ICDC 2016 Practice Test (Questions)

1. Sean wants to put his competitor out of business, so he calls the competitor's customers and convinces them to break their contracts and do business elsewhere. This is an example of a(n) A. ethical business strategy. B. typical business transaction. C. business tort. D. trade regulation.

1. C Business tort. Interfering with another business's contracts and attempting to harm that business is considered wrongful interference, which is a type of business tort. This is not a typical business transaction, an ethical business strategy, or trade regulation.

10. June is in charge of operations at BZ Corporation. She attends a meeting to hear the latest projections from the CEO so she can brief her department on the new material. What is one note-taking strategy that will make her efforts more effective? A. Recording every sentence B. Abbreviating words and sentences C. Spelling every word correctly D. Using a pencil instead of a pen or computer

10. B Abbreviating words and sentences. Abbreviating words and sentences streamlines the note-taking process and allows you to focus on the content. Recording every sentence and spelling every word correctly make the note-taking process less efficient. Using a pencil, pen, or computer is based on personal preference and may or may not make note-taking more efficient.

100. Which of the following is an example of a material resource: A. A marketing-research study B. A piece of manufacturing equipment C. A bank loan D. A long-term employee

100. B A piece of manufacturing equipment. Material resources are the equipment and supplies that businesses need to produce and/or sell their goods and services, including manufacturing equipment (tangible). A marketing-research study is an example of an informational resource. A bank loan is an example of a financial resource. A long-term employee is an example of a human resource.

11. Natalia just finished her first draft of a grant proposal for the Feed the Hungry Foundation. The first step that she needs to take before revising and editing the document is to A. take some time away from the document. B. create an outline of the proposal's content. C. correct grammatical errors in the draft. D. determine the general purpose of the paper.

11. A Take some time away from the document. Stepping away from the document for a while allows the writer to view it from a fresh perspective. This allows you to take a more honest look at what you've written. Creating an outline should come before the first draft. Writers shouldn't spend time correcting grammatical errors at this point because many sentences and words may be revised or cut later. A writer should determine the purpose of the paper before writing the first draft.

12. Gerry's Burger Barn produces a spoof video on social media that shows its burgers are "so good that cows eat them." The video goes viral and is shown on different sites on the Internet, which was not Gerry's original intent. This would most likely cause a(n) __________ risk. A. employment B. legal C. reputational D. security

12. C Reputational. A reputational risk can do damage to a brand or company by twisting the intent and portraying the company or brand in a negative light. Legal risks include employment, privacy, security, intellectual property, and media risks.

13. Pat is presenting the yearly financial figures to the board of the YG Corporation. To make the figures more appealing and easier to follow, Pat might want to use a __________ to present the information. A. calculator B. bar chart C. heat map D. geographic data map

13. B Bar chart. A bar chart would help simplify financial figures and make them easier to understand more quickly. A calculator would complicate a presentation. Heat maps and geographical data maps are used to show locations and information as it relates to space

14. Many employers are now encouraging employees to become activists of the company on social media. One possible impact this could have on the company is A. decreased sales leads. B. increased marketing expenses. C. decreased productivity. D. decreased online presence.

14. C Decreased productivity. Employees that use social media at the workplace may be inclined to use their personal social media sites, which could decrease productivity. The company would not likely have to increase marketing spending for this initiative. Social media activism has been shown to boost sales and online presence.

15. Which of the following would most likely be viewed by an employer as an acceptable use of your personal social media site for business purposes: A. Chatting with a coworker online about your plans after work B. Posting company news to help gain employees or clients C. Talking to your significant other about what's going on in the office D. Posting photos of coworkers and customers

15. B Posting company news to help gain employees or clients. Although company policies differ, using social media for business purposes is becoming more and more common. Many companies urge employees to use social media to gain employees and clients. Chatting with coworkers about after hour plans, talking to your significant other, and posting photos of coworkers and customers are most likely for personal use and may not be appropriate depending on the work environment.

16. Sonya pulls together her management team to determine different approaches to a problem that the company is facing. The team develops as many solutions as possible, making sure not to judge the correctness or feasibility of the ideas. Which step is this in the group problem-solving process? A. Brainstorming B. Developing action plans C. Defining the problem D. Assessing the consequences

16. A Brainstorming. Brainstorming is a creative-thinking technique involving the identification of as many different ideas as possible during a certain time frame. You need to define the problem before you brainstorm to come up with the right solution. Assessing the consequences involves deciding what results could come from each alternative. Developing an action plan determines what outcomes will look like and how to reach success.

17. 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

17. C Identifying the target market. Identifying the target market is an important task for any business that is attempting to build positive customer relations. A business can't meet customer needs if it doesn't know who its customers are! Expanding facilities, researching and developing new products, and soliciting investments are all business-building activities, but they are not as directly related to customer relations as identifying the target market is.

18. Julie is a salesperson who's trying to develop rapport with her customers. When she meets a new customer, what's the first thing she should do? A. Make promises and tell the customer what s/he wants to hear. B. Get down to business immediately and ask the customer about his/her budget. C. Get the customer to relate to her by engaging in pleasant small talk. D. Give the customer a catalog that shows her company's products.

18. C Get the customer to relate to her by engaging in pleasant small talk. When meeting a new customer, it's important for Julie to create a personal connection. If she immediately gets down to business, she'll have a hard time building a relationship with the customer. By discussing pleasant but neutral topics first, Julie can get to know her customer and show that she's interested in her/his life. Although making promises and telling the customer what s/he wants to hear may make the customer like her, it won't help Julie in the long run if she can't fulfill those promises. Julie should give her customer a catalog, but that should not be the first interaction she has with the customer

19. 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.

19. C Domineering/Superior. Difficult customers who believe that they know more than you or could do your job better are often referred to as domineering/superior. Leave-me-alone customers do not want your advice or assistance even though you might be able to help. Slow/Methodical customers are indecisive or just take a long time to make up their minds. Dishonest customers may try to steal or get a discount on merchandise that isn't on sale.

