A

The person who files a lawsuit is the A. plaintiff. C. lawyer. B. defendant. D. judge.

A

What type of analytical report is likely to contain the following statement? "Based on the facts presented, it is my recommendation that we continue with the existing course of action and complete the road closures and updates to enhance the city's infrastructure." A. Justification report C. Due diligence report B. Market analysis report D. Troubleshooting report

A

Which of the following actions can help a business protect its digital assets: A. Making an inventory of digital information B. Allowing employees to bring their own devices to work C. Backing up key data once per fiscal year D. Giving employees full access to all company data

A

Which of the following actions will help a business maintain positive, long-term relationships with its vendors: A. Solving problems together C. Negotiating aggressively B. Limiting communication D. Withholding information

A

Which of the following is a part of managing a project team: A. Boosting morale C. Preventing scope creep B. Managing change D. Reporting to stakeholders

A

Which of the following is an example of an individual setting a financial goal: A. Saving enough money to retire in 10 years C. Reviewing various health insurance options B. Making a will to distribute personal assets D. Obtaining a credit card for emergencies

A

Which of the following is an important step to take to ensure a protest is peaceful and effective: A. Avoid violence and vandalism during the protest. B. Demonstrate your importance by using harsh, insulting language. C. Obtain your senator's permission before assembling the protest. D. Argue against any opponents to your protest.

A

Which of the following is true of arbitration: A. It is an adversarial process. C. It is a cooperative process. B. It usually has a win-win outcome. D. It is more expensive than litigation.

A

Which of the following organizational cultures is most likely to promote knowledge management: A. A collaborative, open working space B. A silent office filled with closed-off cubicles C. A company that struggles to keep documents organized D. A competitive, "everyone for themselves" environment

A

tems of value are listed under which of the following components of the balance sheet: A. Assets C. Owner's equity B. Liabilities D. Notes

A

. Ralph hosts a video conference about a trade show he recently attended. Which of the following knowledge management processes is Ralph practicing: A. Acquisition C. Creation B. Sharing D. Refinement

B

A business establishes virtual workspaces for several project teams in which information and expertise are continuously updated and shared among all of the work teams' members. What form of knowledge management technology is the business using? A. Remote search engines C. Knowledge-mapping tools B. Knowledge repositories D. Decision support systems

B

A company develops a new production process so employees can create products while seated. This requires the company to schedule overtime hours but complies with a law that prevents employees from standing for more than eight hours. The company has changed its manufacturing process in response to A. employee disabilities. C. costly overtime. B. regulations. D. legal battles.

B

A company is considering whether to expand its operations into a neighboring country. The company predicts that the expansion will increase profits, but the firm's financial officials are concerned about the strength of the foreign dollar. This is an example of which of the following risk factors associated with international business: A. Environmental fluctuations C. Domestic financial policies B. Foreign currency exchange D. Governmental regulations

B

A country imports $15,132,820 worth of goods and services, exports $15,694,454 worth of goods and services, and pays $1,750,500 in foreign aid. What is the amount of the country's trade surplus? A. $2,312,134 C. $1,188,866 B. $561,634 D. $852,820

B

A manager who is developing compensation plans may A. decide where and when training is best conducted. B. determine employee eligibility for benefits. C. extend a job offer with specific terms and conditions. D. negotiate with job candidates.

B

A primary reason it is important for businesses to continuously try to improve work processes is to A. motivate employees. C. encourage creativity. B. increase efficiency. D. communicate effectively

B

After learning that her accountant treated another customer unethically, Bethany decided to hire a different firm for the next year. This is an example of how A. ethics reduce legal liability. B. ethics affect customer loyalty. C. customers control a company's ethical policies. D. accountants cannot control customer satisfaction.

B

An important activity of the staffing function of management involves A. evaluating performance. C. delegating tasks. B. compensating employees. D. establishing standards.

B

Business analysis is essentially the process of helping companies A. form. C. grow. B. change. D. communicate.

