DECA Entrepreneurship Practice MCQ

Which of the following businesses is most likely to violate antitrust laws if it insists on an exclusive dealing agreement: a. A firm with dominant market power b. A small start-up c. Horizontal business partners d. The buyer

a. A firm with dominant market power

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. Assets = Liabilities + Owner's Equity A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. Three main elements are included on the balance sheet—assets, liabilities, and owner's equity. Available cash is one part of the business's total assets. If the assets do not equal the liabilities when the liabilities are added to the owner's equity (Assets = Liabilities + Owner's Equity), information on the balance sheet is incorrect.

Which of the following is part of the product/service management function: a. Deciding on the products that a business will produce or order b. Getting products from producers to customers c. Informing customers about new and improved products d. Conducting research to find out as much as possible about customers

a. Deciding on the products that a business will produce or order The product/service management function involves deciding on the products that a business will produce or order. It is important because a business must offer the products that customers want and need to be successful. Getting products from producers to customers is part of the channel management function. Informing customers about new and improved products is part of the promotion function. Conducting research to find out as much as possible about customers is part of the marketing-information management function.

Which of the following is a true statement regarding inflation and lending: a. Lenders do not consider inflation when offering loans. b. Inflation affects home loans more than other types of loans. c. Higher inflation makes loans easier to get. d. Inflation benefits borrowers over lenders.

a. Lenders do not consider inflation when offering loans. Inflation benefits borrowers over lenders. Inflation benefits borrowers over lenders because the amount of the loan is not worth as much to the lender when the borrower pays it back. This is why lenders consider the inflation rate when charging interest. Inflation doesn't necessarily affect home loans more than other types of loans, nor does higher inflation make loans easier to get (it may, in fact, make them more difficult to obtain).

Which of the following is often the best way for a salesperson to handle the slow/methodical type of difficult customer: a. Summarize benefits b. Ask their advice c. Be brief d. Let the customer do the talking

a. Summarize benefits

Why is it important to coordinate the elements in advertisements? a. To strengthen the theme b. To analyze the objective c. To simplify the message d. To locate the audience

a. To strengthen the theme The elements of an advertisement include the headline, copy, illustrations, and signature. It is important to coordinate these elements to strengthen the theme of the advertisement. All of the elements should reinforce and promote the theme in order for the advertisement to be effective. It is not important to coordinate the elements in advertisements to analyze the objective, simplify the message, or locate the audience.

One benefit a supplier can receive from paying a slotting allowance is a. better shelf placement. b. lower customer demand. c. cheaper shipping costs. d. better branding.

a. better shelf placement.

An advantage of newspaper advertising over television and radio promotion is more a. consumer interest in the ads. b. effective use of color. c. sensory appeal. d. prestige from being local.

a. consumer interest in the ads. Many people read newspapers as much for the advertisements as for the news content. In radio and television, large numbers of consumers "tune out" the commercials because they have little or no interest in the advertisements. Color reproduction in newspapers has become very good, but it cannot compete with television color. Both newspaper advertising and radio promotion are often aimed at a local audience. Television has more sensory appeal than newspapers because it can appeal to more of the senses than newspapers.

As prices go down, the quantity that producers are willing to supply generally a. decreases. b. increases. c. stays the same. d. creates an excess.

a. decreases. When prices go down, consumers will buy more, but producers will produce less because of the certainty of decreased profits. This process eliminates excess supply. The quantity that producers are willing to supply does not increase or stay the same as the prices decrease.

In times of crisis, business leaders are needed to a. encourage overwhelmed employees. b. provide a new vision for an organization. c. lead change. d. get the business off the ground.

a. encourage overwhelmed employees. In times of crisis, business leaders are needed to encourage overwhelmed employees and help the organization weather the storm. A crisis isn't the time to provide a new vision or to lead change—these tasks are better accomplished when the business is stable. Getting the business off the ground is an important leadership task when a business is just starting up.

Credit is often used as a selling tool because it helps to create __________ utility. a. possession b. exchange c. place d. form

a. possession Possession utility is usefulness created when ownership of a product is transferred from the seller to the user. Credit creates possession utility by allowing the consumer to take possession of the product before payment is complete. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer. Place utility is the usefulness that results from offering products at a place that is convenient for the customer. Exchange is a form of transfer, not a type of utility.

