DECA Finance
Which of the following financial analysis applications provides a business with information about its delinquent or aging customer accounts: A. Accounts receivable B. Depreciation C. Cost D. Accounts payable
A. Accounts receivable
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
Which of the following groups often is affected by administrative law: A. Businesses B. Attorneys C. Juries D. Guardians
A. Businesses
Colin bought 35 shares of stock at $23.50 per share and recently sold all of the stock for $53.00 per share. What type of tax will Colin pay? A. Capital gains B. Sales C. Excise D. Gift
A. Capital gains
Which employee reports directly to a corporation's board of directors? A. Chief executive officer B. Accounting manager C. Vice president of operations D. Director of sales
A. Chief executive officer
Which of the following factors do businesses need to consider in order to make a profit even if their sales are good: A. Expenses B. Policies C. Assets D. Contracts
A. Expenses
Using a computer-generated slideshow to highlight product information would be most appropriate in which of the following business situations: A. Formal sales presentation B. Project-team status meeting C. Employee performance review D. Union contract negotiations
A. Formal sales presentation
How does the selling function of marketing benefit businesses? A. Generates profit B. Creates employment opportunities C. Fosters competition D. Increases product options
A. Generates profit
Which of the following is an example of a country's trade deficit: A. Imports = $5 million, exports = $3 million B. Imports = $3 million, exports = $5 million C. Imports = $0, exports = $3 million D. Imports = $5 million, exports = $5 million
A. Imports = $5 million, exports = $3 million
Which of the following is a positive characteristic for the members of a corporation's board of directors to possess: A. Independent thinking B. Conformity C. Indecisiveness D. Single-minded attitude
A. Independent thinking
Which of the following factors influences the time value of money: A. Interest rates B. Financial needs C. Banks D. World events
A. Interest rates
What type of business records would provide a company with information about the movement of its products? A. Inventory B. Credit C. Accounts payable D. Sales expense reports
A. Inventory
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.
Which of the following describes the matrix organizational structure: A. It is a combination of two other organizational structures. B. It includes only traditional departments, such as sales and marketing. C. It is separated by product lines. D. It is the oldest organizational structure being used.
A. It is a combination of two other organizational structures.
Which of the following is a characteristic common to all integrated software packages: A. Performs interrelated functions B. Calculates break even points C. Requires minimal training D. Includes forecasting tools
A. Performs interrelated functions
How does forming a captive insurance company typically impact a corporation's federal tax liability? A. Reduces tax due on the captive's premiums B. Increases tax due on the captive's loss reserves C. Increases the corporation's sales tax liabilities D. Eliminates the corporation's state tax liabilities
A. Reduces tax due on the captive's premiums
What is one factor that determines a manager's credibility with employees? A. Reputation B. Creativity C. Patience D. Aptitude
A. Reputation
Keeping the end goal in mind refers to which standard of excellence that achievement-oriented people set? A. Results B. Improvement C. Trying something new D. Competition
A. Results
Which of the following is a form of technology that businesses use to reduce the risk of robbery and theft within their facilities: A. Surveillance cameras B. Deadbolt locks C. Electronic cash registers D. Kiosks
A. Surveillance cameras
Which of the following is a reason why accurate accounting is important to business: A. To maintain financial control B. To organize governmental support C. To obtain legal information D. To monitor banking regulations
A. To maintain financial control
A request made by an employee to a supervisor is an example of what type of communication? A. Upward B. Downward C. Grapevine D. Horizontal
A. Upward
Ryan is a college student who is interested in becoming a teacher. Every Tuesday afternoon, he spends his free time tutoring second-grade students in reading and math at a local elementary school. What technique is Ryan using to obtain work experience? A. Volunteering B. Informational interview C. Job shadowing D. Internship
A. Volunteering
A company purchases an expensive new software system and divides the cost of it between the two departments that will use the system. This is an example of cost A. allocation. B. accumulation. C. dividing. D. precision.
A. allocation.
One advantage to businesses of using electronic funds transfer technology to collect accounts receivable is that it eliminates A. check processing. B. liquidity reporting. C. sales discounting. D. payee outsourcing.
A. check processing.
Recommending corrective measures after identifying differences between budget projections and actual monies spent is considered a(n) __________ function in financial-information management. A. control B. planning C. organizing D. maintaining
A. control
A form of business ownership in which the owners own shares of stock is known as a A. corporation. B. consolidation. C. partnership. D. proprietorship.
A. corporation.
Insecure people are often afraid to become assertive because they think they will A. damage their relationships. B. have to please others. C. be considered childish. D. lose their independence.
A. damage their relationships.
While conducting a staff meeting, the speaker noticed that Colin was texting on his smartphone. Colin's nonverbal behavior indicates that he was A. distracted. B. annoyed. C. listening to the speaker. D. interested in the topic.
A. distracted.
To control online transactional risks, a business should consider outsourcing its technology needs when it lacks A. internal expertise. B. financial resources. C. secondary data. D. external training.