B

Cassandra is a buyer for a department store chain. On Tuesday, she placed a seasonal order with an apparel vendor without providing specific models, sizes, colors, or ship dates. What type of order did Cassandra place? A. Special C. Standing B. Blanket D. Rush

B

One of the best ways for project managers and their team members to reflect on the positive and negative experiences of a finished project is to A. immediately start a new project. C. host a company-wide meeting. B. create a lessons learned document. D. follow a work breakdown structure.

B

One of the main functions of managerial control is to make sure that the business's A. facilities are maintained. C. employees are disciplined. B. objectives are achieved. D. activities are regulated.

B

One way that businesses can reduce the risk of credit card fraud at the point of sale is by A. reviewing sales receipts during closing procedures. B. verifying the cardholder's identification. C. conducting a financial audit. D. establishing credit limits for card usage.

B

Online shipment tracking is one example of __________ affecting supply chain management. A. globalization C. economic downturns B. technology D. production changes

B

The primary purpose of developing a work breakdown structure (WBS) for complex projects is to A. document the benefits of the project. C. monitor human resources and supplies. B. organize the work in a logical sequence. D. identify potential stakeholders.

B

The value of a country's currency declines when it implements policies that restrict trade. What is the primary factor affecting the change in value of the currency in this situation? A. Civil unrest C. Demographics B. Isolationism D. Cultural differences

B

What is the primary purpose of managerial planning? A. To implement activities C. To evaluate forecasts B. To prepare for the future D. To change processes

B

What should a company review to determine whether the business is profitable? A. Accounts receivable ledger C. Cash flow statement B. Income statement D. Monthly sales receipts

B

What technological application do financial businesses use to evaluate how investment portfolios may react to changing conditions in the markets? A. Automated oversight C. Financial compliance B. Stress testing D. Threat detection

B

When a company decides to switch email services, the manager hosts a meeting to tell employees how the new service will benefit them. This is an example of how A. change management does not require a leader to be successful. B. gaining buy-in is an important aspect of change management. C. changes only impact people at the top of a company. D. providing training can help make changes go more smoothly.

B

When it comes to buying behavior, people tend to A. purchase products contrary to their needs. C. satisfy their less urgent needs first. B. satisfy their most urgent needs first. D. exhibit no identifiable pattern.

B

Which component of the statement of work (SOW) is most likely to contain the following information: "With an operating budget of $1.2 million, we expect to complete the project within six months." A. Communication plan C. Project deliverables B. Cost and schedule estimates D. Project scope

B

Which of the following helps you determine the total cost of a consumer loan: A. Origination fees C. Repayment terms B. Annual percentage rate D. Credit score

B

Which of the following is an example of a purpose statement in a research report: A. In 2005, Sims Research surveyed 150,000 college professors. B. In this study, we will examine the causes and effects of climate change. C. The quality of soil may affect plant growth. D. 2,500 residents reported power outages during the ice storm.

B

Why is it important for businesses to manage employee information in a way that keeps it secure? A. To be secretive C. To beat the competition B. To be ethical D. To avoid publicity

B

. A small brick-and-mortar bookstore will benefit most from a supply chain that is designed to A. ship books to customers' homes. B. stock large quantities of best sellers. C. purchase books to fulfill requested orders. D. use an electronic commerce center to handle orders.

C

. Which of the following is a true statement regarding knowledge management and employees: A. Knowledge management can be successful without employee involvement. B. Not every employee should be expected to contribute knowledge. C. Contributing knowledge should be a simple task for employees. D. The company benefits from knowledge management, but individual employees do not

C

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 with A. securities regulations. C. local ordinances. B. free trade agreements. D. consumer protection laws.

C

A company wants to be alerted to security breaches and other IT threats. What type of software should the company invest in? A. Threat prediction C. Risk management B. Word processing D. Presentation

C

A devastating earthquake in a major exporting country will likely create long-lasting shipping and transportation delays for much of the country's exports. This is an example of a A. local regulatory concern. C. global supply chain issue. B. national security risk. D. humanitarian crisis.

