DECA-Finance Cluster Exam
23. Which of the following describes the matrix organizational structure: A. It is a combination of two other organizational structures. B. It includes only traditional departments, such as sales and marketing. C. It is separated by product lines. D. It is the oldest organizational structure being used.
A
24. Seeing the big picture instead of smaller, individual parts is an organizational learning concept known as A. systems thinking. B. team learning. C. shared organizational vision. D. personal mastery.
A
25. The general economic growth of a country is supported by its A. level of productivity. B. standard of living. C. gross domestic product. D. wealth of goods and services.
A
33. Insecure people are often afraid to become assertive because they think they will A. damage their relationships. B. have to please others. C. be considered childish. D. lose their independence.
A
34. Keeping the end goal in mind refers to which standard of excellence that achievement-oriented people set? A. Results B. Improvement C. Trying something new D. Competition
A
50. One advantage to businesses of using electronic funds transfer technology to collect accounts receivable is that it eliminates A. check processing. B. liquidity reporting. C. sales discounting. D. payee outsourcing.
A
54. A company purchases an expensive new software system and divides the cost of it between the two departments that will use the system. This is an example of cost A. allocation. B. accumulation. C. dividing. D. precision.
A
58. Which of the following equations should employees know when they are verifying the accuracy of a business's balance sheet: A. Assets = Liabilities + Owner's Equity B. Owner's Equity = Available Cash - Liabilities C. Assets = Owner's Equity - Liabilities D. Owner's Equity = Liabilities + Available Cash
A
67. Business customers differ from final consumers in that A. there is a greater emphasis on personal selling in business-to-business marketing. B. business customers don't care about service as much as consumers do. C. consumers tend to buy in bulk more often than businesses do. D. consumer products tend to be more technical in nature.
A
7. In general, a governance, risk, and compliance (GRC) software system identifies and measures risk; monitors the risk-management system; routinely checks adherence to company-wide policies; and ensures compliance with A. reporting requirements. B. union demands. C. product standards. D. contingency plans.
A
8. While conducting a staff meeting, the speaker noticed that Colin was texting on his smartphone. Colin's nonverbal behavior indicates that he was A. distracted. B. annoyed. C. listening to the speaker. D. interested in the topic.
A
87. Bobbi, who works for an insurance company, is responsible for calculating the risk of loss, establishing premium rates, and designing insurance policies to cover risk. Bobbi works as a(n) A. underwriter. B. agent. C. accountant. D. financial analyst.
A
89. Which of the following is a benefit of corporate governance: A. It encourages transparency. B. It decreases investor confidence. C. It creates a less definable brand. D. It maximizes corruption.
A
90. Which possess: of the following is a positive characteristic for the members of a corporation's board of directors to A. Independent thinking B. Conformity C. Indecisiveness D. Single-minded attitude
A
91. Which employee reports directly to a corporation's board of directors? A. Chief executive officer B. Accounting manager C. Vice president of operations D. Director of sales
A
92. Ryan is a college student who is interested in becoming a teacher. Every Tuesday afternoon, he spends his free time tutoring second-grade students in reading and math at a local elementary school. What technique is Ryan using to obtain work experience? A. Volunteering B. Informational interview C. Job shadowing D. Internship
A
95. To manage potential risks resulting from unethical conduct, many companies build internal infrastructures that promote and enforce ethical practices. This internal infrastructure is likely to include appropriate audit procedures, a code of conduct, and a __________ policy. A. whistleblower B. credit C. monetary D. constituent
A
97. How does forming a captive insurance company typically impact a corporation's federal tax liability? A. Reduces tax due on the captive's premiums B. Increases tax due on the captive's loss reserves C. Increases the corporation's sales tax liabilities D. Eliminates the corporation's state tax liabilities
A
98. To control online transactional risks, a business should consider outsourcing its technology needs when it lacks A. internal expertise. B. financial resources. C. secondary data. D. external training.
A
99. It is important for companies to practice enterprise risk management (ERM) because A. most risks are predictable and manageable. B. it leads to loss of shareholder value. C. most risks are unexpected. D. it increases business costs in the long run.
A
11. Alma is preparing a presentation about her department's budget to make to the company president. She wants to use a visual representation of the budget that shows parts in relation to the whole. Alma should consider using a A. table. B. pie chart. C. line graph. D. bar graph.