Scientists predict that there are billions of barrels of oil in Antarctica that cannot be accessed due to technological and financial constraints. This oil is not an economic good because it is not a. transferable. b. useful. c. tangible. d. scarce.

a. transferable. Economic goods must be useful, tangible, scarce, and transferable. The oil in Antarctica is useful because it satisfies the want for energy sources. It is tangible because it is a physical object that can be observed with the senses. It is scarce because it is a limited resource that cannot sustain people's wants indefinitely. However, it cannot be obtained and sold easily, so it is not transferable and, therefore, not considered an economic good.

When businesses need to formalize the information provided to employees, customers, or other businesses, they often use __________ communication. a. written b. lateral c. upward d. verbal

a. written

One reason that the balance on your bank statement would be higher than your checkbook register would be that a. you've written checks after the covered period. b. a deposit has not been credited to your account yet. c. an automated payment was deducted from your account. d. you did not record a bank withdrawal.

a. you've written checks after the covered period. Your bank statement's balance would be higher than your checkbook register if you've written checks after the covered period. An uncredited account, an automatic bill deduction, or an unrecorded bank withdrawal would not make your bank statement higher. Instead, those things may make it lower than your checkbook register.

When Vendela takes notes in her business class, she draws a line down her paper about 2 ½ inches from the left side. On the right side of the line, she records her notes from the class lecture. After class, Vendela reviews her notes and writes down key words and phrases in the left column. Vendela uses the __________ note-taking system. a. mapping b. Cornell c. charting d. key-word review

b. Cornell

An upscale department store tracks customer purchases made with store credit cards and then tailors promotional messages and merchandise offers to specific clients based on their purchases. What software allows the retailer to manage this strategy? a. Word processing b. Database c. Spreadsheet d. Systems tools

b. Database Database software allows companies to collect, store, and organize customer information. This information can be used to maintain, analyze, and combine customer information in order to send certain messages to specific customers. Spreadsheet and word-processing software do not perform the functions required by the retailer. Systems tools are used to maintain the computer.

How can a business build its customers' trust and communicate its commitment to ethical practices? a. Develop liberal business policies b. Publish its confidentiality statement c. Hire employees who have a positive attitude d. Post its earnings on its website

b. Publish its confidentiality statement

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. Red apples @ $0.90 per pound; green apples @ $0.80 per pound This is the only combination that resulted in a change in the relative price ratio. When red apples sold for $0.30 per pound and green apples for $0.40 per pound, the price of each was cut in half, and the ratio remained the same. When red apples sold for $1.20 per pound and green apples for $1.60 per pound, the price of each was doubled and the ratio remained the same. When red apples sold for $0.45 per pound and green apples for $0.60, the price of each was cut one-fourth, and the ratio remained the same.

Which distribution method is commonly used for consumer shopping goods, such as high-end clothing: a. Intensive b. Selective c. Direct d. Exclusive

b. Selective

Which of the following often makes it difficult for small manufacturers that have limited budgets to receive an equal opportunity to distribute their new products: a. Gray marketing b. Slotting allowances c. Channel strategies d. Targeted advertising

b. Slotting allowances

Which of the following is an advantage of investing in bonds: a. You can access your money any time. b. They are very low risk. c. They are insured by the FDIC. d. They offer extremely high rates of return.

b. They are very low risk. Bonds are very low risk investments. As a matter of fact, they are often referred to as "guaranteed money." However, you can't access your money at any time, and bonds are not FDICinsured. Bonds are lending investments with little risk; therefore, they don't offer extremely high rates of return.

Which of the following is a downside of electronic information storage: a. Files take up too much storage space. b. Too much information can lead to overload. c. Information can be more quickly sorted. d. It's more costly to store information electronically

b. Too much information can lead to overload. Electronic storage makes it possible to keep much more information, since electronic files do not take up storage space like physical files do. Keeping so much information can cause an information overload. Information can be more quickly sorted when it is stored electronically, but this is an advantage. Electronic storage generally saves money.