2. Brandi invents a new machine for her manufacturing plant, and she wants to be sure that competing manufacturing plants can't use the same machine. Brandi needs to obtain a A. trademark. B. patent. C. copyright. D. cease and desist letter.

2. B Patent. A patent is the legal protection of an invention or a process granted to its owners by a government for a certain number of years. If Brandi wants to protect her invention, she should obtain a patent. Trademarks protect words, names, symbols, or devices used by a manufacturer or merchant to identify and distinguish its goods from those manufactured and sold by others. A copyright is the legal protection of books and other artistic works granted by government and giving their creators sole rights to them for a certain number of years. This is not an example of a cease and desist letter.

20. 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

20. C The physical aspects of the business. The physical aspects of the business (location, facilities, etc.) are an example of a touch point that takes place during a customer's actual buying process. Customer satisfaction surveys and rebates are post-sale touch points. Word-of-mouth advertising can happen at any time but is generally considered a pre-sale touch point.

21. Most customers prefer __________ to shopping around. A. having others make their buying decisions B. comparing prices C. avoiding malls D. relationship buying

21. D Relationship buying. Most customers prefer relationship buying—patronizing businesses they like and trust—to shopping around and comparing prices. Customers don't necessarily avoid malls or want others to make their buying decisions for them.

22. A company decides to spend $5000 on new office furniture instead of putting that money toward the marketing budget. What is the opportunity cost of this decision? A. Office furniture B. Lost benefits of additional marketing C. $5000 D. Lost benefits of new furniture

22. B Lost benefits of additional marketing. When a choice is made about the best use of resources, the next-best alternative that is given up is called the opportunity cost of that choice. Opportunity cost is the benefit that is lost when you decide to use scarce resources for one purpose rather than for another. The opportunity cost of the company's decisions is the lost benefits from additional marketing. Office furniture, $5000, and lost benefits of new furniture are not considered opportunity costs in this situation.

23. Last week, you bought a carton of eggs for $2.50. When you return to the store today, you see that they now cost $3.00. What is today's market price of the carton of eggs? A. $5.50 B. $2.50 C. $.50 D. $3.00

23. D $3.00. The market price is the actual price that prevails at any particular time—the price that you actually pay for a good or service. If the eggs cost $3.00, then that is today's market price. $2.50 was the market price last week. The market price is not $.50 or $5.50.

24. 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

24. 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.

25. When a large company closes down its manufacturing facility in a small town to move the facility overseas where labor and taxes are cheaper, what is one likely consequence? A. Increased customer loyalty B. Negative public image C. Happier employees D. Government fines

25. B Negative public image. If a company closes in one town to move the facility overseas, many people will likely be unhappy with this decision. Although it is legal, they may feel that it is unethical to leave so many employees jobless. This could lead to a negative public image and decreased customer loyalty. It will likely not lead to happier employees. This action is legal and would not lead to government fines.

26. Kelsey takes the risk of opening her own bakery because she wants to make a profit. Kelsey's desire is known as the profit A. rule. B. motive. C. dilemma. D. limit.

26. B Motive. Profit is the monetary reward business owners receive in return for taking the risk involved in starting a business. The desire to make a profit, called the profit motive, forms the economic basis for the private enterprise system. If a business did not make a profit, it would eventually cease to exist. Kelsey opens her business to make money because she is motivated by profit. This is not known as the profit rule, dilemma, or limit.

27. Hannah is a farmer who receives tax breaks from the government for her corn crop. She benefits from government A. monopolies. B. disposable income. C. environmental conservation. D. subsidies.

27. D Subsidies. Some businesses receive financial help from the government in the form of subsidies. Subsidies are financial assistance such as grants or tax breaks. Businesses most likely to benefit from government subsidies are those found in the transportation, housing, agriculture, and mining industries. Disposable income is the money consumers have left over after their taxes are paid. Environmental conservation is another purpose of government involvement. A monopoly exists when a single business influences the entire production of a particular good or service.

28. When Charlyne buys gasoline for her car, she is surprised that she doesn't have to pay any tax in addition to the price of the gasoline. Why is this? A. Charlyne must pay the tax later on her own. B. Charlyne is paying an excise tax that is already included in the purchase price. C. Charlyne is paying a property tax that is already included in the purchase price. D. The flat tax means that Charlyne doesn't have to pay taxes on gasoline.

28. B Charlyne is paying an excise tax that is already included in the purchase price. For certain products, the government levies taxes that businesses pay by building the amount into the customer's purchase price. In other words, instead of charging a tax in addition to the product's price, the business just charges a higher price to begin with, using the difference to pay the required tax to the government. These are known as excise taxes. Since Charlyne is paying the excise tax, she does not have to pay the tax later on her own. Property taxes are based on a percentage of a property's value. With a flat tax, every business pays the same percentage, no matter how much profit it makes.

29. A manager divides a large job into smaller units so that each individual on her staff can do one task to accomplish the job faster and easier. The manager is making use of A. job rotation. B. specialization by trade or profession. C. increased job depth. D. division of labor.

29. D Division of labor. Division of labor, or specialization by stage of production or task, occurs when a large job or work force is divided into smaller units to accomplish a job faster and easier. Specialization by trade or profession is the type of work a person performs to earn a living, also known as her/his occupation. Job depth is the amount of control and decision-making responsibility an employee has in a job. Job rotation is an instructional method in which employees are rotated periodically from one job to another to broaden the employees' perspective of the business.

3. A company that is being sued is given the opportunity to present evidence to defend itself. This is an aspect of A. legal procedure. B. legislative history. C. personal rights. D. business rules.

3. A Legal procedure. Procedural law controls the workings of courts and the method by which rights are enforced. Legal procedure means that rights must be enforced in court, so the business is guaranteed an opportunity to present evidence to defend itself. This is not because of legislative history, personal rights, or business rights

30. When Lora hires her first employee at her bakery, she's able to produce 12 cupcakes. With a second employee, she can produce another 24 cupcakes. A third employee adds another 36 cupcakes, but when she hires her fourth employee, the bakery can only produce an additional 24 cupcakes. Lora's example illustrates the law of A. diminishing returns. B. total revenue. C. marginal cost. D. perfect competition.