B
2. When filing a tort against a business, the plaintiff must establish that the defendant A. damaged property intentionally. B. breached the duty of care. C. conspired with a competitor. D. violated the doctrine of sovereign immunity.
B
21. Which of the following is an example of a change in the relative price ratio when the original price of red apples is $0.60 per pound and the original price of green apples is $0.80 per pound: A. Red apples @ $0.30 per pound; green apples @ $0.40 per pound B. Red apples @ $0.90 per pound; green apples @ $0.80 per pound C. Red apples @ $0.45 per pound; green apples @ $0.60 per pound D. Red apples @ $1.20 per pound; green apples @ $1.60 per pound
B
29. One way that individuals exhibit self-confidence is by being A. creative. B. enthusiastic. C. emotional. D. reserved.
B
31. Which of the following is an example of an employee respecting the privacy of a coworker: A. Speaking up for a coworker who is being unfairly criticized B. Leaving the room when a salesperson takes a telephone call C. Giving feedback about a project to a coworker or manager D. Answering a coworker's telephone when s/he is at lunch
B
32. Barry's family is originally from Ireland. Their customs, habits, and traditions are known as their A. stereotype. B. culture. C. diversity. D. religion.
B
38. When the U.S. federal government owes money to a contracted employee or business, the government must pay the employee or business according to the A. Early Bird Act. B. Prompt Payment Act. C. Secure Contracting Act. D. Government Guidelines Act.
B
42. Which of the following are examples of deposit-taking financial institutions: A. Commercial banks, corporations, and mutual savings banks B. Credit unions, savings and loan associations, and commercial banks C. Savings and loan associations, mutual savings banks, and insurance firms D. Commercial banks, credit unions, and brokerages
B
44. Supervised by the Federal Reserve Board, The DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant banking services. What does the DAB Company exemplify? A. An accounting firm B. A financial holding company C. A central bank D. A commodities investor
B
49. Businesses usually invest in A. bonds. B. themselves. C. stocks. D. real estate.
B
53. A characteristic of managerial accounting is that it focuses on A. reporting the business's long-term investment goals. B. capturing the business's day-to-day financial activities. C. developing the business's annual report. D. preparing and submitting the business's tax forms.
B
55. When a business has been running successfully for several years, what would be a probable next financial step? A. Acquiring start-up funds B. Purchasing a second location C. Deciding on financial goals D. Determining product prices
B
57. Ethan is developing common-size financial statements so that he can compare financial performance across several different companies. Ethan is conducting __________ analysis. A. horizontal B. vertical C. ratio D. trend
B
59. You want to have $8,000 in three years to purchase a car. You can earn 4% compound interest on your investment. How much should you invest today? A. $7,364.10 B. $7,111.75 C. $7,692.31 D. $7,821.47
B
6. Compliance in the finance industry involves financial institutions operating within A. specific territories. B. regulatory guidelines. C. organizational plans. D. different relationships.
B
64. What financial analysis application does a business use to evaluate changes in its cash position from month to month? A. Expense B. Cash flow C. Fixed costs D. Performance
B
65. Before approving a loan application, a bank is likely to analyze the applicant's A. inflation rate. B. debt ratio. C. brand preferences. D. performance goals.
B
72. What application enables a business to identify when a record was added to a database? A. Validation rules B. Date/Time stamp C. Data replication D. Sort
B
77. Which of the following is a common challenge for project managers: A. Laws and regulations B. Poorly defined goals C. A surplus of resources D. A lack of risk
B
81. An advantage to businesses of using quality control methods is that these methods often A. involve time. B. reduce costs. C. increase waste. D. require directions.
B
85. Diana prepares bills and invoices for her company. Her career is in the area of A. marketing communications. B. corporate finance. C. securities and investments. D. professional selling.
B
86. Some job application forms ask why the applicant left a previous job. Which of the following would be an acceptable answer to this question: A. "I was expected to do too much work." B. "I was seeking a more responsible job." C. "I couldn't get along with my supervisor." D. "I wanted to get out of a difficult situation."
B
9. Before DiAnn presents her new idea to her boss, she searches the Internet and jots down two statistics that reinforce the idea. This is an example of A. obtaining primary information. B. supporting ideas with evidence. C. giving alternative ideas. D. clarifying a new idea.