A nation's currency exchange rate is likely to increase when a. the labor force shrinks. b. consumer confidence is high. c. an economic contraction occurs. d. stock values fluctuate.

b. consumer confidence is high. When consumers have confidence in a nation's economy, the currency exchange rate is likely to increase. During an economic contraction, unemployment increases, and consumer confidence and the strength of the economy decrease. Quick, dramatic changes in stock values can affect a nation's currency exchange rate; however, stock values tend to fluctuate slightly in a strong economy, so this may not have a great impact on the currency exchange rate.

Accounting computer software programs increase the efficiency of accounting activities because they are used to a. track payroll activities and develop annual reports. b. create invoices and record customer payments. c. monitor market share and summarize accounts payable data. d. organize tax records and produce presentations.

b. create invoices and record customer payments. Accounting software programs perform a variety of accounting activities that streamline accounting processes, which makes them more efficient. Accounting software allows businesses to create invoices, record customer payments, track payroll activities, summarize accounts payable, and organize tax records. Businesses use word-processing software to produce annual reports and presentation software to produce visual aids for presentations. Businesses do not use accounting software to monitor market share.

When businesses want to make their products available to customers but do not want to over-distribute their goods and services, they are seeking a. exclusive marketing channels. b. ideal market exposure. c. direct distribution capabilities. d. intense segment coverage.

b. ideal market exposure.

A manager looks at financial information to see if the company can afford to purchase a popular new item it wants to add to its shelves. This is an example of using financial information to a. manage debt. b. increase sales. c. check up on the competition. d. reduce expenses.

b. increase sales. Businesses often want to add new products to their offerings as a way to increase sales. They need to study financial information to make sure they can afford to do so. Adding new products is not managing debt, checking up on the competition, or reducing expenses.

Sammy is going to a meeting to hear the new procedures for billing clients for completed work. One of the best ways for Sammy to follow the presenter's oral instructions is to a. take notes while the speaker is presenting the material. b. take notes after listening to the meeting in entirety. c. listen to the presentation and ask a coworker for notes afterwards. d. listen to the presentation and attempt the task immediately afterwards.

b. take notes after listening to the meeting in entirety.

When Jeremy develops his personal budget, he should categorize the money that he spends on food, clothing, and entertainment as a. fixed costs. b. variable expenses. c. relational outflows. d. periodic investments.

b. variable expenses. A budget is an estimation of income and expenses. Developing a personal budget helps individuals better manage their money. Variable expenses are expenses that change from month to month, such as food, clothing, and entertainment expenses. Fixed expenses are expenses that do not change every month, such as rent and loan payments. Relational outflows and periodic investments are not budgetary categories.

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. vertical Three common types of financial statement analysis are vertical analysis, horizontal analysis, and ratio analysis. When conducting vertical analysis, an individual calculates each individual item on a financial statement as a percentage of the total. After doing so, the analyst can develop common-size financial statements that allow him/her to compare performance across several years for a single company or across several different companies. Horizontal analysis, which is sometimes known as trend analysis, involves analyzing dollar amounts on financial statements for a single company across several years. Horizontal analysis does not involve the development of common-size financial statements. Ratio analysis involves the calculation of ratios based on a company's financial data. It allows analysts to compare numbers within a financial statement and determine the relationships among numbers on different financial statements. It can also be used to compare the performance of multiple companies.

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. Complete a data cleansing of the erroneous entries

Which of the following is a reason why someone might have trouble adapting to new circumstances: a. Missed opportunities b. Objectivity c. Contentment d. Empathy

c. Contentment Being adaptable requires you to stretch, try new things, and get out of your comfort zone, which can be hard to do if you're content. Objectivity and empathy are characteristics of adaptable people; these traits make it easier for a person to adapt. Missed opportunities are a negative consequence of refusing to adapt.

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. Contributions are taxed, but withdrawals during retirement are not.

Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. Which of the following describes the quantity that Marcy is prepared to buy: a. Supply b. Elasticity c. Demand d. Market price

c. Demand In order for demand to exist, consumers must have both the desire and the ability to purchase the product. Supply is the amount of the product that sellers are willing and able to offer for sale at a specified price in a given time period. Market price is the actual price that prevails in a market at any particular moment. Elasticity is an indication of how changes in price will affect changes in the amounts demanded and supplied.

When the Silvers purchased their new car, the dealership representative sold their contract to another company in exchange for cash. To what type of business would the dealership have sold the Silvers' contract? a. Commercial bank b. Savings and loan association c. Finance company d. Credit union

c. Finance company To receive cash in exchange for the Silvers' contract, the dealership dealt with a sales finance company. This is a business that purchases borrowers' contracts from sellers and receives the borrowers' payments. A credit union is a financial cooperative set up to provide savings and credit services to its members. It usually operates within a business or a labor union. A savings and loan association is a financial institution that offers savings accounts and makes loans to borrowers. Most of the loans are for real estate purchases. Commercial banks are full-service banks offering a variety of banking services, including checking and savings accounts, secured and unsecured loans, installment credit, and bank credit cards.

What is a type of information communication that coworkers often use to communicate with each other? a. Network b. Feedback c. Grapevine d. Structured

c. Grapevine

Which of the following is an important task for a business that is building positive customer relations a. Researching and developing new products b. Expanding facilities c. Identifying the target market d. Soliciting investments

c. Identifying the target market

Which of the following statements is true regarding joint ventures: a. Large corporations are the only business structures that can benefit from joint ventures b. Joint ventures are used only when it is necessary to raise a lot of capital. c. Joint venture arrangements are usually short-term relationships d. An independent attorney must always be consulted before signing a joint venture agreement.

c. Joint venture arrangements are usually short-term relationships

Harold is the Chief Operations Officer of a bottled water company. The FDA just issued a press release stating that the company's bottled water product is contaminated. Which department should Harold turn to in order to handle this situation? a. Product development b. Human resources c. Public relations d. Market research

c. Public relations One of the responsibilities of the public relations department is to handle crisis communications. Human resources deals with planning, staffing, leading, and organizing employees of a business. Product development is concerned with the creation of a new product. Market research is the systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern that affects a market.

Which of the following is an example of a during-the-sale touch point: a. Rebates b. Customer satisfaction surveys c. The physical aspects of the business d. Word-of-mouth advertising

c. The physical aspects of the business

Which of the following is a true statement about coaches: a. They are also known as teachers. b. They decide on goals for their coachees. c. They focus on performance instead of knowledge. d. They are usually judgmental.

c. They focus on performance instead of knowledge. Instead of focusing on knowledge, like teachers do, coaches focus on performance. Although coaching may involve teaching, it isn't necessarily the same thing. Coaches do not decide on goals for their coachees; instead, they work collaboratively to come up with goals. Coaches should be accepting, not judgmental.

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. They will have to pay interest on the borrowed amount. A downside of acquiring capital through debt financing is that the borrower must pay interest on the money borrowed. This means that John and Damien will end up owing more than the amount of money they initially borrowed. In equity financing, stocks are sold to shareholders and those shareholders own a stake in the company. Damien and John would not be required to repay the money immediately.

What type of software program do businesses use to create text documents? a. Communications b. Web-page editor c. Word processing d. Presentation

c. Word processing Most word-processing software programs are designed to be used to create text documents, although some have limited graphic capabilities. Businesses use word-processing software programs to write letters, memos, reports, business plans, and sales contracts. There are many different word-processing software programs available that enable businesses to create, edit, and store important text documents. Presentation software programs are used to develop visual presentations. Web-page editors are software applications that businesses use to create web pages. Communications software programs allow computers to communicate with other computers.

A large online seller partners with a credit card company to leverage each other's brand values, share marketing expertise and research, and exchange skills. The two companies are involved in a. cross linking. b. affiliate marketing c. affinity marketing d. social media marketing.

c. affinity marketing

A good way to prioritize your financial goals is to a. rank every goal in numerical order. b. rank goals according to what needs to be done first. c. assign each goal to a general category. d. recognize that all the goals are equally important.

c. assign each goal to a general category. A good way to prioritize your financial goals is to assign each goal to a general category, such as "must do," "important but not critical," or "not so important." Ranking according to what needs to be done first and ranking every goal in numerical order are two common pitfalls. Another pitfall is ranking everything as very important or thinking that all the goals are equally important.