30. A Diminishing returns. The law of diminishing returns is an economic concept that states that if one input increases while others are constant, at some point the increases in output will decline. As Lora's number of employees continues to grow, at some point (in this example, when she hires the fourth employee), the increases in cupcake output will decline. Total revenue is the amount of money a company receives from the sale of its output. Marginal cost is the change in cost that occurs when there is a change in output. Perfect competition exists when there are many businesses selling a lot of identical products for about the same price to many buyers.

31. 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.

31. D 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).

32. If the economy is sluggish, what might a central bank do to encourage spending and investing? A. Double interest rates B. Lower interest rates C. Eliminate interest rates D. Disregard interest rates

32. B Lower interest rates. If the economy is sluggish, a central bank may lower interest rates in hopes of encouraging spending and investing. In this situation, interest rates would not be doubled. Interest rates are an important part of an economy and would not be eliminated or disregarded.

33. Labor laws in other countries are things businesses must consider due to A. monetization. B. entrepreneurship. C. globalization. D. communication.

33. C Globalization. Globalization is the rapid and unimpeded flow of capital, labor, and ideas across national borders. When companies do business with or in other countries, they must be aware of those other countries' labor laws. In this example, businesses do not have to consider entrepreneurship, monetization, or communication.

34. Jackson travels to many other countries for work. Before he visits a new country, he always researches the customs and language of the country to avoid offending his clients. Jackson is paying attention to __________ considerations. A. technological B. cultural C. financial D. economic

34. B Cultural. When traveling to other countries for business, it's important to research cultural differences. Considering the country's culture can help you avoid offending clients. This is not an example of technological, financial, or economic considerations.

35. New jobs, new products, and support for the local economy are all contributions that __________ make to society. A. politicians B. entrepreneurs C. entry-level employees D. managers

35. B Entrepreneurs. Entrepreneurs make many contributions to society, including new jobs, new products, and support for the local economy. This is not necessarily true of politicians, entry-level employees, or managers.

36. Gia's department gets several new interns who are recent college graduates. Gia assumes that they will not do a good job because she knows that young people are not hard workers. Gia is engaging in A. respectfulness. B. stereotyping. C. adaptability. D. researched beliefs.

36. B Stereotyping. Stereotyping is generalizing people based on their backgrounds. When Gia assumes that all young people are not hard workers, she is engaging in stereotyping because she's generalizing the interns based on their age. She is not being respectful or adaptable. Gia's beliefs are not researched— they are her personal biases and opinions.

37. Trey acts on opportunities at his job and solves problems before they occur. Trey is A. empathetic. B. reactive. C. adaptable. D. proactive.

37. D Proactive. Proactive people, like Trey, act on opportunities when they see them and solve problems before they occur. People who are reactive are hesitant to take action until a problem occurs or someone asks them to help. Employers value proactive employees much more than reactive ones. Adaptability and empathy are personality traits that are often related to initiative, but Trey is not showing them in this example.

38. When Ross misses a deadline at work, he's quick to blame everyone, including his boss, for not reminding him about the deadline. He also blames his coworkers for not helping him finish the project on time. Ross needs to A. ask others to accept the responsibility for his actions. B. create better excuses for missing the deadline. C. accept personal responsibility for his actions. D. tell his boss that he needs a deadline extension.

38. C Accept personal responsibility for his actions. It's important for Ross to take responsibility for his own actions and decisions at work. He should not blame others for his mistakes, because it is not his boss's or coworkers' responsibility to make sure he meets his deadline. Ross should not create excuses or ask others to accept the responsibility. If he knows ahead of time that he cannot meet his deadline, he could ask his boss for a deadline extension. However, he first needs to accept responsibility for his actions

39. Isaac is having a tough time adjusting to his new job duties, so he asks his boss for help in dealing with the changes. His boss tells him the first step in handling a workplace change is understanding that change is A. unavoidable. B. unnecessary. C. intimidating. D. negative.

39. A Unavoidable. Change in the workplace is unavoidable. New hires, new job duties, new bosses, and other changes can be difficult adjustments for employees. As Isaac's boss reminds him, understanding that change is unavoidable is the first step in accepting it. Change is necessary in all companies. Although Isaac may find the change intimidating or negative at first, looking at the situation that way will not help him adjust to it.

4. When Arthur travels out of the country, he picks up some souvenirs. When he tries to bring them back home with him, he discovers that he has to pay a tax on them. Arthur must pay the A. customs duty. B. travel tax. C. travel duty. D. souvenir tax.

4. A Customs duty. Goods that are brought across international borders are often subject to a tax called a customs duty. This is meant to control the flow of goods. It is not called a travel tax, a travel duty, or a souvenir tax.

40. Liam feels sorry for a coworker who was fired, but he doesn't understand how she feels. What trait is Liam showing? A. Empathy B. Sympathy C. Tact D. Codependence

40. B Sympathy. Sympathy is simply the ability to recognize another person's feelings, while empathy is the ability to understand another person's feelings or concerns. Tact is the ability to do or say the right thing in any circumstance. A person is in a codependent relationship if s/he compromises her/his own needs and wants to care for another person who may be experiencing emotional, physical, or financial difficulties.

41. Rowan's coworker tells her that he's looking for another job. He asks Rowan to keep their conversation confidential. Rowan should A. tell only her boss about the conversation. B. not tell anyone about the conversation. C. tell customers about Rowan's job search. D. share the information only with trusted colleagues.

41. B Not tell anyone about the conversation. If Rowan's coworker asks her to keep their conversation confidential, she should not tell anyone what they discussed. This means not telling her boss, her customers, or even a trusted colleague.

