DECA Test BMA

Which of the following is an example of a local zoning ordinance that affects business operations: A. A new sporting-goods store's exterior sign must meet certain size and style requirements as specified by the city of Bellville. B. A local fire department requires a large medical practice to have a certain number of fire extinguishers located throughout the building. C. A manufacturing company has its production equipment inspected twice a year. D. A flower shop must pay the local sales tax that it collects from its customers to the city of West Chester four times a year.

A A new sporting-goods store's exterior sign must meet certain size and style requirements as specified by the city of Bellville. Zoning ordinances are regulations that govern the ways in which land and buildings may be used in certain jurisdictions. Although zoning ordinances vary by community, they may regulate the size and style of different facilities and their elements, such as exterior business signs. For example, a community may require that signs be constructed with certain materials or be placed a certain distance away from sidewalks and streets. A community's fire ordinances regulate the required number of fire extinguishers that a business must maintain on site. Regulations regarding equipment inspections and the ways in which a local government collects sales taxes are not zoning considerations.

During which stage of the PDCA continuous improvement process does a business decide to implement a change on a widespread basis? A. Act B. Plan C. Do D. Check

A Act. The first step in the PDCA continuous improvement technique is planning a change. During the second step of the process, the business implements (does) the small-scale change. The third step involves checking the results to determine if the small-scale change was effective. If the change was successful, then the business acts to implement the change on a larger scale.

When Mason's company changes its hours, many of his coworkers complain about their new schedule. Mason, however, goes with the flow and learns to deal with the new schedule. He doesn't criticize his bosses for making the change. Mason demonstrates A. adaptability. B. initiative. C. creativity. D. assertiveness.

A Adaptability. Adaptability is the ability to adjust to changing situations. In other words, adaptable people are flexible. They go with the flow instead of resisting change or criticizing the people associated with it. Workers who demonstrate initiative are ready and willing to act—without having to be told to do so. They are self-motivated and volunteer for additional duties. Employees with creativity can generate new ideas, new approaches, new ways of thinking, and new ways to solve old problems. The ability to express yourself, communicate your point of view, and stand up for your rights, principles, and beliefs is known as assertiveness.

Every society must answer three economic questions related to production and distribution because of A. price. C. economics. B. scarcity. D. demand.

B Scarcity. Scarcity is a condition resulting from unlimited wants and limited resources, forcing individuals and societies to make decisions about what to produce, how to produce it, and who should receive the goods produced. Price is one solution to determining who should receive goods produced. Economics is the science of solving the problems caused by scarcity. Demand is the quantity and price at which consumers are willing to buy at a particular time.

Which of the following is a situation that does not violate trade-secret laws: A. After examining the chemical makeup of an existing product on the market, a researcher recreates and sells a similar product. B. A worker breaches a nondisclosure agreement with a former employer by revealing the former employer's manufacturing technique to his/her new employer. C. A software developer hacks into a competitor's computer system to obtain specifications for a new product. D. After gaining access to his/her firm's mailing list, a business executive sells the mailing list to the firm's largest competitor.

A After examining the chemical makeup of an existing product on the market, a researcher recreates and sells a similar product. Independent discovery of a trade secret is legal. Because the researcher recreated the formula by examining an existing product (reverse engineering), s/he was not breaking trade-secret laws. Breaching a nondisclosure agreement, hacking into another business's computer system, and selling information to a third party for personal gain are illegal actions.

When Margo compares her department's budget with its actual performance, she is engaged in the __________ function of management. A. controlling B. auditing C. directing D. organizing

A Controlling. This management function monitors the work effort. Evaluating performance is a primary activity of the control function of management. Evaluating involves comparing standards with actual performance. Auditing, which is another control activity, is the process of verifying an organization's accounts and records. Directing is the management function of providing guidance to workers and work projects. Organizing is the management function of setting up the way the business's work will be done.

Which of the following is an example of a variable operating expense: A. Employee bonuses B. Employee benefits C. Office equipment D. Salaries

A Employee bonuses. Employee bonuses are an example of a variable operating expense—they will likely fluctuate with changes in production. Employee benefits, office equipment, and salaries are all examples of fixed expenses. They do not increase or decrease with changes in production.