Using a pleasant tone of voice with customers is especially important when a. the customer is in a good mood. b. trying to sell a new product c. delivering bad news d. the employee is being observed by a supervisor.

c. delivering bad news

Difficult customers who believe that they know more than you or could do your job better are often referred to as a. slow/methodical. b. leave-me-alone. c. domineering/superior. d. dishonest.

c. domineering/superior.

According to the Keynesian theory of unemployment, the best solution for unemployment is to a. keep prices the same. b. cut wages. c. increase demand. d. increase inflation.

c. increase demand. According to the Keynesian theory of unemployment, the best solution for unemployment is to increase demand and encourage spending. This will increase businesses' production and allow them to retain and hire more workers. For Keynesian economists, keeping prices the same, increasing inflation, and cutting wages are not preferred solutions for unemployment.

People with a positive attitude are open-minded, which helps them to a. develop patience. b. remain cheerful. c. learn new skills. d. be intolerant.

c. learn new skills. People with a positive attitude are open-minded and receptive to new ideas and new ways of doing things. This makes it easier for them to learn new skills, techniques, and methods. Being open-minded does not help individuals to remain cheerful or to develop patience. Being intolerant is the result of a negative attitude.

Charice creates a new kind of glue using a new chemical formula that she invented. She wants to make sure that none of her competitors use the formula for their products. To protect the formula, Charice should __________ it. a. trademark b. copyright c. patent d. prototype

c. patent

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. price-earnings ratio. Most stock tables include the price-earnings ratio, or PE ratio for short. The price to earnings ratio is determined by dividing the last closing price of the stock by the earnings per share. Investors often study the PE ratio to get an idea of whether the stock is overvalued or undervalued, compared to competitors. The earnings per share (EPS), net income, and stockholder's equity are not typically found on the stock table. The earnings per share tells investors how much profit goes to each share of common stock. The net income is the money remaining after operating expenses are subtracted from gross profit. The stockholders' equity is equal to the assets minus liabilities.

As employees go about their daily activities, their actions should be driven by whether or not they will a. result in additional sales. b. be witnessed by customers. c. result in customer satisfaction. d. benefit the workforce.

c. result in customer satisfaction.

One of the freedoms provided to individuals by the private enterprise system is the freedom to choose a. which taxes they will pay. b. how their employers pay them. c. where they will work. d. which laws they will obey.

c. where they will work. U.S. citizens are free to choose the kind of work they would like to do in order to make a living. They are limited by their own interests, abilities, and training. They are not, however, free to choose which taxes to pay, which laws to obey, or how their employers pay them (e.g., weekly or monthly).

Kendra 's financial goal is to build wealth over time by making diversified investments. Which of the following financial services providers is most likely to help Kendra achieve her goal: a. Financial-auditing firm b. Mortgage company c. Investment bank d. Asset-management firm

d. Asset-management firm Asset-management firms invest their clients' money in different (diversified) securities by pooling assets. This is beneficial to investors who do not have the financial resources and expertise to obtain securities on their own. Asset-management firms typically manage mutual funds, hedge funds, and pension plans. An investment bank is a financial intermediary that underwrites securities and facilitates mergers. Mortgage companies process loans specifically designed for the purchase of real estate—land, residences, and other types of buildings. Certified Public Accounting firms perform independent financial audits for different types of businesses (e.g., public corporations).

Which of the following is an example of legal tender issued by the federal government: a. Municipal bonds b. Corporate bonds c. Mutual funds d. Bank notes

d. Bank notes Bank notes are currency. Currency is the paper or metal (coin) money that individuals and businesses use to buy and sell goods and services. Paper money and coins are issued by a country's government. Corporate bonds are bonds issued by corporations to fund operating expenses. A mutual fund is a collection of shareholders' money that is invested by professional fund managers in an assortment of different securities, such as stocks and bonds. A bond is a piece of paper (real or virtual)that says the governing body or corporation will borrow your money at a particular interest rate for a particular period of time. Municipal bonds are issued by local governments.