B
10. At work, Bob is assigned to be on a team of five people that will create a new product. Which action can Bob take to participate in the team in a useful way? A. Keep the group on track by stopping others from offering unusual ideas B. Encourage the team to avoid setting ground rules C. Find out what other people in the group know about the product D. Walk around the room during discussions to keep energy in the group
C
100. Why should managers know how to do the work of the workers they supervise? A. To create a team spirit among employees B. To establish a chain of command C. To have realistic expectations for workers D. To coordinate employees' efforts
C
13. Identify the type of appeal used in the following persuasive message: "This new book is written by Dr. Juliet Browne, who holds a doctorate from the Harvard School of Medicine and is the Chair of the World Health Organization." A. Emotions B. Reason C. Credibility D. Shock value
C
14. What is a type of informal communication that coworkers often use to communicate with each other? A. Network B. Feedback C. Grapevine D. Structured
C
15. What is one of the benefits to a business of reinforcing service orientation through communication? A. Rewards customers for their support B. Promotes the sale of new products C. Builds positive relationships with customers D. Encourages employees to be aggressive
C
16. When Mr. Schwarz's order did not arrive at the expected time, he called Karl, the salesperson with whom he had placed his order. Karl apologized for the delay and told Mr. Schwarz that he would check into the issue. After Karl talked with the transportation company, he immediately called Mr. Schwarz to let him know where the order was and when to expect delivery. Mr. Schwarz thanked Karl for getting back with him so quickly. In this situation, Karl reinforced the company's image by A. delegating work tasks. B. giving vague answers. C. providing efficient follow-up. D. complimenting the customer.
C
19. Beverly, the new office manager, just completed a review of the last two years of accounts receivable data. In doing so, she discovered that there are erroneous duplicate entries totaling $25,628 in the system. Unfortunately, due to these duplicate entries, collection letters were sent to many customers who had already paid in full—customers who are angry with the company for sending them the letters. What should Beverly do to try to save these customer relationships and ensure that these customers are not bothered in the future? A. Contact each customer by phone and apologize B. Complete an accounting software update C. Complete a data cleansing of the erroneous entries D. Use funds from the accounts payable account to pay the debt
C
3. Which of the following is an example of a voluntary debtor-creditor relationship: A. Requiring specific information B. Receiving a monetary gift C. Obtaining a loan from a bank D. Owing punitive damages
C
37. Which of the following people would make the best entrepreneur: A. A risk-averse person who wants to work 9-to-5 B. A person who lacks self-confidence C. A risk-taker who has a strong work ethic D. A person who often works so hard she makes herself sick
C
40. The key factors involved in compounding growth are the amount of money you invest, how much your investment grows each year, and A. your educational background and career. B. how you earn the money that you invest. C. how long your money is invested. D. your mutual fund manager's education.
C
41. What is the first step Cameron should take to protect himself from identity theft after he loses his wallet? A. Advise the proper law enforcement authorities about the loss B. Contact the appropriate government agency to replace the credit cards C. Cancel all of his credit and debit cards D. Change the passwords for his online banking accounts
C
48. The most common headings on a stock table include the 52-week high and low, the stock symbol, the estimated dividend per share, the yield percentage/rate of return, the volume/sales for the day, the closing price for the day, the net change and the A. net income. B. earnings per share. C. price-earnings ratio. D. stockholder's equity.
C
5. Which of the following statements best describes the taxation of Roth IRAs: A. Contributions and withdrawals during retirement are both taxed. B. Contributions are tax deductible, but withdrawals during retirement are taxed. C. Contributions are taxed, but withdrawals during retirement are not. D. Contributions and withdrawals during retirement are tax deductible.
C
56. A small restaurant wants to expand, but first it needs to raise funds. John wants to raise capital through debt financing, but his partner, Damien, isn't sure that's a good idea. What is one downside of debt financing that Damien could cite to prove his point to John? A. They will need to sell stock in their business. B. Shareholders will own part of their business. C. They will have to pay interest on the borrowed amount. D. They will be required to repay the money immediately.
