Praxis Prep
Mr. Hines, a business teacher, works with his students to learn how electronic collaborative learning tools can benefit various businesses. Students study the similarities and differences in wikis and blogs to best understand how they can be used to promote a business's mission. For each of the following statements, indicate whether it is a characteristic of a blog, a wiki, or both. 1. Collaborators leave only comments to be viewed. 2. The organization of the site is a hyperlinked collection of individual pages. 3. The site incorporates a type of social software that facilitates individuals' collective desire to achieve goals as a group.
1. Blog - Blog collaborators can leave comments but not edit the author's statements. Wiki collaborators can edit the content on the site. 2. Wiki - Blog posts are organized in reverse chronological order. A wiki is organized using a collection of hyperlinks to other individual pages. 3. Blog AND Wiki - Both blogs and wikis incorporate social software allowing individuals to achieve goals as a group.
According to research, the competency most needed for success in most business occupations today is A. Computer literacy B. Communication skills C. Records management D. Time management
B. Communication skills. Computer literacy, records management, and time management are all skills that can be taught and improved by a business. Communication skills are the one competency that employees must possess as they enter the job.
Which of the following theories is most closely associated with motivational management? A. Chaos theory B. Instinct theory C. Contingency theory D. Systems theory
B. The instinct theory of motivation states that leaders are motivated to lead because there is something innate that allows them to be leaders. The theory is associated with internal motivation.
A CEO's administrative assistant wants to be certain that an e-mail written by another employee can be passed on to the CEO's subordinates. Before sending the e-mail, the administrative assistant should first consider if the e-mail A. includes a chain of messages from several employees B. contains an exchange between the e-mail's author and the CEO C. is approved by the author for the CEO to forward D. involves confidential information
C. It is most important that the administrative assistant is certain that the e-mail's author has given permission for the message to be forwarded.
Two businesspeople invested $300,000 each in the same new venture and have listed themselves as non-decision makers in the partnership agreement. Which of the following roles do they have in the new venture? A. General partners B. Stakeholders C. Shareholders D. Limited Partners
D. A limited partner invests capital in a business but does not participate in its management.
A company's IT IT department designs computer systems that meet the needs of the company. The computer systems are created in layers. Place each of the following components of a computer system in order from bottom to top. Application software End user Hardware Operating system
From bottom to top: Hardware, Operating system, Application software and (top) End user is correct. The hardware is the bottom, or the basis, of any computer system. It's the shell. The operating systems connects to the hardware, and it's the platform where the application software lives. The application software is what the end user uses to computer and manipulate information. The end user is the top of the system. The user can't compute without the other components in the correct order.
A local game store is trying to attract members of generation Y. Which of the following promotional approaches will primarily get the attention of generation Y consumers? Coupons in the local weekly newspaper A commercial on a national radio station Information posted on a company Web site A full-page advertisement in a national magazine
Information posted on a company web site is correct. Members of generation Y are technologically savvy; they have grown up with computers and the Internet playing a significant part of their lives.
Sarah wants to thank her manager for allowing her to attend a business-related seminar and then share what she learned from the seminar. Which of the following is the most appropriate form of communication for Sarah to use? Text Memo Letter E-mail
Letter is correct. A letter is a formal form of communication within or outside of an organization. Business letters are considered to be more formal than memos.
Which of the following terms best describes an auditing tool that helps determine a company's current strategic position? SWOT analysis Business plan Market survey Environmental scan
Option (A) is correct. A SWOT analysis is the best tool for audit and analysis of the overall strategic position of a business.
Which of the following actions is the best example of an appropriate government intervention in a mixed economy? Setting prices for a new product Granting a subsidy to a business sector Hiring employees for a construction site Participating in managerial decision making
Option (B) is correct. Granting a subsidy such as a tax credit to a business sector is an example of direct government intervention in a mixed economy.
A CEO's CEO's administrative assistant wants to be certain that an e-mail written by another employee can be passed on to the CEO's CEO's subordinates. Before sending the e-mail, the administrative assistant should first consider if the e-mail includes a chain of messages from several employees contains an exchange between the e-mail's author and the CEO CEO is approved by the author for the CEO CEO to forward involves confidential information
Option (3) is correct. It is most important that the administrative assistant is certain that the e-mail's author has given permission for the message to be forwarded.
Which of the following is a primary reason a country might use import tariffs, quotas, or licensing requirements? To expand its export opportunities To increase its consumer choices To protect its consumers and industries To maximize market competition
Option (3) is correct, to protect its consumers and industries. Tariffs, quotas, and licensing can be utilized by governments to equalize an exporting nation's manufacturing and labor advantage to protect the importing nation's industrial sector, labor force, and consumers.
The owner of a company that builds electric-car recharging stations is trying to determine whether or not to develop the California market. To adequately evaluate expansion conditions and demand for the stations, the owner needs meaningful information. Which of the following types of software system will best provide the owner with the necessary information? Decision support system Business information system Operational support system Management information system
Option (A) is correct. A decision support system acts as a what-if analysis system by assisting in the evaluation of alternative courses of action.
Which of the following statements best describes a mutual fund? It is an open-ended fund operated by an investment company that raises money from shareholders and invests in a group of assets. It is a registered, nontransferable bond issued by the United States government and backed by its full faith and credit. It is a negotiable instrument drawn against deposited funds to pay a specified amount of money to a specific person on demand. It is a debt investment in which an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest rate.
Option (A) is correct. A mutual fund is a collection of assets (stocks, bonds, etc.) selected and managed by an agent for its shareholders. It is not a government bond, a negotiable instrument, or a debt investment.
