entrepreneurship in DECA composition

If a business negotiates a 3.6% discount rate and has credit card sales this month of $78,450, what amount does it owe the bank? A. $2,902.65 B. $2,745.75 C. $2,667.30 D. $2,824.20

$2,824.20

Calculate the amount of additional capital a business needs to obtain in order to purchase a new piece of equipment that costs $250,000 if a bank will loan 75% of the price and the business has $20,000 in available cash. A. $25,000 B. $42,500 C. $62,500 D. $75,000

$75,000

Which of the following is not part of the price involved with making a vision into a reality: A. Time B. Money C. Aspirations D. Effort

. Aspirations

Mike is thinking about expanding his manufacturing business internationally. Which of the following is a risk he might encounter: A. Encountering new markets B. Dealing with cultural and language barriers C. Dealing with fewer government regulations D. Saving money on taxes

. Dealing with cultural and language barriers

The ABC Company published an incorrect statement about the quality of the Marston Company's product. As a result, Marston's sales have dramatically decreased. This is an example of a legal tort related to

. defamation

Businesses often evaluate vendor performance after orders have been delivered to A. identify the most capable suppliers. B. establish product specifications. C. negotiate future discounts. D. organize the receiving areas.

. identify the most capable suppliers.

Determine a business's ROE (return on equity) given the following information: Revenue: $29,261; Net Income: $4,212; Assets: $27,987; Shareholders' Equity: $13,572; Net Profit Margin: 14.39%; Asset Turnover: 1.0455; Equity Multiplier: Assets 2.0621 A. 15.04% B. 31.02% C. 29.67% D. 12.85%

31.02%

What do businesses often do depending on the circumstances they face in the marketplace at any one time? A. Offer discounts B. Reduce expenses C. Increase sales D. Adjust prices

Adjust prices

What federal law prohibits businesses from asking potential employees about their medical history?

Americans with Disabilities Act

Which of the following equations should employees know when they are verifying the accuracy of a business's balance sheet: A. Owner's Equity = Available Cash - Liabilities B. Assets = Liabilities + Owner's Equity C. Assets = Owner's Equity - Liabilities D. Owner's Equity = Liabilities + Available Cash

Assets = Liabilities + Owner's Equity

When a new business is growing quickly, which of the following activities will increase new employees' productivity levels in order to maintain adequate supply for increasing demand: A. Management changes B. Equipment improvements C. Challenging quotas D. Comprehensive training

Comprehensive training

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

Consumer pressure

Which of the following is a criterion that an investment company might use to evaluate the performance of its independent agents:

Customer service

Which of the following is an action that can help a business safeguard its reputation: A. Delivering products with unpredictable quality B. Fixing mistakes consistently and quickly C. Using high-pressure sales techniques D. Implementing minimal touch points to connect with customers

Fixing mistakes consistently and quickly

. What is one reason why many people decide to become entrepreneurs?

Flexibility

Which of the following is an example of a transit advertising media: A. Opt-in email B. Radio C. Broadcast D. Hot-air balloon

Hot-air balloon

The AMR Company, a growing start-up business, plans to create a new position and hire a person who will focus on creating new products. This person is an example of which type of resource: A. Temporary B. Human C. Analytical D. Intangible

Human

Which of the following is a personnel record that businesses usually maintain: A. Office newsletters B. Safety regulations C. Payroll stubs D. Job applications

Job applications

Which of the following is an example of a businessperson developing cultural sensitivity:

Learning differences in body language

Erick and Jacob are college graduates who want to open an accounting firm. However, Erick has a fulltime position that he plans to continue but still wants to be a part of this business venture. Which form of business ownership would you recommend to Erick and Jacob?

Limited partnership

. Tim works for a manufacturer that produces food items. He manages the flow of products from production to consumption. He decides where and how to store the products as well as how and when to transport them to customers. In which part of operations does Tim work? A. Quality inspection B. Scheduling C. Logistics D. Quality assurance

Logistics

Which of the following is a common risk of innovation: A. Competitive advantage B. Economic downturn C. Paradigm shift D. Loss of jobs

Loss of jobs

Which of the following is a true statement concerning marketing strategies: A. There is a formula for selecting the best strategies. B. Successful strategies should be made permanent. C. Marketing strategies can be changed as needed. D. Companies in the same industry use the same strategies.

Marketing strategies can be changed as needed.