42. Greg attempts to help a customer at his store purchase a sofa, but after looking at all the available models, the customer decides not to make a purchase. Greg asks the customer why he doesn't want to buy and the customer explains that he can find similar sofas for a better price at other stores. By talking to the customer, Greg solicited __________ that can help the store determine future pricing. A. feedback B. compliments C. blame D. advice

42. A Feedback. It's important for people in many careers, including sales, to solicit feedback from customers. Feedback can help you learn why a customer didn't make a purchase, which is information you can use to improve the business. By asking the customer why he didn't make a purchase, Greg is not soliciting compliments, blame, or advice.

43. You think some changes should be made to your department, but first you have to convince your boss to agree with you. Which of the following actions should you take to sell your boss on your ideas: A. Send your boss an email instead of discussing things in person. B. Spend most of your time talking, rather than listening. C. Talk to your boss in person about your ideas. D. Take it personally if your boss rejects your ideas.

43. C Talk to your boss in person about your ideas. People are often more responsive when they can hear your voice versus just reading your words. When trying to sell an idea to your boss, it can be helpful to talk to her/him in person instead of sending an email. You should spend more time listening than talking. You should not take it personally if your boss rejects your ideas.

44. Just as Ryan is leaving work to get dinner with friends, his coworker asks for help with a project that needs to be finished immediately. Ryan agrees to help his coworker, even though this means he'll be late to meet his friends. Ryan is behaving A. passively. B. aggressively. C. assertively. D. forcefully.

44. A Passively. Passive behavior is conduct in which people fail to exercise their own rights or to respect their own needs. A passive person usually displays an attitude based on the desire to avoid conflict at all costs. When Ryan puts his own needs aside to help a coworker, he is behaving passively. Aggressive behavior is conduct based on a willingness to ignore the rights of others and to take advantage of them to achieve personal goals. Forceful behavior would likely be considered aggressive. Assertiveness is the ability to express yourself, communicate your point of view, and stand up for your rights, principles, and beliefs.

45. Which of the following statements is true of office politics: A. Taking part in office gossip is a good strategy. B. Office politics are best ignored. C. You can only control your own behavior. D. Being aggressive is the best way to win.

45. C You can only control your own behavior. Office politics are present in every office environment and can often lead to a negative working experience. However, it's important to remember that while you cannot eliminate office politics, you can control your own behavior. This means being respectful, being positive, and avoiding office gossip. Ignoring office politics doesn't make them go away. Being aggressive is not generally a good way to handle office politics; instead, focus on being assertive.

46. Which of the following decision-making techniques requires close collaboration among group members: A. Consensus building B. Voting C. Minority rule D. Majority rule

46. A Consensus building. Close collaboration is an essential element of consensus building. Consensus building is not voting—in consensus building, no one wins. Majority rule usually occurs when a large part of the group has the power to decide. Minority rule occurs when a few of a group's members are allowed to make the decision for everyone.

47. A team of employees is working on a big presentation for a national conference, and their manager wants to motivate them to do a great job. The manager should A. avoid communicating with the team. B. encourage creativity and new ideas. C. let team members work on unchallenging tasks. D. avoid giving much praise.

47. B Encourage creativity and new ideas. If the manager wants to motivate team members, s/he should encourage creativity and new ideas as much as possible. Giving people freedom to create new solutions and ideas can encourage them to do better work. The manager should communicate often with the team and give praise when possible. Giving employees challenging tasks can actually help motivate them and help them grow.

48. 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

48. 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.

49. 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.

49. 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

5. Trina is preparing a report for her boss on the importance of diversity in the workplace. Which of the following sources would be the best for her to use: A. A personal blog post on LinkedIn B. Wikipedia article C. Academic journal article D. A college student's thesis paper

5. C Academic journal article. An academic journal article is a valid source for reference. Most are written by highly educated professors. Wikipedia is not a fully reliable source because anybody is able to add information on the site. A personal blog post is usually one person's opinion on a subject and does not have to be verified to post on social media sites. A college student's thesis paper is unreliable because it comes from a student that is currently learning the material, so there's no way to tell how correct s/ he is.

50. Julian just started a new job, and he wants to adapt to the company's culture. Which of the following should he do on his first day: A. Meet and talk to as many new coworkers as he can. B. Tell coworkers about the culture at his previous job. C. Spend as much time on his computer as possible. D. Remember that corporate culture is the same at all companies.

50. A Meet and talk to as many new coworkers as he can. On his first day, Julian wants to get a good idea of his new company's culture. To do so, he should meet all of his new coworkers and understand the personalities that make up the company. This can help him begin to understand the business's culture. The culture at his previous job does not have an effect on the culture at this job. Although Julian should be getting work done, spending all of his time on his computer will not help him get to know his coworkers. Corporate culture varies from company to company

51. Cornell wants to start his own business, but he isn't exactly sure what product or service he wants to pursue at the moment. The first step of the entrepreneurial process that Cornell should focus on is A. verification. B. a feasibility study. C. illumination. D. idea generation.

51. D Idea generation. Coming up with an idea is the first step in the entrepreneurial process; without an initial idea, none of the other steps can be completed. A feasibility study is conducted to see if the idea is viable. Two steps in the feasibility study are illumination (where the idea becomes realistic) and verification (where the idea is found to be practical and useful).

52. In an ancient society, townspeople used cows to pay for the things they needed. The cows are an example of __________ money. A. commodity B. representative C. fiat D. paper

52. A Commodity. Commodity money is a physical item that has value on its own. A cow, for example, has value even if it is not being used as money. Fiat money is not backed by a commodity. Instead, it has value because the government says it does. Representative money can be traded in for something valuable. A cow is not an example of paper money.

53. Chandra wants to develop a personal budget. What is the first step she should take? A. Allocating income B. Estimating her income C. Determining regular expenditures D. Establishing her goals

53. D Establishing her goals. Before Chandra figures out the details of her budget, she needs to establish her goals. She can't create an effective or realistic budget unless she knows what goals she's focusing on. Estimating income, determining regular expenditures, and allocating income occur later in the budget development process.

