Business Education (040)

81. A business education teacher wants to evaluate her program in terms of how well graduates are prepared for the workforce. Which of the following strategies would be most likely to provide the best data to answer this question? a. Setting up an advisory committee of local employers to gather feedback on graduates' performance in the workplace b. Asking students to complete internships with local employers c. Conducting a survey of recent graduates to see if they were able to find jobs with local employers d. Asking the business professors at a local community college to provide feedback

A

82. Which of the following activities that are conducted by high school student leadership organizations would be the most effective tool for teaching business skills? a. Raising money by selling concessions at athletic events b. Performing community service by painting a local elementary school c. Holding an awards ceremony to honor scholarship winners d. Tutoring middle school students in math and reading

A

9. A consumer'.s credit score is directly influenced by which of the following factors? a. Debt repayment history b. Employment history over the last five years c. Marital status d. Income level

A

94. A phrase that is associated with a particular product would be protected by which of the following? a. Trademark law b. Patent law c. Copyright law d Both A and C

A

95. Which of the following is true of a corporation? a. It is always owned by shareholders b. Its shareholders are personally liable if it fails c. Its board of directors is personally liable if it fails d. It cannot sue another entity or be sued

A

10. Upon which organization does the international community primarily rely to deal with claims of unfair protectionism by one country against another? a. North Atlantic Treaty Organization (NATO) b. World Trade Organization (WTO) c. Organization of Petroleum Exporting Countries (OPEC) d. International Red Cross (IRC)

B

12. The biggest factor that leads American companies to manufacture their products overseas in developing countries like China and India is: a. Higher quality of craftsmanship b. Lower labor costs c. Decreased transportation costs d. Effective legal systems

B

21. Which of the following countries would be considered an emerging market? a. Japan b. India c. Britain d. Canada

B

22. If the exchange rate between the Euro (€) and the U.S. dollar ($) is $2.5 to € 1, how many dollars would it take to purchase a plane ticket that costs € 1580.00? a. $39,500.00 b. $3,950.00 c. $395.00 d. $632.00

B

30. A B C D Stock 20% 85% 70% 50% Bonds 70% 10% 20% 50% Cash 10% 5% 10% 0% Which of the investors has the portfolio that is exposed to the greatest amount of risk? a. Investor A b. Investor B c. Investor C d. Investor D

B

31. A B C D Stock 20% 85% 70% 50% Bonds 70% 10% 20% 50% Cash 10% 5% 10% 0% If Investor D's stocks have an average return of 8.8% during the year, and Investor D's bonds have an average return of 5.2%, what is the average overall return on Investor D's portfolio? a. 14% b. 7% c. 5.6% d. Cannot be determined

B

34. If a country is a net exporter, this means that: a. The value of the goods that it imports exceeds the value of the goods that it exports b. The value of the goods that it exports exceeds the value of the goods that it imports c. It exports consumer products d. It has high tariffs

B

39. Sticker price Down payment Month Payment Term A $8000 $0 $330 36 months B $8000 $3000 $160 60 months C $15000 $0 $250 60 months D $15000 $5000 $400 36 months Which of the options listed in the table would require the family to pay the highest amount of interest, total? a. Option A b. Option B c. Option C d. Option D

B

45. Nations whose economies rely primarily of the export of non-oil commodities like rubber or copper are: a. Typically located in Northern and Western Europe b. Often referred to as "developing countries" or "emerging markets" c. Known for their world class education systems d. Usually among the wealthiest countries in the world

B

48. According to standard economic theories, countries that have a comparative advantage in the production of cotton should: a. Export another product, and import cotton b. Export cotton, and import other products c. Implement tariffs to protect their domestic cotton industry d. Work hard to reduce their comparative advantage and diversify their economy

B

49. An advantage of protectionism for countries that implement it is that it: a. Improves the country's global competitiveness b. Ensures that domestic jobs will be retained in the short term c. Encourages economic growth d. Prevents corruption

B

5. An employee earns $2,000.00 per month in gross pay, but pays 9% in federal taxes, 3% for state taxes, and 2% for local taxes. After tax, the company withholds $104.36 for health insurance. What is the employee's net pay? a. $2,000.00 b. $1,615.64 c. $l,820.00 d. $1,720.00