Of the following, which primarily benefits an American multinational company? A. Implementation of a positive trade agenda B. Enactment of policies that reduce foreign direct investments C. Increased competition with foreign state-owned enterprises D. Exclusion from global supply chains
Option (A) is correct. A positive trade agenda is beneficial to American multinational companies.
Which of the following is the most appropriate way to begin a sales letter? Asking a question to get the reader's attention Highlighting the product while appealing to the reader's intellect Supplying evidence of the value of the product Asking the reader to make a purchase by a specified date
Option (A) is correct. A sales letter should begin with an attempt to get the reader's attention by asking a question.
In which of the following leadership styles does a leader make all decisions and tell subordinates what to do and how to do it? Authoritarian Democratic Existential Laissez-faire
Option (A) is correct. An authoritarian management style is one in which the manager makes all the decisions and instructs subordinates on what to do and how to do it.
A high school student would like to gain practical hands-on management experience in the restaurant industry, and the restaurant next to the high school offers an unpaid opportunity. Which of the following terms best describes the opportunity? Internship Apprenticeship Job shadow Journeywork
Option (A) is correct. An internship program provides a beginner in an occupation with hands-on experience, usually as an unpaid trainee.
Which of the following is the most accurate description of asynchronous communication in online classes? It takes place outside of real time. It requires multiple users to log in and interact at the same time. It elicits responses within a short time. It enables lectures and presentations to occur at a specific time.
Option (A) is correct. Asynchronous communication and activities take place outside of real time. Asynchronous tools allow individuals to connect at their convenience.
Chester owns a dry-cleaning business specializing in the cleaning of fine fabrics. Many of his customers began buying machine-washable clothing, and his business began to decline. He plans to add shoe repair and tailoring services to his business. He plans to use new signage on the premises of his store to advertise the new services. Which of the following best identifies the entrepreneurial characteristic described? Problem-solving skills Tolerance for ambiguity Strong integrity Ability to secure capital
Option (A) is correct. By figuring out other services to provide at his business to help it succeed, Chester is demonstrating his problem-solving skills.
Which of the following best describes cooperative education? The integration of classroom learning with productive work experiences The integration of classroom learning with virtual job-shadowing experiences The participation of students in summer internships The participation of students in advisory committees
Option (A) is correct. Cooperative education students are directly applying their classroom learning to a work experience that is in line with academic studies or career goals.
Wendy, a high school student enrolled in a work-based learning course, works as an attendance clerk at an area middle school. She has received her first paycheck. Wendy is primarily in which of the following phases of work-based learning? Cooperative work experience Work-related training Career assessment Career exploration
Option (A) is correct. Cooperative work experience is the only phase of work-based learning that is paid.
Which of the following is a primary cause of a discharge of all contractual duties? Complete performance of the terms of the original contract Breach of the terms of the original contract Default of the terms of the original contract Substantial performance of the terms of the original contract
Option (A) is correct. Most contracts are discharged by complete performance of the terms of the contract.
A business teacher wants to instruct students about effective communication skills. The teacher can best model communication skills by speaking in reference to written notes in an impromptu fashion from memorized lessons from a prepared script
Option (A) is correct. Referring to notes is an acceptable methodology in communication. The method demonstrates effective planning and best holds an audience's attention.
Ms. Jones tells her students that an upcoming assignment will require them to follow a person throughout a workday to see what that person's job involves. Which of the following career-exploration programs is the best example of what the students will be doing? Shadowing Internship Journeywork Apprenticeship
Option (A) is correct. Shadowing means following a person throughout a workday to see what a job involves.
Which of the following is one of the primary goals of a cooperative office-education program? Applying business concepts to school and work Learning ways to operate and maintain a business Working without supervision and direction Obtaining a job and a salary after graduation
Option (A) is correct. Students learn business skills used for school and work in a cooperative office education program. The program provides students with part-time office employment combined with classroom instruction in human relations, office etiquette, time management, and computer operations and techniques.
The law of demand states that a decline in the price of a good will tend to cause consumers to purchase more of that good an increase in the price of a good will tend to cause consumers to purchase more of that good an increase in the demand for a good will tend to cause the price of the good to decrease a decrease in the demand for a good will tend to cause the price of the good to increase
Option (A) is correct. The law of demand holds that a decline in the price of a good will cause consumers to buy more of that good.
When a business posts employment openings with required skill descriptions, it is using the Internet to recruit employees train employees conduct financial activities assist the sales force
Option (A) is correct. The question assesses knowledge of communication and career development. Listing employment openings with required skill descriptions is by definition recruiting.
Raven must compare her division's sales over the past five years. She wants the comparison to provide a quick assessment of which years were average and which were below average. Which of the following methods of presentation would work best for Raven? Bar chart Pie chart Statistical chart Tabular display
Option (A) is correct. The question requires knowledge of various types of charts and displays. Since Raven wants to show results and compare sales over time, the bar chart would provide the most effective display.
Which of the following is true of a persuasive résumé? It emphasizes skills and achievements aimed at a particular job or company. It minimizes the length of the document to one page. It is printed on high-quality stationery paper using a high-resolution printer. It is accessible to digital scanning.
Option (A) is correct. The question tests knowledge of résumé writing. An effective résumé demonstrates how the candidate's skills and achievements meet the needs of a particular company.
Which of the following combinations of policies is the United States federal government most likely to follow during a recession? Increasing government spending and increasing the money supply Decreasing government spending and increasing the money supply Increasing taxes and decreasing the money supply Decreasing taxes and decreasing the money supply
Option (A) is correct. The question tests understanding of government and banking policies. A recession is a period of falling demand and lower interest rates. Generally, during a recession, the unemployment rate increases because the demand for goods is depressed. Any increase in taxes would further reduce consumer spending. Increasing the money supply would have the effect of increased employment, since more money would be available to the consumer for spending.
