Bus & Finance

Question 1

Which method of communication is best for persuading a receiver?

Answer 1

Face-To- Face

Question 2

What would be the best way for a company’s call center representative to deal with an irate customer who has been given defective products?

Answer 2

Take all the relevant details from the customer and pass the information to the relevant departments to get the problem rectified

Question 3

A school that receives federal financial assistance does not allow girls to take part in any of the swimming events that it encourages boys to participate in. This is against the provisions of which of the following acts?

Answer 3

Patsy T. Mink Equal Opportunity in Education Act (Title IX)

Question 4

Why do companies organize campaigns to help in education by providing financial aid to schools?

Answer 4

The companies gain goodwill and publicity;
By taking part in campaigns like Adopt-A-School and providing financial help to educational institutions, the companies gain publicity and their goodwill increases. This is usually the main reason behind companies taking part in such activities.

Question 5

Successful communicators are able to predict how their messages will be received. They anticipate reaction and shape the message accordingly. This is known as the quality of:

Answer 5

perception;
When communicators have the quality of perception, they are able to predict how their messages will be received. They anticipate reaction and shape the message accordingly. They read responses correctly and constantly adjust to correct any misunderstanding.

Question 6

To increase effectiveness of a cooperative learning program, which of the following should not be done?

Giving an individual test to each student

Randomly examine students orally by calling on one student to present his or her group’s work to the teacher

Have students teach what they learned to someone else

Create a large group, as more children working together boosts their learning.

Answer 6

Create a large group, as more children working together boosts their learning.

Question 7

When applying for academic, education, scientific or research positions which of the following is the most appropriate to use?

Resume
Cover Letter
Note
CV

Answer 7

CV

Question 8

An individual who places value on concrete skills but not social skills is more likely to be satisfied with which position based on Holland’s Personal Orientation?

Sales
HR
Engineer
President

Answer 8

Engineer

Question 9

While writing a business letter to John Smith which of the following would be an appropriate way of salutation that is usually used now?

Answer 9

Dear Mr. Smith

Question 10

In a free market with a lot of competition, when the price of a product increases, its supply

Goes up
May go up or come down
The supply does not depend on the price
Is adjusted by the government

Answer 10

Goes up

Question 11

The closing of a business communication should contain all but which of the following?

an expression of goodwill
optimism about the future
clichés
an easy way for the reader to take action

Answer 11

clichés

Question 12

Why do candidates who send Prospecting Letters to clients stand a chance of getting a job?

Answer 12

Most jobs are NOT advertised

Question 13

At the equilibrium price how are the supply and demand curves?

Answer 13

The two curves intersect at equilibrium price

Question 14

The key characteristics of a good résumé include all of the following EXCEPT:

Answer 14

complexity

Question 15

Which of the following visual aids would be most helpful in a formal speech to an audience of several hundred people?

Answer 15

slides

Question 16

Where should critical incidents come from in interviews?

Answer 16

Actual incidents.

Question 17

How many points or topics would you put in an outline?

Answer 17

3 to 5

Question 18

Which of the following types of sentence structure is illustrated by the following sentence?

Employee absenteeism has risen in the last year, and as a result, production has decreased.

Answer 18

compound sentence

Question 19

Which of the following is false about the DECA?

It has chapters for high school, college, alumni and professionals
It has over 180,000 members
Its goal is to improve education and career opportunities for students interested in careers in marketing, management and entrepreneurship
It has members from educational institutions based in the U.S. only

Answer 19

It has members from educational institutions based in the U.S. only

Question 20

A direct mail sales package typically has five elements. All of the following are elements of the direct-mail package EXCEPT:

contract
sales message
order blank
postage-paid return envelope

Answer 20

contract

Direct mail messages are aimed at individual customers. They do not contain contracts. The five elements are: (1) an outer envelope telegraphing a sales message; (2) a multi-page sales letter; (3) a brochure; (4) an order blank; and (5) a postage-paid return envelope.

Question 21

If an A3 size sheet of paper is folded in half what is the size of the paper created referred to as?

Answer 21

A4; The paper sizes A0, A1,A2, etc. have been created such that when a page of a lower number example A3 is folded into half the resulting two sheets of paper are of size A4. This is a worldwide recognized standard size used for letters, etc.

Question 22

If an A3 size sheet of paper is folded in half what is the size of the paper created referred to as?

Answer 22

A4; The paper sizes A0, A1,A2, etc. have been created such that when a page of a lower number example A3 is folded into half the resulting two sheets of paper are of size A4. This is a worldwide recognized standard size used for letters, etc.

Question 23

Business writing is a complex process. Once you have your goal and your audience in mind and start writing which of the following methods would be the least helpful to constructing an effective communication?

Limit the number of subjects in each paragraph.
Begin with what’s new and end with what’s familiar.
Use transitional words and phrases.
Make the audience the subject of key sentences.

Answer 23

Begin with what’s new and end with what’s familiar.

Question 24

Which of the following organizations has been created for teachers of business education in the U.S.?

NBEA
FBLA
PBC
PBL

Answer 24

NBEA

The National Business Education Association (NBEA) is the largest organization for individuals and groups engaged in instruction, administration, research, and dissemination of information for and about business in the U.S.

Question 25

Which of the following facts about resumes is least accurate?

Answer 25

A good resume will get applicants the job they want

Question 26

Which of the following would be an external business communication rather than an internal one?

conference
team meeting
sales materials
memos

Answer 26

sales materials

Business communication can be divided into internal and external communication. Internal communication includes things such as memos, team meetings, conferences, communication between managers and employees, and peer-to-peer communication. External communication includes things such as sales materials, public relations statements, press releases, and commercials.