A. internal expertise.
The general economic growth of a country is supported by its A. level of productivity. B. standard of living. C. gross domestic product. D. wealth of goods and services.
A. level of productivity.
A business that fails to provide accurate financial information in the required time frame to a government agency may be subject to A. monetary fines. B. tax reductions. C. payroll exemptions. D. regulatory subsidies.
A. monetary fines.
It is important for companies to practice enterprise risk management (ERM) because A. most risks are predictable and manageable. B. it leads to loss of shareholder value. C. most risks are unexpected. D. it increases business costs in the long run.
A. most risks are predictable and manageable.
If a business wants to separate a large SQL server database table into separate file groups, it would use the __________ function. A. partitioning B. edit C. merge-cells D. view
A. partitioning
In general, a governance, risk, and compliance (GRC) software system identifies and measures risk; monitors the risk-management system; routinely checks adherence to company-wide policies; and ensures compliance with A. reporting requirements. B. union demands. C. product standards. D. contingency plans.
A. reporting requirements.
A persuasive message that asks a person to do something should be written in a way that makes it easy for the person to A. respond positively. B. organize logically. C. answer politely. D. read slowly.
A. respond positively.
Seeing the big picture instead of smaller, individual parts is an organizational learning concept known as A. systems thinking. B. team learning. C. shared organizational vision. D. personal mastery.
A. systems thinking.
Personal appearance should be important to a business's employees because A. their image affects company image. B. it makes them attractive to others. C. workers with a good appearance get promotions. D. unattractive workers are unlikely to be hired.
A. their image affects company image.
Business customers differ from final consumers in that A. there is a greater emphasis on personal selling in business-to-business marketing. B. business customers don't care about service as much as consumers do. C. consumers tend to buy in bulk more often than businesses do. D. consumer products tend to be more technical in nature.
A. there is a greater emphasis on personal selling in business-to-business marketing.
To be useful to businesses, financial information should be A. timely and understandable. B. reliable and creative. C. vague and transferable. D. sensitive and logical.
A. timely and understandable.
Bobbi, who works for an insurance company, is responsible for calculating the risk of loss, establishing premium rates, and designing insurance policies to cover risk. Bobbi works as a(n) A. underwriter. B. agent. C. accountant. D. financial analyst.
A. underwriter.
If a stock price rises and falls sharply within a 52-week period, it is said to be A. volatile. B. stable. C. healthy. D. solid.
A. volatile.
To manage potential risks resulting from unethical conduct, many companies build internal infrastructures that promote and enforce ethical practices. This internal infrastructure is likely to include appropriate audit procedures, a code of conduct, and a __________ policy. A. whistleblower B. credit C. monetary D. constituent
A. whistleblower
The job interviewer told Elizabeth at the end of the interview that he couldn't offer her the job because she lacked a particular skill that the job required. Elizabeth's next step should be to A. write the interviewer a follow-up letter. B. look for another similar job opportunity. C. file a formal complaint with the EEOC. D. look for training in the required job skill.
A. write the interviewer a follow-up letter.
Some job application forms ask why the applicant left a previous job. Which of the following would be an acceptable answer to this question: A. "I was expected to do too much work." B. "I was seeking a more responsible job." C. "I couldn't get along with my supervisor." D. "I wanted to get out of a difficult situation."
B. "I was seeking a more responsible job."
A business's cash flow statement for one month indicates cash sales of $4,275, credit sales of $2,960, shipping costs of $525, and fixed expenses of $2,380. Calculate the total cash receipts. A. $2,960 B. $4,275 C. $6,655 D. $7,235
B. $4,275
You want to have $8,000 in three years to purchase a car. You can earn 4% compound interest on your investment. How much should you invest today? A. $7,364.10 B. $7,111.75 C. $7,692.31 D. $7,821.47
B. $7,111.75
Supervised by the Federal Reserve Board, The DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant banking services. What does the DAB Company exemplify? A. An accounting firm B. A financial holding company C. A central bank D. A commodities investor
B. A financial holding company
Who is responsible for reporting unsafe conditions or equipment that is not in good operating order? A. Company managers B. All employees C. Safety supervisors D. Department managers
B. All employees
What financial analysis application does a business use to evaluate changes in its cash position from month to month? A. Expense B. Cash flow C. Fixed costs D. Performance
B. Cash flow
What is one way businesspeople can improve their active listening skills? A. Asking questions during the speaker's message to reduce barriers B. Concentrating on remembering what the speaker says C. Controlling the conversation by monitoring their own nonverbal language D. Paying more attention to the speaker's nonverbal cues than to her/his tone of voice
B. Concentrating on remembering what the speaker says
How does empathy help coworkers to be fair to each other? A. Empathy gives coworkers the ability to learn a job quickly. B. Coworkers with empathy are better able to understand others. C. Coworkers with empathy are not likely to have disagreements. D. Empathy helps coworkers to understand legal guidelines.
