M3 DECA Exam Corrections

What tends to happen when interest rates decrease? A. Consumers save less and spend more B. Unemployment rates increase C. Business expansions decrease D. Consumers save more and spend less

A Consumers save less and spend more. The cost of borrowing money decreases when interest rates decrease. Consumers are more likely to purchase large-ticket items (e.g., homes, cars) when the cost of borrowing decreases. This means consumers are spending more money and saving less. Businesses benefit when interest rates decrease because the cost to borrow money for expansion is less. Unemployment tends to increase during an economic downswing. During a economic downswing, businesses often decrease production, which often results in employee layoffs and hiring freezes.

The first thing an employee should do when an accident occurs in the workplace is to A) determine severity of injury B) call an ambulance C) file a report D) administer first aid

A Determine the severity of the injury. Determining the severity of the injury helps the employee to determine what should be done next. If the injury is severe or life threatening, then an ambulance should be called. Calling an ambulance or notifying a supervisor should not be done until after the severity of the injury is determined. The severity of the accident will indicate whether to administer first aid. Filing a report would generally be the last aspect of handling an accident.

Which of the following levels of managers spend most of their time staffing, directing, and controlling the day-to-day activities of the business: A) first line B) mid level C) executive D) regional

A First-line. First-line or supervisory managers work directly with the employees who carry out the business's routine work. First-line managers report to the mid-level managers. Mid-level managers are responsible for implementing the goals set by executive (top-level) managers, and are the link between supervisory and executive (top-level) managers. Mid-level managers report to the executive managers. Executive managers are responsible for the whole organization and spend most of their time setting organizational goals and conducting strategic planning. A regional manager manages employees in a specific location or region. Regional managers are usually considered mid-level managers.

Which of the following is a source of frictional unemployment: A. Individuals enter the workforce after graduating from school. B. A company closes its doors when its products become obsolete. C. A business dismisses some of its workers during an economic recession. D. The demand for laborers changes based on the time of year.

A Individuals enter the workforce after graduating from school. Frictional unemployment refers to people who are temporarily between jobs. These people have the skills and training they need to work but are unemployed because they are looking for jobs or are between jobs. An example of a source of frictional unemployment is recent college graduates who have not yet acquired jobs. When people are unemployed because of outdated skills or obsolete products, structural unemployment exists. Cyclical unemployment occurs when there is low demand for workers, such as during times of economic recession when workers are often laid off. Seasonal unemployment occurs when people are out of work because of factors that involve the time of year.

Which of the following is a tip that you should follow about office politics: A. Listen and observe others. B. Voice your opinions readily. C. Keep to yourself. D. Work hard.

A Listen and observe others. Office politics exist in every business. People are trying to do their best to look good to the higher ups so that they can get a promotion, a raise, etc. By listening and observing others, you can learn how to maneuver the political environment in your company. If you readily voice your opinions, you may make enemies. Keeping to yourself will not necessarily help you to advance since people will not have an opportunity to get to know you. In business, working hard is often not enough to get you noticed by your superiors.

Which of the following is an acceptable file name for a word-processing document: A. Office Calendar 3 30 2012 B. Office Calendar 3/30/2012* C. Office Calendar: 3/30/2012 D. Office Calendar <3 30 2012>

A Office Calendar 3 30 2012. Regardless of whether you use a PC or Mac computer, word-processing programs typically refuse to let you use certain symbols in your file names. Top on this list of prohibited characters are: \ / : * ? < > | . If you try to use any of those particular symbols in a file name, you'll get a message that your file name is invalid, and you'll have to choose a new name for the file. Of the list of file names provided, only Office Calendar 3 30 2012 is acceptable because it is the only name without any prohibited symbols.

A team of employees is responsible for researching potential demand for a business's brand-new product. The factor that is most likely to affect demand for this product is the A. product's utility. B. costs of production. C. government's policy. D. number of producers.

A Product's utility. The basic demand for a product is not determined by its price but by its utility, or usefulness, to a potential consumer. If consumers believe the business's new product will benefit them, there is likely to be demand for it. The costs of production, government policies, and the number of producers are factors that affect supply.