One limitation of project-management software is that it typically lacks the ability to A. find input errors. C. sort data. B. generate reports. D. track resources.

A Find input errors. Humans input the data into the computer, so if they enter it incorrectly, the computer has no way of detecting errors. The benefits of project-management software are that it can generate reports, sort data, and track resources.

Which of the following is a characteristic of an economy experiencing a short money supply: A. High unemployment C. Low tax levels B. Low interest rates D. High levels of borrowing

A High unemployment. When the money supply is short, business activities slow down. With decreased activity, unemployment will increase, borrowing will decrease, and interest rates will rise. When the money supply is short, tax levels are usually also high.

When a business uses the staged representation of the Capability Maturity Model Integration (CMMI) quality management framework, it involves grouping organizational process areas into A. maturity levels. B. capability tiers. C. concurrent rankings. D. modular units.

A Maturity levels. Capability Maturity Model Integration (CMMI) is a software program designed to help businesses improve their processes, outputs, and performance levels. An advantage to using the CMMI framework is that it helps guide improvement for projects, for departments, or throughout the overall organizational structure. An organization can use the software to measure and track quality improvement in two ways (representations): in stages or continuously. When a business wants to measure improvement in stages, it sets goals for each of the six stages, which the CMMI model calls maturity levels. When the business achieves improvement goals in one maturity stage, it proceeds to the next stage or level. If the business wants to use the CMMI continuous model, it uses capability levels in relation to process areas. Concurrent rankings and modular units are not elements of the CMMI quality management framework.

Which of the following is a leading question: A. Mia is a great manager, isn't she? B. How was your weekend? C. What did you discuss in the meeting? D. What are you having for lunch?

A Mia is a great manager, isn't she? Leading questions "lead" the answerer into giving a certain response. When you ask "Mia is a great manager, isn't she?" you are leading someone into agreeing with you. "How was your weekend?", "What did you discuss in the meeting?", and "What are you having for lunch?" are all open questions.

A manufacturing company sets a goal of producing 1,560 handbags per week. This is an example of a(n) __________ goal. A. organizational output B. departmental service C. product quality D. system profit

A Organizational output. Successful businesses set goals for the number of goods and services they produce in a given time period. Businesses consider many factors when setting output goals, including the available human, capital, and material resources. Handbags are goods rather than services. Product quality goals address issues associated with the degree of excellence of the finished product. System goals relate to the actual organization and may include growth, control, and profit goals.

A company starts marketing its workout clothes as everyday wear. This is an example of __________ innovation. A. positioning B. product C. process D. paradigm

A Positioning. Positioning innovation occurs when the purpose of a product is changed. The product itself remains the same, but it is marketed differently. In other words, the company focuses on changing the customer's perception of its product. Product innovation occurs when a business either creates or improves a product. Process innovation focuses on how something is done. Paradigm innovation occurs when there is a significant change in thinking.

Serena is determining the specific activities needed to carry out a year-long advertising campaign. Serena is engaged in __________ planning. A. tactical B. strategic C. contingency D. long-term

A Tactical. Tactical planning is short-range planning—one year or less—and involves determining the specific actions the business needs to take to carry out its strategic plan, which is more general in nature. A contingency plan is an alternative course of action that a business implements when it is not feasible to carry out the original plan. Long-term planning involves setting goals that will take the business more than a year to achieve.

What is the first step of the litigation process? A. The defendant files a complaint. C. The defendant answers a complaint. B. The plaintiff files a complaint. D. The plaintiff answers a complaint.

B The plaintiff files a complaint. The litigation process begins when the plaintiff files a complaint with the court. Then, the defendant must answer within a certain time period. The defendant does not file the complaint.

Which of the following is vital to the successful operation of a private enterprise system: A. Competition B. Mechanization C. Production D. Distribution

A Competition. Competition is the rivalry between two or more businesses to attract scarce customer dollars. Competition is vital to the successful operation of a private enterprise system because it encourages people to go into business for themselves and develop the products that consumers want. Production, mechanization, and distribution take place in the private enterprise system as well as in other types of economic systems. These activities often are the result of competition because businesses are constantly trying to improve the way they produce and distribute products in order to attract customers.