B

62. Corporation X, the largest oil refiner in the U.S., wants to purchase Corporation Y, the only other oil refiner in the U.S. This situation may be of concern to the government because: a. It may violate environmental laws b. It may constitute a violation of antitrust laws c. It could violate labor laws by reducing employees' choice of employers d. It could constitute a pyramid scheme

B

73. When researching a presentation about a national shipping business, the most detailed and comprehensive source of information about the top management of the company and its competitors would most likely be: a. Microfilm records from local newspapers b. Hoovers.com c. LexisNexis.com d. The catalogue at your local library

B

75. Search engine optimization (SEO) is the process of; a. Designing a search engine to operate as efficiently as possible b. Designing a website to maximize its placement in search engine results for particular keywords, thus increasing traffic to the site c. Improving the visual aesthetic of a search engine d. Making a search engine more user-friendly

B

77. When designing a website for an online business, the web developer would include a site map in order to: a. Give website users directions to the business b. Provide website users with a list of links to all of the pages on the website c. Convince website users that it is safe to purchase products from the website d. Help website users decide which products to buy from the website

B

83. A business education teacher is asked to serve as an adviser to the local chapter of a student leadership organization. The teacher's primary responsibility as an adviser is most likely to: a. Ensure that students follow established procedures for conducting meetings b. Ensure the health and safety of student participants in the organization c. Design and implement activities for the group d. Collect and account for dues and fundraising proceeds

B

90. Time card 11/01 11:00 3:00 11/02 8:00 12:00 11/03 8:00 12:00 11/05 11:00 3:00 11/07 8:00 12:00 The company that Scott Smith works for provides full time employees with a 100% 401k match after one year on the job if they contribute 4% of their paycheck. If Scott becomes a full time employee after a year, makes $2,000 per paycheck, and contributes 4% to his 401k each pay period, how much would the company have to contribute to his 401k during each pay period? a. $160 b. $80 c. $40 d. Cannot be determined

B

96. Which of the following would be a violation of the Occupational Safety and Health Act (OSHA)? a. An employee becoming injured while commuting to work b. An employee becoming injured because an employer did not provide equipment in good working order c. An employer requiring employees to work with toxic chemicals d. An employer failing to accompany an OSHA compliance officer on an inspection

B

100. Which of the following would violate federal child labor regulations? a. Hiring your own child to work in your small business if the child is under 14 b. Employing someone under 14 as a newspaper carrier c. Employing someone under 18 in a job deemed hazardous d. Employing anyone under 18 as a babysitter

C

16. Which of the following types of assets would not be subject to depreciation? a. Heavy equipment b. Computers c. Real estate d. Company vehicles

C

18. Which of the following terms best describes a situation where an individual enters into an agreement with a company to use the company's business model within a given territory, usually in exchange for a fee? a. Sole proprietorship b. Limited liability corporation c. Franchise d. Incorporation

C

19. The par value of a bond is the: a. Average interest rate paid by a given type of bond over subsequent issues b. Amount of time until the bond matures c. Amount paid when the bond matures d. Amount of interest that the bond pays

C

2. Which of the following is not a responsibility of the Securities and Exchange Commission (SEC)? a. Regulating securities b. Investigating insider trading c. Setting interest rates d. Processing applications for initial public offerings (IPOs)

C

24. A combination of slow economic growth and high inflation is called: a. Inflationary pressure b. Deflation c. Stagflation d. Disinflation

C

25. A shareholder owns 200 shares of stock XYZ at $58 each. If there is a 2-1 stock split, how many shares will that shareholder have, and what will the new share price be? a. 100 shares at $116 per share b. 200 shares at $116 per share c. 400 shares at $29 per share d. 400 shares at $58 per share

C

26. Which of the following is not true of stock dividends? a. They are usually taxable b. They are offered voluntarily by companies in order to make their stock more attractive c. Their amount and frequency are determined directly by shareholders at large d. They may be discontinued or reduced at any time

C

27. If a stock has a high P/E ratio, this means that: a. The stock's price is low considering the value of the company's earnings b. The stock pays a high dividend based on its earnings per share c. The stock's price is high considering the value of its earnings per share d. The company's earnings per share are high

C

32. If one is planning to start a small business, which should one do first? a. Obtain a business loan b. Find a partner c. Assess one's personal financial situation d. Choose a location for one's business