If a business receives an insurance payment because of a loss by fire, this would be the result of a(n) __________ risk. A. pure B. economic C. human D. speculative

A Pure. Pure risks are risks that carry with them the possibility of loss or no loss. Pure risks are generally insurable. Speculative risks are risks that may result in a loss, no change, or a gain. Economic risks are changes in the market that force prices to be lowered. Human risks are caused by human weakness and unpredictability.

ChemTech International plans to build a new research facility, which is to be completed in two years. As an employee with ChemTech, your supervisor has requested that you produce a detailed document to send to potential vendors and contractor that outlines how they should submit bids to perform work for the new facility. The document is to contain instructions about they type of information the potential vendors should provide in their bids, and the format in which the information should be presented. What type of document are you preparing? A) request for proposal B) summary of qualifications C) executive summary D) business plan

A Request for proposal. Complex projects often require the expertise of external resources. Building a new facility requires skills from architects, construction companies, electricians, etc. And because these types of projects are expensive, companies want to obtain bids from the potential vendors or contractors to determine which one is best suited to perform the work. A request for proposal (RFP) is an invitation for potential vendors to present bids to obtain a contract and perform the work. Because the work is complex, the RFP must include specific information and provide detailed instructions about the way the proposal should be written. Often, an RFP will require potential vendors to provide a summary of qualifications as a section of the proposal. A business plan is a company's blueprint for success—its business model. An executive summary is an element of a business plan and provides and overview of the most important information.

Which of the following is most likely to happen to employees who are discourteous to the business's customers: A. They may be fired. B. They may be promoted. C. They may win an award. D. They may lose their benefits.

A They may be fired. More people lose their jobs because they can't get along with other people than for any other reason. Establishing positive customer/client relations is very important to a business's success. Employees who damage customer relations are not likely to be promoted or given awards. Benefits cannot be taken away for misconduct.

Which of the following is a n example of a transfer payment: A. Unemployment compensation B. Weekly paycheck C. Investment dividend D. Corporate bond

A Unemployment compensation. Transfer payments are monies paid by the government in which no goods or services are received in exchange. Examples of transfer payments include disaster aid, veterans' benefits, and unemployment compensation. People who qualify for unemployment compensation receive government funds for a limited amount of time when they lose their jobs through no fault of their own. Employers issue paychecks to employees for the work they have performed. Dividends are earnings on investments. A corporate bond is a piece of paper (real or virtual) that says a corporation will borrow an investor's money at a particular interest rate for a particular period of time. Weekly paychecks, investment dividends, and corporate bonds are not examples of transfer payments.

Which of the following statements is true about internships A) unpaid internships often lead to full-time paid positions B) companies that offer internships do not pay interns C) an intern can expect to earn minimum wage D) job rotation is the most important aspect of an internship

A Unpaid internships often lead to full-time paid positions. An internship is training in which schools and businesses cooperate to provide on-the-job practice for learners. In many situations, businesses offer hard-working interns full-time paid positions after they finish school. Some companies pay interns and some do not. Some, but not all, internship programs provide job rotation opportunities; therefore, job rotation is not always the most important aspect of an internship.

Matt just received a letter telling him that someone else had been hired for a job for which Matt had been interviewed. Since Matt didn't get the job, does he need to write a follow up letter to the company? A) Yes, he should have already sent a followup letter B) No, it's too late to send a followup letter C) Yes, the company will be expecting to hear from him D) No, since Matt wasn't hired he doesn't need to write

A Yes, he should already have sent a follow-up letter. A follow-up letter should be sent as soon as possible after a job interview. Since the company has had time to make a hiring decision and notify Matt of its choice, we can assume that he did not write immediately following the interview. However, it is never too late to send a follow-up letter. Businesses do not generally expect to hear from job applicants after an interview, but they receive a positive impression of those who do write.

Which of the following statements regarding executive summaries is true: A) You should sequence the main ideas of your executive summary in the same order that they appear in your full report B) Your executive summary should be approximately one fourth to one third as long as your entire report C) You should always write your executive summary before writing the body and appendices of your report D) You should use jargon, technical language, abbreviations and slang frequently throughout your executive summary

A You should sequence the main ideas of your executive summary in the same order that they appear in your full report. An executive summary is a summary of the most important points of a longer document such as a business report, business plan, or marketing plan. In fact, the executive summary is typically considered to be the most important part of a company's business or marketing plan because it gives an overview of the entire document and helps the reader to determine whether it is worthwhile to read any further in the document. The main ideas of the executive summary should be presented in the same order that they appear in the full report. As a rule of thumb, an executive summary should be no more than one-tenth of the length of the entire report. It is commonly recommended that you write your executive summary after writing the body of your report. You should avoid using excessive jargon, technical language, abbreviations, and slang in your executive summary.