The overall category of resources that makes it possible for businesses to produce the goods and services that consumers want to buy is __________ resources. A. economic B. human C. capital D. natural

A Economic. Economic resources are the items that businesses use to produce goods and services. In economics, these resources are divided into three major groups or types: human, capital, and natural. Human resources are the people who work to produce goods and services. Manufactured items that are used to produce goods and services are called capital goods. Natural resources include items that are found in nature which are used to produce goods and services.

In which of the following situations does a nation have a favorable balance of trade: A. Exports of $3.5 million and imports of $3.1 million B. Exports of $4.7 million and imports of $4.8 million C. Exports of $2.4 million and cash flow of $2.9 million D. Exports of $1.8 million and foreign aid of $1.5 million

A Exports of $3.5 million and imports of $3.1 million. The balance of trade is the difference between the value of a nation's exports and its imports. A nation has a favorable balance of trade, or a trade surplus, when its exports are greater than its imports. Cash flow is the movement of money into and out of a business and is not used to determine the balance of trade. If exports are $4.7 million and imports are $4.8 million, the nation has a trade deficit, which means that its imports are greater than its exports. Foreign aid is the money that developed countries give to less-developed countries to help with their economic development and is not used to determine the balance of trade.

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. high B. low C. moderate D. excessive

A High. The cash from operating activities is compared to the company's net income. If the cash from operating activities is consistently greater than the net income, the company's net income or earnings are said to be of a high quality

Thomas is preparing a report that discusses the factors that are preventing the business from generating the desired profit. He must provide suggestions for improving the business's financial situation in the report. What type of analytical report is Thomas writing? A. Market analysis B. Troubleshooting C. Feasibility D. Justification

B Troubleshooting. Analytical reports are documents that evaluate issues, opportunities, or problems. Troubleshooting reports address specific problems and provide recommendations for resolving. Because Thomas's report addresses financial problems and provides suggestions for overcoming these problems, he is preparing a troubleshooting report. A market analysis is a systematic study of the market. A justification report is a type of analytical report that evaluates the success or failure of a previous decision or course of action. A feasibility report summarizes the positive and negative consequences of taking a certain course of action.

Businesses with customer service mindsets are usually able to A. reduce their expenses. C. hire more employees. B. achieve their goals. D. satisfy their vendors.

B Achieve their goals. By satisfying customers, businesses are usually able to achieve their company's goals. Satisfying customers involves providing excellent customer service and doing whatever is necessary to make customers happy. Businesses do not provide excellent customer service for the specific purpose of reducing expenses, hiring more employees, or satisfying vendors, though those may be secondary results.

New and different viewpoints force you to consider things from someone else's point of view, helping you be more A. friendly. C. helpful. B. empathetic. D. efficient.

B Empathetic. When you consider things from someone else's point of view, it helps you understand and appreciate that person's unique perspectives about life—in other words, it makes you more empathetic. Putting yourself in someone else's shoes does not necessarily make you more friendly, helpful, or efficient.

A business's ethics determine whether or not an action is acceptable for that business, especially if the action A. contributes to the business's profitability. C. affects the environment. B. has a negative impact on others. D. is against the law.

B Has a negative impact on others. A business's ethics determine whether or not an action is acceptable for that business, especially if the action has a negative impact on others—employees, customers, community members, etc. Sometimes, a business's ethics influence its decision on an environmental issue, but the environment is not a more important factor in ethics than any other issue. Anything illegal should be unacceptable for a business, regardless of its ethics. Sometimes, unethical practices may contribute to a business's profitability, but this is not necessarily a more important factor than others in determining a business's actions.

Which of the following is an advantage of a supply chain's ability to adjust internal inventory levels: A. It no longer needs to monitor inventory levels. C. It significantly reduces transportation costs. B. It can respond to changes in the marketplace. D. It develops better supplier relationships.

B It can respond to changes in the marketplace. A supply chain can help a business quickly adjust inventory levels to respond to market changes. A supply chain does not eliminate the need to monitor inventory levels. The supply chain benefits of reduced transportation costs and better supplier relationships are not realized from adjusting internal inventory levels.