54. Lalita receives a check as a birthday gift. Before she deposits it in the bank, she signs her name on the back of the check in black ink. Lalita is __________ the check. A. registering B. endorsing C. writing D. withdrawing

54. B Endorsing. Signing the back of a check is considered endorsing it. Lalita must do this if she wants to deposit the check into her account. You keep track of checks in a check register. Lalita did not write the check. Instead, the person who gave her the check wrote it. Lalita is not making a withdrawal.

55. Each month, Maggie checks her bank statement against her own record of her deposits and withdrawals. Maggie is __________ her bank statement. A. disputing B. challenging C. reconciling D. creating

55. C Reconciling. When Maggie checks her bank statement against her own record, she is reconciling the bank statement. Maggie is checking to make sure that no mistakes have been made and that she has recorded all of her information correctly. She is not challenging or disputing her bank statement, although she may choose to do so if she suspects her bank has made a mistake. The bank, not Maggie, creates the statement.

56. Rosie is in the process of choosing a financial-services provider, but she has so many options that she feels overwhelmed. What is the first step she should take? A. Ask herself, "What kinds of financial services do I want?" B. Ask the financial-services provider for references. C. Ask the financial-services provider how much s/he charges. D. Find out what licenses the financial-services provider holds.

56. A Ask herself, "What kinds of financial services do I want?" The first thing Rosie should do when selecting a financial-services provider is ask herself what kinds of financial services she wants. This will help her narrow down her focus. When she has an idea of what she wants out of a financial-services provider, she can ask about references, charges, and licenses.

57. Aria wants to invest her money, but she doesn't want to take much risk. She also wants to be able to access her money at any time. Which type of investment should she consider? A. A savings account B. A certificate of deposit (CD) C. Stocks D. Collectibles

57. A A savings account. A savings account is an investment in which you lend money to a bank for the benefit of being able to access it at pretty much any time. Savings accounts are insured by the FDIC, so they're extremely safe. A certificate of deposit (CD) is a lending investment in which you lend money to a bank at a set interest rate for a particular period of time. With CDs, you are guaranteed a certain rate of return, but you can't access your money before the end of the time period without paying a penalty. Stocks and collectibles are more risky and would not allow Aria to access her money.

58. Balraj has insurance to protect himself if his house is damaged by a natural disaster or an accident. He's using insurance to protect himself against A. deductibles. B. opportunity. C. poverty. D. risk.

58. D Risk. Insurance is meant to protect against risk. In Balraj's case, he purchases insurance to protect himself against a loss caused by damage from an accident or a natural disaster. Although insurance can help people minimize financial loss, it cannot prevent poverty. A deductible is the amount that Balraj would pay before his insurance company begins to pay

59. Which of the following is an advantage of using technology in accounting: A. Using technology makes accounting more efficient. B. Technology may make information less secure. C. Employees require training to use the technology. D. Technology eliminates accounting mistakes.

59. A Using technology makes accounting more efficient. Using technology, such as accounting software, can make accounting much more easy, cost-effective, and efficient. However, one disadvantage of computerized systems is that they can make it possible for information to be stolen by hackers. Employees require training to use technology, and that costs a business time and money. Technology cannot completely eliminate accounting mistakes.

6. What should you do first when someone gives you a set of written instructions to follow? A. Read the instructions in their entirety. B. Comprehend what the instructions are telling you. C. Reference the instructions when you get stuck. D. Skim the instructions for a general overview.

6. A Read the instructions in their entirety. The first step to effectively following written instructions is to read the written instructions all the way through at least once, not to skim for a general overview. Comprehension of written instructions is a result of reading and understanding what the instructions are telling you in-depth. Although you should reference the instructions when you get stuck, this step should follow a full read-through of the instructions.

60. Cash flow statements estimate when, where, and how much A. money flows into and out of the business. B. staff is hired and fired by a business. C. inflation will increase in the future. D. the economy will fluctuate in the coming years.

60. A Money flows into and out of the business. A cash flow statement is a financial summary with estimates as to when, where, and how much money will flow into and out of a business. Cash flow statements do not estimate when, where, or how much staff is hired and fired by a business or how much inflation will increase in the future. Studying economic trends can help a business create its cash flow statement.

61. Which of the following is true of corporate fundraising: A. Internet fundraising is exempt from regulations. B. Fundraising laws apply only to fundraising events. C. Nonprofits do not have to follow fundraising laws. D. All business must comply with fundraising laws.

61. D All businesses must comply with fundraising laws. Fundraising activities are regulated by law. This means that all businesses, including nonprofits, must comply with fundraising laws. Fundraising laws apply to all forms of fundraising, including events and Internet fundraising.

62. Becca just opened a restaurant, and she needs to make sure she has enough money to cover her expenses and make a profit. Becca needs to develop a(n) A. insurance policy. B. marketing department. C. contract. D. budget.

62. D Budget. A budget is an estimate of income and expense for a specific period of time. Developing a budget can help Becca make sure she has enough money to cover her expenses and make a profit. A contract and a marketing department would not necessarily help Becca make sure she has enough money to cover her expenses. An insurance policy would help Becca protect her business but would not help her keep track of expenses or make a profit.

63. Stu, who runs the human resources department, requires all new employees to select five webinars to attend in their first year. This is an example of using technology for A. data storage. B. recruiting. C. performance management. D. training.

63. D Training. Webinars are an example of using technology in human resource management to develop and train employees. Recruiting normally wouldn't include webinars and happens prior to hiring an employee. Performance management deals with metrics to gauge employee performance. Data storage is essentially record-keeping and uses technology to store necessary files and information.

64. 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

64. 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.

65. Why is goal setting important for every company? A. It is legally required. B. It helps companies measure progress. C. It guarantees customer satisfaction. D. It is a corporate formality.

65. B It helps companies measure progress. It's important for companies to establish goals, both general and specific, so they can measure progress and set priorities. Goals are not legally required. Although companies can set goals to improve customer satisfaction, merely creating goals does not guarantee customer satisfaction. Goal setting is an important part of a business's success; it is much more than just a corporate formality.