The first step in the employment process for job candidates is assessing their career interest and qualifications developing an extensive résumé to send to prospective employers locating job opportunities at the most desirable companies researching salary, benefits, and job security in a chosen field
Option (A) is correct. The question tests your knowledge of the employment process. A job candidate must first identify an attractive career option and assess his or her qualifications.
Which of the following is the most appropriate term for money provided by investors to finance new products or services that have a good chance of succeeding? Venture capital funding Angel funding Credit funding Start-up funding
Option (A) is correct. Venture capital funding is money provided by large professional investors to finance new products and new businesses that have a good chance of being profitable.
If a growing firm experiences economies of scale, prices will most likely decrease equal costs increase stay the same
Option (A) is correct. When a firm experiences economies of scale, prices will decrease for consumers.
Owners of a prospective start-up business have created a business plan identifying projected costs of operation, labor needs, and an appropriate location for the business. If the business fails, however, it is primarily due to a lack of cash flow the cost of the start-up a lack of qualified employees the location
Option (A) is correct. While the costs of operation are researched fairly extensively before beginning an enterprise, economic conditions may cause cash flow problems.
Leland works for a business that is owned by many people. However, according to the law, the business is treated as if it is owned by one person. This form of ownership is best known as a limited liability company corporation nonprofit organization franchise
Option (B) is correct. A corporation is a business owned by many people but treated by law as if it is owned by one person.
A firm buys products directly from a manufacturer and sells them to retailers. Which of the following supply chain positions does the company most closely represent? Contractor Wholesaler Transporter Dispatcher
Option (B) is correct. A firm that buys products directly from a manufacturer and sells them to retailers is a wholesaler.
Which of the following types of information is the most critical to making marketing decisions? Product quality Customer wants Competition offerings Government regulations
Option (B) is correct. A knowledge of customer wants is the most critical element of making marketing decisions.
Two friends decide to purchase and operate a food truck together. Each of them makes a $50,000 investment, and they share equally in the profits. Which of the following business arrangements do the two friends have? Sole proprietorship Partnership S corporation Corporation
Option (B) is correct. A partnership is a type of business organization in which two or more individuals pool money, skills, and other resources and share the profits or losses.
A company wants to set up a computer network that will allow its employees to easily communicate with customers, vendors, and suppliers while maintaining a basic level of information security. Which of the following networks is most appropriate for the company to use? Telnet Extranet Local area Wide area
Option (B) is correct. An extranet is a semiprivate network that allows more than one company to access the same information. A company may also use the extranet to manage and communicate with customers, vendors, suppliers, and other organizations through secure Web sites.
Ms. Scalise, who runs an art gallery, offers to pay Mr. Patel $1,000 for an antique vase, and he agrees to the offer. For a contract to be enforceable, it must include an offer, an acceptance, and which of the following? Agreement on dates Consideration Signatures Written documentation
Option (B) is correct. Any oral or written contract must include consideration.
A manufacturer notices that prices in the market have increased. According to the laws of supply, it is most appropriate for the manufacturer to produce less produce more stop production for a while produce the same amount
Option (B) is correct. High prices encourage firms to produce more, and low prices discourage production.
The actual rate of interest received on a savings account is called the annual rate effective rate nominal rate periodic rate
Option (B) is correct. Interest on a savings account is compounded as the year passes, so the stated rate differs from the actual, or effective, rate.
The principal at a high school conducts a staff meeting to explain a new district policy. A teacher at the back of the room is texting on a phone. Which of the following most closely represents the teacher's barrier to receiving the principal's message? Perceptual difference Distraction Ethnic difference Emotions
Option (B) is correct. Texting on the phone is a distraction, which is a type of barrier to communication.
A teacher in a business law class discusses an agency that protects consumers from fraud, deception, and unfair business practices by enforcing laws and guarding consumers' rights. Which of the following agencies is the teacher describing? American Association of Retired Persons (AARP) (AARP) Federal Trade Commission (FTC) FTC Consumer Financial Protection Bureau (CFPB) CFPB Better Business Bureau (BBB)
Option (B) is correct. The FTC's Bureau of Consumer Protection enforces federal laws that protect consumers and helps them exercise their legal rights and avoid fraud and deception.
A person has just inserted a picture into a document. Which of the following is the name of the selected graphic's display handles at each corner and middle location? Selection Resizing Formatting Styles
Option (B) is correct. The display handles that appear at the corners and sides of the selected graphic are used to resize the image.
The role of an advisory committee primarily involves administrative control promoting public relations evaluating instructors budgetary control
Option (B) is correct. The function of an advisory committee is to promote public relations.
Which of the following theories is most closely associated with motivational management? Chaos theory Instinct theory Contingency theory Systems theory
Option (B) is correct. The instinct theory of motivation states that leaders are motivated to lead because there is something innate that allows them to be leaders. The theory is associated with internal motivation.
Which of the following stages in the product life cycle usually occurs first? Growth Market introduction Maturity Saturation and decline
Option (B) is correct. The question requires that you understand the life cycle of a product. Once introduced into a market, products grow, mature, and decline.
Which of the following is defined as an entity's total assets minus its total liabilities? Accounts receivable Net worth Cash receipts Marginal profit
Option (B) is correct. The question tests your understanding of basic accounting concepts. The basic accounting equation is: total assets minus total liabilities equals net worth.