A good way to prioritize your financial goals is to A) rank goals according to what needs to be done first B) assign each goal to a general category C) rank each goal in numerical order D) recognize that all goals are equally important

B Assign each goal to a general category. A good way to prioritize your financial goals is to assign each goal to a general category, such as "must do," "important but not critical," or "not so important." Ranking according to what needs to be done first and ranking every goal in numerical order are two common pitfalls. Another pitfall is ranking everything as very important or thinking that all the goals are equally important.

A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review? A. Budget B. Balance sheet C. Income statement D. Operating budget

B Balance sheet. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. This includes the liabilities, or debts, that the business owes. The bank found that the owner's current liabilities were too high to be extended. Budgets show estimated income and expenses but not what is currently owed. Income statements would include the income and expenses for a specific period of time but would not include outstanding debts.

A business has accounts receivable valued at $12,500. This amount would appear in the business's balance sheet under the category of A) liabilities B) current assets C) income D) cash

B Current assets. Assets are anything of value that the business owns. Assets are classified as either current assets or fixed assets. Current assets are items such as accounts receivable, the monies owed to a business by its customers, that change throughout the year. Liabilities are debts that the business owes. Accounts receivable are a source of income. Cash is currency and coins.

Most businesses strive to supply goods and services in direct proportion to A) supply B) demand C) cost of production D) standard of living

B Demand. Demand is the quantity of a good or service that buyers are ready to buy at a given price at a particular time. Producers try to balance supply with demand so that neither a surplus nor a shortage will occur. Supply is the quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period. Cost of production is the total expenses associated with producing a product. Standard of living is the quality of life and general conditions to which people are accustomed

When selecting vendors, what action is supposed to occur during your initial discussion with potential vendors? A. Provides an opportunity for them to offer their best price B. Gives them an opportunity to sell you on their products or services C. Finalizes your choice of vendor D. Enables you to put together an initial list of vendors to choose from

B Gives them an opportunity to sell you on their products or services. During this initial meeting, vendors need to help you understand how their products or services will best meet your needs. Although vendors will discuss price during the initial discussion, they will usually save their best and final price for the final round of discussions. The initial discussion with potential vendors enables you to limit the number of vendors from which you will choose, but it should not be when your vendor choice is made. The initial list of 8-10 vendors would be done prior to the initial discussion.

What is true about personal vision? A) Realistic visions are based on mission statements. B) Good visions have permanent results. C) Specific goals are necessary to determine your vision. D) Achievable visions are time bound.

B Good visions have permanent results. A vision is a desire for the future that is achieved over time with determination and hard work. Good visions create positive results and may involve the input of many people over a long period of time. Visions are not based on mission statements, nor do they start out with specific goals. Visions are timeless rather than time bound.

A customer wants to purchase a complete bedroom set and pay part of the cost at intervals until the furniture is paid for. Which type of credit would best serve this customer's need? A. Secured loan B. Installment credit account C. Unsecured loan D. Revolving credit account

B Installment credit account. This type of credit is used to purchase large, expensive items such as furniture or appliances. Customers know exactly how much is due each month and how long they will be making payments. Revolving credit usually has a credit limit, and there is no set time for payment in full. Secured loans are funds obtained when the borrower pledges to the lender some valuable possession, such as real estate, stocks and bonds, machinery, or the cash value of a life insurance policy. Unsecured loans are funds obtained by simply signing a promissory note to repay the loan. These loans are usually for a short period of time.

Natalie needs to compile a list of her retail business's suppliers, along with the products that the business purchases from each. Which of the following internal records is most likely to contain the information that she needs: A. Quality records B. Inventory records C. Human-resources records D. Payroll records

B Inventory records. Inventory records contain information related to the goods that a business has on hand or on order. They are also likely to contain information about a retail business's suppliers and the products that the business purchases from each to sell to consumers. Quality records usually contain information regarding the degree of excellence of the business's products. Human-resources records contain information about the business's employees. Payroll records contain information about money paid to employees in a given period.