66. Simon is creating a report for his boss and comes across a passage he wants to use in the report: "Time stands still for nobody, and yet we all think it revolves around us." He changes the passage to "We all think time revolves around us, but it doesn't stand still for anybody" and references the source in the document. Simon is A. quoting. B. paraphrasing. C. summarizing. D. plagiarizing.

66. B Paraphrasing. Paraphrasing is restating a message in other words in order to confirm or clarify its meaning. Quoting involves duplicating an exact passage and attributing that passage to the original author. Summarizing involves putting main ideas in your own words for a broader overview of the material. Plagiarizing is stealing the work or idea of another without referencing the original source to pass it off as your own. Simon is not plagiarizing because he references the source in his document.

67. 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.

67. 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

68. Which of the following could cause a legal issue associated with information management: A. Using a secure network to store data B. Requiring a passcode to unlock work stations C. Shutting down your computer before leaving the office D. Accidentally emailing a client's personal information to others

68. D Accidentally emailing a client's personal information to others. A client's personal information is confidential and should be treated as such. Requiring a passcode to unlock work stations, shutting down computers after work hours, and using a secure network to store data are all ways to prevent legal issues from occurring.

69. The Blue Shark Company needs a way to allow employees to share messages and files securely. They should create a(n) A. intranet. B. Internet. C. Facebook page. D. public website.

69. A Intranet. An intranet is an internal network similar to the Internet that is accessible only by authorized personnel and is used to access information and communicate with others within an organization. The Internet is the only worldwide network of computers that enables users to access information and communicate with others. A Facebook page and a public website are not secure for sharing files and messages.

7. While attending a presentation, Jimmy indicates to the speaker that he would like to ask a question. Before stating his question, Jimmy briefly sums up the speaker's lecture. Which communication technique is Jimmy using? A. Nonverbal B. Paraphrasing C. Probing D. Gestures

7. B Paraphrasing. Paraphrasing involves restating a message in other words in order to confirm or clarify its meaning. Nonverbal communication techniques include gestures, nodding, smiling, etc. Probing is seeking to uncover what others think, feel, or know

70. A website that ends in .gov would most likely have __________ information than a website that ends in .com. A. more trustworthy B. less trustworthy C. more recent D. less recent

70. A More trustworthy. If a website ends in .gov, it is more likely to have trustworthy, researched information. Websites that end in .gov can only be owned and operated by the government, while websites that end in .com can be owned and operated by anyone. Sites that end in .gov are not necessarily more or less recent than sites ending in .com.

71. Alexa wants to create and post a basic web page for her food truck. The first step she should take is to choose A. the background colors. B. a template. C. a website-building platform. D. the font size.

71. C A website-building platform. The first step in creating and posting a basic web page is selecting a website-building platform (such as Wordpress). Choosing a template, background colors, and font size all come later.

72. To perform a proper data analysis, the researcher should be A. unbiased. B. untrained. C. judgmental. D. inconsistent

72. A Unbiased. For data analysis to be performed properly, the researcher should be unbiased, nonjudgmental, trained, and consistent with the information and results.

73. A company wants to know how to better advertise to specific segments of customers, so it groups its customer data based on their incomes. This company is using the __________ method of data mining. A. neural networks B. decision tree C. clustering D. huddling

73. C Clustering. Clustering is a method of data mining that involves grouping data by similarities. If a company groups its customer data based on their incomes, it is using clustering. Clustering is not referred to as huddling. The decision tree model of data mining is organized like a tree, with "branches" and "leaves." The neural network method of data mining is modeled after the brain's neurological functions.

74. Businesses can use data mining to A. show why information is valuable. B. see patterns within data. C. eliminate the need to understand data. D. make decisions for them.

74. B See patterns within data. Data mining is a way for businesses to see the relationships and patterns within data. Data mining can give businesses the information they need to make decisions, but it cannot make decisions for them. Businesses must decide for themselves why the information is valuable. Businesses still need to understand data.

75. The Alphabet Corporation is putting rules into place for updating its customer database on a regular basis. One of the basic rules for maintaining customer records is to A. allow all employees to update the database. B. only access the database yearly. C. restrict access to the database. D. ignore the dates that customer information was added to the database.

75. C Restrict access to the database. Allowing every employee to access the database could result in clutter, duplicates, and different formats—hindering the usefulness of the database—so limiting access to only a few individuals is the best course of action. Customer information should be updated and modified as often as possible, so only accessing the database yearly could leave you with incomplete information. It's important to pay attention to the dates that information was added so that you know when information is outdated.

76. A restaurant's owner notices that people in the community are starting to eat healthier food instead of the burgers and fries that the restaurant serves. So, the restaurant owner decides to start offering healthier menu options along with the old menu items. The restaurant owner is looking at __________ to find business opportunities. A. theories B. regulations C. economic policies D. trends

76. D Trends. A trend is the general direction in which people or events are moving. It's important for businesses to keep an eye on trends because trends can help businesses find opportunities. The restaurant owner notices that customers are eating healthier food, so s/he is able to take advantage of that opportunity by offering healthier menu items. This is not an example of a regulation, economic policy, or theory helping the restaurant owner find a business opportunity

77. Ted's Tater Chips is conducting market research to decide what new flavor of chips it wants to release next year. They receive the following data about the current taste preferences of a large test group: 40% prefer spicy chips 40% prefer sweet chips 10% prefer sour chips 10% prefer regular chips Which flavor should Ted's Tater Chips introduce next year? A. Ted's Spicy Sweet Chips B. Ted's Lemon Vinegar Chips C. Ted's Sour Chips D. Ted's Classic Tater Chips

77. A Ted's Spicy Sweet Chips. The results of the market research show that the tested group prefer sweet and/or spicy chips, like Ted's Spicy Sweet Chips. Lemon vinegar, sour, and classic tater chips wouldn't appeal to the majority of the test group.

78. Shia manages the day-to-day activities needed to produce and distribute smartphones for a worldwide company. Shia's job title is most likely a(n) A. marketing manager. B. sales manager. C. operations manager. D. quality inspector.