B. Coworkers with empathy are better able to understand others.
Which of the following are examples of deposit-taking financial institutions: A. Commercial banks, corporations, and mutual savings banks B. Credit unions, savings and loan associations, and commercial banks C. Savings and loan associations, mutual savings banks, and insurance firms D. Commercial banks, credit unions, and brokerages
B. Credit unions, savings and loan associations, and
What application enables a business to identify when a record was added to a database? A. Validation rules B. Date/Time stamp C. Data replication D. Sort
B. Date/Time stamp
The section of the SEC web site that houses companies' filings is called A. EDWIN. B. EDGAR. C. EDMUND. D. EDWARD.
B. EDGAR.
Which of the following statements about hedge funds is true: A. Hedge funds are designed to generate conservative financial returns. B. Hedge funds involve private investment partnerships. C. Government agencies usually manage hedge funds. D. Investment options for hedge funds are limited in scope.
B. Hedge funds involve private investment partnerships.
Which of the following is an example of an employee respecting the privacy of a coworker: A. Speaking up for a coworker who is being unfairly criticized B. Leaving the room when a salesperson takes a telephone call C. Giving feedback about a project to a coworker or manager D. Answering a coworker's telephone when s/he is at lunch
B. Leaving the room when a salesperson takes a telephone call
Which of the following is a characteristic of an effective, informal business report: A. Imprecise B. Logical C. Lengthy D. Obscure
B. Logical
Carson is a staff accountant, and he needs to look at last year's tax return. However, he can't find it anywhere. Which information management guideline is not being followed in this situation? A. Make sure that information is accurate. B. Make sure that information is retrievable. C. Set and consistently follow organizational information management practices. D. Prioritize information management needs according to business needs.
B. Make sure that information is retrievable.
According to the law of diminishing returns, what is the result of more and more workers being added to the production process if all other factors remain unchanged? A. Output will decrease significantly. B. Output will increase by smaller and smaller increments. C. Output will increase proportionately with each worker. D. Output will remain constant.
B. Output will increase by smaller and smaller increments.
Which of the following is a common challenge for project managers: A. Laws and regulations B. Poorly defined goals C. A surplus of resources D. A lack of risk
B. Poorly defined goals
When the U.S. federal government owes money to a contracted employee or business, the government must pay the employee or business according to the A. Early Bird Act. B. Prompt Payment Act. C. Secure Contracting Act. D. Government Guidelines Act.
B. Prompt Payment Act.
Which of the following is an estate-tax deduction: A. Valuable art and collectibles left to children B. Property passing directly to the surviving spouse C. Charitable contributions that are unqualified D. Money left to friends or distant relatives
B. Property passing directly to the surviving spouse
Which of the following marketing functions helps businesses to deliver quality products on time in order to satisfy customer needs: A. Advertising B. Purchasing C. Financing D. Organizing
B. Purchasing
When a business has been running successfully for several years, what would be a probable next financial step? A. Acquiring start-up funds B. Purchasing a second location C. Deciding on financial goals D. Determining product prices
B. Purchasing a second location
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
Which of the difficult customer types may become your best and most loyal customer, once they learn to trust you? A. Dishonest B. Suspicious C. Disagreeable D. Slow/Methodical
B. Suspicious
Which of the following is an advantage to businesses of using virtual-auditor technology: A. The ability to monitor competitors' strategies B. The continuous inspection of transactional data C. The capability of streamlining workflow D. The unlimited access to credit information
B. The continuous inspection of transactional data
Which of the following is most likely to happen to employees who are discourteous to the business's customers: A. They may be promoted. B. They may be fired. C. They may win an award D. They may lose their benefits.
B. They may be fired.
Which of the following is not a federal law regulating the granting of credit: A. Equal Credit Opportunity Act B. Uniform Commercial Credit Code C. Truth-in-Lending Act D. Fair Credit Reporting Act
B. Uniform Commercial Credit Code
A company that makes one specialty item at a time is using what type of production system? A. Batch B. Unit C. Mass D. Assembly line
B. Unit
The AMB Company records its financial transactions at the time they occur, even if money is not exchanged. This is an example of a business using the _____________ accounting system. A. manual B. accrual C. supplemental D. incremental
B. accrual
As a financial analyst for the Webster Company, an important aspect of Jane's job is to monitor Webster's stock prices, as well as its competitors' stock prices. In the past several weeks, Jane has noted that the industry, in general, has experienced a steady decrease in stock prices. These falling prices indicate that economic conditions are headed toward a __________ market. A. bull B. bear C. trough D. peak
B. bear
When filing a tort against a business, the plaintiff must establish that the defendant A. damaged property intentionally. B. breached the duty of care. C. conspired with a competitor. D. violated the doctrine of sovereign immunity.
B. breached the duty of care.
A characteristic of managerial accounting is that it focuses on A. reporting the business's long-term investment goals. B. capturing the business's day-to-day financial activities. C. developing the business's annual report. D. preparing and submitting the business's tax forms.
