DECA Entrepreneurship and Small Business Management Exam 17-18

The government's mandating the use of unleaded gas in new cars is an example of A. protecting specific businesses. B. protecting the environment. C. stabilizing the economy. D. providing public goods.

B. protecting the environment

Ways that a business's website can provide customer-service support are by offering A. chat rooms, account numbers, and financial information. B. free delivery, email options, and credit authorizations. C. product/service updates, FAQs page, and an online help desk. D. online billing, sales reports, and toll-free telephone number.

C. product/service updates, FAQs page, and an online help desk.

Julio is starting a new business, and he has formed relationships with several successful local business owners. Which of the following is the best way to leverage these relationships to help his own business succeed: A. Gaining inside marketing information B. Persistently asking those business owners to invest in his company C. Attending trade shows and conferences to make new connections D. Sharing those businesses' content on social media

D. Sharing those businesses' content on social media

When evaluating customers' experiences, a company should keep in mind that customers are most often influenced by their interactions with the company's A. negotiation committee. B. suppliers. C. labor union. D. employees.

D. employees.

A small-business owner might register for trademark protection for the company's A. computer software. B. invention. C. trade secret. D. logo.

D. logo.

Which component of the business plan requires considerable time and external research? A. Market analysis B. Executive summary C. Strategy and implementation D. Appendices

A. Market analysis

As part of their marketing plans, what do businesses develop first that are intended to lead to increased sales and revenue? A. Objectives B. Strategies C. Tactics D. Activities

A. Objectives

Evan does not want the legal obligation of repaying a loan and is willing to share profits with others. Which of the following options is Evan most likely to select to fund a new venture: A. Private equity B. Collateral savings C. Trade credit D. Community bank

A. Private equity

Which of the following is a marketing function that can be performed by channel intermediaries: A. Promoting products B. Monitoring union activities C. Training employees D. Recruiting workers

A. Promoting products

When a business has been running successfully for several years, what would be a probable next financial step? A. Purchasing a second location B. Acquiring start-up funds C. Deciding on financial goals D. Determining product prices

A. Purchasing a second location

Which of the following is a true statement regarding the relationship between risk and business objectives: A. Risks help businesses determine objectives. B. Objectives should never be modified because of risk. C. Effective business objectives are not risky. D. The more objectives a business has, the less risk it faces.

A. Risks help businesses determine objectives.

What sales forecasting technique creates accurate forecasts for individual products? A. Sales force composite B. Delphi C. Survey of buyer intentions D. Jury of executive opinion

A. Sales force composite

All of a firm's activities and how they function in relation to one another are known as A. business operations. B. efficiency standards. C. communication goals. D. desired outputs.

A. business operations.

One of the advantages to businesses of training staff is that it tends to increase A. employee satisfaction. B. operating expense. C. compensation. D. feedback.

A. employee satisfaction.

Managerial accounting differs from financial accounting because managerial accounting A. helps people within a business rather than outside of the organization. B. does not focus on planning and budgeting. C. is governed by federal regulation. D. has less impact on decision-making.

A. helps people within a business rather than outside of the organization.

A manufacturer of dishwashing soap has just invented a new type of soap that cleans better. The manufacturer should choose to distribute the soap through __________ distribution. A. intensive B. exclusive C. inclusive D. selective

A. intensive

Because operations managers control so much of a business's money, they must focus on A. keeping costs low. B. hiring the best employees. C. creating effective advertising campaigns. D. generating publicity.

A. keeping costs low.

For successful innovation to occur, employees must be willing to __________ while developing ideas. A. learn B. teach C. avoid results D. work alone

A. learn

The marketing function that helps marketers make decisions about what and to whom to sell is A. marketing-information management. B. product/service management. C. transportation. D. promotion.

A. marketing-information management.

Expenses such as payroll and rent that are necessary to the running of a business are called __________ expenses. A. operating B. fixed C. variable D. liability

A. operating

Having a narrow product mix allows a company to A. specialize in specific product lines. B. mass market its products. C. produce less efficiently. D. appeal to customers with a variety of needs.