A business owner decides to form a corporation. Which of the following describes where the company must file a charter? The state where the company's chief executive officer lives The state where the company's headquarters are located States where the company will conduct local business Countries where the company will conduct Internet business
Option (B) is correct. To form a corporation, a company must file a charter in the state where its headquarters will be located.
Which of the following statements is primarily true of business plans? Most business plans are developed for a period of five years. Business plans are most commonly used for financial requests. Entrepreneurs rely on business experts to write their business plans. Business plans must be approved by a government agency.
Option (B. Business plans are most commonly used for financial requests.) is correct. The most popular use of business plans is to obtain funding.
Mr. Smith, a salesperson, describes to his supervisor, Ms. Thomas, a plan that he believes can improve the product flow in the distribution channel. While listening intently, Ms. Thomas shows she recognizes the salesperson's point of view and relates the suggestion to her own thoughts about improving the distribution process. Which of the following communication techniques best describes what the supervisor is doing while listening? Reviewing the information Understanding the idea Providing feedback Quantifying the procedure
Option (B. Understanding the idea) is correct. Understanding requires listening, recognizing, and relating information for communication to be effective.
Which of the following statements is true about strict liability in contracts? It requires proof of intent. It requires a connection to the contract. It does not require a showing of negligence. It does not apply to a third party in the contract.
Option (C) is correct. (It does not require a showing of negligence.) The question assesses knowledge of contract law. Strict liability is a legal doctrine that makes some persons responsible for damages their actions or products cause, regardless of any fault on their part. It does not require proof of negligence.
A group of teachers decide to pool their hobby skills to create a new business. These skills will be available for any of the teachers in the group to use. Which of the following business models most closely represents the teachers' new business? Franchise Home-based business Cooperative Limited liability corporation
Option (C) is correct. A cooperative business belongs to the people who use it.
Which of the following activities is the best use of an enterprise application system for a large retail chain? Composing letters to current customers Creating a decentralized data warehouse Processing online payments Researching on the Internet
Option (C) is correct. An enterprise application system is used to integrate all of a firm's processes and can be linked to customers, partners, or suppliers. Processing online payments is one use of an enterprise application system.
Which of the following is the first step in the managerial decision-making process? Solving a problem Evaluating the problem Identifying an opportunity Generating alternative solutions to the problem
Option (C) is correct. Business involves the search for opportunities, and the first step in such a process is to define an opportunity. Once you've identified the opportunity, scenario generation can begin.
Which of the following reflects the idea that consumers drive the economy because their preferences affect business decisions regarding production? Consumerism Consumer activism Consumer sovereignty Consumer therapy
Option (C) is correct. Consumer sovereignty is an economic theory that suggests that the final consumer's wants and preferences drive the production of goods and services in that economy.
Water, gas, and electric companies are primary examples of which of the following types of monopolies? Restricted-input Technological Natural Geographic
Option (C) is correct. Economies usually support only one or two utility suppliers due to high operation costs, which is characteristic of a natural monopoly.
A teacher needs to send out a high-priority e-mail to her supervisor. Which of the following is the most appropriate way to send an urgent e-mail? Sending the message with a subject heading of "URGENT!" Sending the message with a subject heading of "Please read ASAP ASAP" Sending the message with a relevant subject heading, tagged as urgent (!) in the e-mail program Sending the message with the urgency of the subject matter stated in the body of the e-mail
Option (C) is correct. Indicating the subject of the e-mail and using the urgent (!) feature on the e-mail program notes the urgency in a subtle and professional way.
A company is planning to sell the rights to its brand name for use in other countries. Which of the following terms most closely describes the situation? Joint venture Free trade agreement Licensing agreement Direct foreign investment
Option (C) is correct. Licensing is selling the right to use some intangible property (production, process, trademark, or brand name) for a fee or royalty.
Jacob recently started working at a business in which people of many cultures work. When Jacob communicates with someone of another culture, it is most appropriate for him to remain casual by using idioms ignore the person's body language listen actively to the person correct the person's English
Option (C) is correct. Listening actively means not just listening but also observing.
An office manager prepares a memo to employees regarding the retirement of the company's chief financial officer and the search for a replacement. Which of the following purposes best describes the reason for the memo? Providing a record Promoting goodwill Supplying information Stating a policy
Option (C) is correct. Memos of this sort are most frequently used to provide information.
Which of the following is an ergonomic risk factor that contributes to musculoskeletal disorders in the workplace? Exerting moderate force Performing a variety of duties Sustaining awkward postures Resting the body often
Option (C) is correct. Sustaining awkward postures, such as prolonged or repetitive reaching above shoulder height, kneeling, squatting, leaning over a counter, using a knife with wrists bent, or twisting the torso while lifting, places stress on the body.
Jesse is thinking about applying for a loan and wants to know what information is in her credit file. Which of the following laws gives her the right to know that information? Fair Credit Billing Act Equal Credit Opportunity Act Fair Credit Reporting Act Consumer Credit Protection Act
Option (C) is correct. The Fair Credit Reporting Act gives consumers the right to know what is in their file.
The four components of the work-based learning (WBL) approach are work-related training, career assessment, cooperative work experience, and which of the following? Technical school Community work Career exploration Self-evaluation
Option (C) is correct. The National Center on Secondary Education and Transition states that career exploration, career assessment, work-related training, and cooperative work experience are the components of work-based learning.
The largest number of employees that a small business can have is 500 employees 750 employees determined by the type of industry of the business determined by the North American Industry Classification System
Option (C) is correct. The definition of "small business" varies by industry.
