Business Content

Which of the following terms best describes an auditing tool that helps determine a company's current strategic position?

A SWOT analysis is the best tool for audit and analysis of the overall strategic position of a business.

Which of the following provides a secure, reliable connection within a shared public network?

A VPN is a secure private network that is constructed within a public network infrastructure, such as the global Internet.

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?

A cooperative business belongs to the people who use it.

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

A corporation is a business owned by many people but treated by law as if it is owned by one person.

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?

A decision support system acts as a what-if analysis system by assisting in the evaluation of alternative courses of action.

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?

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?

A knowledge of customer wants is the most critical element of making marketing decisions.

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?

A letter is a formal form of communication within or outside of an organization. Business letters are considered to be more formal than memos.

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 limited partner invests capital in a business but does not participate in its management.

Which of the following statements best describes a mutual fund?

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.

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?

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.

Which of the following is the most appropriate way to begin a sales letter?

A sales letter should begin with an attempt to get the reader's attention by asking a question.

Which of the following is a primary reward for an entrepreneur?

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.

In which of the following leadership styles does a leader make all decisions and tell subordinates what to do and how to do it?

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 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?

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.

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?

An internship program provides a beginner in an occupation with hands-on experience, usually as an unpaid trainee.

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?

Assumptions made in advance about information act as a personal barrier.

In a multifaceted, ever-changing world, business leaders who are _______ , who do more and more, faster and faster, are less likely to be ______ and are more susceptible to making ethical mistakes.

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.

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?

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 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

Branding is when a business creates a name, symbol, or design.

Which of the following most closely describes a brand name?

Brands are distinctive words or phrases that represent a company.

Which of the following statements is primarily true of business plans?

Business plans are most commonly used for financial requests. The most popular use of business plans is to obtain funding.

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?

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 reflects the idea that consumers drive the economy because their preferences affect business decisions regarding production?

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.

Which of the following is the best example of something that can be copyrighted?

Copyright protects original works of authorship, and an advertisement is created by a writer or author.

Water, gas, and electric companies are primary examples of which of the following types of monopolies?

Economies usually support only one or two utility suppliers due to high operation costs, which is characteristic of a natural monopoly.

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?

Family patterns, personal experiences, and cultural biases are factors that influence a person's ethical behavior.

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.

First statement: Blog collaborators can leave comments but not edit the author's statements. Wiki collaborators can edit the content on the site. Second statement: Blog posts are organized in reverse chronological order. A wiki is organized using a collection of hyperlinks to other individual pages. Third statement: Both blogs and wikis incorporate social software allowing individuals to achieve goals as a group.

Which of the following actions is the best example of an appropriate government intervention in a mixed economy?

Granting a subsidy such as a tax credit to a business sector is an example of direct government intervention in a mixed economy.

A manufacturer notices that prices in the market have increased. According to the laws of supply, it is most appropriate for the manufacturer to

High prices encourage firms to produce more, and low prices discourage production.

primarily benefits an American multinational company

Implementation of a positive trade agenda. A positive trade agenda is beneficial to American multinational companies.

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?

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 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?

Information posted on a company Web site. Members of generation Y are technologically savvy; they have grown up with computers and the Internet playing a significant part of their lives.

Which of the following would be classified as other income on an income statement?

Interest earned would be correctly classified as an "other income" account.

Which of the following is true of a persuasive résumé?

It emphasizes skills and achievements aimed at a particular job or company. 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.

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?

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

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?

Memos of this sort are most frequently used to provide information.

Which of the following is a primary cause of a discharge of all contractual duties?

Most contracts are discharged by complete performance of the terms of the contract.

Match the workplace action with the type of ergonomic control it best exemplifies.

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).

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?

Probate court deals with the legal certification of wills and the administration of estates of the deceased.

Which of the following most closely represents an example of using the grapevine to get information about a company policy change?

Questioning coworkers during a lunch break. 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.

A business teacher wants to instruct students about effective communication skills. The teacher can best model communication skills by speaking

Referring to notes is an acceptable methodology in communication. The method demonstrates effective planning and best holds an audience's attention.

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?

Setting up a face-to-face meeting with the colleague and discussing the problem

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 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?

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 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?

Texting on the phone is a distraction, which is a type of barrier to communication.

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?

The Fair Credit Reporting Act gives consumers the right to know what is in their file.