C

36. If a potential business owner projects that she will need to invest $100,000 in equipment to start a dry cleaning business, and the business' monthly expenses on rent, insurance, labor costs, and other incidentals are $5,000, how many months will it take for her to earn back her initial investment if the average monthly gross revenue is $8,000? a. Less than 9 months b. Less than 20 months c. Less than 34 months d. None of the above

C

38. Sticker price Down payment Month Payment Term A $8000 $0 $330 36 months B $8000 $3000 $160 60 months C $15000 $0 $250 60 months D $15000 $5000 $400 36 months Which of the four options listed in the table would require the family to pay the least amount of interest, total? a. Option A b. Option B c. Option C d. Option D

C

4. The Sarbanes-Oxley Act of 2002: a. Vastly reduced the financial reporting obligations that corporations face b. Deregulated public utilities c. Was intended to fight corporate and accounting fraud d. Reduced tariffs on trade among North American countries

C

40. Sarah has up to $500,000 to invest, and is trying to decide which of four catering businesses she wants to purchase. Which of the options below correctly lists the businesses in order of average monthly profit from largest to smallest when the franchise fee is taken into consideration?

C

43. Comprehensive car insurance typically covers: a. Damage the insured does to the property of others while driving the insured vehicle b. Medical expenses others incur as a result of a collision with the insured vehicle c. Damage done to the insured's vehicle by a vandal d. All of the above

C

47. Adam Smith is best known for: a. Founding the doctrine of mercantilism b. Supporting the spread of communism c. Arguing for free market economics d. Arguing that the government should redistribute income

C

50. GDP measures a country's: a. Employment level b. Education level c. Total economic output d. Wage levels

C

52. The main function of a human resources department is to: a. Meet the company's recruiting goals b. Maximize employee productivity while minimizing pay c. Facilitate communication between the employer and the employees d. Prevent lawsuits

C

53. Which of the following questions would it be illegal to ask a job candidate at a pre-employment interview? a. Have you ever requested workers' compensation benefits? b. Do you have any disabilities that would interfere with your ability to perform this job? c. Both A and B d. Neither A nor B

C

57. A successful manager will be Able to effectively delegate: a. Responsibility b. Accountability c. Authority d. Ability

C

6. A market in which product availability exceeds demand is called a: a. Free market b. Seller's market c. Buyer's market d. Black market

C

60. A manufacturing company implements anti-pollution measures as outlined by applicable legislation, but opts not to adopt any additional anti-pollution measures. This company has most likely adopted which of the following approaches to business-society relations? a. Social Responsiveness Approach b. Social Responsibility Approach c. Social Obligation Approach d. Cost-benefit Approach

C

63. The Equal Employment Opportunity Commission (EEOC) is responsible for enforcing all but which of the following laws? a. Civil Rights Act of 1964 b. Equal Pay Act c. Environmental Protection Act d. Americans with Disabilities Act

C

64. Anna is interested in purchasing a computer for her small landscaping business. She wants to be able to compose simple fliers and advertising materials, communicate with clients via email, and order supplies online. Which of the following lists best describes the hardware and software components that Anna's computer should have? a. Internet connection, Quickbooks, and at least 10 GB of memory b. Word processing software, Quickbooks, and an Internet connection c. Word processing software, an Internet connection, and 1-5 GB of memory d. Quickbooks, an Internet connection, and 1-5 GB of memory

C

66. Which of the following steps might a company take in order to prevent unauthorized individuals from accessing confidential data? a. Requiring a username and password to access its computer system b. Constructing a firewall to protect its computer System c. Both A and B d. Neither A nor B

C

67. In order to facilitate communication between employees within a company, the company is considering providing all employees with unlimited access to a file that contains employee names, work phone numbers and addresses, work email addresses, birth dates, and social security numbers. What confidentiality issues would this new policy raise? a. None, the value of improved communication between employees would outweigh any confidentiality issues b. Many employees may object to their social security numbers and birthdays being shared with others; the company should publish the birthdays anyway, but withhold the social security numbers c. Many employees may object to their social security numbers and birthdays being shared with others; the company should withhold both of these d. Releasing of any of this information is a violation of employees' privacy