The general economic growth of a country is supported by its A. standard of living. B. level of productivity. C. gross domestic product. D. wealth of goods and services.

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

When a business uses credit to purchase goods and services, what benefit does it receive? A) Fostering customer loyalty B) Maintaining Inventory Levels C) Encouraging customers to buy D) Gaining new customers

B Maintaining inventory levels. Maintaining inventory levels that will meet customers' needs is essential to the success of a business. If the business finds itself short of stock at a time when it is also short of cash, it may use credit to buy more. The other alternatives are benefits to businesses of extending credit to customers.

Most nations' federal agencies must function within certain limits identified in the specific enabling legislation that gave the agencies their powers. These limits on the federal agencies' activities are an example of A) political control B) statutory control C) juridicial review D) informational control

B Statutory control. Four methods used to limit and regulate the activities of federal agencies are statutory control, political control, judicial review, and informational control. In many countries, the legislative branch has the power to pass statutes (laws) establishing federal agencies. This enabling legislation often identifies limits to the agencies' powers. In other words, these statutes control the agencies' activities. The government wields political control over these agencies by providing (or withholding) funding, by approving (or speaking out against) individuals nominated to lead these agencies, and by amending the agencies' enabling legislation. The courts can also control federal agencies by reviewing and deciding the legality of the agencies' actions. Finally, the public can indirectly control federal agencies through information. Most federal agencies are required to provide the public with information on different topics. After reviewing the information, private citizens can take action to influence the activities of these federal agencies.

What is an advantage of a rolling budget? A. Managers must demonstrate a need for all expenses. B. There is always a year-long plan in place. C. The master budget is made up of specialized budgets. D. The rolling budget eliminates all variances.

B There is always a year-long plan in place. Many businesses use rolling, or continuous, budgets. Beginning with a 12-month budget, a new month is added as each month goes by. Advantages to this system are that there is always a year-long plan in place and that a major, annual budgeting effort is avoided. In addition, rolling budgets tend to be more flexible. Zero-based budgeting requires managers to demonstrate the need for every expense instead of relying on figures from a previous period. Rolling budgets are not always zero-based budgets. While it is true that a master budget is made up of information from specialized budgets that are generated by individual departments, it is not an advantage of a rolling budget. The rolling budget does not eliminate all variances, which are the differences between budgeted amounts and actual amounts.

Which of the following is a reason why businesses write informal messages? A) To prepare letters B) To sell products C) To develop memos D) To identify customers

B) To sell products. One reason why businesses write informational messages is to sell products to customers. Businesses often develop sales letters that explain their goods and services and send these letters to prospective or current customers. The sales letters include important information about the business and its products and are intended to encourage customers to buy. Letters and memos are types of informational messages. Businesses identify customers before sending them informational messages.

Isabella is the leader of a project team. When a problem occurred during the project, Isabella met with her team to discuss the ways in which they might resolve the problem. At the end of the meeting, Isabella said, "I really appreciate all of the ideas that you have presented. After I look through my notes, we'll meet again tomorrow to discuss our course of action." In this situation, Isabella is motivating her team members by A. evaluating their ideas. B. providing an incentive. C. asking for their input. D. praising an important milestone.

C Asking for their input. When a project manager asks team members to help resolve a problem, team members feel that their opinions and input are valued. When team members feel that their work efforts are valued, they are often motivated to continue working hard to meet the business's goals. Providing praise and offering incentives are ways to motivate team members; however, Isabella is not using these methods to motivate her team members in the situation. Isabella has collected ideas, but there isn't enough information provided to determine if she has evaluated any of the ideas.

Stacia claims that her former investment broker encouraged her to make excessive trades just to collect the commission fees from each one. Stacia is accusing her former broker of A. bundling. B. skimming. C. churning. D. flighting.

C Churning. Before selecting a broker, it's vital that you thoroughly understand his/her payment structure. Many brokers (especially full-service brokers) are paid on commission, which means they make money every time they conduct a transaction for you. A good broker is reliable and has your best interests at heart when recommending that you buy or sell certain securities. Unfortunately, a dishonest broker may encourage you to make excessive trades just to collect the commission fees from each one. This practice is called churning. Skimming is a price strategy that involves setting prices higher than those of the competition. Bundling is a marketing strategy that involves offering several products for sale as one combined product. A flighting strategy is a media timing strategy that concentrates advertising during peak sales periods followed by periods of no advertising.