A. specialize in specific product lines.

Companies X, Y, and Z determine the selling price of widgets because these companies are the only ones who market widgets. This is an example of A. monopolistic competition. B. an oligopolistic market. C. pure competition. D. a true monopoly.

B. an oligopolistic market.

One of the main external factors that may cause a firm to change its business processes is A. desire for growth. B. competition. C. low employee morale. D. high operating costs.

B. competition.

When a business offers services such as an information desk, child-friendly restrooms, and a lost-andfound department, it is providing customers with __________ services. A. shopping B. convenience C. community D. impulse

B. convenience

Looking at problems from various points of view helps a small-business owner develop A. practical arguments. B. creative solutions. C. unnecessary conflicts. D. unpredictable results.

B. creative solutions.

Members of a board of directors are A. required to be stockholders. B. elected by stockholders. C. a business's vendors. D. not able to make decisions.

B. elected by stockholders.

Businesses often conduct environmental scans to determine if they should A. make staffing adjustments. B. expand into other markets. C. follow government regulations. D. improve their computer systems.

B. expand into other markets.

The balance sheet has a close relationship with the company's A. mortgage. B. income statement. C. fair market value. D. statement of financial position.

B. income statement.

Al is thinking about moving his company's headquarters to another city, which would be expensive but closer to the raw materials needed for manufacturing. The benefit in moving is A. demand. B. proximity. C. feasibility. D. independence.

B. proximity.

The Skintastic Cosmetic Company implemented a challenging sales promotion in which its independent sales consultants could earn bonuses, prizes, and vacations. This is an example of a company using __________ as a sales incentive. A. sweepstakes B. push money C. cooperative advertising D. loyalty programs

B. push money

When bottlenecks in business processes develop that cause a company to miss deadlines and waste resources, an effective manager would most likely choose to A. invest in quality control. B. redesign the business processes. C. implement an employee incentive program. D. speed up production.

B. redesign the business processes.

An important criterion to consider when identifying market segments is the __________ of the market. A. age B. size C. gender D. occupation

B. size

A business should consider the impact that changes in the environment will have on the business's marketing mix because A. most businesses want to be reactive. B. the business can change its marketing mix. C. the marketing mix is affected by technology. D. government regulations can increase costs.

B. the business can change its marketing mix.

Businesses often use direct advertising strategies because A. the promotional message reaches a larger group of people. B. they can select and reach qualified prospects. C. direct advertising is less expensive than other forms of promotion. D. it reduces the need to include other elements in the promotional mix.

B. they can select and reach qualified prospects.

There are several auto repair shops in town, but Patricia's stands out. Her auto repair shop does great work, but what really sets her shop apart is the customer service. Every customer is greeted by a friendly employee, and s/he is given snacks and drinks while s/he waits for the repairs to be completed. The great customer service that people can expect from Patricia's business is considered her A. vision. B. tagline. C. brand promise. D. mission statement.

C. brand promise.

If a company wants to ensure that changes are implemented in the best possible way and that those changes will lead to long-term benefits, it should use the __________ approach. A. change avoidance B. problem solving C. change management D. solution finding

C. change management

An example of an operating expense that is included in a business's income statement is A. inventory. B. purchases. C. commissions. D. allowances.

C. commissions.

Businesspeople who respect the unique customs and habits of their foreign customers are exhibiting A. communication skills. B. stereotypical behavior. C. cultural sensitivity. D. language differences.

C. cultural sensitivity.

Mark doesn't have much money to promote his new restaurant, so he focuses on inviting a few customers in for a special dinner in hopes that they will post favorable reviews online and tell their family and friends about their great meals. Mark is using __________ marketing. A. broadcast B. direct mail C. grassroots D. cause

C. grassroots

One reason why banks might be reluctant to lend money to a start-up business is because the business A. has a solid business plan. B. will not have collateral. C. has no record of repaying loans. D. must incorporate first.