Which of the following most closely represents an example of using the grapevine to get information about a company policy change? Reading an article from the corporate newsletter Asking upper management in a meeting Questioning coworkers during a lunch break Posting a news release on the intranet
Option (C) is correct. The grapevine is an informal channel of business communication. It is called this because it stretches throughout an organization in all directions, irrespective of authority levels. The coworkers' discussion during their lunch break is an example of this.
Vance, the owner of an apparel store, advised Julia, the store manager, to use her best judgment when selecting merchandise for the store. Vance's only caution was, "Do not buy designer jeans." Later, Julia did purchase a line of designer jeans from Casual Wear, Inc., but they did not sell, causing a large inventory buildup. Casual Wear had no knowledge of Vance's directive to Julia not to buy designer jeans. Vance refused to pay, and Casual Wear sued for the purchase price. In this situation, Vance is not relieved from liability to pay for the jeans purchased by Julia because Julia had express authority to purchase the jeans had implied authority to purchase the jeans had apparent authority to purchase the jeans was an undisclosed principal
Option (C) is correct. The manufacturer, Casual Wear, had every reason to expect that Julia had authority regarding purchasing decisions because of her position as store manager. This is apparent authority.
Which of the following statements is primarily accurate about true market economies? Everyone's needs and wants are met. Goods and services are distributed evenly. The government removes barriers to trade. Major resources are owned by the state.
Option (C) is correct. The primary role of government in a market economy is to support the marketplace by removing obstacles such as trade barriers.
If a nation begins importing more goods and its exports remain constant, it will experience an increase in the value of its currency the number of foreign markets for its products the outflow of its currency inflation
Option (C) is correct. The question requires a knowledge of international trade and economics. When a nation imports more than it exports, there is always an increase in the outflow of its currency because the nation is spending more than it is receiving.
In communicating with a businessperson for whom English is a second language, one should talk slowly, enunciate clearly, observe body language, check frequently for comprehension, and do which of the following? Assume that the businessperson understands if he or she nods in agreement Avoid smiling, which might come across as lack of seriousness Encourage accurate feedback by asking probing questions Use vocabulary words that will impress the businessperson
Option (C) is correct. The question requires an understanding of effective communication strategies. Communication is a two-way process, and one should look for confirmation that a person understands the message. Engaging in dialogue is the most effective indicator.
Human capital is best described as the development of robots in the industry rise of information technology skills and abilities of humans technological ideas of people
Option (C) is correct. The question tests knowledge of an economics term used by management. Human capital refers to the skills, knowledge, and abilities of human beings that can be used to create value for themselves, their employers, or their community.
The quick ratio and current ratio best indicate a company's efficiency growth rate liquidity profitability
Option (C) is correct. The question tests knowledge of basic accounting/finance concepts. Ratios of financial statement items provide snapshots of the financial status of an entity at a single point in time. The quick ratio is simply the result of dividing the difference between current assets and inventories by current liabilities. The larger the number, the greater the liquid assets. Similarly, the current ratio is calculated by dividing current assets by current liabilities. The larger the number, the more cash the entity has on hand. Both ratios measure liquidity.
A federal income taxpayer should compare which of the following in order to decide whether or not to itemize deductions? Adjustment deductions and total personal exemptions Itemized deductions and adjustment deductions Standard deductions and itemized deductions Adjusted gross income and taxable income
Option (C) is correct. The question tests understanding of taxation. Each taxpayer is allocated a particular amount of standard deduction. If the taxpayer is able to demonstrate that the itemized deductions are greater than the standard deduction, then the itemized figure can be used.
The market value of a share of common stock is equal to the book value of the stock par value of the stock current price at which the stock is trading liquidating value of the stock
Option (C) is correct. The question tests your knowledge of investing. A share of common stock is always valued at the current market price.
If a firm pays $1,000 for furniture on account, which of the following statements about journal entries made for the transaction is true? Cash should be credited; Office Furniture should be debited. Office Expense should be debited; Accounts Payable should be credited. Office Furniture should be debited; Accounts Payable should be credited. Accounts Payable and Office Furniture should be debited; Cash should be credited.
Option (C) is correct. This question tests your knowledge of accounting concepts. The two accounts that are involved with this transaction are Office Furniture, an asset account, and Accounts Payable, a liability account. The asset Office Furniture was chosen because it represents the total of all office furniture owned. Since the transaction will increase the asset Office Furniture, that account should be debited. Accounts Payable was chosen because the furniture was bought on account (for credit). Since Accounts Payable is a liability and it has increased, it should be credited.
Which of the following is a primary advantage of using a USB USB flash drive? Nontransportable data storage Large capacity data storage Inexpensive data storage Long-term data storage
Option (C) is correct. USB USB flash drives are inexpensive and are an easy way to store data.
A national car manufacturer is attempting to improve the efficiency of its assembly plant. To most effectively plan and implement a new process, the company should focus on which of the following? Equipment ergonomics Quality improvement Workflow analysis Workforce reduction
Option (C) is correct. Workflow analysis is a structured approach to identify and enhance work processes.
A balance sheet is best described as a flow statement listing net worth and sources of income flow statement listing sources of income and expenditures condition statement noting assets and claims against the assets condition statement noting assets and incomes
Option (C. condition statement noting assets and claims against the assets) is correct. This question asks you to apply your knowledge of accounting concepts. A balance sheet is a statement of condition that shows assets and claims against the assets (owner's equity and liabilities).
Which of the following provides a secure, reliable connection within a shared public network? Metropolitan area network Intranet Internet Virtual private network
Option (D) is correct. A VPN VPN is a secure private network that is constructed within a public network infrastructure, such as the global Internet.