C
61. Which of the following is an example of a businessperson exhibiting unethical behavior in relation to a business's financial information: A. A banker requests financial information from a business to process a loan. B. An auditor verifies the accuracy of a corporation's financial statements. C. An unauthorized employee reviews a client's financial information. D. A manager examines the business's financial records to develop a budget.
C
66. The first task in the HR management activity of staffing is A. determining job descriptions. B. screening and selecting applicants. C. determining need. D. recruiting.
C
69. What do most businesses use to store information for future use? A. Scanners B. Display screens C. Computer systems D. Firewalls
C
74. Which of the following is an example of how a business or industry has a unique relationship with its environment: A. Social and cultural attitudes change over time. B. An economy in prosperity will eventually experience recession. C. Demand for skilled nursing care rises as the population ages. D. New technology causes new laws to be enacted.
C
75. Determine the mode for a customer-survey question using the following statistical information: 7, 5, 3, 7, 7, 9, 5, 7, 9, 9 A. 5 B. 3 C. 7 D. 9
C
78. What project-planning tool helps businesses to effectively plan and use time? A. Policies B. Objectives C. Schedules D. Guidelines
C
79. Which of the following is NOT a benefit of a post-implementation review? A. Identifying ways to improve project planning B. Identifying cost-savings opportunities for future projects C. Identifying cost-savings opportunities for the current project D. Identifying ways to improve the company's processes
C
82. An organization with a quality culture would have executive-level managers who are A. flexible, indifferent, and not responsible for quality. B. good at delegating all commitments for quality assurance. C. committed and involved and take responsibility for quality. D. able to enlist the expertise of outside contractors for quality.
C
84. Recognizing your strengths and weaknesses helps you to accept yourself, which is one of the foundations of A. safety. B. social acceptance. C. self-esteem. D. self-fulfillment.
C
88. Corporate governance is primarily concerned with __________ desires. A. vendors' B. CEO's C. stakeholders' D. competitors
C
93. Is the following statement about trade associations and professional organizations true or false: Once a law has been enacted, organizations/associations are unable to affect the way that law will be enforced. A. True, members of organizations/associations have no way of influencing the enforcement of laws. B. False, there are exceptions that apply to every law. C. False, organizations/associations often can change unfavorable regulations to more favorable ones. D. True, laws cannot be changed and must be obeyed.
C
94. One way to build professional relationships in the finance industry is to A. encourage others to discuss their finances. B. read about industry trends. C. implement a referral system. D. print new business cards for distribution.
C
1. Which of the following is a type of intangible business property that is protected by law: A. Equipment B. Inventory C. Acreage D. Trademark
D
12. What type of letter should a business include when sending copies of a contract to a vendor? A. Request B. Acknowledgment C. Claim D. Transmittal
D
17. What is an important aspect of a customer-centric business? A. Reducing the number of touch points with customers B. Limiting the employees' decision making C. Being satisfied with the status quo D. Aligning business activities with customer needs
D
18. When providing product information to clients, finance professionals should use A. standard responses. B. technical terms. C. financial acronyms. D. simple explanations.
D
20. The process or activity of using goods is called A. production. B. consumption. C. exchange. D. distribution.
D
22. Determining what consumers want in order to promote and sell those goods and services is a function of the business activity of A. risk management. B. quality management. C. production. D. marketing.
D
26. Colleen will vote next week on the new contract that her union has negotiated with management. Union and management are in the __________ stage of the collective-bargaining process. A. contract settlement B. ratification of contract C. preparation and research D. tentative agreement
D
27. An economy with a high unemployment level tends to have A. rapid GDP growth. B. a high supply of money. C. fewer monetary policies. D. a lower rate of inflation.
D
28. Jon decided to promote Bill instead of Maggie to regional manager because he thinks that women aren't assertive enough in business situations. Jon is stereotyping on the basis of A. age. B. ethnicity. C. religion. D. gender.
D
30. Maureen becomes angry and defensive whenever her supervisor asks Maureen to correct mistakes. Maureen's attitude is not a good response to criticism because A. it indicates that Maureen wants to call attention to herself. B. there is no reason to be angry about criticism. C. Maureen has no right to be angry on the job. D. it prevents Maureen from hearing the criticism clearly.
D
35. One way a leader can encourage others to work toward a shared vision is by A. guaranteeing a profit for the business. B. describing the objective. C. reviewing the new assignment. D. explaining how they will benefit.