C

68. A business education teacher has allotted one class period to help students identify potential career options. Which of the following activities would be most appropriate given these circumstances? a. Having students complete an internship b. Having each student deliver a five-minute presentation describing their parents' jobs c. Administering a test that advises students about what careers might fit their interests and talents d. Asking students to write an essay describing their "dream job"

C

71. At a meeting with shareholders, an executive would be most likely to use which of the following visual aids to present a report on monthly stock gains and losses over a one-year period? a. Bar chart b. Pie chart c. Line graph d. Scatterplot

C

74. Which of the following lists contains only types of computer software? a. Internet, Microsoft Office, Quicken b. Motherboard, Quicken, Excel c. Quicken, Peoplesoft, Microsoft Office d. Monitor, Mouse, Keyboard

C

84. Which of the following activities provides the best example of collaboration between business education teachers and teachers of other subject areas? a. Students in a business education class are asked to write cover letters and resumes b. Students in a business education class read case studies about research and development for new products c. A business education teacher and a math teacher coordinate their lesson plans so that the concepts taught in math class are subsequently applied to real situations in the business class d. Students in a business class learn to balance checkbooks

C

87. Based on the information in the table below, which of the following lists correctly orders the businesses from least to most risk for investors? Business - credit rating A - BBB B - BB C- AA D - AAA a. Business B, Business A, Business C, Business D b. Business A, Business B, Business D, Business C c. Business D, Business C, Business A, Business B d. Business C, Business D, Business B, Business A

C

88. Time card 11/01 11:00 3:00 11/02 8:00 12:00 11/03 8:00 12:00 11/05 11:00 3:00 11/07 8:00 12:00 If part time employee Scott Smith, whose time card is shown in the table, is paid $10.00 per hour on weekdays (Monday-Friday), and $11.00 per hour on weekends, and November 1st is a Monday, how much should he be paid for the week of November 1 st through November 7th? a. $160.00 b. $200.00 c. $204.00 d. $240.00

C

89. Time card 11/01 11:00 3:00 11/02 8:00 12:00 11/03 8:00 12:00 11/05 11:00 3:00 11/07 8:00 12:00 Only full time employees of Scott Smith's company, whose time card is shown in the table, have health insurance and 401k benefits deducted from their paychecks. Based on the number of hours Smith worked from November 1 st through November 7th, which of the following is a correct list of his payroll deductions if he is a W-4 employee? a. 401k and health insurance b. Social security and Medicare c. Social security, Medicare, and income taxes d. None of the above

C

91. Accounts receivable are: a. Fixed assets b. Fixed liabilities c. Current assets d. Current liabilities

C

93. Which of the following are not protected by copyright law? a. Architectural drawings b. Scripts for plays c. Advertising slogans d. Books of poetry

C

98. Which of the following is true of a Wide Area Network (WAN)? a. A WAN is equivalent to a LAN b. Businesses usually have their own WAN c. The Internet is an example of a WAN d. Businesses prefer WANs to LANs because their data transfer speed is higher

C

1. A command economy is characterized by: a. A laissez-faire approach by the government b. A moderate amount of government intervention in the economy c. Businesses commanding all aspects of the economy d. The government controlling prices and production

D

15. In order to start an online business, and individual would need all but which of the following: a.A business model b. A website c. An email address d. A fax machine

D

17. When itemizing deductions on a federal tax return, an individual taxpayer may be able to deduct all but which of the following? a. Interest paid on a mortgage b. Charitable donations c. Losses from theft d. Groceries

D

28. An individual who is about to retire and wants to earn interest without risking his or her principal would most likely be advised to invest in: a. Value stocks b. An index fund c. A mutual fund d. U.S. Treasury bonds

D

3. In marketing, the demand for a product is directly influenced by: a. Customers' desire for a product b. Customers' ability to obtain a product c. Availability of a product d. Both A and B

D

33. Frank is 33 years old and married, with 2 children. He has $40,000 in his retirement account, which is earning an average of 5% annually, and $10,000 in his personal savings account, which is earning 2% annually. He is current with his mortgage, and has $50,000 left to pay at a rate of 6%. Frank also has $30,000 in credit card debt with an average rate of 13%. If Frank wants to increase his chances of retiring comfortably, what would the best way be for him to spend a Christmas bonus of $10,000? a. Put it in his retirement account b. Put it in his savings account c. Use half to pay down his mortgage and save the other half d. Use all of it to pay down his credit card debt