B. capturing the business's day-to-day financial activities.
An advantage to businesses that use master data management applications is the ___________ of the data. A. variation B. consistency C. replication D. complexity
B. consistency
The process or activity of using goods is called A. production. B. consumption. C. exchange. D. distribution.
B. consumption.
Recently, the Second-Fourth Bank merged with the Wide World Insurance Company. This is an example of A. liquidation. B. convergence. C. divergence. D. endowment.
B. convergence.
Diana prepares bills and invoices for her company. Her career is in the area of A. marketing communications. B. corporate finance. C. securities and investments. D. professional selling.
B. corporate finance.
Barry's family is originally from Ireland. Their customs, habits, and traditions are known as their A. stereotype. B. culture. C. diversity. D. religion.
B. culture.
Before approving a loan application, a bank is likely to analyze the applicant's A. inflation rate. B. debt ratio. C. brand preferences. D. performance goals.
B. debt ratio.
To be considered a person with initiative, you must A. practice initiative from time to time. B. demonstrate initiative on a regular basis. C. cooperate with those who have initiative. D. tell people you have initiative.
B. demonstrate initiative on a regular basis.
The purpose of using the locking function for a database is to A. allow users to import data from external programs. B. ensure that only one person can edit data fields. C. develop reports and summarize various data. D. set queries to retrieve data from specific data fields.
B. ensure that only one person can edit data fields.
One way that individuals exhibit self-confidence is by being A. creative. B. enthusiastic. C. emotional. D. reserved.
B. enthusiastic.
Evaluative information about you or your behavior is known as A. negative feedback. B. feedback. C. positive feedback. D. internal feedback.
B. feedback.
An example of social change would be a change in A. highway speed limits. B. hair and clothing styles. C. video game development. D. product-safety standards.
B. hair and clothing styles.
A primary reason why business people analyze financial variances is to A. increase market share. B. identify problems. C. negotiate contracts. D. organize workflow.
B. identify problems.
Alma is preparing a presentation about her department's budget to make to the company president. She wants to use a visual representation of the budget that shows parts in relation to the whole. Alma should consider using a A. table. B. pie chart. C. line graph. D. bar graph.
B. pie chart.
An important consideration for financial-services businesses that use data-mining techniques is the way the results are A. changed. B. presented. C. argued. D. instructed.
B. presented.
An advantage to businesses of using quality control methods is that these methods often A. involve time. B. reduce costs. C. increase waste. D. require directions.
B. reduce costs.
Compliance in the finance industry involves financial institutions operating within A. specific territories. B. regulatory guidelines. C. organizational plans. D. different relationships.
B. regulatory guidelines.
One reason business employees often use note cards when making oral presentations is because the cards help them to A. look important. B. remember key points. C. write down questions. D. memorize the data.
B. remember key points.
The financial accounting system is used to provide required financial reports to external audiences, including A. operations managers and stockholders. B. stockholders and government agencies. C. vendors and inventory analysts. D. banks and company bookkeepers.
B. stockholders and government agencies.
To protect the integrity of archived financial information, businesses might consider using different types of A. service procedures. B. storage strategies. C. monetary exchanges. D. production methods.
B. storage strategies.
Before DiAnn presents her new idea to her boss, she searches the Internet and jots down two statistics that reinforce the idea. This is an example of A. obtaining primary information. B. supporting ideas with evidence. C. giving alternative ideas. D. clarifying a new idea.
B. supporting ideas with evidence.
Successful bank managers and supervisors usually move up the career ladder as a result of beginning their employment as A. volunteers. B. tellers. C. interns. D. apprentices.
B. tellers.
Businesses usually invest in A. bonds. B. themselves. C. stocks. D. real estate.
B. themselves.
Thad is investing in a money market, which buys and sells products such as A. shares of stock. B. treasury bills. C. agricultural goods. D. technology.
B. treasury bills.
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
Determine the mode for a customer-survey question using the following statistical information: 7, 5, 3, 7, 7, 9, 5, 7, 9, 9 A. 5 B. 3 C. 7 D. 9
C. 7
Which of the following people would make the best entrepreneur: A. A risk-averse person who wants to work 9-to-5 B. A person who lacks self-confidence C. A risk-taker who has a strong work ethic D. A person who often works so hard she makes herself sick
C. A risk-taker who has a strong work ethic
Which of the following is an example of a businessperson exhibiting unethical behavior in relation to a business's financial information: A. A banker requests financial information from a business to process a loan. B. An auditor verifies the accuracy of a corporation's financial statements. C. An unauthorized employee reviews a client's financial information. D. A manager examines the business's financial records to develop a budget.