Question 27

In which of the following examples is a test reliable but not valid?

A test that uses multi-choice questions
Use of a reading comprehension test for a math course
An oral test taken by a teacher
Using projects submitted by students for testing their ability

Answer 27

Use of a reading comprehension test for a math course

Question 28

Whenever the Federal Reserve announces a rate cut of a percent, banks cut the rate on their loans by 0.8%. Recently the Fed cut interest rates by 2.5%, how much is the interest rate for a loan that originally had a rate of 18%?

Answer 28

16%; A rate cut of a percent is reflected as a cut of 0.8%. For 2.5% the rate cut would be 2.5*.8=2% Therefore the loan at 18% would now have an interest rate of 16%.

Question 29

A manufacturer of soap provides 5% discount on the price mentioned. The retailer provides a $2 discount if a 2-pack is bought. If the customer buys a 2-pack and the marked price is $36 what discount does he get on the marked price?

Answer 29

The total discount on the marked price that the customer gets is 2/36*100+5=10.55%.

Question 30

In terms of sentence style, which of the following statements is least accurate? :
1. Avoid starting sentences with “it” and “there.”
2. Express parallel ideas in parallel form.
3. Always qualify your opinions.
4. Eliminate awkward pointers.

Answer 30

Always qualify your opinions:
This is the least accurate statement. Sometimes you have to write “may” or “seems” to avoid stating a judgment as a fact. But when you have too many such hedges, particularly several times in a sentence, you aren’t really saying anything.

Question 31

How would you adapt communication for a receiver who has poor eyesight?

Answer 31

Increase print size.

Question 32

In many countries the prices of certain commodities are fixed by the government. As producers are not able to sell at the reduced prices, the government compensates them. What is this compensation called?

Answer 32

Subsidy

Question 33

If the GDP is growing at g% per annum and population at p% per annum, the per capita gdp is growing at:

Answer 33

((1+g)/(1+p))-1 As GDP grows at g%, new GDP is old GDP(1+g). New population is old population(1+p). New GDP per person is (1+g)/(1+p) of the old GDP per person. Therefore the growth is ((1+g)/(1+p))-1.

Question 34

In terms of sentence style, which of the following statements is least accurate?
1. Express parallel ideas in parallel form.
2. Eliminate awkward pointers.
3. Always qualify your opinions.
4. Avoid starting sentences with “it” and “there.”

Answer 34

Always qualify your opinions.

Question 35

Which of the following is an example of a permanent account?
1. Utilities
2. Earned Interest
3. Sales Accounts
4. Accounts Payable

Answer 35

Accounts payable.

Question 36

The federal agency that insures investors against failure by brokerage firms is which of the following?
FDIC
SEC
SIPC
None of the above

Answer 36

SIPC

SIPC is the Securities Investor Protection Corporation. It is the federal agency that insures investors against failure by brokerage firms. It is similar in purpose to the FDIC. SIPC insurance applies to those investors who leave securities and cash with brokerage firms.

Question 37

Cost of factors of production can vary due to several reasons. Which one of the following is least likely to affect an increase in cost?

shortage in the supply of raw materials
deflation
availability of substitute materials
increment in salaries, wages and benefits

Answer 37

deflation

The cost factors of production that may increase the cost are: increment in salaries, wages and benefits, shortage in the supply of raw materials and labor, bargaining power of suppliers, availability of substitute materials, replacement of fixed assets causing an increase in depreciation or amortization, and an increase in the age of fixed assets resulting in a lower depreciation expense. Inflation not deflation may cause an increase in cost.

Question 38

Which of the following statements about fixed assets is not correct?
They include assets held for the production or supply of goods and services.
Fixed assets are assets held for resale.
They are expected to be used for more than one accounting period.
They are generally not considered to be liquid assets.

Answer 38

Fixed assets are assets held for resale.

Fixed assets are not held for resale but for the production, supply, rental or administrative purposes. Assets that are held for resale must be accounted for as inventory rather than a fixed asset.

Question 39

The accounting measurement that is not consistent with the going concern concept is
Realization
Transaction Approach
Liquidation Value
Continuity

Answer 39

Liquidation Value
Considering the business as a going concern there would be no need to find Liquidation value as the enterprise would exist forever.

Question 40

Surveys are used as a simpler way of gathering information about the market and analyzing it. What is the difference between the results obtained by using a survey and the result that would have been obtained if the entire market had been surveyed called?

random error
market research error
accountability error
sampling error

Answer 40

sampling error
Sampling error is introduced when a small sample of the target market is used as the information obtained from the sample cannot be exactly similar to that of the market. Market researchers always try to reduce this to as small a figure as possible by choosing the members of the sample appropriately.

Question 41

The acquisition of a firm through the use of debt financing is called:
leveraged buyout
hostile takeover
reorganization
prepackaged bankruptcy

Answer 41

leveraged buyout

A leveraged buyout is the purchase of a firm through the use of debt financing. Leveraged buyouts are an important strategy for avoiding an unwanted takeover. They are also used as a means to dispose of unwanted divisions.

Question 42

The relationship between interest rates and the length of time to maturity for debt in a given risk class is referred to as which of the following?

Answer 42

term structure of interest rates

The term structure of interest rates is the relationship between yields and the time to maturity for debt with a given level of risk. This structure is illustrated by a yield curve, which relates the yield on the debt instruments with different terms to maturity.