C. has no record of repaying loans.

In order for a market to exist, consumers must have an unfulfilled desire for a product and A. know who makes the product. B. know where the product is sold. C. have financial resources. D. have a specific brand preference.

C. have financial resources.

Performances standards should be A. informally discussed. B. subjective. C. measurable. D. extremely challenging.

C. measurable.

"Yes, you'll save money instantly" is an example of a statement with A. threatening language. B. an impersonal message. C. persuasive words. D. body language.

C. persuasive words.

Product pricing is affected by transportation costs, which are factors related to the marketing element of A. competition. B. promotion. C. place. D. selling.

C. place.

The use of communications channels in public relations activities is an important part of A. advertising an image. B. marketing products. C. providing information. D. targeting customers.

C. providing information.

Most company budgets are based on A. net profit. B. expenses. C. sales. D. gross profit.

C. sales.

Ellen wants to step back from the day-to-day activities of running her company. She decides to take the company to another level by selling public stock. One way Ellen can stay involved in the company is by A. arranging a tactical acquisition. B. appointing a family member as president. C. serving on the board of directors. D. hiring her successor.

C. serving on the board of directors.

Sandra is a manager at a distribution plant. Lately, her customers have been complaining about timely deliveries. Which area of the business does Sandra need to focus on to ensure on-time delivery? A. The sales force B. Inventory control C. Supply chain management D. Production

D. Production

A neighborhood grocery store has added a bakery. What element of marketing should the store use to attract customers from surrounding areas? A. Product B. Price C. Place D. Promotion

D. Promotion

Which of the following media could increase a business's sales by reaching people who are driving home from work: A. Email B. Publicity C. Advertising D. Radio

D. Radio

The owner receives all of the profits of the business and can act quickly in making business decisions when the form of business ownership is a A. corporation. B. partnership. C. joint venture. D. sole proprietorship.

D. Sole Proprietorship

Landon wants to start a home-based T-shirt printing business. Which of the following are the most critical equipment and supplies that Landon will need to get his business up and running? A. T-shirts, thread, and display cases B. Printing machine, display cases, and T-shirts C. Artwork, T-shirts, and thread D. T-shirts, printing machine, and artwork

D. T-shirts, printing machine, and artwork

Which of the following is a condition that must exist for channels to be effective: A. Channel members must not share tasks. B. They must have at least five members. C. Channel members must have varying goals. D. They must be properly managed.

D. They must be properly managed

XYZ Company is interested in developing, producing, and selling a new product. Before it does so, the company spends six months conducting marketing research. What are the primary advantages of this course of action? A. To delay the production process and increase labor costs B. To increase costs and determine consumer dislikes C. To predict trends and provide information to customers D. To determine customer preferences and minimize losses

D. To determine customer preferences and minimize losses

Which of the following financial analysis methods is used to show the relationship of each component to the total within a single financial statement: A. Fundamental analysis B. Horizontal analysis C. Industry analysis D. Vertical analysis

D. Vertical analysis

Tyrese and his team are creating a list of their company's critical enterprise-wide risks. They are compiling A. a risk control. B. a risk assessment. C. enterprise risk management. D. a risk inventory.

D. a risk inventory.

Hazel started her own childcare network where she connects families to available babysitters at her school. Hazel could be described as a(n) A. direct salesperson. B. franchiser. C. wholesaler. D. entrepreneur.

D. entrepreneur.

An entrepreneurial business owner must A. dislike business planning. B. be independently wealthy. C. desire regular 40-hour work weeks. D. have an adventurous spirit.

D. have an adventurous spirit.

To screen job applications and employment résumés, a business might use computer software that conducts text searches to scan for A. typographical errors. B. salary requirements. C. numerical ratings. D. key words.

D. key words.

Marginal analysis is a cost/benefit decision process that seeks to determine A. the best qualities to look for in potential employees. B. how a manager can cut costs. C. the likely returns on a new investment. D. profit-maximizing quantity of output.