C. An unauthorized employee reviews a client's financial information.
What is one of the benefits to a business of reinforcing service orientation through communication? A. Rewards customers for their support B. Promotes the sale of new products C. Builds positive relationships with customers D. Encourages employees to be aggressive
C. Builds positive relationships with customers
How can you let people know that you are really thinking about what they are saying? A. By making jokes B. By using clichés C. By asking questions D. By making comments
C. By asking questions
What is the first step Cameron should take to protect himself from identity theft after he loses his wallet? A. Advise the proper law enforcement authorities about the loss B. Contact the appropriate government agency to replace the credit cards C. Cancel all of his credit and debit cards D. Change the passwords for his online banking accounts
C. Cancel all of his credit and debit cards
What financial analysis application does a business use to evaluate changes in its cash position from month to month? A. Fixed costs B. Expense C. Cash flow D. Performance
C. Cash flow
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
What do most businesses use to store information for future use? A. Scanners B. Display screens C. Computer systems D. Firewalls
C. Computer systems
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.
Identify the type of appeal used in the following persuasive message: "This new book is written by Dr. Juliet Browne, who holds a doctorate from the Harvard School of Medicine and is the Chair of the World Health Organization." A. Emotions B. Reason C. Credibility D. Shock value
C. Credibility
Which of the following is a characteristic of the organic organizational business structure: A. Centralized authority B. Specialization emphasis C. Delegation emphasis D. Inflexible procedures
C. Delegation emphasis
Which of the following is an example of how a business or industry has a unique relationship with its environment: A. Social and cultural attitudes change over time. B. An economy in prosperity will eventually experience recession. C. Demand for skilled nursing care rises as the population ages. D. New technology causes new laws to be enacted.
C. Demand for skilled nursing care rises as the population ages.
What factor that affects profit can be controlled by a business? A. Chance B. Economy C. Expenses D. Demand
C. Expenses
Is the following statement about trade associations and professional organizations true or false: Once a law has been enacted, organizations/associations are unable to affect the way that law will be enforced. A. True, members of organizations/associations have no way of influencing the enforcement of laws. B. False, there are exceptions that apply to every law. C. False, organizations/associations often can change unfavorable regulations to more favorable ones. D. True, laws cannot be changed and must be obeyed.
C. False, organizations/associations often can change unfavorable regulations to more favorable ones.
At work, Bob is assigned to be on a team of five people that will create a new product. Which action can Bob take to participate in the team in a useful way? A. Keep the group on track by stopping others from offering unusual ideas B. Encourage the team to avoid setting ground rules C. Find out what other people in the group know about the product D. Walk around the room during discussions to keep energy in the group
C. Find out what other people in the group know about the product
What is a type of informal communication that coworkers often use to communicate with each other? A. Network B. Feedback C. Grapevine D. Structured
C. Grapevine
Which of the following is NOT a benefit of a post-implementation review? A. Identifying ways to improve project planning B. Identifying cost-savings opportunities for future projects C. Identifying cost-savings opportunities for the current project D. Identifying ways to improve the company's processes
C. Identifying cost-savings opportunities for the current project
A member of a sales team said, "Our sales always decline this time of year. We just need to wait a few months until they pick up again." What barrier to creativity is the sales-team member exhibiting? A. Criticism B. Need to be right the first time C. Limiting code of behavior D. Stress
C. Limiting code of behavior
3. Which of the following is an example of a voluntary debtor-creditor relationship: A. Requiring specific information B. Receiving a monetary gift C. Obtaining a loan from a bank D. Owing punitive damages
C. Obtaining a loan from a bank
What project-planning tool helps businesses to effectively plan and use time? A. Policies B. Objectives C. Schedules D. Guidelines
C. Schedules
Which of the following is a characteristic of a profit-and-loss statement: A. Shows the owner's financial position B. Is the same as a balance sheet C. Summarizes expenses and revenue from sales D. Lists assets and liabilities
C. Summarizes expenses and revenue from sales
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.
Why should managers know how to do the work of the workers they supervise? A. To create a team spirit among employees B. To establish a chain of command C. To have realistic expectations for workers D. To coordinate employees' efforts
C. To have realistic expectations for workers
The XTY Company is experiencing a cash-flow problem, and is falling behind in paying its bills. It recently received payment on an invoice in the amount of $450 and wants to use it to pay its vendors. Review the following information and determine which vendor the company should pay first: Vendor A, $300, due in two weeks; Vendor B, $75, due five days ago; Vendor C, $325, due 30 days ago; Vendor D, $110, due in three days. A. Vendor B B. Vendor A C. Vendor C D. Vendor D
C. Vendor C
Financial managers who are legally responsible for their clients' investments must demonstrate fiduciary responsibility, which involves A. making risky investments without their clients' knowledge. B. selling financial products that generate the highest commissions. C. acting in the best interests of their clients. D. speaking with their clients once a year to review their portfolios.
C. acting in the best interests of their clients.
Joining a professional organization is one way for financial planners to A. formulate business plans. B. establish personal priorities. C. build business contacts. D. develop organizational charts.