A business teacher wants students to learn about exploring career choices. Which of the following student activities best meets the teacher's objective? Creating a résumé presentation Participating in a mock interview Attending work-readiness training Visiting a local college
Option (D) is correct. A college visit is an opportunity for students to learn the importance of career exploration.
An employee is concerned about the conduct of a colleague. Which of the following is the most appropriate way for the employee to address the matter? A. E-mailing the colleague about the problem and sending a copy to the supervisor B. Writing a letter to the colleague and filing a copy with the office manager C. Ignoring the problem and focusing on a positive aspect of the colleague D. Setting up a face-to-face meeting with the colleague and discussing the problem
Option (D) is correct. A face-to-face meeting permits both parties to exchange ideas, view nonverbal cues, and move more quickly to solving the problem.
Which of the following objectives best supports current trends and the United States government's role in international trade? Encourage diplomacy between countries Improve campaign financing regulations Increase the influence of the Department of Commerce Reduce trade barriers such as tariffs and quotas
Option (D) is correct. The question requires knowledge of current trends in international business. Since the United States today relies on goods and services from other countries, it is in the country's interest to remove impediments to free trade such as tariffs and quotas.
Michael, a recent college graduate, wants to start his own business. He approaches his parents to ask for help with funding the business. His parents want to invest in the business, but also want to restrict their exposure and accountability. Which of the following types of ownership would be best for Michael's business? S corporation General partnership Joint venture Limited partnership
Option (D) is correct. A limited partnership allows each partner to restrict his or her personal liability to the amount of his or her business investment. Not every partner can benefit from this limitation—at least one participant must accept general partnership status, exposing himself or herself to full personal liability for the business's debts and obligations. The general partner retains the right to control the business, and limited partners do not participate in management decisions.
Mr. Brown has been asked to attend a training seminar. He feels that he should be teaching the seminar rather than attending it. Which of the following obstacles to effective listening is primarily present in this situation? A view about the speaker An attitude about the topic An environmental distraction A personal barrier
Option (D) is correct. Assumptions made in advance about information act as a personal barrier.
A company creates a name and design for a new product that identifies it and differentiates it from other products on the market. Such a process is best described as advertising promoting trademarking branding
Option (D) is correct. Branding is when a business creates a name, symbol, or design.
Which of the following most closely describes a brand name? A symbol used to represent a company A character used to promote a company A legally protected trademark of a company A word or phrase used to identify a company
Option (D) is correct. Brands are distinctive words or phrases that represent a company.
An experienced accountant has been hired to manage an accounting firm. The job requirements include ensuring that all of the company's goals are being met and evaluating employee performance. Which of the following management functions is most closely related to these job duties? Planning Organizing Leading Controlling
Option (D) is correct. Controlling means keeping the company on track and making sure all goals are met. Managers must monitor employees and review their performance.
Which of the following is the best example of something that can be copyrighted? List of ingredients used by a company to create a private label of body lotion Process for combining the ingredients to create a private label of body lotion Exclusive name of a private label of body lotion Advertisement for a private label of body lotion
Option (D) is correct. Copyright protects original works of authorship, and an advertisement is created by a writer or author.
A company manager wants to share safety procedures, accident prevention information, and yearly statistics with all the employees. Which of the following types of communication will best accomplish this goal? A formal letter An interoffice memo An interoffice e-mail A formal presentation
Option (D) is correct. Given the nature of the communication, a formal presentation is the most effective and efficient way to present the type and quantity of data and information to a large audience.
Which of the following would be classified as other income on an income statement? Sales discount Merchandise inventory Sales returns and allowances Interest earned
Option (D) is correct. Interest earned would be correctly classified as an "other income" account.
A primary regulatory function of the United States government is protecting business rights agriculture consumer rights competition
Option (D) is correct. Protecting competition is one of the four aspects of the economy that the government regulates.
In 1917, federal legislation provided funding for vocational student organizations. Which of the following legislative acts primarily continues that funding? Every Student Succeeds Act School-to-Work Opportunities Act Elementary and Secondary Education Act Carl D. Perkins Career and Technical Education Act
Option (D) is correct. The Smith-Hughes Act of 1917 (sponsored by Smith and Hughes) provided federal support for vocational education programs. The Carl D. Perkins Career and Technical Education Act of 2006 continues that funding.
The break-even point for a profit-oriented enterprise is reached when variable costs equal fixed costs net revenue equals fixed costs total revenue equals variable costs total revenue equals total costs
Option (D) is correct. The break-even point is the point at which the total costs match the total revenue.
An employee sends an e-mail message to a colleague at the company's office in Beijing. To ensure that the transmission is clear, the employee carefully selects words that the colleague will understand. This is an example of which of the following parts of the communication process? Decoding Noise Feedback Encoding
Option (D) is correct. The employee's actions best demonstrate message encoding, which is the process of converting an idea into words or gestures that will convey meaning.
Which of the following is the primary purpose of an accounting system? To develop financial statements in conformity with generally accepted accounting principles To provide as much useful information to decision makers as possible To record changes in the financial position of a company by applying the concepts of double-entry accounting To meet an organization's need for accounting information as efficiently as possible
Option (D) is correct. The primary purpose of an accounting system is to provide actionable accounting information efficiently.
Which of the following teaching techniques would best address the requirements of special needs students in business education? Lecturing on the importance of good study habits Encouraging students to compete with their peers Using abstract examples and illustrations Providing repetition and review of lessons
Option (D) is correct. The question asks you to apply your knowledge of tracking pedagogy with regard to special needs students. Special needs students require constant repetition of drills and review of what has been taught.