D

41. If Sarah wanted to get her initial investment back as quickly as possible, which of the following options would you advise her to choose, based upon the information in the table? a. Business A b. Business B c. Business C d. Business D

D

42. A consumer's credit score may be factor in all but which of the following transactions? a. Buying a car b. Buying a home c. Getting a personal loan d. Opening a bank account

D

46. A company considering manufacturing a product in several different emerging markets will most likely consider which of the following factors in choosing between them? a. Likelihood of political instability b. Labor costs and regulations c. Cost of shipping goods from that country to the destination country d. All of the above

D

54. Technological aids can be used to directly fulfill all but which of the following human resources functions: a. Soliciting resumes for open positions b. Assessing a new employee's job readiness c. Communicating information about employee benefits d. Resolving disputes between employees and management

D

55. A new manager with ABC Industries has noticed that many of his employees are chronically late to work. To remedy the problem, the manager decides to implement a bonus system that will financially reward employees who are on time to work for ten consecutive days. According to B.F. Skinner's Operant Conditioning theory, what type of behavior modification approach is the manager using? a. Extinction b. Punishment c. Negative reinforcement d. Positive reinforcement

D

58. According to Fayol's Administrative Theory of Management, which of the following is a correct list of the five essential functions of management? a. Controlling, composing, planning, organizing, implementing b. Containing, controlling, implementing, planning, organizing c. Composing, coordinating, controlling, planning, organizing d. Controlling, commanding, coordinating, planning, organizing

D

59. According to the National Environmental Policy Act of 1967, a business is required to prepare an environmental impact statement (EIS) when it: a. Hires a new worker b. Makes a charitable contribution c. Develops a new marketing initiative d. Builds a new factory

D

61. Which of the following constitutes a binding contract? a. An agreement signed and dated by one party and one witness b. An agreement signed and dated by both parties c. An agreement signed by both parties and witnessed by a third party d. An agreement signed and dated by both parties and a witness

D

65. Microsoft Excel would most likely be used for which of the following tasks? a. Developing a Strategic plan b. Piling invoices c. Creating a sales presentation d. Analyzing numerical sales data

D

69. Which of the following business careers could a teacher safely recommend for a student who would not enjoy working with the public on a regular basis? a. Financial adviser b. Insurance salesperson c. Real estate agent d. None of the above

D

7. Which of the following is not a part of Maslow's hierarchy of needs? a. Self-actualization b. Esteem c. Safety d. Supply and demand

D

70. Choose the list below that best describes the most important contents of a resume: a. Salary requirements, relevant work experience, educational attainment, objective b. Contact information, grade point average, relevant work experience, objective c. References, objective, educational attainment, salary requirements d. Contact information, objective, educational attainment, relevant work experience

D

72. When manually proofreading a business document for a colleague, which of the following answers describes the correct way one would indicate that a section of text should be removed? a. An X should be drawn through the text b. A caret should be drawn at the beginning and end of the text c. A diagonal line should be drawn through the text from bottom left to top right d. A horizontal line should be drawn through the text with a loop at the right end of the line

D

76. On the Internet, links are used in all but which of the following ways? a. They direct Internet users to other websites that have additional relevant information b. They are used for marketing purposes, to entice Internet users to navigate away from one website to view another one c. They allow Internet users to open additional windows that explain a web page's content or provide technical assistance d. They allow computer users to open software programs on their PC

D

78. Better Business Bureau certification is useful for businesses that engage in e-commerce because it: a. Protects them from legal action by defrauded consumers b. Exempts them from paying state taxes c. Proves that they are certified by the government d. Reassures customers that the company is reliable

D

79. Businesses can increase the security of confidential customer information by: a. Destroying paper records of credit card information b. Conducting employee background checks c. Installing a firewall and virus protection software for computer systems d. All of the above

D

8. Which of the following countries is not part of NAFTA? a. Mexico b. United States c. Canada d. China

D

80. A high school student expresses interest in Starting her own auto repair business after graduating from high school. She could best prepare for such a career by: a. Getting a college degree in finance and then completing an MBA program b. Taking small business finance, law, and accounting courses c. Getting an internship or part time job at an auto-repair shop d. B and C only