C. build business contacts.
An organization with a quality culture would have executive-level managers who are A. flexible, indifferent, and not responsible for quality. B. good at delegating all commitments for quality assurance. C. committed and involved and take responsibility for quality. D. able to enlist the expertise of outside contractors for quality.
C. committed and involved and take responsibility for quality.
A virtual auditor that determines inconsistencies and errors by examining data from multiple financial systems is using the __________ reasoning process. A. incremental B. contextual C. cross-source D. temporal
C. cross-source
Maintenance and repairs is an operations activity that includes A. quality inspection. B. production planning. C. custodial work. D. financial analysis.
C. custodial work.
By using simple data-mining techniques to gather data from internal databases, businesses can often identify A. employee incentives. B. competitors' motives. C. customer trends. D. mathematical theories.
C. customer trends.
The law of demand states that as the price of a product increases, the demand for that product will A. increase. B. remain the same. C. decrease. D. increase, then decrease.
C. decrease.
The first task in the HR management activity of staffing is A. determining job descriptions. B. screening and selecting applicants. C. determining need. D. recruiting.
C. determining need.
The single most important aspect of making a financial plan and setting goals is A. making enough money. B. learning to make hard choices. C. getting started now. D. choosing a career path.
C. getting started now.
The key factors involved in compounding growth are the amount of money you invest, how much your investment grows each year, and A. your educational background and career. B. how you earn the money that you invest. C. how long your money is invested. D. your mutual fund manager's education.
C. how long your money is invested.
Bonding employees is a way of reducing __________ risk in business. A. natural B. unknown C. human D. economic
C. human
One way to build professional relationships in the finance industry is to A. encourage others to discuss their finances. B. read about industry trends. C. implement a referral system. D. print new business cards for distribution.
C. implement a referral system.
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.
When Mr. Schwarz's order did not arrive at the expected time, he called Karl, the salesperson with whom he had placed his order. Karl apologized for the delay and told Mr. Schwarz that he would check into the issue. After Karl talked with the transportation company, he immediately called Mr. Schwarz to let him know where the order was and when to expect delivery. Mr. Schwarz thanked Karl for getting back with him so quickly. In this situation, Karl reinforced the company's image by A. delegating work tasks. B. giving vague answers. C. providing efficient follow-up. D. complimenting the customer.
C. providing efficient follow-up.
In relation to the business cycle, the stock prices of non-cyclical industries tend to A. steadily decrease during the expansion phase. B. increase dramatically during the contraction phase. C. remain steady throughout all phases. D. increase slightly during the trough phase.
C. remain steady throughout all phases.
Recognizing your strengths and weaknesses helps you to accept yourself, which is one of the foundations of A. safety. B. social acceptance. C. self-esteem. D. self-fulfillment.
C. self-esteem.
Corporate governance is primarily concerned with __________ desires. A. vendors' B. CEO's C. stakeholders' D. competitors'
C. stakeholders'
Essential qualifications for working in the financial-services industry include all of the following except A. good communication skills. B. mathematical and analytical skills. C. the ability to speak a foreign language. D. the ability to work independently.
C. the ability to speak a foreign language.
On a stock table, net change shows you the difference between A. the highest and lowest prices for the day. B. last year's average price and this year's average price. C. the day's closing price and the previous day's price. D. the highest and lowest prices for the year.
C. the day's closing price and the previous day's price.
A business's balance sheet lists $3,800 in cash, $15,125 in accounts payable, $2,775 in taxes, $10,350 in machinery and equipment, and $6,280 in salaries. Calculate the business's total liabilities. A. $27,030 B. $18,470 C. $15,225 D. $24,180
D. $24,180
Which of the following is an internal activity that companies use to control their risk levels: A. Lenient credit policies B. Excessive inventory to meet potential customer needs C. Substandard equipment to save on equipment costs D. Accurate financial records
D. Accurate financial records
Which of the following is an example of a businessperson making a business decision by analyzing financial data: A. So she can prepare the company's tax return, Kate obtains the necessary financial documents and forms. B. William asks the staff accountant to prepare the company's profit-and-loss statement for next Tuesday's executive board meeting. C. Timothy obtains a copy of the business's credit rating report from a credit bureau. D. After reviewing sales forecasts and income statements, Angela determines that the company has enough money to hire a new employee.
D. After reviewing sales forecasts and income statements, Angela determines that the company has enough money to hire a new employee.