Question 43

Events may occur between the end of the reporting period and the date when financial statements are authorized for issue which may present information that should be considered in the preparation of financial statements. They may be adjusting events or non-adjusting events. Which of the following events would be considered a NON-adjusting event?

settlement of litigation against the entity after the reporting date, in respect of events that occurred before the end of reporting period

declaration of dividends after the reporting date
declaration of bankruptcy by a long-outstanding receivable
detection of fraud or errors after the reporting period

Answer 43

declaration of dividends after the reporting date

A declaration of dividends after the reporting date is considered a non-adjusting event. It does not indicate existence of liability to pay dividends at the reporting date and does not therefore trigger the recognition of liability in financial statements.

Question 44

When you attempt to experience a client’s point of view without losing your own identity this is known as which of the following?

decoding
filtration
perception
empathy

Answer 44

empathy

Empathy is the ability to mentally place oneself in another person’s situation to better understand the person and to share the emotions or feelings of that person. Empathy is not feeling sorry for another; it is understanding the experiences of the other person, and it is integral to the therapeutic relationship.

Question 45

An order to buy or sell a security at the best current price is which of the following?

good-till-canceled order
day order
market order
commission order

Answer 45

market order

A market order is an order to buy or sell a security at the best current price. The investor is not assured of receiving the security at the currently quoted price, since that price may change by the time the order is executed.

Question 46

What is the term for the owner’s equity in the company?

Owner equity.
Income equity.
Stock owner’s equity.
Accrued equity.

Answer 46

Stock owner’s equity.

The owner’s equity in a business is called stock owner’s equity. This has two classifications. They are capital stock and retained earnings.

Question 47

What is GDP an acronym for?
General Domestic Product
Gross Domestic Product
Government’s Domestic Product
Guided Digital Project

Answer 47

Gross Domestic Product

Gross Domestic Product, or GDP, is a measure of national income and output for a given country.

Question 48

During the introduction stage of a product which of the following demands of the customer should the company try to focus on?

negative demand
latent demand
declining demand
irregular demand

Answer 48

Latent demand is a state where there is no existing product that can satisfy the customer’s demand. By introducing the new product the company is trying to satisfy this demand.

Question 49

The accounting statements of publicly held firms must be audited by an independent certified public accountant (CPA). All of the following statements regarding audits or auditors are true EXCEPT:

The auditor’s opinion must be included in the firm’s annual report.
The auditor’s objectivity enhances the financial statement’s credibility.
An auditor’s opinion guarantees the accuracy of the financial statements.
An auditor’s opinion attests to the “fairness” of the financial statements and their conformity with generally accepted accounting principles.

Answer 49

An auditor’s opinion guarantees the accuracy of the financial statements.

An auditor’s objectivity enhances the statement’s credibility. However, an auditor’s opinion does not guarantee the accuracy of the statements. The responsibility for accuracy rests with the management of the firm.

Question 50

An entity in which some of the members have limited liability and are not liable for the entity’s debts is which of the following?

partnership
corporation
limited partnership
sole proprietorship

Answer 50

limited partnership

A limited partnership is one in which some of the partners have limited liability and are not liable for the entity’s debts. While these partners have limited liability, they have no control over the operation of the firm. Control rests with the remaining (general) partners.

Question 51

What is an economic environment where the entry or exit of a buyer or seller does not influence prices in any way called?

Free Market
Perfect Competition
Monopoly
Government control

Answer 51

Perfect Competition

In a perfect competition, neither a single seller or buyer can influence prices, as the others bring it back to equilibrium.

Question 52

The highest quality business consumers have what type of interest rate on unsecured loans?
Accrued expense.
Secured rate.
Unsecured rate.
Prime rate.

Answer 52

Correct answer: Prime rate The prime rate is also called the floor rate. It is the interest rate on unsecured loans based on the rate for high quality consumers. It is the lowest loan rate.

Question 53

Which of the following is not provided in the footnotes of financial statements?
Significant accounting policies and practices
Pension plans and other retirement programs
Shareholder’s equity
Stock options

Answer 53

Correct Answer:
Shareholder’s equity

The balance sheet provides detailed information about the shareholder’s equity. The other options are items which are contained in the footnotes of financial statements and not the statements themselves.

Question 54

Savings and loan associations created accounts that are checking accounts based upon savings deposits in the S&Ls. These are known as which of the following?

share draft accounts
thrift accounts
NOW accounts
ATS accounts

Answer 54

NOW accounts

Savings and loan associations created accounts that are checking accounts based upon savings deposits in the S&Ls. These are known as NOW (negotiable order of withdrawal) accounts. The NOW account is an innovative means by which the S&Ls could compete for the checking account business of the commercial banks.

Question 55

The term used to describe the fact that money is money because the government says it is, is which of the following?

fiat money
legal tender
time deposit
store of money

Answer 55

fiat money

The paper money in the economy is basically fiat money. This means that it is money because the government says it is, not because of redeemability in terms of precious metal. Therefore, the acceptability of paper money is bolstered by the fact that the government says that these dollars are money.

Question 56

When a country’s government intervenes to keep the value of its currency from fluctuating too much, it is said to be engaging in which of the following?

Pegged exchange.
Dirty float.
Fixed exchange.
Devaluation.

Answer 56

Dirty float Also known as managed float, dirty float occurs when a country’s government or central bank intervenes to keep the currency value from fluctuating too widely. The most common method is buying or selling currency.

Question 57

In terms of consumer protection, the law that requires suppliers of consumer credit to fully disclose all credit terms is which of the following?

Fair Credit Reporting Act
Magnuson-Moss Warranty Act
Fair Debt Collection Practices Act
Truth-in-Lending Act

Answer 57

Truth-in-Lending Act

The Truth-in-Lending Act requires that suppliers of consumer credit fully disclose all credit terms. This must be done before an account is opened or a loan made.