D
36. Coaching is mostly about A. talking. B. organizing. C. instructing. D. listening.
D
39. 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
4. Chris purchased 500 shares of microcap HRR stock. Then, he posted false information about HRR on several investment websites to hype up the stock. After driving up the price of HRR stock, Chris quickly sold all of his stock in the company and earned a large profit. The price of the stock then fell, leaving HRR investors with worthless stock. What type of investment scam did Chris commit? A. Phishing B. Pyramid scheme C. Ponzi scheme D. Pump and dump
D
43. If Hannah wants to invest in the capital markets, what types of securities should she purchase? A. Corporate bonds and treasury bills B. Common stock and certificates of deposit C. Treasury bills and certificates of deposit D. Corporate bonds and preferred stock
D
45. According to most analysts, the three economic indicators that stock market investors and traders should pay the closest attention to are A. inflation, unemployment, and bonds rates. B. interest rates, overhead expenses, and inflation. C. Gross Domestic Product, overhead expenses, and unemployment. D. Gross Domestic Product, unemployment, and inflation.
D
46. What do some investors use to hedge the risk of investing in the foreign exchange market? A. No-load funds B. Emerging markets C. Venture capital D. Derivatives
D
47. What type of financial statement includes an accounting of the shareholders' equity for a company? A. Annual report B. Income statement C. Cash flow statement D. Balance sheet
D
51. A business's balance sheet lists $3,800 in cash, $15,125 in accounts payable, $2,775 in taxes, $10,350 in machinery and equipment, and $6,280 in salaries. Calculate the business's total liabilities. A. $27,030 B. $18,470 C. $15,225 D. $24,180
D
52. When preparing a statement of equity, what does a business deduct from its total net income to obtain its retained earnings? A. Bad debt B. Depreciation of assets C. Sales tax payable D. Dividends paid
D
60. Effective financial-information management involves implementing processes that help companies A. revise economic indicators. B. track their ongoing projects. C. interpret government regulations. D. make appropriate business decisions.
D
62. The foundation of the principle of least authority is that computer data are more secure when access to specific types of data are only available to A. the customers who request it. B. mid-level managers. C. personnel during set time periods. D. the people who need it.
D
63. Tara knows that for her small business to grow, she must increase her cash flow. She's unsure, though, whether she should take out a loan or a line of credit. Which of the following budgeting software tools could Tara use to assess the potential impact of each source of funding on her business: A. Zero-based modeling B. Decision trees C. Environmental scanning D. Debt modeling
D
68. Amy says, "I think the primary reason that last year's sales were higher than this year's sales is because Jansen Electronics has taken a portion of our market share." This is an example of A. comparative criticism. B. a fact. C. historical data. D. an opinion.
D
70. Adian is conducting online research for a marketing project at work. What web-based tool will help Adian save and organize the websites that contain the relevant information he needs for his final report? A. Personal intranet connection B. Notebook with color-coded dividers C. Word-processing memo template D. Browser bookmarking applications
D
71. In which of the following situations would a business use a spreadsheet software program to estimate the effect of change on its financial situation : A. A salesperson kept all appointments. B. Mailing labels are needed for a catalog. C. Customers purchased more products. D. Sales are expected to increase by 5%.
D
73. The primary purpose for record keeping is to provide information about what is happening with the A. industry. B. country. C. economy. D. business.
D
76. Which of the following statements is true of workplace accidents: A. Accidents only occur in factories. B. All accidents can be predicted. C. There is no way to prepare for accidents. D. There are ways to reduce accident risk.
D
80. Purchasing is important to international businesses because A. supplies should be delivered in a timely fashion. B. good relations with vendors reduce prices. C. quality standards should be maintained. D. controlling costs increases competitiveness.
D
83. Joan achieved her goal of being a junior partner in five years. This achievement has made Joan feel good about herself, so she has set a new goal to be a senior partner in 10 years. Joan has received which of the following benefits of goal setting: A. Helps you to understand yourself B. Gives you a way to measure your progress C. Helps you to stay on task D. Raises your level of self-esteem
D
96. Many computer software programs help businesses determine their levels of business risk, which is helpful when they develop A. monetary regulations. B. content theories. C. endorsement records. D. contingency plans.
D