C

A project manager has determined that the team completed the software-development phase of the project four days ahead of schedule. What control activity is the project manager performing? A. Changing a process C. Tracking a milestone B. Evaluating a time constraint D. Assessing a setback

C

A wholesale distributor would like to track its customers geographically. Which software application would be most effective? A. Internet C. Database B. Spreadsheet D. Word processing

C

Anti-malware protection, encryption, routine backups, and operating system updates are all effective tools for A. organizing customer information. C. protecting digital assets. B. screening potential employees. D. sorting through financial data.

C

Employee self-reporting, automatic data collection and analysis, and meetings are all methods that managers can use to A. take corrective action. C. measure the organization's performance. B. set standards of excellence. D. compare performance with standards.

C

John's supervisor provides only general guidance, avoids giving specific or detailed directions, and wants employees to function independently. What leadership style is the supervisor following? A. Democratic C. Laissez-faire B. Authoritarian D. Assertive

C

Mia decides to change a future deadline on her project's schedule because she knows that, based on her team's performance, they will not meet the deadline. Mia is taking __________ action. A. defect repair C. preventative B. corrective D. productive

C

Supply chain network design improves service and reduces cost by aligning purchasing, production, warehousing, inventory, and A. the sales force. C. transportation. B. marketing. D. promotion.

C

Thinking about the consequences is part of which step of the ethical dilemma response process? A. Reflect on the outcome. C. Consider all your potential actions. B. Get the facts. D. Identify the dilemma.

C

To prevent sensitive customer data from being stolen by hackers, companies should A. ask customers to sign a waiver in case their information is stolen. B. prohibit workers from accessing customer information. C. require that employees follow good password practices. D. refuse to accept credit or debit cards from customers

C

What can a business do if it is exposed to risks that commercial insurance companies do not cover? A. Create a trade union C. Form a captive insurance company B. Acquire a professional association D. Establish a risk management committee

C

What is a primary characteristic of intellectual capital? A. Observable C. Intangible B. Factual D. Reliable

C

What is the potential benefit to a business that continuously takes action to improve the quality of its goods and services? A. Increased premiums C. Higher demand B. Increased product options D. Higher costs

C

What is the preferred length of a job resume? A. Five pages C. From one to two pages B. Three pages D. As long as necessary

C

What should businesses do before negotiating with vendors? A. Make minor concessions C. Assess vendors' strengths and weaknesses B. Implement aggressive tactics D. Adopt a win-lose attitude

C

Which of the following is a benefit of implementing Six Sigma: A. More qualitative results C. Increased customer satisfaction B. Less predictability D. Reliance on guesswork

C

Which of the following is a benefit of organizing: A. Competitive, challenging goals and objectives B. Decreased cohesion across departments C. Tracking, accountability, and growth D. Increased number of communication channels

C

Which of the following is a factor that keeps quality at the forefront of the modern business world: A. Outdated technology C. Consumer pressure B. Weather patterns D. Currency fluctuations

C

Which of the following is an example of a raw material that a business might inventory for production use: A. Stapler C. Wood B. Toothpaste D. Chair

C

Which of the following is an example of receiving information: A. Looking at a list of random addresses C. Reading a travel itinerary B. Taking a language course D. Learning to take someone's temperature

C

Which of the following technologies has proven very successful in creating "what-if" scenarios in the finance industry: A. Time value of money calculators C. Digital dashboards B. Financial reporting and consolidation D. Account reconciliation

C

. During the risk management planning stage, companies should A. focus on internal issues. C. avoid discussing compliance. B. reward ethical behavior. D. assess their ethical needs.

D

. Over the years, Malcolm has implemented strategies that help him perform and complete a work activity more efficiently. The department manager has asked Malcolm to write down the steps of the process so that the instructions will be available for coworkers and employees in the future. This is an example of A. data procurement. C. project management. B. confidential information. D. knowledge codification.