What type of software program would a cruise line use in order to maintain a list of recent passengers and their cabin preferences? A) Database B) presentation C) communication D) Word processing

C E-business. E-business goes beyond buying and selling electronically as referred to in e-commerce. It also includes providing service to customers and suppliers and enabling interactive communication such as teleconferencing. URLs are Internet addresses, while web sites are collections of web pages.

Which of the following is an umbrella term referring to any type of Internet transaction? A) URL B) E-commence C) E-business D) web site

C E-business. E-business goes beyond buying and selling electronically as referred to in e-commerce. It also includes providing service to customers and suppliers and enabling interactive communication such as teleconferencing. URLs are Internet addresses, while web sites are collections of web pages.

Which of the following helps individuals select the type of life insurance to buy and the most appropriate investments? A) Trust departments B) Certified public accountants C) Financial Planners D) Local bank managers

C Financial planners. There are many types of financial planners who help clients develop investment plans and prepare for the future. These planners provide financial services such as recommending and selling life insurance, mutual funds, stocks and bonds, etc. Part of what they do is provide advice on how their clients can achieve their financial goals. Certified public accountants, trust departments, and local bank managers usually do not help individuals select the type of life insurance to buy and the most appropriate investments.

Which of the following is the generally accepted accounting principle that assumes that a business has the ability to operate indefinitely: A. Tangible existence B. Business entity C. Going concern D. Open reality

C Going concern. Generally accepted accounting principles (GAAP) are universal rules that accountants use when they prepare and summarize financial reports. Presenting financial information in a consistent format helps accounting professionals understand financial information across many types of businesses and industries. When setting up an accounting system, accountants consider three assumptions—going concern, business entity, and accounting period. Going concern assumes that the business will go on forever (indefinitely). Business entity is the assumption that the owner(s) and the business are independent units. The third assumption is the accounting period, which indicates that each business is divided into specific increments of time for the purpose of reporting financial data (e.g., month, quarter, annual). Tangible existence and open reality are fictitious terms.

Which of the following items cannot be marketed? A) Hawaii B) Health C) Hopefulness D) Holiday

C Hopefulness. Most things can be marketed—including goods (durable and nondurable), services, organizations, places, ideas, and people. Included are holidays, health, and Hawaii. However, since hopefulness is an optimistic state of mind, it is not likely that it can be marketed.

Which of the following is a category of economic resources: A. Valuable B. Scarce C. Human D. International

C Human. Economic resources are those things that make it possible to produce and sell the goods and services needed or wanted by consumers. The three major types of economic resources are natural resources, human resources, and capital goods. Human resources are people who work to produce goods and services. Some resources are scarce, or in short supply; valuable; or international, if they are available everywhere.

A small food market that calls several vendors to obtain a price and then places an order with the lowest bidder is using the _________ buying method? A) negotiated B) competitive bid C) informal D) standing order

C Informal. The informal buying method is often effective for small food markets and usually involves calling several vendors to obtain prices. Then, the market calls the lowest bidder to place an order. This is a simple process that reduces the need for a lot of paperwork. Also, orders can be placed quickly. Formal buying methods require more paperwork and usually written quotes rather than verbal quotes over the phone. Competitive-bid, negotiated, and standing-order are formal buying methods that take more time than informal methods.

Why do many financial advisors recommend that you validate your financial credit history annually? A. Most universities review your financial credit report before accepting you as a student. B. The return on your stock investments is based on your financial credit history. C. Information in your credit report can impact how much you pay to borrow money. D. Information in your credit report appears in your social networking profiles.

C Information in your credit report can impact how much you pay to borrow money. Many financial advisors recommend that you validate your financial credit history annually for several reasons. First of all, information in your credit report can impact whether you get a loan as well as how much you pay to borrow money. Secondly, you should review your credit report annually to ensure that information that appears in the report is correct, complete, and current. Thirdly, by reviewing your credit report, you can ensure that you are not the victim of identity theft. Your financial credit history does not impact your return on stock investment nor appear in your social networking profiles. Although many employers review your financial credit report before hiring you, most universities do not review your credit history before accepting you as a student.