During the closing phase of a project, Melissa sends an email to her project-team members asking them to describe the problems and successes that they encountered during the course of the project. Then, Melissa synthesizes the feedback and develops a document for other managers to refer to in the future, when they work on similar projects. What component of the project closure phase is Melissa focusing on? A. Closeout report B. Lessons learned C. Resource reassignment D. Project deliverables

B Lessons learned. The lessons-learned document summarizes the project's successes and failures and includes suggestions for improvement for similar future projects to which other managers can refer. Melissa is not focusing on the closeout report, resource reassignment, or project deliverables.

In which of the following resources is a project team member most likely to find information about the standards and quality-control protocol for project work activities: A. Statement of work (SOW) B. Work breakdown structure dictionary C. Project production schedule D. Critical path analysis

B Work breakdown structure dictionary. The work breakdown structure (WBS) dictionary is a comprehensive manual that outlines the project's standards, activity procedures, processes, and terminology. Team members can refer to the WBS dictionary if they need to obtain information about project work activities. The statement of work (SOW) is a document that outlines the terms, commitments, and conditions of the project. The project-production schedule provides details about when activities and outputs must be completed. A critical path analysis involves reviewing the sequence of work activities and the ways in which they are interrelated to determine the minimal amount of time it will take to complete the activities and/or project.

While George is unable to work because of a back injury, he receives a check every week for 60% of his usual salary. George's check is a benefit of his __________ insurance. A. cash-value B. disability C. liability D. bodily injury

B Disability. Disability insurance is sometimes called loss-of-income insurance because it pays a percentage of a worker's normal wages to the worker when s/he cannot work because of an illness or injury. It is often purchased through or by an employer. Cash-value is a type of life insurance that pays out the stated value of the policy at the time of death. Liability insurance protects property owners if someone else is injured on or by their property. Bodily injury is a type of liability insurance that protects vehicle owners when they cause injury to other

A primary reason governments regulate business accounting practices is to A. balance the business's budget. B. certify aging accounts. C. stabilize tax revenue. D. ensure consistent reporting.

B Managers. The income statement is usually analyzed by people who are responsible for the financial status of the business. This includes managers who look at ratios to monitor operations and determine whether a company is running efficiently. They also use the income statement to monitor yearly profit activity. Customers usually do not review a business's income statements unless they are also stockholders in the business. Bookkeepers usually are responsible for compiling income statement information but not analyzing it. Cashiers accept payments from customers, but they are not responsible for analyzing a business's income statements

Who is usually responsible for analyzing a business's income statement? A. Customers B. Managers C. Cashiers D. Bookkeepers

B Managers. The income statement is usually analyzed by people who are responsible for the financial status of the business. This includes managers who look at ratios to monitor operations and determine whether a company is running efficiently. They also use the income statement to monitor yearly profit activity. Customers usually do not review a business's income statements unless they are also stockholders in the business. Bookkeepers usually are responsible for compiling income statement information but not analyzing it. Cashiers accept payments from customers, but they are not responsible for analyzing a business's income statements.

Which of the following are elements that appear in the heading of a memorandum: A. To, title, from, and date B. To, from, date, and subject C. Date, title, to, and company D. Company, to, subject, and date

B To, from, date, and subject. When writing a memorandum, businesspeople place a heading at the top of the page to indicate who the letter is to, who the letter is from, what the message is about, and the date the message was written. The company's name and the employee's title do not always appear in the heading.

If individuals are not self-employed, which of the following is a type of earned income they might receive: A. Child support income B. Vacation pay C. Interest and dividends D. Trust disbursements

B Vacation pay. If individuals receive paid vacation, they are being reimbursed for work done. Child support income is unearned because it is court ordered. Interest and dividends are unearned because an individual is not required to work for them. Trust disbursements also qualify as unearned income because no work is done to receive them.

Getting to know foreign business partners and taking time to build ongoing business relationships is important to businesspeople from India, which is the dimension of culture related to A. a collectivist society. B. power distance. C. a long-term orientation. D. uncertainty avoidance.