78. C Operations manager. Operations managers plan, control, and monitor the day-to-day activities required for continued business functioning. Sales managers are usually not involved with the daily operations and focus on customer service. Marketing managers are responsible for all marketing functions, including channel management, marketing-information management, pricing, product/service management, promotion, and selling. Quality inspectors focus on ensuring the degree of excellence of a good or service.

79. Jimmy works in a warehouse as a forklift operator and has told his supervisor numerous times about a safety issue that could cause serious physical harm if it's not fixed. Jimmy's supervisor has yet to fix the problem. Jimmy's next step should be to A. file a complaint with OSHA. B. try to fix the problem, even though it's dangerous. C. ask his coworkers to help him fix the dangerous problem. D. call a repairman and pay for the repairs himself.

79. A File a complaint with OSHA. Employees can file complaints with OSHA if they believe there is a violation of a safety or health standard, if there is any danger that threatens physical harm, or if an imminent danger exists. It is an unsafe act for Jimmy and his coworkers to fix a dangerous problem themselves. Employees should never have to pay for safety repairs on their own because the company is responsible for their safety.

8. Cynthia and Gerald are proposing a new project to their boss. When the boss questions Gerald about something he says, what should Gerald do? A. Explain to the boss that Cynthia wrote their project proposal B. Ask for clarity on the question and make sure he answers it fully C. Answer a different question that Gerald definitely knows the answer to D. Act defensive because the boss doesn't understand the project

8. B Ask for clarity on the question and make sure he answers it fully. By asking for clarity, Gerald can make sure that he fully understands his boss's question and give him the best possible answer. Telling the boss that Cynthia wrote the project, answering a different question, or acting defensively would reflect poorly on Gerald and paint him in a bad light.

80. Before working on any piece of machinery or equipment, you should A. look it up on the Internet. B. read the operating manual. C. rely on the warning stickers. D. ask a coworker how it works.

80. B Read the operating manual. Before working on any new piece of machinery or equipment, you should read the operating manual to make sure you know the technical information and the hazards associated with it. While it is important to read the warning stickers on the machinery or equipment, the warning stickers typically do not provide enough information to operate the equipment properly. Although looking up the piece of machinery or equipment online or asking for a coworker's advice may be helpful, both of these sources might be missing valuable and necessary information.

81. The Rustin Corporation has a policy that employees should never let anyone use their work computers without supervision. Which of the following scenarios complies with the policy: A. Collaborating with another employee on your work computer B. Letting your family play video games on your work computer at home C. Giving a coworker your password to finish a project when you leave the office D. Swapping computers with a coworker to access a specific program or application

81. A Collaborating with another employee on your work computer. When you collaborate on your work computer, you are still able to supervise and monitor how it is being used. Letting your family play video games, giving a coworker your password, and swapping computers go against the policy of not letting others use your computer without your supervision.

82. Brianna is performing a project audit for her company. The first thing she should do to ensure a successful audit is A. conduct all necessary research. B. understand the success criteria of the project. C. conduct all interviews. D. develop a "lessons learned" report.

82. B Understand the success criteria of the project. Brianna should interview core managers and project members to determine the success criteria so that she knows what criteria to use in assessing the project. After knowing the criteria and developing questions, she should conduct research and interviews. A "lessons learned" report is one of the final steps to make sure the next project goes smoothly.

83. Joanna is a purchaser for 193 Inc. and forgets to purchase a large order of shipping materials. What will most likely happen as a result of this mistake? A. Inventory will go down. B. Productivity will increase. C. The client's order will be delayed. D. Orders will increase.

83. C The client's order will be delayed. Because there are no materials to ship the order, the client's order will not be able to be shipped in time. Productivity will decrease, and inventory will increase. Orders will not be affected, although fulfillment times may increase.

84. Coral owns a gymnastic studio that teaches children and young adults to do gymnastics. Coral's business produces A. intangible outputs. B. tangible outputs. C. industrial services. D. retail goods.

84. A Intangible outputs. A service business produces an intangible output. Outputs are goods or services produced as the result of combining inputs. Coral's outputs are intangible because they have no physical presence. Coral does not produce tangible outputs, retail goods, or industrial services.

85. Fido Company manufactures dog toys. Throughout the day, an inspector randomly checks a few dog toys to make sure there are no defects. The inspector is responsible for A. regulatory compliance. B. quality assurance. C. inventory control. D. quality control.

85. D Quality control. Acceptance sampling is the inspection of a random sample of products to determine the quality of the entire batch and is a form of quality control. Quality assurance is a process that attempts to prevent defective products from being made in the first place. Inventory control deals with tracking the amount, kind, and value of inventory that a business has on hand. Regulatory compliance is meeting standards required by law.

86. When combined, which costs equal all of the expenses incurred by a company? A. Overhead and direct costs B. Salaries and rent C. Direct labor and materials D. Products and services costs

86. A Overhead and direct costs. Overhead and direct costs make up the total expenses incurred by a company. Salaries and rent are only part of the costs that make up overhead costs. Direct labor and materials are part of direct costs. Products and services costs are otherwise known as direct costs, so they would only be a part of overall expenses.

87. Your employer, The Work Group, does not allow nonemployees in its facility, nor does it permit nonemployees to use company equipment. Which of the following scenarios would comply with The Work Group's policy: A. Letting your brother do his homework on your laptop after work B. Bringing a family member to see the office after work C. Taking your laptop home to finish a project D. Allowing a friend to visit you at work to help you with a project after hours

87. C Taking your laptop home to finish a project. The Work Group's policy is specific to nonemployees and does not say anything about employees using equipment after hours. Bringing a family member to the office, letting your brother use your laptop, and allowing a friend to visit you at the office after hours would all violate the company's policy.

88. Akua is in charge of supervising the entire process of getting products into the marketplace, otherwise known as the flow of goods. Akua's job title is most likely A. Chief Financial Officer. B. Line Supervisor. C. Supply Chain Manager. D. Inventory Manager.