Question 58

The basic tools of Keynesian employment theory are which of the following?

depletion, saving, and investment schedules
consumption, saving, and market schedules
consumption, saving, and investment schedules
inflation, saving, and investment schedules

Answer 58

consumption, saving, and investment schedules

The basic tools of Keynesian employment theory are the consumption, saving, and investment schedules. They show the various amounts that households intend to consume and save and that businesses plan to invest at the various possible income-output levels.

Question 59

Excise taxes on foreign goods are known as which of the following?

exchange rate
tariffs
import quotas
open-economy multiplier

Answer 59

tariffs

Tariffs are in effect excise taxes on foreign goods. This raises the prices of foreign goods making them less attractive to domestic consumers.

Question 60

In terms of gross national product, which of the following statements is least accurate?

GNP attempts to measure the annual production of the economy.
Purely financial transactions are excluded in GNP.
Secondhand sales are excluded from GNP.
GNP includes goods and services which are being purchased for final use and intermediate use.

Answer 60

GNP includes goods and services which are being purchased for final use and intermediate use.

This statement is inaccurate. GNP includes goods and services which are being purchased for final use only, not for intermediate use. Intermediate use goods are excluded from GNP to avoid double counting and an exaggerated estimate of GNP.

Question 61

A monetary policy usually pursued in an inflationary period which involves increasing the interest rate is which of the following?

fiscal monetary policy
contractionary monetary policy
expansionary monetary policy
recessionary monetary policy

Answer 61

contractionary monetary policy

A contractionary monetary policy is usually pursued in an inflationary period. It involves increasing the interest rate. This is done to lower investment and consumption spending.

Question 62

The amount by which the aggregate spending exceeds the full-employment level of NNP is called a(n):

45-degree line
multiplier effect
inflationary gap
equilibrium NNP

Answer 62

inflationary gap

The inflationary gap is the amount by which the aggregate spending exceeds the full-employment level of NNP. The effect of an inflationary gap – an excess of demand – will be to pull up the prices of the economy’s fixed physical volume of production.

Question 63

The money term that means that the intrinsic value of the bullion contained in a coin is less than the face value of the coin is which of the following?

store of value
standard of value
token money
checkable deposit

Answer 63

token money

All coins in circulation in the United States are token money. This means that the intrinsic value, that is, the value of the bullion contained in the coin itself, is less than the face value of the coin. This is purposely the case so as to avoid the melting down of token money for profitable sale as bullion.

Question 64

When foreign investors are treated in the same way as domestic firms, they are said to be receiving which of the following?

Most favored status.
Special treatment.
National treatment.
Local ownership.

Answer 64

National treatment When foreign investors are treated in the same manner as domestic firms, they receive national treatment. The rules for who can receive national treatment vary across countries.

Question 65

Courts of equity use maxims, or proverbial sayings, instead of rules of law. Which of the following is least likely to be a maxim of equity?

Equity regards as done that which ought to be done.
Where there is equal equity, the law must prevail.
Equity allows rights to exist without a remedy.
Equality is equity.

Answer 65

Equity allows rights to exist without a remedy.

This is not something that would be used in a court of equity. More properly, this should be stated as: “Equity will not allow rights to exist without a remedy.

Question 66

Any party seeking judicial review of any administrative agency’s decision must be able to prove standing to sue. To establish standing the challenging party must address which of the following two issues?

reviewability and proximate cause
reviewability and aggrieved party
breach of duty and proximate cause
aggrieved party and breach of duty

Answer 66

reviewability and aggrieved party

To establish standing the challenging party must address reviewability and aggrieved party. Not all administrative decisions are reviewable. The plaintiff must also have been harmed by an administrative action to have standing.

Question 67

An investing firm is operating a business in a foreign country. This foreign country is known as which of the following?

Home country.
Host country.
Base country.
Franchise country.

Answer 67

Host country.

A host country is the country in which a firm operates a business. While the firm is responsible to its home country’s laws, awareness of regulations in the host country is also key to smooth business operations.

Question 68

The principle that indicates that for every 1 percent that the actual unemployment rate exceeds the natural rate, there is generated a 2½ percent GNP gap is which of the following?

demand-pull inflation
Okun’s law
hyperinflation
COLA

Answer 68

Okun’s law

Arthur Okun quantified the relationship between the unemployment rate and the GNP gap. This is known as Okun’s law. It indicates that for every 1 percent that the actual unemployment rate exceeds the natural rate, there is generated a 2½ percent GNP gap.

Question 69

An important aspect of international trade is ensuring that payment will be received. This can be done by which of the following?

contract
bill of lading
invoice guarantee
letter of credit

Answer 69

letter of credit

Letters of credit are often used in international transactions to ensure that payment will be received. Due to the nature of international dealings including factors such as distance, differing laws in each country and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade. The bank also acts on behalf of the buyer (holder of letter of credit) by ensuring that the supplier will not be paid until the bank receives a confirmation that the goods have been shipped.

Question 70

A monopolist who charges all the consumers the prices they are willing to pay has executed ______.

Market value.
Perfect price discrimination.
Average variable cost.
Perfect competition.

Answer 70

Perfect price discrimination

Monopolies still use price discrimination. They are not all single priced. Charging the prices that all consumers will pay is perfect price discrimination.

Question 71

Which of the following items cannot be patented?

machine
scientific principle
processes
manufacturing design

Answer 71

scientific principle

A scientific principle cannot be patented. It is an abstraction and abstractions cannot be patented.