C A long-term orientation. Long- and short-term orientation is the dimension of culture that addresses differences in thinking approaches. A society that has a long-term orientation focuses on future rewards and values actions such as persistence and saving money. Taking time to know business partners and build ongoing relationships with others are characteristics of a society with a long-term orientation. Societies with a short-term orientation tend to think in terms of "here and now" and emphasize achieving results quickly. Power distance is the dimension of culture that measures how accepting the less- powerful members of a society are to inequalities that involve power and wealth. Collectivism v. individualism is the dimension of culture that measures the extent to which people are integrated into groups within a particular society. Uncertainty avoidance refers to a society's tolerance toward uncertainty or insecurity (e.g., lack of rules).

The primary responsibility of an agent is to A. advise the principal of his/her responsibilities. B. accept responsibility for a principal's personal torts or crimes. C. act in the best interest of the principal. D. assume all authority for a principal's personal and professional decisions.

C Act in the best interest of the principal. An agent is a person or business that is authorized to conduct certain activities with third parties on the behalf of another person or business (principal). Employees, attorneys, and accountants are examples of people who enter into relationships as agents for others. The primary responsibility of the agent is to act in the best interest of the principal (client). These actions might, but do not always, include advising the principal of his/her responsibilities, such as an accountant who explains tax obligations to a client. The amount of an agent's authority (personal and professional)depends on the principal. An agent's responsibility for a principal's tort or crime depends on the circumstances of the action in relation to the agent's authority. For example, an agent with express authority over business matters does not assume responsibility for a principal's personal behavior, such as assault.

The primary purpose of groupware computer software is to A. support customers and employees by providing ongoing training. B. provide managers with the ability to monitor employees' behavior. C. allow employees to have access to the same information. D. encourage businesses to increase their market share and profits.

C Allow employees to have access to the same information. Employees often work together to complete projects, and many of these employees work in different locations. Groupware computer software allows employees to share and access the same information from a variety of locations. The ability to access the same information allows each employee to have the necessary data to complete his/her portion of the project in a timely manner. By completing projects in a timely manner, businesses are in a better position to satisfy clients/customers and earn profits, which might increase their market share. Some businesses use groupware computer software to exchange information with their customers, but this depends on the type of business and the relationship with the customer. Groupware computer software can be used in many ways, including training, but the primary purpose is to make information available to the people who need it.

What often appears at the bottom of a business letter if a sales brochure is attached? A. Company signature C. Enclosure notation B. Reference initials D. Writer's identification

C Enclosure notation. An enclosure notation often appears at the bottom of a business letter if additional items are included with the letter. The enclosure notation may indicate the number of additional items attached or list the type of item, such as sales brochure, check, contract, etc. The purpose of the enclosure notation is to help the writer and the recipient confirm that all enclosures are included when the letter is sent and received. The reference initials identify the person who typed the letter. The company signature is the typed name of the company. The writer's identification is the writer's name typed below the signature.

Which of the following is true of stereotypes: A. Stereotypes are held only by bigoted people. B. Stereotypes can help you when dealing with multiple generations. C. Every person must work to recognize the stereotypes they hold. D. Stereotypes are essential for success in the workplace.

C Every person must work to recognize the stereotypes they hold. Bigoted people are not the only ones who hold stereotypes. Stereotypes are held by many people, and it is each individual person's own responsibility to recognize and eliminate his/her personal stereotypes. Stereotypes can be damaging in the workplace. It is not helpful to stereotype people because of their age.

What is the first step in the staffing process? A. Researching pay scales B. Writing a job description C. Identifying the desired job skills D. Assessing recruitment channels

C Identifying the desired job skills. Staffing is the management function of finding workers for a business. Before a business can find workers to fill positions, managers must determine what activities need to be carried out and the skills needed to perform these activities. After identifying the needed skills, managers can write a job description, research pay scales to determine the compensation rate for the position, and determine which channels (e.g., newspaper ads, job fairs, company website, etc.) to use to recruit job applicants.

Which of the following is an advantage of a strong dollar: A. It can increase the value of profits made in foreign countries. B. It makes exports more expensive for foreign customers. C. It boosts domestic consumers' confidence. D. It brings more foreign tourists into the country.