What is an important aspect of a customer-centric business? A. Reducing the number of touch points with customers B. Limiting the employees' decision making C. Being satisfied with the status quo D. Aligning business activities with customer needs
D. Aligning business activities with customer needs
What type of financial statement includes an accounting of the shareholders' equity for a company? A. Annual report B. Income statement C. Cash flow statement D. Balance sheet
D. Balance sheet
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
If Hannah wants to invest in the capital markets, what types of securities should she purchase? A. Corporate bonds and treasury bills B. Common stock and certificates of deposit C. Treasury bills and certificates of deposit D. Corporate bonds and preferred stock
D. Corporate bonds and preferred stock
What is a potential negative consequence to a business that fails to manage risk by implementing an ethics training program for employees? A. Increased credit rating B. Inflated profit margins C. Decreased conflict D. Damaged reputation
D. Damaged reputation
Tara knows that for her small business to grow, she must increase her cash flow. She's unsure, though, whether she should take out a loan or a line of credit. Which of the following budgeting software tools could Tara use to assess the potential impact of each source of funding on her business: A. Zero-based modeling B. Decision trees C. Environmental scanning D. Debt modeling
D. Debt modeling
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
When preparing a statement of equity, what does a business deduct from its total net income to obtain its retained earnings? A. Bad debt B. Depreciation of assets C. Sales tax payable D. Dividends paid
D. Dividends paid
Which of the following business functions monitors and controls the firm's revenue and debt: A. Payroll B. Operations C. Licensing D. Finance
D. Finance
According to most analysts, the three economic indicators that stock market investors and traders should pay the closest attention to are A. inflation, unemployment, and bonds rates. B. interest rates, overhead expenses, and inflation. C. Gross Domestic Product, overhead expenses, and unemployment. D. Gross Domestic Product, unemployment, and inflation.
D. Gross Domestic Product, unemployment, and inflation.
Which of the following statements is true about private enterprise: A. Poverty is eliminated. B. Excessive competition is discouraged. C. Government determines prices. D. Individuals make economic choices.
D. Individuals make economic choices.
Managers need to be familiar with the latest technology, government regulations, innovations and trends within the industry, and competitors' activities. What category of resource is this? A. Financial B. Human C. Material D. Information
D. Information
What do people usually take into consideration when identifying occupations that they want to pursue in life? A. Social attitude B. Personal conduct C. Mental health D. Natural talent
D. Natural talent
Which of the following are characteristics of adaptable people: A. Fairness and fear B. Creativity and resistance C. Empathy and disrespect D. Objectivity and attentiveness
D. Objectivity and attentiveness
Chris purchased 500 shares of microcap HRR stock. Then, he posted false information about HRR on several investment websites to hype up the stock. After driving up the price of HRR stock, Chris quickly sold all of his stock in the company and earned a large profit. The price of the stock then fell, leaving HRR investors with worthless stock. What type of investment scam did Chris commit? A. Phishing B. Pyramid scheme C. Ponzi scheme D. Pump and dump
D. Pump and dump
Joan achieved her goal of being a junior partner in five years. This achievement has made Joan feel good about herself, so she has set a new goal to be a senior partner in 10 years. Joan has received which of the following benefits of goal setting: A. Helps you to understand yourself B. Gives you a way to measure your progress C. Helps you to stay on task D. Raises your level of self-esteem
D. Raises your level of self-esteem
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%.
Which of the following statements is true of workplace accidents: A. Accidents only occur in factories. B. All accidents can be predicted. C. There is no way to prepare for accidents. D. There are ways to reduce accident risk.
D. There are ways to reduce accident risk.
Which of the following is a type of intangible business property that is protected by law: A. Equipment B. Inventory C. Acreage D. Trademark
D. Trademark
What type of letter should a business include when sending copies of a contract to a vendor? A. Request B. Acknowledgment C. Claim D. Transmittal
D. Transmittal
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 providing services to clients, financial professionals have the responsibility to supply A. bank statements. B. payment options. C. credit counseling. D. accurate information.
D. accurate information.
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.
Because the Keller Company is a public corporation, it must provide its shareholders with accurate financial information in a(n) A. accounting portfolio. B. informal monthly contract. C. complex memorandum. D. annual report.
D. annual report.
The primary purpose for record keeping is to provide information about what is happening with the A. industry. B. country. C. economy. D. business
D. business
A business selects specific characteristics about its customers and uses software to obtain data from its database, which will help the business identify, evaluate, and group its customers' buying behaviors. The business is using the ____________ data-mining technique. A. primary B. organic C. statistical D. clustering
D. clustering
A commission or bonus is an example of a form of A. employee contract. B. assistance program. C. benefit. D. compensation.
D. compensation.
Many computer software programs help businesses determine their levels of business risk, which is helpful when they develop A. monetary regulations. B. content theories. C. endorsement records. D. contingency plans.
D. contingency plans.
To maintain their license, many finance professionals are required to participate in A. liberal training programs. B. organizational staff meetings. C. chamber of commerce activities. D. continuing education classes.
D. continuing education classes.
Purchasing is important to international businesses because A. supplies should be delivered in a timely fashion. B. good relations with vendors reduce prices. C. quality standards should be maintained. D. controlling costs increases competitiveness.
D. controlling costs increases competitiveness.
Before approving a loan application, a bank is likely to analyze the applicant's A. performance goals. B. inflation rate. C. brand preferences. D. debt ratio.
D. debt ratio.
Compounding can be described as A. risking the stock market. B. avoiding inflation. C. meeting financial needs. D. earning interest upon interest.