Question 72

Of the following statements about factors influencing demand of a commodity, which one is not true?
,
A rise in a consumer’s income raises the demand for a commodity.
A change in taste against a commodity leads to a fall in its demand.
The lower the price of a commodity, the higher is the demand for it.
Complementary goods are those that can be used without relying on each other.

Answer 72

Complementary goods are those that can be used without relying on each other.

This is not true. Complementary goods are those that cannot be used without relying on each other. If the price of one of the goods rises, then the demand for both of the goods will fall.

Question 73

Which of the following methods of pricing is a competition-based method of pricing?

target-return-on-investment pricing
cost plus fixed fee pricing
customary pricing
standard markup pricing

Answer 73

customary pricing

Four common approaches to pricing are the: demand-based, cost-based, profit-based and competition-based methods. Customary pricing is a competition-based method in which standardized channels of distribution or other competitive factors dictate the price.

Question 74

A governmental grant to an inventor that grants him or her the exclusive right to produce an item is known as which of the following?

Copyright.
Trademark.
License.
Patent.

Answer 74

Patent
A patent is a governmental grant to an inventor that grants the exclusive right to produce an item. Patents are intellectual property.

Question 75

All of the following are advantages of incorporating a business EXCEPT:

limited liability
effective for raising capital
double taxation
ease of expansion

Answer 75

double taxation

Double taxation is a disadvantage of corporations. The part of income paid out to stockholders as dividends is taxed twice – once as part of corporate profits and again as a part of the stockholders’ personal incomes.

Question 76

When a nation’s economy goes through a sustained period of negative growth, it is said to be undergoing which of the following?

Recession.
Depression.
Contraction.
Correction.

Answer 76

Recession.

Recession occurs when a nation’s economy undergoes a period of sustained negative growth. If recession continues for an extended period, the economy may go into depression.

Question 77

Which of the following is a feature of a socialist economy as opposed to a capitalist economy?

central planning
private property
profit motive
automatically operated price mechanism

Answer 77

central planning

Central planning is a feature of socialism. Socialism functions under the direction of a central planning authority. The central planning authority organizes and utilizes the economic resources by deliberate direction and control of the economy for the purpose of achieving definite objectives and targets laid down in the plan during a specified period of time.

Question 78

The combination of resources that will produce a certain dollar amount of product A at the lowest possible money cost is a demonstration of which of the following?

declining industry
expanding industry
economic efficiency
market restraint

Answer 78

economic efficiency

Economic efficiency entails getting a given output of product with the smallest input of scarce resources, when both output and resource inputs are measured in dollars-and-cents terms. The combination of resources which is most efficient economically depends not only upon the physical or engineering data provided by available technology but also upon the relative worth of the required resources as measured by their market prices.

Question 79

The total revenue from the sale of a product divided by the quantity of the product sold gives you which of the following?

total revenue
marginal revenue
shared revenue
average revenue

Answer 79

average revenue

Average revenue is the total revenue from the sale of a product divided by the quantity of the product sold. It is equal to the price at which the product is sold so long as all units of the product are sold at the same price.

Question 80

The total revenue from the sale of a product divided by the quantity of the product sold gives you which of the following?

Answer 80

average revenue

Average revenue is the total revenue from the sale of a product divided by the quantity of the product sold. It is equal to the price at which the product is sold so long as all units of the product are sold at the same price.

Question 81

Organizations that invest money in a business in return for a share in the business and/or its profits are known as which of the following?

commercial lenders
private investors
institutional lenders
institutional investors

Answer 81

institutional investors

Institutional investors are organizations, ranging from banks and businesses to hedge funds that invest money in a business in return for a share of the business and/or its profits. Institutional lenders are organizations, ranging from banks and credit unions to hedge funds that lend money to a business for a guaranteed rate of return and a guaranteed repayment date.

Question 82

In a business model, a description of the customer problem, the product that addresses the problem and the value of the product from the customer’s perspective is termed which of the following?

value proposition
value chain structure
market segment
position in value network

Answer 82

value proposition

The value proposition is a description of the customer problem, the product that addresses the problem and the value of the product from the customer’s perspective. In other words, a value proposition is a promise of value to be delivered and a belief from the customer that value will be experienced.

Question 83

A file which is arranged by date for keeping track of future actions is called a(n):

coordinating calendar
tickler file
portfolio file
spreadsheet

Answer 83

tickler file

A tickler file contains notes or records arranged by date for keeping track of future actions. Tickler files can be set up using index cards or file folders or can be recorded on a computer.2

Question 84

Which of the following would be the briefest of learning experiences outside of the classroom?

internship
mentorship
job shadowing
cooperative education

Answer 84

job shadowing

Job shadowing is a short-term experience. It allows the student to follow an experienced worker and see the day-to-day activities of a particular career.

Question 85

Which of the following would not be considered an intangible cost of business?

customer goodwill
depreciation
drop in employee morale
loss in productivity

Answer 85

depreciation

Depreciation is quantifiable; it is not intangible. An intangible cost is an unquantifiable cost relating to an identifiable source. Intangible costs represent a variety of expenses such as losses in productivity, customer goodwill, or drops in employee morale. While these costs do not have a firm value, managers often attempt to estimate the impact of the intangibles.

Question 86

Which of the following would not be considered an intangible cost of business?

customer goodwill
depreciation
drop in employee morale
loss in productivity

Answer 86

depreciation

Depreciation is quantifiable; it is not intangible. An intangible cost is an unquantifiable cost relating to an identifiable source. Intangible costs represent a variety of expenses such as losses in productivity, customer goodwill, or drops in employee morale. While these costs do not have a firm value, managers often attempt to estimate the impact of the intangibles.