What important factors should a small-business owner consider when deciding if s/he should hire an additional employee? A. Necessary skills and affordability B. Property taxes and benefits C. Screening process and skill set D. Training needs and attitude

Necessary skills and affordability

What is the base amount used for vertical analysis of items on the income statement? A. Total assets B. Total income C. Total liabilities and equity D. Net sales

Net sales

After preparing her business's cash flow statement, Jackie determines that the business will have a deficit for the next few weeks. What is the best way for Jackie to cover her expenses? A. Sell assets B. Close the business temporarily C. Hire additional salespeople D. Obtain a loan

Obtain a loan

What do businesses develop to be able to link performance measures to the financial outcomes of marketing? A. Positioning procedures B. Operational tactics C. Quantifying strategies D. Bookkeeping methods

Quantifying strategies

Ben recently purchased a cell phone. The manufacturer provided a form and a special code with the phone's packaging. Ben completed the form, copied his sales receipt, and mailed these items back to the manufacturer along with the part of the packaging that contained the special code. Within six weeks, Ben received a $50 check from the phone manufacturer. What type of sales-promotion technique was used? A. Sweepstakes B. Coupon C. Rebate D. Warranty

Rebate

Which of the following is an example of consideration in a contract: A. Promising to make a gift B. Putting the price in writing C. Selling an item for $500 D. Giving away an item worth $500

Selling an item for $500

Communicating effectively, showing a sense of teamwork, and being a good negotiator are all ways to demonstrate which component of emotional intelligence?

Social management

Which of the following is a legal concept that affects businesses that operate in foreign countries:

Sovereign immunity

What is often the best source of credit for business start-ups? A. Traditional lenders B. Commercial banks C. Stock market D. State or local governments

State or local governments

Which of the following is considered the owner of a corporation: A. Lower level employees B. Managers C. The president D. Stockholders

Stockholders

As a manager at WorkSocks, Inc., Carla has been told by her supervisor that production on sock puppets must begin immediately. After training a group of her best workers, Carla has moved them from the wool sock room to the puppet room to begin work. At what level of management is Carla's position? A. Mid-level B. Middle C. Executive D. Supervisory

Supervisory

What type of planning involves setting short-term goals for a new business venture? A. Tactical B. Strategic C. Systematic D. Environmental

Tactical

What might your business do if a competitor is using a brand mark and a brand name that are similar to your business's leading private brand? A. Take the competitor's actions as a compliment B. Market the leading brand as usual C. Assume that brand recognition will continue D. Take legal action to protect the brand

Take legal action to protect the brand

Which of the following is an example of an ongoing process that businesses can use to recognize product opportunities: A. Talking with customers and employees B. Reviewing sales forecasts C. Analyzing corporate objectives D. Adding items to the product mix

Talking with customers and employees

. Which of the following is a change in the business environment that most start-up ventures must continuously monitor: A. Geography B. International trends C. Manufacturing processes D. Technology

Technology

Which of the following is an effective, inexpensive external resource that entrepreneurs use to research and develop the venture's concept: A. The Internet B. Marketing research firm C. Focus groups D. Professional consultants

The Internet

When is the use of email an effective direct-advertising strategy? A. A business wants to be sure people read the message. B. The message appeals to a small audience interested in a specific product. C. The message appeals only to people who have computers. D. The message is too short for surface mailing.

The message appeals to a small audience interested in a specific product.

Claire needs to determine the feasibility of a new venture idea. What are three factors that Claire should consider when conducting her feasibility study? A. The venture's staffing needs, raw material needs, and estimated return on investment B. The venture's staffing needs, raw material needs, and past sales C. The venture's staffing needs, estimated return on investment, and past sales D. The venture's raw material needs, estimated return on investment, and past sales

The venture's staffing needs, raw material needs, and estimated return on investment

A small restaurant wants to expand, but first it needs to raise funds. John wants to raise capital through debt financing, but his partner, Damien, isn't sure that's a good idea. What is one downside of debt financing that Damien could cite to prove his point to John? A. Shareholders will own part of their business. B. They will have to pay interest on the borrowed amount. C. They will need to sell stock in their business. D. They will be required to repay the money immediately.

They will have to pay interest on the borrowed amount.

How could a business use marketing-research data it has gathered about the average age, income, educational levels, and spending patterns of area consumers? A. To develop a profile of the typical customer B. To create a mailing list for the business C. To identify problems within the business D. To establish an appropriate operating budget

To develop a profile of the typical customer

What is one way that a business might use marketing information? A. To develop new products B. To interpret findings C. To calculate statistics D. To identify new vendors

To develop new products

. Which of the following is a type of intangible property that businesses often establish policies to protect: A. Inventory methods B. Production systems C. Trade secrets D. Delivery routes

Trade secrets

Your statistical findings show that the mean and the median of the following data are the same: Data Set A: 2, 5, 8, 10, 10 Data Set B: 7, 7, 7, 7, 7 Data Set A: Mean = 7, Median = 7 Data Set B: Mean = 7, Median = 7 Just by looking at the data, you can tell the data results are quite different. What statistic do you need to use to show that difference? A. Average B. Variance C. Geometric mean D. Measure of central tendency

Variance

Which of the following often provides trade credit to businesses: A. Wholesalers B. Corporations C. Investors D. Financiers

Wholesalers

Eddie is a small business owner. Every year, he identifies potential problems that could harm his company and takes steps to prepare for them. In other words, Eddie conducts A. managerial accounting. B. a risk assessment. C. a financial calculation. D. entrepreneurship.

a risk assessment.