C It boosts domestic consumers' confidence. There are many advantages to a strong dollar. It boosts global perception of a country's financial health and also boosts domestic consumers' confidence. However, a strong dollar also makes exports more expensive for foreign customers to buy, which is a disadvantage. It can also devalue profits made in foreign countries. A strong dollar does not bring in more tourists, since it makes vacations more expensive for foreign tourists.

Vince works in purchasing for an auto manufacturer. He needs to decide whether his company can produce a certain component or whether he should purchase it from a supplier. Vince must make a __________ decision. A. wholesale-or-retail B. produce-or-purchase C. make-or-buy D. supply-or-source

C Make-or-buy. A make-or-buy decision occurs when a purchasing specialist needs to decide whether the company can make needed parts or should buy them from a supplier. To make such a decision, Vince will consider his company's production capabilities and the costs of making the needed parts. If his company is capable of making the needed parts and the cost would be low, then the company is likely to make the part versus buying it. On the other hand, if the company can't make the part or the cost of making it would be high, then Vince will probably buy it from a supplier. This decision is not known as produce-or-purchase, wholesale-or-retail, or supply-or-source.

The Taguchi quality-control method focuses on A. reducing waste. B. conformance to standards. C. product design and development. D. manufacturing processes.

C Product design and development. The Taguchi quality-control method focuses on product design and development, rather than manufacturing processes. It does not focus on conformance to standards or reducing waste.

To impress your new boss and meet her expectations, you should A. display a negative attitude. B. take credit for other employees' work. C. show self-motivation when facing obstacles. D. avoid bothering your boss with questions.

C Show self-motivation when facing obstacles. Employers appreciate employees who are self-motivated. Self-motivated employees take the initiative to tackle obstacles. Impressing your boss doesn't mean taking credit for other employees' work; instead, being a team player will impress your boss. You should display a positive attitude and ask your boss questions if you need clarification.

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

C Systematic process. Knowledge harvesting is the set of procedures used to capture an organization's tacit and explicit knowledge. Because knowledge harvesting is a results-driven, structured method of capturing knowledge, it is a systematic process. To build an effective knowledge-management system and have a long-term impact on the organization, knowledge harvesting is an ongoing process that involves input from all employees.

Which of the following is an example of a standing order: A. A department store's assistant buyer places an order with a clothing manufacturer for winter coats without providing specific styles, sizes, or colors. B. An electronics retailer places an order on July 15 for a popular smartphone upgrade that will be available on December 1. C. The Dunder Mifflin Paper Company ships 12 cases of copy paper to the KMV Company on the third Wednesday of every month. D. Mr. and Ms. McPherson place an order with a local carpenter for a handcrafted table in a non- standard size.

C The Dunder Mifflin Paper Company ships 12 cases of copy paper to the KMV Company on the third Wednesday of every month. Standing orders involve sending products at set intervals. This type of purchase order is ideal for businesses that need the same amount of an item on a regular basis. The electronics retailer placed an advance order, which is a regular order that requests delivery at a future time—weeks or months before needing the items. Businesses often place advanced orders for new items when they anticipate a high demand for them. The assistant buyer placed a blanket order, which is an order that covers all or part of a retailer's seasonal requirements. Businesses typically place blanket orders several months before the season and do not contain detailed specifications or shipping dates. Mr. and Mrs. McPherson placed a special order, which is a request for a custom item that a vendor does not normally carry in stock.

What source of credit offers its members small loans, installment credit, and low interest rates? A. Commercial banks B. Sales finance companies C. Credit unions D. Savings and loan associations

C Credit unions. A credit union is a financial cooperative set up to provide savings and credit services to its members. These services include small loans, installment credit, and low interest rates. Commercial banks offer many financial services including checking and savings accounts, secured and unsecured loans, installment credit, and bank credit cards. They offer small and large loans, and their interest rates vary. A sales finance company is a business that purchases borrowers' contracts from sellers. Their interest rates are higher than the rates offered by credit unions. A savings and loan association is a financial institution that offers savings accounts and makes loans to borrowers. Most of their loans are for large-ticket items such as real estate.

One way that inflation impacts businesses is by A. increasing productivity. B. decreasing free trade. C. increasing prices. D. decreasing labor costs.