Question 87

An industry trend that negatively affects the business would be mentioned in the _____.
Milestone.
Appendices.
Critical risk analysis.
Harvest strategy.

Answer 87

Correct answer: Critical risk analysis The critical risk analysis mentions the potential risks that the business may face. This includes changes in industry trends. The analysis should address ways to handle the risks.

Question 88

Actions of a business in promoting goodwill between itself and the community or individuals are called:

marketing
managing
promotion
public relations

Answer 88

public relations

Public relations (PR) are the actions of a corporation in promoting goodwill between itself and the community or individuals. It is in essence the practice of managing communication between an organization and its public.

Question 89

Which of the following statements about making innovation the norm for a business is least accurate?

Innovation must be made attractive and beneficial to managers.
The time frame for innovation need not be defined.
The importance of the need for innovation must be spelled out.
There needs to be an innovation plan.

Answer 89

The time frame for innovation need not be defined.

This statement is not accurate. Not only should the importance of the need for innovation be spelled out; the dimensions of its time frame must be defined.

Question 90

______ is the vehicle used for communication between the buyer and seller.

Product.
Price.
Promotion.
Place.

Answer 90

Promotion There are four elements (the four P’s) to the marketing mix. These are: Product - The good or service that satisfies the consumer’s need. Price - What is exchanged for the product. Promotion - The vehicle used for communication between the buyer and seller. Place - The means used to get the product from the seller to the buyer.

Question 91

When preparing a resume, which of the following would not be included?

education history
objective
religious affiliation
personal information

Answer 91

religious affiliation

Religious affiliation should not be part of a resume. Reasons for leaving a job and a person’s race should not be included either.

Question 92

When customers share a need that cannot be satisfied by any existing product, they are demonstrating which of the following?

Nonexistent demand.
Latent demand.
Negative demand.
Increased demand.

Answer 92

Latent demand Latent demand occurs when customers share a need but no product on the market satisfies it. This presents an opportunity to offer a new product that does fill the need and thus acquire a new customer base.

Question 93

A business approach that looks at a business as a whole instead of on a division level is which of the following?

BPM
BPI
BPR
BSP

Answer 93

BPM

BPM stands for business performance management. It is a business management approach that looks at a business as a whole instead of on a division level. BPM entails reviewing the overall business performance and determining how the business can better reach its goals. BPI stands for business process improvement; BPR for business process reengineering; and BSP for business service provider.

Question 94

According to Peter Drucker, entrepreneurs can monitor seven sources for innovative opportunity. Which of the following of these sources lies outside the enterprise or industry?

the unexpected
incongruity
innovation based on process need
demographics

Answer 94

demographics

Demographics is one of the seven sources for innovative opportunity that involve changes outside the enterprise or industry, along with changes in perception, mood, and meaning; and new knowledge, both scientific and nonscientific. The other three choices in the question lie within the enterprise along with changes in industry structure or market structure.

Question 95

What information should NOT generally be included in a letter of application?

Information on the job you are applying for.
Your skills and education.
Desired salary.
Thank you to the hiring manager for his/her consideration.

Answer 95

Desired salary There are three main points to a letter of application. These are: information on the job you are applying for, your skills and education as related to the job you are applying for, and a brief thank you to the hiring manager for his/her consideration. There may be instances where the employer asks that you include your desired salary range in the letter of application, this is not the general rule of thumb.

Question 96

The study of the effects of the work environment on the health of workers is known as which of the following?

ergonomics
environmental maintenance
physiology
preventive maintenance

Answer 96

ergonomics

Ergonomics is the study of the effects of the work environment on the health of workers. The way a workstation and its parts are designed can affect a person’s physical wellbeing.

Question 97

Of the following, which is the LEAST effective way to adapt a lesson for a student who has difficulty expressing himself verbally?

Allow the student to do an oral presentation.
Allow the student to do a photo essay.
Allow the student to draw a map.
Allow the student to do an exhibit of his work.

Answer 97

Correct Answer:
Allow the student to do an oral presentation.

The student has difficulty expressing himself verbally. Therefore, it is best to not require a student to complete an assignment using a method that is known to be unsuccessful for him.

Question 98

Internal recruiting refers to the filling of job vacancies from within the business. Which of the following is a disadvantage of internal recruiting?

helps to retain staff
requires shorter induction/training period
limits number of potential applicants for the job
is less expensive

Answer 98

limits number of potential applicants for the job

All of the choices are advantages of internal recruiting except this one. Also seen as disadvantages are the following: another vacancy will be created and will need to be filled; the business may become resistant to change; and external candidates may be better suited or qualified for the job.

Question 99

The term for marketing which looks at the aggregate flow of a nation’s goods and services to benefit society is which of the following?

macromarketing
micromarketing
societal marketing concept
social responsibility

Answer 99

macromarketing

Macromarketing is marketing which looks at the aggregate flow of a nation’s goods and services to benefit society. Micromarketing focuses on how an individual organization directs its marketing activities and allocates its resources to benefit its customers.

Question 100

Who exploits business opportunities?

Capitalist.
Manager.
Labor.
Entrepreneur.

Answer 100

Entrepreneur There are different characteristics of managers, capitalists, and entrepreneurs. Entrepreneurs are identify business opportunities. They also exploit the opportunities.

Question 101

Of the following, which is a questioning clue word MOST likely associated with the “comprehension” higher order thinking skill of Bloom’s Taxonomy?

Use it to solve.
Why do you support.
Create.
Conclude.