D. profit-maximizing quantity of output.

Obtaining goods that will satisfy the needs and wants of a business's customers is a function of A. advertising. B. selling. C. marketing. D. purchasing.

D. purchasing.

Because the MBC Company has one location that services the eastern part of the country and another location that services the western part of the country, the company's work flow is organized by A. relationship. B. work teams. C. authority. D. territory.

D. territory.

Why is it important for businesses to have efficient production? A. To be competitive B. To remain flexible C. To pay employees D. To buy resources

A. To be competitive

Business process thinking is meant to help companies A. achieve goals and serve customers. B. hire employees and fill roles. C. process payroll and compensate employees. D. enforce safety standards.

A. achieve goals and serve customers.

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. It encourages transparency.

Why is it important for team members to feel a sense of "ownership" and engagement in the vision? A. It's the only way they will become committed to it. B. Leaders cannot force compliance from them. C. They cannot be creative otherwise. D. They are responsible for determining the vision.

A. It's the only way they will become committed to it.

What type of business usually experiences economies of scale due to expanded operations? A. Large manufacturing plant B. Monopoly C. Individual financial planner D. Small local retailer

A. Large manufacturing plant

Which of the following situations would supply chain managers encounter during the final stage of supply chain management: A. A customer returns a defective product. B. The company finds reliable suppliers. C. The business plans to deliver goods to customers. D. Managers develop a supply chain strategy.

A. A customer returns a defective product.

What company has the highest sales-to-receivables ratio based on the following information: Company A has sales of $250,000 and accounts receivable of $20,000; Company B has sales of $275,000 and accounts receivable of $25,000; Company C has sales of $300,000 and accounts receivable of $30,000; and Company D has sales of $290,000 and accounts receivable of $32,000. A. Company A B. Company B C. Company C D. Company D

A. Company A

What is Claire doing when she reviews a report that compares the purchase transactions of the company's four largest customers? A. Conducting a sales analysis B. Preparing a purchasing forecast C. Organizing an inventory report D. Analyzing service performance

A. Conducting a sales analysis

Which of the following statements is true regarding stakeholder expectations: A. Each group of stakeholders has different needs and expectations. B. Stakeholder expectations are always financially driven. C. All stakeholders want to exert authority over employees. D. Stakeholder expectations always come second to customer needs.

A. Each group of stakeholders has different needs and expectations.

What is a benefit to a tour operator who makes business decisions by analyzing statistical information? A. Improved performance B. Lower demand C. Increased competition D. Lower outputs

A. Improved performance

Which of the following is an example of a company objective that might be developed by top management: A. To improve the collection process B. To maintain or increase market share C. To maintain the billing cycle D. To hold weekly sales meetings

B. To maintain or increase market share

How long are businesses required to keep their records? A. On a seasonal basis B. Varies greatly C. Indefinitely D. One year

B. Varies greatly

Which of the following categories of information are found on a balance sheet: A. Income, expenditures, profit B. Assets, liabilities, owner's equity C. Assets, liabilities, margin D. Revenues, expenses, profit

B. Assets, liabilities, owner's equity

Which of the following situations is most likely to result in long-term, increased sales for a business: A. Raising the price of its current products B. Constantly providing new choices for consumers C. Lowering the price of its current products D. Eliminating a slow-selling product line

B. Constantly providing new choices for consumers

Which of the following is a specification that a business might establish for selecting spreadsheet software programs: A. Electronically communicate data B. Graphically display financial information C. Regularly organize customer information D. Digitally produce marketing data

B. Graphically display financial information

What is a potential weakness a manager might identify in a SWOT analysis? A. High-quality products B. Lack of management depth C. Competitors failing D. Low-cost foreign competition

B. Lack of management depth

Which of the following is a global trend that might encourage an entrepreneur to consider international business opportunities: A. Higher allowances B. Lower tariffs C. Enforceable trade agreements D. Flexible currency rates

B. Lower tariffs

What do managers need to do to develop and maintain the level of quality that customers expect? A. Obtain industry information B. Monitor all aspects of the business C. Consider the type of competition D. Prepare an operating budget