The interest charge on $2,000 borrowed for one year at a simple interest rate of 12% is $120 $144 $220 $240
Option (D) is correct. The question assesses knowledge of how to calculate simple interest. Simple interest is calculated by multiplying the principal by the rate of interest by the time of the loan. Multiplying $2,000 by 0.12 by 1 equals $240.
Which of the following remedies would a buyer most likely seek when a seller breaches a contract and refuses to give up a unique gold coin? Compensatory damages Exemplary (punitive) damages Nominal damages Specific performance
Option (D) is correct. The question tests knowledge of contract law. Since the item purchased was a unique item and was still in the possession of the seller, the only remedy would be to have the coin delivered to the buyer. This is specific performance.
Federal funds for business education have tended mostly to support which of the following areas? Consumer education Economics instruction Personal development Career and technical skills
Option (D) is correct. The question tests knowledge of federal vocational education legislation. The Carl D. Perkins Vocational and Technical Education Act, reauthorized in 1998, allocates federal funding for the training and development of vocational skills in secondary and postsecondary institutions.
In developing basic keyboarding skills, a teacher should place greatest emphasis on student behavioral objectives related to the knowledge level of the cognitive domain comprehension level of the cognitive domain characterization level of the affective domain perception level of the psychomotor domain
Option (D) is correct. The question tests one's knowledge of applied domain theory. Since keyboarding skills are related to psychomotor activity, behavioral objectives should focus on the perception level of the psychomotor domain.
When the totals of a trial balance are equal, it can be determined that all journal entries have been posted to the correct ledger accounts all original entries were made correctly the company has made a reasonable amount of profit equal amounts of debits and credits have been posted
Option (D) is correct. The question tests your knowledge of basic accounting concepts. The purpose of the trial balance is to prove that all entries have been posted equally to the debit and credit sides of the affected accounts.
When a stockholder signs a proxy solicited by the management of a corporation, the stockholder has authorized the management to issue additional shares to the stockholder repurchase the stockholder's shares call in the stockholder's shares of preferred stock vote the stockholder's shares
Option (D) is correct. The question tests your knowledge of finance and investing. A proxy, by definition, is a written authorization by a shareholder to another person to vote the stock owned by the shareholder. It does not provide for the issuing of additional shares, repurchasing of shares, converting of shares, or calling in of shares.
Which of the following costs changes along with the quantity produced? Fixed Marginal Overhead Variable
Option (D) is correct. The question tests your knowledge of production costs. Variable cost is the sum of marginal costs over all units produced and changes as the number of units produced changes.
Which of the following actions increases the accounts receivable balance? Prepaying warehouse rent for a year Increasing employee salaries Purchasing inventory with cash Selling products on credit
Option (D) is correct. The selling of products on credit generates a liability that must be collected, thereby increasing the accounts receivable balance.
To accurately calculate the funds a company has available to pay expenses in the short run, an employee should review the statement of retained earnings income statement balance sheet statement of cash flows
Option (D) is correct. The statement of cash flows details the cash a company has available to pay expenses.
The owner of an online store queries the customer database for birth dates in order to send customers a digital coupon for $5 off a single purchase made during their birth month. The owner's actions are an example of which of the following? Data mining Cluster analysis Reciprocity Trawling
Option (D) is correct. Trawling is the act of searching a database for a specific piece of information, such as a birth date.
A DECA instructor wants to create an effective work-based learning experience for students. Which of the following should be the instructor's primary focus for the program? Student wages are comparable to the state average. The students are able to fulfill the job requirements. Job skills meet each student's graduation plan. The real-world employment is linked to the classroom.
Option (D) is correct. Work-based students have to be able to see how classroom instruction is relevant to real-world experiences.
A teacher provides students three categories with which to analyze the reliability of a Web site: author, purpose, and reliability. Place the following questions within the appropriate category. Can you verify the information on the site with a non-Web equivalent? Are there credentials and contact information for the provider? Is the site trying to inform, persuade, or sell? Order as 1: Author Order as 2: Purpose Order as 3: Reliability
Options (2), (3), and (1) are correct. Author: Are there credentials[...] Purpose: Is the site trying to inform[...] Reliability: Can you verify the information[...] Knowing the author's purpose helps the reader know if the information is intended to persuade someone into buying something or if it is provided as factual, documented information. If a student can see the credentials and contact information of the author the reader can better know if the writer is reputable. By knowing if the information can be double checked by another non-internet source allows the reader to better understand it's accuracy.
The sales projections for a new product do not meet the expectations of a company's leadership team. After analyzing the situation, the team decides that the features offered on the new item do not match customer wants and there is a problem with quality control. Which of the following parts of the company's business plan should be adjusted? Select all that apply. Product design Operations Executive summary Company overview
Options (A) and (B) are correct, product design and operations. Product design may be included in the company description section and tell about the products and services offered, so this may need to be adjusted based on changes the leadership team wants to make. The details of operations may also be outlined in the company description since the quality of the product is being compromised. These areas will need to be reviewed to improve the final product.
Mark inherited a large sum of money and wants to purchase bonds that will be a safe, long-term guaranteed investment. Which TWO of the following bonds are best for him to purchase? I bonds Municipal bonds Corporate bonds Junk bonds EE bonds
Options (A) and (E) are correct. Both I bonds and EE EE bonds are savings bonds sold by the federal government. U.S. savings bonds are considered one of the safest types of investments.
A manager of a business seeks to improve decision-making practices and invites a consultant to explain to employees how external factors can influence ethical choices. Which of following should the consultant discuss as factors that impact ethical decision making? Select all that apply. Family patterns Experiences Cultural background Gender
Options (A), (B), and (C) are correct. Family patterns, personal experiences, and cultural biases are factors that influence a person's ethical behavior.