The U.S. government sets aside some of its income from payroll taxes to fund Social Security, which is a program that aims to ensure that elderly and disabled people do not live in poverty. This is an example of

a trust fund

For successful innovation in the workplace, employees should have a desire to learn and be willing to A. follow procedures. B. accept change. C. exhibit bias. D. suppress ideas

accept change

Doormats, carpeting, telephones, and cleaning chemicals are all items that an office might buy for A. negotiations. B. production. C. business use. D. competitive bidding.

business use.

A characteristic of managerial accounting is that it focuses on A. capturing the business's day-to-day financial activities. B. reporting the business's long-term investment goals. C. developing the business's annual report. D. preparing and submitting the business's tax forms.

capturing the business's day-to-day financial activities.

Antonio has been tasked with helping the accounting staff at his company make the transition to a new recordkeeping software. He has been instructed to facilitate training sessions, answer employee questions, and show the staff how the new software will help make their jobs easier. Antonio is performing __________ management. A. human resource B. change C. operations D. supply chain

change

Consistency is important when taking remedial action so that A. employees are aware of behavior that is likely to result in discipline. B. employees do not suffer severe psychological damage. C. further problems with the employee can be avoided. D. charges of favoritism can be prevented.

charges of favoritism can be prevented.

During a negotiation, each person decides to give up something to reach an agreement. This is often called a

compromise.

Every task in a business process should have defined roles and responsibilities, which can be documented in an ARCI matrix. ARCI stands for accountable, responsible, __________, and informed. A. constant B. consulted C. collaborative D. controlled

consulted

When identifying a target market, businesses often create a record of information such as age, income level, ethnic background, occupation, and attitudes, which is known as a A. demographic breakdown. B. customer profile. C. preference list. D. consumer composite

customer profile.

The SQZ Company uses a computer application that allows managers to view the number of callers that are currently in queue and waiting for a customer-service representative to help them. This is an example of a A. forecast. B. projectory. C. dashboard. D. capillary.

dashboard.

Trends indicate that a large segment of the population is between 60 and 70 years old. A hospitality/tourism business can act on this trend by A. implementing a loyalty program for corporate business accounts. B. selling international vacation packages to recent college graduates. C. offering discounted hotel rates for guests who have children under the age of five. D. developing tour products specifically designed to appeal to retirees.

developing tour products specifically designed to appeal to retirees.

. A primary purpose of data mining is to A. summarize ideas. B. stabilize sales. C. develop services. D. discover relationships.

discover relationships.

Ken is a manager for a local company. He has collected bids from several area trucking companies and is currently comparing them with the invoices of the company's current trucking service to determine which one is the best transportation vendor for the company to use. Ken is analyzing business data in relation to A. distribution. B. product management. C. financial resources. D. production.

distribution.

One of the main reasons why owners develop a business plan before starting a new business is to A. organize production processes. B. estimate financial needs. C. identify qualified workers. D. prepare operating manuals.

estimate financial needs.

. The goal of channels of distribution is to move products from producers to

final consumers.

To justify spending money on marketing activities, marketers often translate the performance measures of those activities into A. financial outcomes. B. operating budgets. C. sales forecasts. D. variable expenses.

financial outcomes

When determining the particular services to provide to customers, businesses consider their __________ and __________ resources. A. unimportant, environmental B. human, unimportant C. environmental, financial D. financial, human

financial, human

A major benefit of receiving recognition for your efforts and contributions is that it

gives you motivation.

One reason why it is important for businesses to identify service standards is to make sure those standards are A. higher than customer expectations. B. easy to achieve. C. described in the operating manual. D. printed on all invoices.

higher than customer expectations.

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

human

. To build and repair bridges, Campbell Construction Company buys steel beams from Horton Manufacturing. In this situation, Campbell Construction Company is the

industrial user.

The effect that selling should have on customer purchase decisions is to __________ those decisions. A. personalize B. determine C. compel D. influence

influence

Companies obtain internal information about their various business activities to operate effectively by monitoring A. trade publications. B. internal records. C. industry trends. D. government statistics.

internal records.