D

. What is the advantage of using project management computer software that allows several team members to access project information at the same time? A. Eliminates the need to analyze variances C. Ensures data accuracy B. Reduces the need to secure data D. Enhances collaboration efforts

D

An employee who notices the electrical cord to a neon sign is badly frayed should A. call an electrician to fix it. C. assume someone knows about it. B. try to repair the cord. D. report it to a supervisor.

D

Capability Maturity Model Integration (CMMI) software has the ability to conduct an audit that compares the business's existing production and acquisition processes with the CMMI model. The audit provides information that will allow the business to A. manage its human and natural resources effectively. B. develop long-term financial and operating plans. C. determine the best way to comply with government regulations. D. incorporate the best overall quality-improvement processes.

D

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 audit C. Termination checklist B. Executive summary D. Lessons learned document

D

How can you keep stakeholders engaged throughout the planning process? A. Define the project scope. C. Develop quality standards. B. Identify project risks. D. Obtain feedback from your team.

D

If the cash from operating activities is consistently greater than the company's net income, the company's net earnings are of a(n) __________ quality. A. excessive C. moderate B. low D. high

D

In order for data change to be successful, an organization should A. enact changes whether or not everyone in the organization agrees. B. be able to revert back to their old processes. C. have one employee capable of making the change. D. be aware of why the change is necessary.

D

Melissa has been assigned a unique task at work; her boss wants her to oversee her team's adoption of a new software. They explain that Melissa should make a plan for the integration of the new software, support her teammates in the transition, and ensure that the transition is successful. In other words, Melissa is responsible for A. managerial control. C. human resources management. B. organizational goal setting. D. change management.

D

One of the most important characteristics of a quality good is A. responsiveness. C. empathy. B. tangibles. D. reliability.

D

What is required of businesses to maintain positive, long-term relationships with their suppliers? A. Rigid policies C. Autocratic management B. Flexible lead times D. Ongoing communication

D

Which of the following actions is most likely to help a business protect its trade secrets: A. Require employees to develop a noncompete agreement B. Apply for copyright protection with the government C. Publish a nondisclosure statement on its website D. Limit access to the sensitive information

D

Which of the following activities would help a company prepare to negotiate prices with a vendor: A. Determining the company's long-term and short-term goals B. Asking the vendor to provide a copy of its budget C. Assigning the task of researching standard prices to a new employee D. Reaching out to the vendor's previous customers

D

Which of the following factors is associated with innovative organizations: A. Fear-based motivation C. Leadership gaps B. Change avoidance D. Adaptability

D

Which of the following is a benefit of settling a case instead of going to trial: A. Settlements are less predictable. B. Settlements ensure a chance at appeal. C. Settlements involve a "guilty" or "not guilty" verdict. D. Settlements are more private.

D

Which of the following is a characteristic of effective knowledge harvesting: A. Limited input C. Static in nature B. Short-term outlook D. Systematic process

D

Which of the following is a good way for managers to measure their directing ability: A. Building group dynamics among employees B. Eavesdropping on employee conversations C. Motivating employees to achieve company goals D. Analyzing quantity standards such as sales numbers

D

Which of the following is an activity that falls under supply chain management: A. Hiring new employees C. Forecasting sales B. Creating advertising campaigns D. Building relationships with vendors

D

Which of the following is an example of a project manager motivating a project team: A. Zoey sends an email requesting each team member provide her with a weekly activity report. B. Marcus tells Thomas that he might work more efficiently if he performed one task before another one. C. Ryan advises Samantha that she will need to perform additional duties while Maggie is on vacation. D. Tamara recognizes how hard her team is working, so she provides lunch for the team members

D

Which of the following is an example of a voluntary debtor-creditor relationship: A. Owing punitive damages C. Requesting specific information B. Receiving a monetary gift D. Obtaining a loan from a bank

D

Which of the following is an example of negative reinforcement: A. A raise C. A bonus B. Additional vacation time D. Reduced tedious paperwork

D