In 1917, federal legislation provided funding for vocational student organizations. Which of the following legislative acts primarily continues that funding?

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

The break-even point is the point at which the total costs match the total revenue.

The largest number of employees that a small business can have is

The definition of "small business" varies by industry.

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?

The employee's actions best demonstrate message encoding, which is the process of converting an idea into words or gestures that will convey meaning.

The role of an advisory committee primarily involves

The function of an advisory committee is to promote public relations.

Which THREE of the following activities are examples of monetary policy goals for the Federal Reserve?

The goal of the Federal Reserve and its monetary policies is to promote maximum employment, stabilize prices, and prevent high inflation rates.

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.

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.

Which of the following theories is most closely associated with motivational management?

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 best describes cooperative education?

The integration of classroom learning with productive work experiences, Cooperative education students are directly applying their classroom learning to a work experience that is in line with academic studies or career goals.

The law of demand states that

The law of demand holds that a decline in the price of a good will cause consumers to buy more of that good.

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

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?

The primary role of government in a market economy is to support the marketplace by removing obstacles such as trade barriers.

When a business posts employment openings with required skill descriptions, it is using the Internet to

The question assesses knowledge of communication and career development. Listing employment openings with required skill descriptions is by definition recruiting.

Which of the following statements is true about strict liability in contracts?

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.

The interest charge on $2,000 borrowed for one year at a simple interest rate of 12% is

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

If a nation begins importing more goods and its exports remain constant, it will experience an increase in

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?

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.

Which of the following objectives best supports current trends and the United States government's role in international trade?

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.

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?

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 stages in the product life cycle usually occurs first?

The question requires that you understand the life cycle of a product. Once introduced into a market, products grow, mature, and decline.

Human capital is best described as the

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

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.

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?

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?

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

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.

Which of the following combinations of policies is the United States federal government most likely to follow during a recession?

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

A federal income taxpayer should compare which of the following in order to decide whether or not to itemize deductions?

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.

When the totals of a trial balance are equal, it can be determined that

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.

The market value of a share of common stock is equal to the

The question tests your knowledge of investing. A share of common stock is always valued at the current market price.

Which of the following is defined as an entity's total assets minus its total liabilities?

The question tests your understanding of basic accounting concepts. The basic accounting equation is: total assets minus total liabilities equals net worth.

Which of the following actions increases the accounts receivable balance?

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

The statement of cash flows details the cash a company has available to pay expenses.

Securities and Exchange Commission

This agency enforces laws and sets standards for financial disclosure and other pertinent information about firms that trade stock.

Occupational Safety and Health Administration

This agency establishes and enforces standards and laws for working conditions in commercial and industrial sectors.

Better Business Bureau

This agency rates the ethical and community standing of a firm to maintain a level of trust between businesses and the public.

Federal Communications Commission

This agency regulates radio, television, telecommunications, broadband, and emergency communication systems.

Federal Trade Commission

This agency's chief focus is to prevent fraud and deceptive business practices and to ensure fair competition.

If a firm pays $1,000 for furniture on account, which of the following statements about journal entries made for the transaction is true?

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.

A business owner decides to form a corporation. Which of the following describes where the company must file a charter?

To form a corporation, a company must file a charter in the state where its headquarters will be located.

Which of the following is the primary purpose of an accounting system?

To meet an organization's need for accounting information as efficiently as possible The primary purpose of an accounting system is to provide actionable accounting information efficiently.

Which of the following is a primary reason a country might use import tariffs, quotas, or licensing requirements?

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 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?

Trawling is the act of searching a database for a specific piece of information, such as a birth date.

Which of the following is a primary advantage of using a USB USB flash drive?

USB USB flash drives are inexpensive and are an easy way to store data.

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?

Understanding requires listening, recognizing, and relating information for communication to be effective.

If a growing firm experiences economies of scale, prices will most likely

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

While the costs of operation are researched fairly extensively before beginning an enterprise, economic conditions may cause cash flow problems.

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?

Work-based students have to be able to see how classroom instruction is relevant to real-world experiences.

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?

Workflow analysis is a structured approach to identify and enhance work processes.

According to research, the competency most needed for success in most business occupations today is

communication skills

The actual rate of interest received on a savings account is called the

effective rate, Interest on a savings account is compounded as the year passes, so the stated rate differs from the actual, or effective, rate.

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

is approved by the author for the CEO CEO to forward, 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.