Answer 101

Conclude There are a variety of questioning clue words associated with the different higher order thinking skills of Bloom’s Taxonomy. Conclude - Comprehension Use it to solve - Application Why do you support - Analysis Create - Synthesis

Question 102

Which of the following can best help an entrepreneur to determine if the business is successful?
brainstorming
idea mapping
benchmarking
audit

Answer 102

benchmarking

Benchmarking is an activity or activities that allow an entrepreneur to determine if the business is successful. Benchmarking requires a lot of research and analysis of not only your business, but the industry, the market, and the competition. Essentially, benchmarking can help you determine if your business is progressing as it should be.

Question 103

Administration through departments and subdivisions managed by sets of appointed officials following an inflexible routine is which of the following?

adhocracy
democracy
bureaucracy
none of the above

Answer 103

bureaucracy

Bureaucracy is administration through departments and subdivisions managed by sets of appointed officials following an inflexible routine. It is the opposite of adhocracy which replaces the social machine with a number of smaller, more people-centered, relatively self-managing units to accomplish various parts of the total task.

Question 104

In terms of employee evaluation which of the following would be considered a “traditional” way of evaluation?

critical incidents
behaviorally anchored rating scales
perception of superior
appraisal by results

Answer 104

perception of superior

Perception of the employee’s superior is a traditional or older method of evaluating performance of an employee. It has several problems including rating an individual similarly on all points, or rating everyone as average. The other choices are “newer” methods of evaluation.

Question 105

The planning phase of the strategic marketing process involves all but which of the following?

situation analysis
goal setting
designing a marketing program that blends the elements of the marketing mix
taking action to correct negative deviations or exploiting positive ones

Answer 105

taking action to correct negative deviations or exploiting positive ones

This is not part of the planning phase of the strategic marketing process. It is a step in the control phase of the process.

Question 106

The rate of technological development and diffusion is:

Slowly increasing.
Rapidly increasing.
Slowly decreasing.
Rapidly decreasing.

Answer 106

Rapidly increasing

The rate at which technology is developing and diffusing is rapidly increasing. Because of this phenomenon, it is important for everyone to have some level of technological literacy.

Question 107

Which of the following inventors was in close competition with Guglielmo Marconi to invent the radio?

Alexander Graham Bell.
Thomas Edison.
Nikola Tesla.
Samuel Morse.

Answer 107

Nikola Tesla.

Nikola Tesla and Guglielmo Marconi were in a tight race to invent the radio, and who is the inventor of the radio is often debated. Marconi was the first to transmit radio signals, but his wireless telegraph design relied on coils Tesla patented, which resulted in the U.S. Patent Office rejecting Marconi’s patent applications.

Question 108

There are many steps in the engineering design process. After the problem has been defined, what step should be taken next?

identify criteria and specify constraints
brainstorm, research, and generate ideas
develop and propose designs
make a model or prototype

Answer 108

brainstorm, research, and generate ideas

The second step in the engineering design process is brainstorming, researching, and generating ideas. Brainstorming occurs when two or more people try to think of as many possible solutions to a problem as they can.

Question 109

The following is a definition of which term?
The requirement that certain documents and/or contracts be signed in writing by the defendant in order to prove its authenticity.

Answer 109

Statute of Frauds

Also known as An Act for Prevention of Frauds and Perjuries, the Statute of Frauds requires that certain contracts are signed in writing by the defendant, such as marriage licenses, contracts not to be completed inside of one year, the transfer of interest on land, the payment of a debt by an estate executor with his/her own money, etc.

Question 110

All but which of the following are examples of the REUSE component of the Reduce, Reuse, Recycle strategy to decrease the negative environment of waste?

Buying the largest container of laundry detergent.
Refilling printer ink cartridges.
Use empty jars and containers to organize items in your home or workspace.
Contact shipping stores to see if they will accept Styrofoam and packing peanuts that have been sent to you.

Answer 110

Buying the largest container of laundry detergent

Reuse is an important strategy in decreasing the negative environmental impact of waste. Some example of how people may reuse items instead of throwing them away include: using empty jars and containers to organize items in your home, refilling printer ink cartridges, finding a shipping store that will reuse packing material sent to you, and donating unwanted clothes and other items to charitable organizations.

Question 111

The device used to test the resistance of a circuit when there is no current is a(n):

ammeter
voltmeter
ohmmeter
none of the above

Answer 111

ohmmeter

An ohmmeter tests the resistance of a circuit when there is no current. It is an electronic device which measures resistance in an electronic component or circuit. It is composed of a ruled scale with an indicator needle or digital display, a range selector, and two probes.

Question 112

A device that allows a specific type of hardware to work with another device that would otherwise be incompatible is called a(n):

bridge
adapter
clone
crossplatform

Answer 112

adapter

An adapter is a device that allows a specific type of hardware to work with another device that would otherwise be incompatible. Examples of adapters include electrical adapters, video adapters, audio adapters, and network adapters.

Question 113

Which of the following type of three-dimensional models looks and functions like the finished product is intended?

Prototype.
Appearance model.
Scale model.
Rendering.

Answer 113

Prototype

Model building is an excellent way to develop and record ideas during the design process. Prototypes look and function the way that the finished product is intended, and they are very useful for testing a design concept.

Question 114

What are settings that are provided built in by the software designers that a user can use instead of using personalized settings called?

Default settings
Built-in settings
Designer settings
Software settings

Answer 114

Default settings

The default settings are provided built-in by the software designer. They can be reinstalled by the user if they don’t like the changes made in the settings by them.