C Increasing prices. Inflation is a rapid rise in prices that may occur when demand exceeds supply or when productivity declines and costs of labor go up. When prices increase, businesses spend more to buy the goods and services they need. As a result, they increase prices to consumers to cover the increased cost of doing business. If prices continue to rise, productivity often declines because of increasing labor costs. Free trade is the absence of trade barriers.

When Lin sends a business report to a customer by email, the document is sent as a(n) A. fax. C. memo. B. postscript. D. attachment.

D Attachment. An attachment is a computer file that is sent with an email message. In business, it is common to send information, such as business reports, as email attachments. A postscript is an "afterthought" that the sender includes after the message or letter closing. A memo is a short, informational document that an employee often sends within the company. A fax is a document that is transmitted through telephone wires.

It is important to regularly track and analyze your budget because A. it is important to set financial goals. B. fixed expenses are constantly changing. C. your income should remain steady. D. changes in your life can affect your spending.

D Changes in your life can affect your spending. While it is important to adhere to your budget, sometimes changes in life occur that affect your spending, such as buying a new car, having a child, or moving to a new city. It is important to regularly track and analyze your budget to see how these lifestyle changes are affecting your spending—and to adjust your budget accordingly. Fixed expenses are not constantly changing; rather, they usually do not change from month to month. Your income might remain steady, but that is not related to the need to regularly track and analyze your budget. It is important to set financial goals, but this is not related to the need to regularly track and analyze your budget.

Aria must obtain certain data and information from Matthew before she can enter a customer's insurance claim in the computer. To process the customer's insurance claim, Aria and Matthew must A. obtain management's approval. B. develop departmental goals. C. improve their communication. D. coordinate their work activities.

D Coordinate their work activities. Employees are often responsible for different parts of an entire body of work. When each employee performs his/her specific part efficiently and effectively so that other employees can do their work, they are coordinating their work activities. Managers rather than employees develop departmental goals. There is not enough information provided to determine if Aria and Matthew need to improve the way they communicate or if management needs to approve certain activities so that Aria and Matthew can perform their work tasks.

Carrie has a summer job cleaning and maintaining backyard pools. Her boss thinks she does a great job. Today, she has a new client. For a while, he was watching her from the porch, and then he came out and stood just a few feet away from her. "Don't do it that way," he instructed. "You're using too much chlorine. Should I just measure it out for you?" Carrie's customer is A. irritable/moody. C. suspicious/distrustful. B. slow/methodical. D. domineering/superior.

D Domineering/Superior. Carrie's customer is domineering/superior. He's talking down to her and giving her orders on how to do her job. A slow/methodical customer is indecisive or just takes a long time to make up his/her mind. A suspicious/distrustful customer questions everything and is constantly worried that your business might take advantage of him/her. An irritable/moody customer is unpredictable—s/he might be your best friend one day and a real crab the next.

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

D Form a captive insurance company. Organizations (i.e., corporations, industry/professional/trade associations) often form their own insurance companies—called captive insurance companies—when they carry risks that commercial insurance companies will not cover. The organizations that form the captive insurance companies control insurance activities including the underwriting processes, premium rates, and claims-processing policies. Acquiring a professional association, establishing a risk- management committee, and creating a trade union are not ways in which a business transfers risk.

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 High. The cash from operating activities is compared to the company's net income. If the cash from operating activities is consistently greater than the net income, the company's net income or earnings are said to be of a high quality.

When analytical reports contain information that readers might disagree with, writers should back their conclusions with A. enthusiastic statements. C. personal opinions. B. technical statistics. D. logical arguments.

D Logical arguments. An analytical report is a document that explains and evaluates an issue, opportunity, or problem. When developing an analytical report that addresses a controversial issue or contains information that readers might disagree with, the writer should provide logical arguments that explain and support their conclusions. By providing logical arguments, the writer is more likely to persuade readers to accept the conclusions. Technical statistics may distract the reader. Personal opinions should not be expressed during an analytical report. Enthusiastic statements that do not provide logical arguments or supporting evidence are less likely to convince readers that the conclusions are reasonable.