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. Browser bookmarking applications Browsers are computer software that retrieve information from the World Wide Web. Browsers have bookmarking applications that allow computer users to select websites and store their URLs on a personal computer for easy access in the future. Bookmarking applications allow users to organize sites by categories by placing them into folders on a computer. Notebooks are not online tools. An intranet is an internal network similar to the Internet that is accessible only by authorized employees. A word-processing memo template formats a type of written message.

In a private enterprise economic system, who normally decides what goods will be produced and what prices will be charged for them? a. Government and businesses b. Consumers c. Businesses d. Businesses and consumers

d. Businesses and consumers In a private enterprise economy, all of the buyers and sellers play an important role in controlling the economy. They interact with each other in the marketplace to determine what products will be produced and what prices will be charged for those products. In some countries, the national government controls the economy.

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. Derivatives Derivatives are financial instruments whose value depends upon the value of other financial instruments or market indices. Investors frequently use derivatives to hedge or reduce the risk of investing in the foreign exchange market, which is sometimes volatile. The derivatives help to reduce the impact of significant fluctuations in foreign exchange markets. Emerging markets are financial markets in countries with developing economies. Emerging markets are usually receptive to foreign investment, but they are also more volatile and risky than financial markets in developed countries. Venture capital is invested money that is used for new business opportunities. No-load mutual funds have no up-front sales charges

Which of the following is a computer-based time-management tool that helps employees keep track of their appointments and activities: a. Alarm clock b. Perpetual calendar c. Instant-messaging program d. Electronic task organizer

d. Electronic task organizer Electronic task organizers and calendars help employees keep track of their appointments and tasks, which help them be more efficient, organized, and productive workers. Spreadsheet software programs record and calculate numerical data. Instant-messaging programs allow Internet users to communicate in real time. Perpetual calendars and alarm clocks may not be computer-based.

When a manufacturer asks a business to collect information from customers concerning how to improve a product, which type of utility is most likely to be affected? a. Possession b. Place c. Time d. Form

d. Form Form utility is the usefulness created by changing the shape of a good to make it more useful to customers. Manufacturers can create form utility by changing their products according to the marketresearch information from customers. Place utility is usefulness created by making sure that goods and services are available at a place where they are needed or wanted by customers. Time utility is usefulness created when products are made available at the time they are needed or wanted by customers. Possession utility is usefulness created when ownership of a product is transferred from seller to user

You use a streaming television service that allows you to watch shows for free, as long as you watch several advertisements as well. If you want to watch a show without advertisements, you have to pay money. What type of business model is this? a. Upgradeable b. Franchise c. Manufacturer d. Freemium

d. Freemium In a freemium business model, customers can access basic services for free. However, they have to pay for premium services. The hope with a freemium model is that customers will be "hooked" by the free service and decide that it's worth it to pay extra for the premium services (such as an advertisement-free viewing experience). This is not referred to as an upgradeable business model. This is not an example of a franchise or a manufacturer.

Which of the following would be done first in an environmental scan: a. Identifying and analyzing important trends and issues b. Carrying out scanning activities c. Selecting trends and issues to act on d. Identifying participants and responsibilities

d. Identifying participants and responsibilities The first step in conducting an environmental scan is to identify participants and their responsibilities. Every employee should participate, although some employees may have more formal duties than others. After this step has been completed, businesses can move on to carrying out scanning activities, identifying and analyzing important trends and issues, and selecting trends and issues to act on.

You are creating a print advertisement for a new product and want to make it more readable and clear for your audience. What is one way to achieve this goal? a. Use as many different fonts as possible b. Fill up all white space on the page c. Add multiple images of different products d. Increase white space on the page

d. Increase white space on the page White space helps create focus, separates elements on the page, and promotes readability of an advertisement. Filling up white space, adding multiple images, and using as many different fonts as possible will negatively impact the readability and clarity of the advertisement.