D

85. Which of the following activities would most effectively and comprehensively assess students' mastery of learning objectives for a unit about small business? a. Asking students to create and make a new invention b. Asking students to design and implement a community service project c. Requiring students to complete an internship or externship d. Having students write and present a business plan

D

86. A business education teacher wants students to complete an activity that teaches them skills that are necessary for working in a culturally diverse environment. Which of the following activities would fulfill this goal? a. Collaborating with the social studies teacher to teach students about work customs in other cultures b. Asking students to read and discuss written accounts of minorities' experiences in the workplace c. Teaching students about laws and regulations that protect people from diverse ethnic and cultural backgrounds d. All of the above

D

92. Owners' equity is comprised of: a. The personal net worth of the owners plus the amount of their initial investment in the business b. The amount of the owners' initial investment in the business c. The owners' unclaimed profits from the business' operation d. Both B and C

D

97. Each of the following are sentences from a job description. Select the sentence that clearly and correctly communicates its intended meaning. a. The employee, will have excellent oral communication skills. b. The employees oral communication skills will be excellent. c. The employee will communicate orally and in writing well. d. The employee will have excellent writing skills.

D

44. Which of the following is not typically cited as a potential cause of oil price increases? a. Price increases for consumer goods and services in the U.S. b. Increased global demand for oil c. Speculation in the oil market d. Insufficient refinery capacity

A

51. A human resources manager is likely to be responsible for all but which of the following: a. Sales b. Payroll c. Hiring d. Training

A

11. A homeowner is attempting to choose between several mortgage loans for a $200,000 home. Which of the following would have the lowest monthly payment? a. A 30-year fixed rate mortgage at 6% b. A 15-year fixed rate mortgage at 7% c. A 30-year fixed rate mortgage at 12% d. A IS-year fixed rate mortgage at 12%

A

13. Which of the following correctly summarizes the accounting equation for a sole proprietorship? a. Assets = Liabilities + Owners' equity b. Liabilities = Assets + Owners' equity c. Owner's equity = Assets + Liabilities d. Revenue = Assets — Liabilities

A

14. In order to present a business plan to a group of potential investors, a businessperson would most likely use which software? a. Powerpoint b. Quickbooks c. Peoplesoft d. Excel

A

20. Which of the following best describes Congress' purpose in setting up Freddie Mac in 1970? a. Expanding opportunities for home ownership d. Deregulating the credit market c. Improving regulation of the Internet d. Creating a place for small businesses to get loans

A

23. If the U.S. Federal Reserve concludes that there is a significant risk of inflation, it will most likely: a. Raise interest rates b. Lower interest rates c. Keep interest rates the Same d. Decrease bond yields

A

29. A company that is included in the Dow Jones Industrial Average most likely to be: a. A well-known corporation with a large market capitalization b. A foreign company c. A start-up that was recently listed on the stock exchange d. A small- to mid-sized technology company

A

35. If a government implements an import tariff on consumer electronics, What is it most likely trying to accomplish? a. It is trying to protect its domestic consumer electronics industry from competition b. It is trying to decrease the cost of imported consumer electronics c. It is trying to discourage domestic companies from producing consumer electronics d. It is trying to increase competition and lower prices in the consumer electronics industry

A

37. Sticker price Down payment Month Payment Term A $8000 $0 $330 36 months B $8000 $3000 $160 60 months C $15000 $0 $250 60 months D $15000 $5000 $400 36 months A family wants to buy a new car, and is trying to decide between four different car and car loan options. Which of the loans would require them to pay the least amount of money overall, including the down payment and the monthly payments? a. Option A b. Option B c. Option C d. Option D

A

99. A business education teacher teaches two classes of 30 9th graders during a semester. At the end of the class, students are given identical tests of the course material. Students in Class 1, which was taught using a traditional lecture approach, scored an average of 7 3% on the test. Students in Class 2, which was taught using interactive exercises and computer-based simulations, scored an average of 82% on the test. What can be concluded from this experiment? a. The students in Class 2 are more intelligent than those in Class 1 b. The teaching methods used for Class 2 are superior to those used for Class 1 c. Nothing can be concluded from these results because one semester is not a long enough period of time to accurately measure learning d. Nothing can be concluded from these results because students' baseline performance on these tests was not measured before the experiment

D