Coca-Cola, Minute Maid frozen orange juice, Fruitopia, and Powerade sports drink are all examples of the Coca-Cola Company's product A. items. B. recalls. C. mix. D. lines.

items.

One way that businesses can control operating expenses is to A. organize inventory space. B. buy in small quantities. C. obtain credit. D. lease equipment.

lease equipment.

When preparing a long, complex report, it is generally a good idea to include a background statement about the purpose of the report in the

letter of transmittal

Because Connor does not know how to prepare his start-up company's tax return, he decides to outsource the activity by contracting a(n) A. probate attorney. B. licensed accountant. C. trusted colleague. D. insurance agent.

licensed accountant.

A characteristic of a business's current assets that are listed on financial statements is that they are A. liquid. B. intangible. C. fixed. D. depreciated.

liquid.

When a business publicly pledges to provide all of its customers with quick, courteous service, the company is

making a brand promise

When developing a business plan for a new venture, an entrepreneur should include a comprehensive description of the customers the new business wants to attract in the A. market-segment analysis. B. SWOT analysis. C. promotional plan. D. corporate philosophy summary.

market-segment analysis

The customers or potential customers for a good or service are known as a(n) A. market. B. corporate chain. C. economic system. D. cooperative.

market.

When setting marketing objectives, a business should make sure that they are A. timely and costly. B. qualitative and general. C. flexible and incompatible. D. measurable and achievable.

measurable and achievable.

Corporate governance is intended to A. defend the company in court. B. decrease the accountability of a company. C. promote the company to customers. D. mitigate risk and avoid problems.

mitigate risk and avoid problems.

The three types of flows in supply chain management are material flow, information flow, and __________ flow. A. supply B. inventory C. money D. distribution

money

It is important for companies to practice enterprise risk management (ERM) because A. it increases business costs in the long run. B. it leads to loss of shareholder value. C. most risks are unexpected. D. most risks are predictable and manageable.

most risks are predictable and manageable

A controversial way for an organization to collect data on consumer purchasing habits and use the data to assess advertising objectives is by using A. indirect response techniques. B. detailed consumer questionnaires. C. random telephone surveys. D. online tracking devices.

online tracking devices.

Small businesses have a positive effect on the local community because they

pay taxes.

One of the reasons that government's role in business has expanded is that

people's attitudes have changed.

Adaptable people commit to their goals and never give up because they have

persistence.

To prevent viruses and spyware from infecting his business's computer network, Chuck built a network firewall. Chuck acted A. carelessly. B. reactively. C. haphazardly. D. proactively.

proactively.

In a private enterprise economic system, the interaction of supply and demand primarily determines

product prices.

When determining its hiring needs, a business must first consider its financial status and its __________ needs. A. productivity B. secondary C. uniform D. temporary

productivity

The marketing function that helps sellers to provide information to buyers about the seller's products is A. financing. B. distribution. C. purchasing. D. promotion.

promotion.

When employees use mobile devices to access work information from out of the office, they often A. get viruses on their mobile devices. B. protect company data more than they would in the office. C. purposely share company data with non-employees. D. put company data at risk by using unsecured Wi-Fi networks.

put company data at risk by using unsecured Wi-Fi networks.

When a supervisor notifies employees that their performance is below standards and their jobs are in jeopardy, the supervisor should A. post the notice on the bulletin board. B. email the employees. C. give verbal notification only. D. put the notice in writing.

put the notice in writing.

Some general guidelines for creating a successful business plan include making the plan clear and concise, making the plan focused, and making the plan A. as long as possible. B. realistic. C. idealistic. D. complicated.

realistic.

One of the most important reasons why management often focuses on improving quality throughout the organization is to A. delegate authority. B. allocate resources. C. implement change. D. remain competitive.

remain competitive.

A person stopping to buy a bouquet of flowers from a street vendor is making a(n) __________ decision. A. major B. important C. urgent D. routine

routine

A primary reason for providing customer service is to increase A. the number of salespeople. B. sales volume. C. employee responsibility. D. the use of facilities.

sales volume.

One reason why it is important for managers to supervise staff is to provide __________ for employees. A. privacy B. job shadowing C. compensation D. structure

structure

Popping Good Popcorn has been in business for more than 30 years, producing popcorn that is sold at county fairs and local supermarkets. To remain competitive without spending an excessive amount of money, Popping Good can A. produce more popcorn. B. update the product. C. design new products. D. change production methods.

update the product.

. Operating costs that fluctuate with changes in production are called __________ expenses. A. capital B. fixed C. variable D. total

variable