D. earning interest upon interest.
In the past 20 years, Country X has reformed its trade policies and currency exchange rate system. As a result, foreign investment is increasing, and the country's business activity and gross domestic product is rapidly growing. This is an example of a(n) A. industrial-based market. B. integrated financial market. C. recession-proof economy. D. emerging market economy.
D. emerging market economy.
One way for a company to manage its risk in relation to its employees' workplace behavior is by A. permitting employees to use company resources for personal use. B. providing employees with the flexibility to change company policies. C. allowing employees to view all company records. D. encouraging employees to report workplace misconduct.
D. encouraging employees to report workplace misconduct.
The primary reason that financial-services businesses hire compliance officers is to A. monitor international trade agreements and activities. B. determine ways in which the businesses can lower their tax obligations. C. develop and enforce customer-service policies for the industry. D. ensure that the businesses are following industry regulations.
D. ensure that the businesses are following industry regulations.
One way a leader can encourage others to work toward a shared vision is by A. guaranteeing a profit for the business. B. describing the objective. C. reviewing the new assignment. D. explaining how they will benefit.
D. explaining how they will benefit.
Jon decided to promote Bill instead of Maggie to regional manager because he thinks that women aren't assertive enough in business situations. Jon is stereotyping on the basis of A. age. B. ethnicity. C. religion. D. gender.
D. gender.
Maureen becomes angry and defensive whenever her supervisor asks Maureen to correct mistakes. Maureen's attitude is not a good response to criticism because A. it indicates that Maureen wants to call attention to herself. B. there is no reason to be angry about criticism. C. Maureen has no right to be angry on the job. D. it prevents Maureen from hearing the criticism clearly.
D. it prevents Maureen from hearing the criticism clearly.
Sometimes, the ability to follow directions is a skill that is necessary for survival. This is known as a(n) ________ skill. A. academic B. family C. social D. life
D. life
Coaching is mostly about A. talking. B. organizing. C. instructing. D. listening.
D. listening.
Effective financial-information management involves implementing processes that help companies A. revise economic indicators. B. track their ongoing projects. C. interpret government regulations. D. make appropriate business decisions.
D. make appropriate business decisions.
Determining what consumers want in order to promote and sell those goods and services is a function of the business activity of A. risk management. B. quality management. C. production. D. marketing.
D. marketing.
To facilitate the long-term budgeting process, it is helpful for businesses to use budgeting software applications that allow them to A. translate text. B. manage clients. C. develop graphics. D. merge entries.
D. merge entries.
The primary purpose of financial institutions is to help clients manage their money, and the primary purpose of insurance companies is to provide insurance products that help clients ____________ their ___________. A. reduce, assets B. increase, profitability C. strengthen, investments D. minimize, risk
D. minimize, risk
Businesses that use computer software to track the customers' billing information and sales transactions create records about their customers' A. personal preferences. B. financial plans. C. income level. D. payment history.
D. payment history.
If a trend indicates that a business is making more money, the business is most likely to have identified the trend by comparing its __________ from previous time periods. A. payroll records B. advertising budgets C. interest rates D. profitability ratios
D. profitability ratios
Individuals are more likely to reach their personal goals if they have A. avoided making the goals too specific. B. had help in setting the goals. C. analyzed all their personal dreams. D. put their goals in writing.
D. put their goals in writing.
Financial planning can be described as a way to A. retire with a substantial amount of money in the bank. B. stop all impulsive purchases. C. achieve your professional goals. D. realize what it takes to get the things you really want.
D. realize what it takes to get the things you really want.
A primary reason why businesses implement financial audit trails is to A. evaluate their profitability ratios. B. ensure that financial reports are prepared quickly. C. monitor the daily activities of the securities exchanges. D. reduce risks associated with intentional data tampering.
D. reduce risks associated with intentional data tampering.
Statistical findings reveal that the Benson Company earned a 35% net profit on the funds it spent on a project. The statistics provided the Benson Company with information about the business's A. sales commission rate. B. retention rate. C. sales strategies. D. return on investment.
D. return on investment.
When providing product information to clients, finance professionals should use A. standard responses. B. technical terms. C. financial acronyms. D. simple explanations.
D. simple explanations.
Colleen will vote next week on the new contract that her union has negotiated with management. Union and management are in the __________ stage of the collective-bargaining process. A. contract settlement B. ratification of contract C. preparation and research D. tentative agreement
D. tentative agreement
The foundation of the principle of least authority is that computer data are more secure when access to specific types of data are only available to A. the customers who request it. B. mid-level managers. C. personnel during set time periods. D. the people who need it.
D. the people who need it.
When project managers prepare to-do lists and schedule activities, they are using __________ skills. A. problem-solving B. information-based C. creative-thinking D. time-management
D. time-management
A primary factor that has led to the consolidation of financial firms is the desire A. to lower risks. B. for fewer assets. C. for fewer products. D. to lower costs.
D. to lower costs.