Which of the following is a type of simple written report that usually is distributed to employees within a business: a. Newsletter b. Proposal c. Handbook d. Memorandum

d. Memorandum

What type of business policy is most likely to attract customers to the business? a. Delivery b. Credit c. Return d. Product

d. Product

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. Sales are expected to increase by 5%. Spreadsheet software programs allow businesses to use a computer to perform accounting and other financial calculations. An advantage of using a spreadsheet program is that a business can make various assumptions about sales and find out quickly what effect they will have on its financial situation. For example, a business could change the level of sales by different percentages, such as 5% or 10%, to find out the effect that would have on net income. The spreadsheet program automatically does the calculations. Although keeping appointments might lead to sales, a salesperson would likely not use a spreadsheet program to track appointments. Mailing labels are generated with database programs. Database programs are also used to track customers' purchases.

What federal law must businesses follow when they offer revolving charge accounts and send customers updated statements showing the status of their accounts? a. Fair and Accurate Credit Transactions Act b. Equal Credit Opportunity Act c. Fair Credit Billing Act d. Truth-in-Lending Act

d. Truth-in-Lending Act The Truth-in-Lending Act requires businesses to provide credit customers with all the information that applies to their accounts and send customers regular updated statements showing the status of their accounts. The purpose of the Equal Credit Opportunity Act is to make the granting of credit fair by prohibiting the denial of credit based on the applicant's gender, race, age, marital status, or national origin. The Fair Credit Billing Act requires businesses which extend credit to respond within 30 days to any customer's complaint or inquiry about a billing error. The Fair and Accurate Credit Transactions Act gives consumers the right to inspect the files of their credit history at any credit agency and to have any mistakes corrected.

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. a lower rate of inflation. When a lot of people are out of work, they lose their buying power, which means less money is in circulation. Because unemployed people have less disposable income, the demand for goods and services is low, which tends to slow or lower the rate of inflation (rise in prices). The amount of monetary policies that the government establishes does not affect unemployment rates. When the GDP grows, an economic expansion is occurring, which indicates that people and businesses are spending money and the unemployment levels are low.

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. an opinion. An opinion is a person's point of view or belief about a topic. Amy is stating her opinion about why sales varied from one year to another. Her opinion may be supported by facts (true data), but she isn't presenting any data—current or historical—in her statement. There isn't enough information provided to determine if Amy is stating her opinion as criticism, which involves expressing disapproval.

The easiest way to learn your company's brand promise is to a. talk to your coworkers. b. make an educated guess. c. look on the website. d. ask your manager or supervisor.

d. ask your manager or supervisor.

Levels of inflation and unemployment are factors that affect __________ in the world market. a. communication b. specialization c. satisfaction d. competition

d. competition Global competition is the rivalry between nations to attract a share of the world market. Levels of inflation and unemployment are factors that make the products of nations more or less competitive with each other. Communication between countries is not affected by inflation and unemployment. Specialization is making the best use of resources in the production of goods and services. Satisfaction is a state of contentment.

Coaching is mostly about a. talking. b. organizing. c. instructing. d. listening.

d. listening. Coaching is mostly about listening. It isn't really about talking or instructing. Listening is important because coaches must truly understand what the other person is saying and where s/he's coming from. Although organization is certainly helpful, it is not the most important skill in coaching.

Melanie's employer withholds certain taxes, such as local income taxes, from her paycheck. These are considered __________ taxes. a. professional b. excise c. career d. payroll

d. payroll Payroll taxes are the taxes associated with being employed as well as being an employer. Employers must withhold certain taxes from their employees' paychecks. They are not referred to as career or professional taxes. Excise taxes are built into the purchase price of products.

Josh is a small business owner who hires a lawyer to represent him in court. In this situation, Josh is the a. representative. b. agent. c. judge. d. principal.

d. principal

Most customers prefer __________ to shopping around. a. having others make their buying decisions b. comparing prices c. avoiding malls d. relationship buying

d. relationship buying

The way you follow up with a customer when showing a customer-service mindset will vary according to a. the customer's level of frustration b. how much attention your supervisor paid to the customer. c. how far away the customer is located. d. the type of service you have provided the customer.

d. the type of service you have provided the customer.