Which THREE of the following actions should a marketing manager use to mine targeted customer data for a local bank to expand its financial management business? Studying customers' responses to the marking down of account fees Identifying products that competitive banks provide Evaluating the profiles of the most profitable customers Querying for the ethnicity of customers Analyzing the combination of bank products that customers use
Options (A), (C), and (E) are correct.(Studying customers' responses to the marking down of account fees; Evaluating the profiles of the most profitable customers; and Analyzing the combination of bank products that customers use) Learning about trends in customer responses to fee markdowns will help the bank identify customers who are price sensitive. Data mining the profiles of the most profitable customers can reveal patterns and trends in customer data that the bank can use to expand its business. Analyzing the combination of products can reveal trends in customer purchases.
Which THREE of the following activities are examples of monetary policy goals for the Federal Reserve? Preventing high inflation rates Reducing the size of the banking sector Maintaining high interest rates Keeping unemployment rates low Stabilizing prices
Options (A), (D), and (E) are correct. The goal of the Federal Reserve and its monetary policies is to promote maximum employment, stabilize prices, and prevent high inflation rates.
A high school business instructor knows that a reasonable (i) for a special population would be any change in the classroom environment that will enable an individual with a (ii) to participate in all classroom activities that are available to all other students. Blank (i): expectation modification accommodation Blank (ii): disability skill privilege
Options (C) and (D) are correct (accommodation; disability). Blank (i) is accommodation. An accommodation is an adjustment or support given to students in order for them to have access to the same educational opportunities as other learners. The correct answer for Blank (ii) is disability. A disability is a physical or mental impairment that substantially restricts the ability to perform an activity that someone of the same age is able to perform.
In a multifaceted, ever-changing world, business leaders who are (i) , who do more and more, faster and faster, are less likely to be (ii) and are more susceptible to making ethical mistakes. Blank (i): transformational autocratic hyperactive Blank (ii): idealistic innovative independent
Options (C) and (E) are correct (hyperactive; innovative). Blank i: hyperactive-leadership response resulting from an ever-changing complex world. Blank ii: innovative-refers to the development of new ideas/solutions to meet the customers' needs. When a leaders is in a rush, going faster and faster, taking time to be reflective and innovate suffers and the organization suffers as a result.
Melinda's mother left a detailed will describing her wishes regarding the division of her real and personal property. Which of the following courts will administer the will and estate? Municipal court Circuit court Federal district court Probate court
Probate court is correct. Probate court deals with the legal certification of wills and the administration of estates of the deceased.
Which of the following is a primary reward for an entrepreneur? Showcasing one's unique expertise and skills Assuming total responsibility for the business Working extensive hours Enduring financial risks
Showcasing one's unique expertise and skills is correct. Advantages of an entrepreneurship are satisfaction from taking a risk and becoming a success, showing expertise and skills, working from home, and gaining a profit.
Match the workplace action with the type of ergonomic control it best exemplifies. Using a device to lift and relocate heavy objects to limit force exertion Requiring that heavy loads be lifted by two people to limit force exertion Using padding to reduce direct contact with hard or vibrating surfaces Order as 1: Personal and protective equipment Order as 2: Engineering controls Order as 3: Administrative and work practice controls
The correct answer is (3), (1), (2): Personal and protective equipment (Using padding to reduce direct contact with hard or vibrating surfaces); Engineering controls (Using a device to life and relocate heavy objects to limit force exertion); Administrative and work practice controls (Requiring that heavy loads be only lifted by two people limit force exertion).
Place each of the following descriptions with the most appropriate agency below. This agency regulates radio, television, telecommunications, broadband, and emergency communication systems. This agency rates the ethical and community standing of a firm to maintain a level of trust between businesses and the public. This agency enforces laws and sets standards for financial disclosure and other pertinent information about firms that trade stock. This agency's chief focus is to prevent fraud and deceptive business practices and to ensure fair competition. This agency establishes and enforces standards and laws for working conditions in commercial and industrial sectors. Order as 1: Occupational Safety and Health Administration Order as 2: Federal Trade Commission Order as 3: Better Business Bureau Order as 4: Federal Communications Commission Order as 5: Securities and Exchange Commission
The correct order for the options is (E), (D), (B), (A), (C). Any other order would be incorrect because each agency has a specific definition. OSHA establishes and enforces standards and laws for working conditions in commercial and industrial sectors. The FTC's FTC's chief focus is to prevent fraud and deceptive business practices and to ensure fair competition. The BBB BBB rates the ethical and community standing of a firm to maintain a level of trust between businesses and the public. The FCC FCC regulates radio, television, telecommunications, broadband, and emergency communication systems. And the SEC SEC enforces laws and sets standards for financial disclosure and other pertinent information about firms that trade stock.
Ms. Moore is developing a presentation for the annual budget meeting with the board of directors at her company. She plans to use multimedia-presentation software to develop visuals that conform to best practices. Indicate whether each of the following practices is effective or ineffective. 1. Visuals should illustrate the main points rather than every detail. 2. Visuals should include multiple scripts and decorative fonts to enhance attractiveness. 3. Each visual should be limited to a single main concept.
The correct responses are, in order of each statement, effective, ineffective, effective. The first statement is effective because visuals should show main points rather than illustrating every detail that is to be mentioned verbally. The second statement is ineffective because the fonts on visuals should be kept simple, with a common font selected for continuity and easy reading. The third statement is effective because, to avoid confusion, visuals should be limited to a single concept.