Before businesses can effectively use relevant data, they need to determine the type of A) report that is required B) computer system to purchase C) information that is needed D) collection process to develop

C Information that is needed. Information is a collection of facts, statistics, or data. Before businesses can use the information, they must determine the type of information that is needed. For example, does a business need economic data because it wants to expand, or does it need marketing data because it wants to attract new customers? The business must decide the type of information it needs before it can obtain and use that data. Businesses do not need to determine the type of computer system to purchase, the type of report that is required, or the type of collection process to develop before using relevant data.

What do individuals often identify when assessing their personal strengths and weaknesses? A) Benefits B) Careers C) Interests D) Risks

C Interests. Interests are the things that a person is curious about, concerned for, or involved with. When assessing their personal strengths and weaknesses, people often identify their interests because interests are strong points that might lead to appropriate occupations. For example, an individual works on the school newspaper, likes to create posters for upcoming events, and belongs to the English club. These interests are this person's strengths. After assessing personal strengths and weaknesses, individuals might select suitable careers. Assessing personal strengths and weaknesses does not involve identifying benefits or risks.

A company had a short-term project requiring a fast turn around. Its manager initially hired five employees to work on the project but decided more staff was needed to meet the deadline. The manager hired five more and then, five more. At some point, the manager realized that each employee's output decreased as more employees were added. What economic concept was a t work here? A) Law of economics of scale B) Law of supply and demand C) Law of diminishing returns D) Law of elasticity

C Law of diminishing returns. The reduction in output was not due to the fastest or best workers being hired initially. Instead, the environment in which the employees worked became less conducive to getting the job done. At some point, the manager had too many people trying to use a fixed amount of equipment. The law of diminishing returns applies to the short term since, over time, additional equipment could be acquired. The law of supply and demand is an economic principle which states that the supply of a good or service will increase when demand is great and decrease when demand is low. Economies of scale is the economic concept that the average cost of production decreases as a business expands. Elasticity refers to the responsiveness of a supply and demand curve to changes in price.

Pricing the product appropriately is a(n) __________ activity. A) financing B) operations-management C) marketing D) information-management

C Marketing. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relations in ways that benefit the organization and its stakeholders. Pricing is the element of marketing that involves determining the amount of money that businesses will ask in exchange for their products. Operations management is the process of planning, controlling, and monitoring the day-to-day activities (e.g., purchasing) required for continued business functioning. Financing is the process of obtaining funds and using them to achieve the goals of the business. Information management is the process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business decision making.

Why is networking one of the most effective techniques for identifying employment opportunities? A. Networks provide emotional support during job searches. B. Networks are paid to be the first-to-know about job openings. C. Most job openings are never posted in the newspaper. D. Most job openings are listed with employment agencies that networks can help you identify.

C Most job openings are never posted in the newspaper. Many companies inform current employees of job openings before they post the openings in the newspaper or list them with employment agencies. One study indicates that 80 percent of job openings are never posted or listed. Through networking, you can learn of these un-posted job opportunities. Networks are not paid to be the first-to-know about job openings. Although networks can be a source of emotional support during a job search, that is not why they are one of the most effective techniques for identifying employment opportunities. Networks do not help to identify employment agencies; instead, they help to identify job openings with specific companies.

Which of the following is an example of an integrated software application? A) SMS B) java C) point-of-sale D) URL

C Point-of-sale. There are many point-of-sale software applications that enable businesses to perform a variety of functions beyond the point of sale. Some of these functions include placing orders, controlling inventory, placing special orders, etc. SMS is an abbreviation for short messaging service and is used to send text messages on a variety of cell phones. Java is a computer-programming language. URL or uniform resource locator is the web site's web address.

When hiring new employees, which of the following is an activity that many businesses consider as an equivalent to work experience? A) Networking B) Brainstorming C) Volunteering D) Apprenticing

C Volunteering. People entering the labor market for the first time often do not have previous work experience. In such cases, businesses often consider any volunteer work that the applicants may have done as an equivalent to work experience. Many people gain valuable work-related experience by volunteering in hospitals, nursing homes, schools, and with community-service organizations. Brainstorming is a creative thinking technique involving the identification of as many different ideas as possible during a certain time frame. Networking is the process of sharing and exchanging job information. Apprenticing involves beginning in an occupation and learning the trade while employed.