Forester Manufacturing developed a process that reduces the time it takes to produce goods. To prevent its primary rival, the MTP Company, from obtaining information about the process, Forester requires all of its employees to sign a legal document stating that they will not go to work for the MTP Company for a certain amount of time after leaving the company. Forester is using a(n) A. amendment to protect a patent. B. nondisclosure contract to protect a copyright. C. injunction to protect a trademark. D. non-compete agreement to protect a trade secret.

D Non-compete agreement to protect a trade secret. In the situation described, Forester wants to protect its manufacturing process, which is a trade secret. A non-compete agreement is a contract between an employer and an employee that states that the employee will not work for a competitor for a certain length of time after leaving the company. Typically, a non-compete agreement contains a nondisclosure provision in which the employee promises not to reveal the employer's trade secrets (e.g., formula, recipe, manufacturing technique) to future employers for whom the employee might work. An injunction is a court order forbidding a business or a person to perform certain activities. An amendment is an additional provision made to a legal document. Copyrights legally protect artistic works; trademarks legally protect symbols or words that identify a product, brand, or company; and patents legally protect inventions.

In the sales division, each salesperson is responsible for obtaining sales and maintaining accounts in different sales territories but has a common goal of meeting the company's sales objectives. What type of task interdependence is being used in this situation? A. Reactive B. Sequential C. Reciprocal D. Pooled

D Pooled. Pooled task interdependence involves several employees working independently on different tasks at the same time. When the employees finish their tasks, they combine or pool their individual outputs to complete a final output or achieve a shared objective. In the situation described, the salespeople are working to achieve the organization's overall sales goal. Sequential task interdependence means that one worker must complete a task before the next worker can perform his/her task. Reciprocal task interdependence occurs when one team member's work is dependent on others' work. This form of task interdependence requires extensive sharing of information and resources. Often, work passes back and forth, which requires employees to work together on a regular basis. Reactive is not a form of task interdependence.

Malcolm is developing a written agreement so that all of the project's stakeholders have a clear understanding of a project's purpose and objectives. What document is Malcolm writing? A. Technical platform B. Project manual C. Schedule proposal D. Project charter

D Project charter. A project charter is a document that outlines the purpose and terms of the project, describes the team members' responsibilities, and serves as a contract with the project's stakeholders. The intent of the project charter is to ensure that all of the stakeholders have a clear understanding about the project. Malcolm is not developing a project manual, schedule proposal, or technical platform.

A business risks losing its good reputation if it A. requires new suppliers to provide credit information. B. provides accurate information to stockholders. C. encourages employees to report questionable behavior. D. uses questionable tactics to achieve profitability.

D Uses questionable tactics to achieve profitability. A business that continuously "pushes the limit" by using questionable tactics to earn or show profits may get a poor reputation. Customers may become distrustful of the business and decide to purchase elsewhere. Providing accurate information to stockholders, encouraging employees to report questionable or potentially unethical behavior, and requiring new suppliers to provide credit information are ethical actions and are less likely to damage a business's reputation than the use of questionable tactics.

Human resources management has been influenced by modern employees' emphasis on A. maximizing wealth at any cost. B. friendships. C. unionization. D. work-life balance.

D Work-life balance. Human resources management has been influenced by modern employees' emphasis on work-life balance. HR managers may address this by offering more flexible work arrangements, such as telecommuting. Modern employees are not necessarily focused on friendships, unionization, or maximizing wealth at any cost.

Nico knows he would never do anything unethical, but he is sure that all of his coworkers are tempted at one point or another. Nico is demonstrating A. loss aversion. B. short-term gratification. C. framing. D. over-optimism and overconfidence.

D Over-optimism and overconfidence. People are often guilty of being overly sure of themselves, particularly in their ability to act ethically. In this case, Nico is overly confident in his own ability to resist unethical behavior, even though he recognizes that everyone around him faces temptations. Short-term gratification is the pursuit of instant satisfaction rather than delaying rewards for greater long-term benefit. Framing is the tendency to respond to situations based on how those situations are posed or viewed. Loss aversion is the tendency to avoid a loss at all costs, even when attempting to avoid that loss can lead to consequences