88. C Supply Chain Manager. A supply chain manager is in charge of supervising the entire process of getting goods into the marketplace, including coordinating with other companies and vendors. A line supervisor supervises a given team, or line, to ensure quality and productivity. A chief financial officer, or CFO, monitors all of a company's funds and assets. An inventory manager supervises and controls the number of finished products a company has in stock.

89. If you work for a business that wants to maintain patient confidentiality, how should you dispose of old papers that include patient information? A. Black out any identifiable information and throw the documents away B. Ask a coworker to destroy the papers for you C. Shred the documents D. Recycle the documents

89. C Shred the documents. Shredding the documents will make it more difficult to recover client information. Asking a coworker to destroy the documents does not ensure they will be destroyed. Blacking out information or recycling the documents makes it possible to recover the information.

9. Tarion is leading a group discussion on new safety strategies in the workplace. How might he lead the discussion to encourage collaborative participation? A. Let a small group dominate the discussion B. Ask open-ended questions C. Dominate the conversation himself D. Assume everyone has the same opinion

9. B Ask open-ended questions. Open-ended questions require more analysis and support than "yes or no" questions and open the discussion up for reflection and reasoning. Letting a small group dominate the discussion can have a negative impact on collaboration because those outside the group may be less likely to speak up. Dominating the conversation has a negative impact on collaboration because it causes confrontation and only allows one opinion to take precedence. People are individuals with different experiences and opinions, so assuming everyone agrees without hearing them out can have a negative impact on collaboration.

90. Which of the following is a short-term goal: A. A culinary student wants to open her own restaurant. B. A student wants to earn a bachelor's degree. C. A new employee wants to become president of the company. D. A salesperson wants to get five new clients this week.

90. D A salesperson wants to get five new clients this week. Short-term goals are objectives that take less than a year to achieve. The salesperson plans to get five new clients this week, so this goal is short term. Long-term goals are objectives that take a year or more to reach. It would take a year or more to earn a bachelor's degree, become president of a company, or open a restaurant.

91. One way companies can help improve their employees' work/life balance is by A. offering employees the ability to work from home. B. cutting personal days and time off. C. maintaining constant contact with employees after hours. D. creating rigid hours that employees must be in the office.

91. A Offering employees the ability to work from home. Employers can let employees work from home a few hours or days a week so that the employees can get things done in their personal life and work life. Cutting personal days and time off, maintaining constant contact with employees after hours, and creating rigid hours that employees must be in the office can have a negative impact on work/life balance.

92. Flexible people tend to be more comfortable with A. risk. B. failure. C. visual arts. D. doubt.

92. D Doubt. Flexible people tend to be more comfortable with ambiguity (vagueness or doubt). Flexibility is a trait often found in creative people. It's not necessarily true that flexible people are more comfortable with visual arts, risk, or failure.

93. Which of the following is a basic right of all employees in the workplace: A. Paid time off for jury duty B. Email and Internet privacy at work C. Overtime pay D. Equal pay for men and women

93. D Equal pay for men and women. The Equal Pay Act mandates equal pay for men and women performing similar job tasks. Email and Internet privacy when working on an employer's computer system is not guaranteed, nor is paid time off for jury duty legally mandated. Overtime pay is a basic right to most employees but does not include some professionals, managers, and other employees

94. Entrepreneurs typically work A. on their businesses. B. in their businesses. C. relatively few hours. D. to employ under 500 employees.

94. A On their businesses. Entrepreneurs work on their businesses rather than in them. Entrepreneurs typically work long and irregular hours, including weekends. Entrepreneurs work to grow their businesses. While their businesses may start small, they often turn into organizations that employ thousands of workers.

95. What is one thing that all potential employees should do when filling out a job application? A. Leave questions blank. B. Provide specific salary requirements. C. Keep applications consistent with their résumés. D. Fill the application out as fast as possible.

95. C Keep applications consistent with their résumés. Potential employees should keep all information consistent between their résumés and applications to show organization and trustworthiness. They shouldn't include specific salary requirements because this could get them turned down before an interview. Leaving questions blank shows disorganization and laziness. Potential employees should take their time filling out an application and proofread before submitting.

96. Virgil is looking to gain work experience in graphic design, but he has not been able to secure a part- or full-time position with a company. He decides to bid on jobs online that will pay him a small wage per project he completes. Virgil is __________ to gain valuable work experience. A. freelancing B. volunteering C. interning D. being an apprentice

96. A Freelancing. Freelancing is a great way to gain work experience and allows people to bid on jobs for lower wages. Volunteering is another way to gain work experience but normally doesn't involve pay. An internship may not pay the best, but it puts people in an organization so they can be immersed in the professional role. An apprenticeship allows people to earn higher wages while learning a job in a particular field.

97. Cara wants a promotion and has told her boss she is looking to move forward in her career. One way she can show this to her boss is to A. ask for more work. B. take credit for others' work. C. give her easier tasks to others. D. complain that she is doing more than others.

97. A Ask for more work. Asking for more work is proactive and will show supervisors that Cara can handle her workload, is a team player, and wants to see the team succeed. Taking credit for others' work, passing off easier tasks, and complaining can hinder promotions and may paint the employee in a negative light.

98. An employee tells a joke in the office that directly discriminates against females. This could be a potential __________ violation. A. safety B. privacy C. equal opportunity D. HIPAA

98. C Equal opportunity. A joke that directly discriminates against females would most likely go against a company's equal opportunity policies, which discourage inappropriate behavior in regards to race, gender, sexual orientation, religion, and culture. Privacy issues deal with intrusions on personal information. Safety policies are in place to provide physical safety for employees. HIPAA is the Health Insurance Portability and Accountability Act, which deals with insurance and health information.

99. S.M.A.R.T. goals are a very effective method of motivating employees and increasing productivity. A S.M.A.R.T. goal is said to be specific, measurable, attainable, relevant, and A. tested. B. trusted. C. timely. D. terrific.

99. C Timely. S.M.A.R.T. goals are specific, measurable, attainable, relevant and, timely. This eliminates confusion and helps employees know what is specifically asked of them.