Talia manages a business's accounts payable, accounts receivable, inventory, and cash. Talia is responsible for A. the business's capital structure. B. capital investment decisions. C. working capital management. D. market risk management.

C Working capital management. An organization's finance function is responsible for managing the business's working capital and making capital investment decisions for the company. Working capital is the difference between a business's current assets and current liabilities. Working capital management focuses on the company's current balance of assets and liabilities and involves the management of accounts payable and receivable, inventory, and cash. Working capital management involves decisions made for the short-termone year or less. Capital investment decisions determine which projects the business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to the company's shareholders. The business's capital structure consists of the mix of debt and equity financing used to finance investments and projects. Market risk is the risk of financial loss due to the decreased value of an investment, and market risk management involves using financial instruments to manage exposure to market risk. Capital investment decisions, the business's capital structure, and market risk management are typically long-term in nature. Talia is not responsible for capital investment decisions, the business's capital structure, or market risk management.

Which of the following is an example of acting on a decision? A) evaluating an outcome B) identifying a problem C) choosing an option D) accepting a promotion

D Accepting a promotion. Once individuals make decisions and select alternatives, they must act on them. By accepting a promotion, a person is acting on a decision. Just deciding what to do doesn't complete the decision-making process. It is necessary for an individual to carry out the decision. Identifying a problem and choosing an option are steps in the decision-making process that occur before action is taken. Evaluating an outcome occurs after the action is taken.

Developing efficient production processes is important to businesses because it helps them to be A) innovative B) responsible C) flexible D) competitive

D Competitive. Business is very competitive, and companies are always looking for more efficient production processes in order to reduce their costs. Businesses that can produce goods more inexpensively and, therefore, sell them at lower prices than other companies are able to be competitive and attract a larger share of the market. Developing efficient production processes does not necessarily make businesses responsible, flexible, or innovative. However, these are characteristics of most successful businesses.

Why do many job offers come from participating in an internship? A. Employers feel obligated to hire interns. B. Interns are more experienced than a person who walks in off the street. C. Interns are being repaid for working for free. D. Employers have had an opportunity to observe an intern's work.

D Employers have had an opportunity to observe an intern's work. Through internships, employers have an opportunity to examine the quality and quantity of a potential employee's work, the person's work ethic, and the person's ability to work well with others. When interns do quality work, employers want to keep them onboard. A person walking in off the street may have several years of experience doing similar work. Employers do not feel obligated to hire interns or feel that they need to repay interns for working for free. Their goal is to hire quality employees, thereby minimizing their expenses while maximizing output.

Which of the following often is the best source of information bout job leads? A) bureau of labor statistics B) occupational outlook handbook C) business advisors D) family and friends

D Family and friends. Family and friends often are the best source of information about job leads because they may know of openings at their own places of employment. Also, they have other contacts within the business community and may be able to refer job seekers to their associates who may have available positions. Business advisors usually provide guidance and assistance to businesses. The Occupational Outlook Handbook describes the various types of jobs available in the workplace but does not provide job leads. The Bureau of Labor Statistics analyzes current data to project what types of jobs will be needed in the future but does not offer leads.

What is often a benefit to a business of providing good customer service? A) More publicity B) Increased Assets C) Longer Season D) Greater Profits

D Greater profits. Businesses that provide good customer service usually retain their current customers. Since it is much less costly to retain current customers than to find new ones, greater profits are usually the result. Publicity is any nonpersonal presentation of goods, services, or ideas that is not paid for by the company which benefits from it. Assets are anything of value that the business owns. Season is a certain time of year.

On a pay stub, the total amount of money that a worker has earned for the pay period before deductions is listed as A. overtime income earned. B. net pay. C. tax-exempt income. D. gross pay.

D Gross pay. Gross pay is the total income earned for the pay period before income taxes and other deductions are subtracted from the wages. Net pay is the amount of money that the worker receives after the taxes and other deductions have been subtracted from his/her wages. Tax-exempt income includes revenues that are not taxed, such as tax refunds, veteran's benefits, and welfare benefits. Overtime income is the amount of money that an hourly worker earns for working more hours than s/he is normally scheduled to work.