B. Monitor all aspects of the business

Mara is facilitating a group brainstorming session to generate new product ideas for the company. Which of the following attitudes is important for Mara to demonstrate? A. Judgmental B. Neutral C. Passive D. Authoritarian

B. Neutral

What is a primary factor that small-business owners should consider when deciding to hire additional staff members? A. Interview techniques B. Payroll expenses C. Training methods D. Product standards

B. Payroll expenses

Which of the following is one of the main functions of promotion in the advertising industry: A. Marketing B. Persuading C. Branding D. Retailing

B. Persuading

What staffing activity involves seeking out and attracting qualified potential job candidates? A. Training B. Recruiting C. On-boarding D. Interviewing

B. Recruiting

What type of information does a well-written proposal include? A. Vague goals B. Specific benefits C. Previous trends D. Contingency data

B. Specific benefits

What is one reason that it is easier than ever for small businesses to engage in international trade? A. Decreasing international middle class B. Technological advances C. Language barriers D. Increased regulation

B. Technological advances

Why is it important to track the performance of a business plan? A. To establish an operating strategy B. To find out if products are selling C. To determine its proposed mission D. To provide investment information

B. To find out if products are selling

Which of the following phrases effectively describes a business's income statement: A. Income preview B. Budget estimate C. Cash-flow report D. Financial picture

D. Financial picture

Which of the following is essential to all marketing research: A. Frequency B. Primary data C. Accuracy D. Secondary data

C. Accuracy

Which of the following is an example of an employee complaint that is related to a coworker: A. Sam complains to his production manager that the new materials are jamming the equipment. B. Kelly advises Joe that a flaw in the computer system is creating inefficiencies in her department. C. Ann tells her boss that Brad talks loudly on the phone and distracts her ability to focus on work. D. Mario confides in Paige that he disagrees with the wage freeze that the company has instituted.

C. Ann tells her boss that Brad talks loudly on the phone and distracts her ability to focus on work.

What requirement of a legally enforceable contract requires that both of the parties who are entering into the contract are sane, sober, and of legal age? A. Genuineness of assent B. Consideration C. Capacity D. Legality of purpose

C. Capacity

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for A. libel. B. misrepresentation. C. negligence. D. incompetence.

C. Negligence

Financial loss from investing time and money to comply with accounting standards is an example of which strategic risk: A. Changing customer needs B. Reputation damage C. Regulatory and political issues D. Obsolescence

C. Regulatory and political issues

Which of the following is a characteristic of a self-confident leader: A. S/He has the ability to share a vision. B. S/He is truly invested in the work team. C. S/He is decisive, even in uncertain circumstances. D. S/He demonstrates empathy.

C. S/He is decisive, even in uncertain circumstances.

Which of the following is the type of tax that businesses are required to collect from customers when they purchase certain goods or services: A. Estate B. Income C. Sales D. Corporate

C. Sales

Francine likes the auto shop where she takes her car for an oil change because it has a comfortable waiting room with good magazines. This illustrates which important characteristic of quality service providers? A. Responsiveness B. Reliability C. Tangibles D. Assurance

C. Tangibles

Which step of the decision-making model involves identifying what you want to do? A. Gathering the information you need B. Establishing decision criteria C. Determining what you need to know D. Pinpointing your objective

D. Pinpointing your objective

A business negotiates a two-year lease on 2,250 square feet of space for $2.60 per square foot with an option on a third year at a 5% increase in rent. What will the monthly rent be if the business extends the lease for a third year? A. $6,265.50 B. $5,976.00 C. $5,850.00 D. $6,142.50

D. $6,142.50

Which of the following most likely led to a greater emphasis on governance structures in recent years: A. New technology in the industry B. Competitor saturation C. Stock market crash D. Accounting fraud

D. Accounting fraud

Which of the following is a benefit of hiring the right employee for a job: A. Increased employee turnover B. Increased risk of poor job performance C. Decreased employee morale D. Decreased cost of selection

D. Decreased cost of selection