Question 115

In which of the following bankruptcies can the corporation re-emerge as a healthy organization

Chapter7
Chapter 11
Chapter 13
None of them

Answer 115

Chapter 11

Chapter 11 bankruptcy is also called rehabilitation bankruptcy and here the organization can reorganize its debt and emerge as a healthy organization

Question 116

A legal document that protects an invention from being copied or sold by someone else is called a(n):

copyright
intellectual property
government grant
patent

Answer 116

patent

A patent is a legal document that protects an invention from being copied or sold by someone else. It is a right, granted by the government, to produce and sell a particular product. No one else may copy it.

Question 117

A design system in which a process is created to improve the design, manufacture, or use of a product is which of the following?

design for x
design for variation
foundational design
design unknown

Answer 117

design for x

One planning concept that engineers use is called design for x (DFx), where x stands for a process that can improve the design, manufacture, and use of a product. Design for manufacturability is one of these processes.

Question 118

When choosing a password, which of the following is NOT considered a best practice?

Incorporate letters, numbers, and special characters.
Create a password that is at least 7 characters.
Choose something easy to remember, such as your birthdate.
Do not reuse your previous password.

Answer 118

Choose something easy to remember, such as your birthday When choosing a password, avoid choosing something that contains personal information such as birthdates or children’s names. This information is easily linked to you, and makes your password vulnerable.

Question 119

Which of the following forms of Bankruptcy is an involuntary liquidation forced by creditor(s)?

Chapter 7
Chapter 13 and Chapter 7
Chapter 11
Chapter 11 and Chapter 13

Answer 119

Chapter 7

Chapter 7 is involuntary liquidation forced by creditor(s). Chapter 11 is voluntary by the debtor. In Chapter 13 bankruptcy, a debtor proposes modified repayment plan to pay off the creditors

Question 120

When arranging computers, they should ______.

Be in front of windows.
Face windows.
Not be in front of windows.
Be in well-lit rooms.

Answer 120

Not be in front of windows.

Computer placement is important. Computers should not be in front of windows to prevent CVS. The room should also not be too bright.

Question 121

Programs which run on a computer and which accomplish various tasks are known as which of the following?

Software.
Extensions.
Hardware.
Peripherals.

Answer 121

Software

The various programs that run on computers are known as software. This can include your operating system and any word processing or web browsing programs.

Question 122

A person designing a brochure adds a few pictures to a word document. After printing, the pictures appear as boxes of different colors, not like the ones placed in the document. What is the reason for this?

The printer is not of a good quality
The paper used is not the one specified for use in the printer
The image is a low resolution, one made with few pixels
The format of the pictures was not compatible with the printer

Answer 122

The image is a low resolution, one made with few pixels

When an image has a low resolution it is made with a small number of pixels. On being enlarged the pixels appear as boxes of color and the picture does not appear like it did while it was seen in the normal size.

Question 123

A secretary has to create a list of essential items that have to be ordered for the office. The list should have each item marked separately. Which of the following features of a word processing program will help here?

Underline
Bullet
Number
Bold

Answer 123

Bullet

While creating a list the bullets feature can be used so that each item is marked separately. This would make the list very clear and easy to understand so that no item is missed.

Question 124

Each of the following is a type of controlled-environment agriculture EXCEPT:

hydroponics
aquaculture
agroforestry
genetic engineering

Answer 124

genetic engineering

Genetic engineering is not a type of controlled-environment agriculture (CEA). The three types of CEA are: hydroponics, aquaculture, and agroforestry. In CEA, a plant’s or animal’s surroundings are carefully monitored and adjusted.

Question 125

Which of the following acts protects investors from the possibility of fraudulent accounting activities by corporations?

Sarbanes-Oxley Act
Labor Management Relations Act
Walsh-Healey Public Contracts Act
Fair Labor Standards Act

Answer 125

Sarbanes-Oxley Act

The Sarbanes-Oxley Act was enacted to improve corporate governance and increase accountability. In order to do this it has provisions that protect employees of publicly-traded companies for reporting fraud against shareholders to the proper authorities, either within or outside the companies committing such fraud.

Question 126

The embalming process was invented during which of the following time periods?

The Bronze Age.
The Stone Age.
The Iron Age.
The Industrial Age.

Answer 126

The Bronze Age.

The embalming process was invented during the Bronze Age. This technology furthered people’s understanding of human anatomy.

Question 127

The development of mass production is most strongly associated with which of the following time periods?

Information Age.
Bronze Age.
Industrial Age.
Iron Age.

Answer 127

Industrial Age

The Industrial Age is a period characterized by the replacement of hand tools with power-driven tools. Mass production became prevalent in manufacturing during this time period, which lowered the cost of new products and allowed for more people to own new technologies.

Question 128

What is concerned with the design of hardware and how people interact with it?

Work flow.
Layout.
Ergonomics.
Design.

Answer 128

Ergonomics Ergonomics in the workplace helps prevent injuries. In IT situations, the focus is on hardware design and how people interact with the design.

Question 129

Trying out a new procedure, idea, or activity during the design process is known as which of the following?

Experimentation.
Testing.
Research.
Examination.

Answer 129

Experimentation

Experimentation is the act of trying out a new procedure, idea, or activity. Experimentation can be very helpful during the design process when optimizing a design either before implementation or during the evaluation of a product or process.

Question 130

Which step of the design process is appropriate for a product or process that is already in use?

Evaluate the solution.
Implement the solution.
Research the problem.
Select the best solution.

Answer 130

Evaluate the solution

Even after a product or process is already in use, it needs to be evaluated to make sure that it is working properly. Evaluation can lead to making the product or process more efficient, durable, or cost-effective.