Which of the following is an example of an effective subject line for a professional email? A) Can we talk for a minute? B) New product information C) One more thing... D) Mtg. rescheduled for 3pm

D Mtg. rescheduled for 3 p.m. An effective subject line for a professional e-mail should summarize the body of the message and make it easy for the recipient to understand the purpose of the e-mail. Mtg. rescheduled for 3 p.m., for example, clearly communicates the focus of the e-mail (the meeting) and provides enough information for the recipient to understand why the e-mail was sent to him/her (to inform him/her that the new time for the meeting is 3 p.m.). New product information is not specific enough for the recipient to understand what product is the focus of the message. One more thing . . . and Can we talk for a minute? are vague and provide little information to help the recipient understand the reason for the e-mail.

By maintaining information about a company's copyrights, patents, trademarks, and corporate history, the information management function helps to A. communicate the company's financial position. B. serve customers more effectively and efficiently. C. maintain the company's building and equipment. D. preserve the company's organizational identity.

D Preserve the company's organizational identity. A company's information management function is responsible for keeping track of important documents and files pertaining to the company's corporate history. The function also manages information regarding the company's copyrights, patents, trademarks, etc. By doing so, information management helps to preserve the company's organizational identity and history. Maintaining information about a company's copyrights, patents, trademarks, and corporate history does not help serve customers more effectively and efficiently, maintain the company's building and equipment, or communicate the company's financial position.

Financial planning can be described as a way to A. retire with a substantial amount of money in the bank. B. stop all impulsive purchases. C. achieve your professional goals. D. realize what it takes to get the things you really want.

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

Where could you find up-to-date information about jobs that are available to persons with physical and sensory disabilities? A) college offices of disability services B) nonprofit vocational training programs C) high school special education department D) state departments of vocational rehabilitation

D State departments of vocational rehabilitation. These departments provide current information about the physical requirements of many jobs and suggestions about other agencies to contact. College and high school services for persons with disabilities focus on access to education rather than on career planning. Nonprofit vocational training programs offer limited types of training to persons with disabilities and usually have relatively few job openings.

Which of the following is a basic computer operating system that a business might use A) adobe B) excel C) oracle D) windows

D Windows. Microsoft Windows is one of the most popular operating systems. The operating system manages the hardware and software and makes the computer work. The system connects the software to the hardware and controls the overall operation of the computer. Excel, Oracle, and Adobe are software programs rather than operating systems.

Which of the following is an example of sensitive communication: A) "I'd like to invite you over for dinner sometime." B) "We are happy you could stop by to see us." C) "I appreciate your contribution to the project." D) "You did a wonderful job decorating that cake."

D You did a wonderful job decorating that cake." "You did a wonderful job decorating that cake" is an example of sensitive communication. Sensitive communication means putting "you" before "I." The other sentences focus on "I" or "we" rather than "you."

The opening sentences of an effective business latter should always A) avoid specific details B) be completely impersonal C) always be formal D) come right to the point

D) Come right to the point. The opening paragraph of a business letter should explain the reason for writing and come right to the point. Effective business letters do not waste the reader's time by providing a lot of unnecessary information, but they immediately come to the point and capture the reader's attention. The letter does not need to be formal, but it should contain specific details and have personal appeal for the reader.

Which of the following is not one of the four main idealized market structures used in trade theory? A) Perfect Competition B) Perfect Monopoly C) Monopolistic Competition D) Monopoly

Perfect Monopoly. The four main idealized market structures used in trade theory are perfect competition, monopoly, oligopoly, and monopolistic competition. Perfect competition is an idealized market structure that includes large numbers of buyers and sellers. A monopoly is a market structure in which there is only one seller. An oligopoly is a market structure in which there are a number of small sellers. A monopolistic competition is a market structure in which there are many sellers.

BTA Enterprises used overly aggressive advertising tactics to discredit the MZT Company, its primary competitor. As a result, the MZT Company's sales and stock values have plummeted over the past few months. This situation is an example of A) a criminal offence B) negligence C) misappropriation D) an intentional tort

an intentional tort (advertising is a planned promotional activity, the tort is intentional)