DECA MC Flashcards
1
Q
- Torts relating to misrepresented facts about a business’s goods or services may be subject to a lawsuit
on the basis of
A. defamation. C. intrusion.
B. assault. D. fraud.
A
- D
Fraud. A tort is a private wrongdoing against another person. Businesses can be held responsible in a
variety of torts. For example, suppose a business’s employee intentionally provides misleading product
information to a customer in order to make a sale. Then, the customer purchases and is injured by the
product based on the employee’s misleading information. The customer may file a civil lawsuit against
the business, and in some situations, the business’s employee for fraudulent behavior. Assault and
intrusion are criminal acts that are addressed in the criminal court system rather than the civil court
system. Defamation is a tort that involves harm to an individual’s or business’s reputation.
2
Q
- XRT Corporation’s human-resources manager sends a memo to all employees that describes some
general changes that will affect their healthcare insurance next year. This is an example of ___________
communication.
A. mass, upward C. formal, downward
B. lateral, downward D. verbal, upward
A
- C
Formal, downward. Downward communication occurs when management sends messages to lower-level
employees. Formal communication involves following a specific protocol or systematic process when
transmitting messages. In the example, the human-resources manager communicates changes that
affect all employees because it is an aspect of his/her job. Therefore, the human-resources manager is
following the protocol as indicated in his/her job description. Lateral communication occurs among
employees (e.g., coworkers) at the same level. Mass communication involves simultaneous transmission
of nonpersonal messages to members of a large market segment. Upward communication occurs when
lower-level employees send messages to management.
3
Q
- One reason that businesses use a matrix organizational design is to
A. improve employee productivity. C. segment areas of expertise.
B. share human resources. D. standardize business tasks.
A
- B
Share human resources. The matrix organizational structure involves integrated departmental functions
with product or project orientation. For example, a technology specialist, a marketing researcher, a
financial advisor, and a manufacturing line supervisor are members of different departments but often
work together to develop a product or improve a process. The advantage to businesses of using this
organizational structure is that the business is applying its resources efficiently because a representative
from each of the major departments provides a unique set of skills and knowledge to achieve the
business’s goals. Often, workers have two or more supervisors in the matrix organizational design. The
matrix organizational design may improve the business’s overall efficiency, but it does not always
improve an individual’s productivity. Departmental organizational design segments employees by their
areas of expertise (e.g., accounting, sales, and production). Policies and procedures are developed to
standardize various business activities and tasks in all types of organizational designs.
4
Q
- Which phase of the business cycle would most likely have an unfavorable effect on the business
environment:
A. Maturity C. Contraction
B. Expansion D. Remission
A
- C
Contraction. Businesses are affected by external factors, which include changes in the business cycle.
The business cycle refers to the periods of expansion and contraction in economic conditions. When the
economy is strong and growing (expansion), businesses tend to make profits, expand operations, and
hire more employees. When the economy is on a downswing (contraction), businesses often experience
lower sales and profits, which has an unfavorable effect on the business. If a business’s sales and profits
continue to decrease over time, it may lay off workers to cut costs, so it can continue to operate. Maturity
is a stage in a product’s life cycle. Remission is not a phase in the business life cycle.
5
Q
- What are consumers doing when they purchase goods and services in a market economy?
A. Making informed choices C. Using resources efficiently
B. Casting economic votes D. Determining what to produce
A
- B
Casting economic votes. An economic vote is consumer approval of products expressed by the purchase
of the products. When consumers purchase a lot of a particular product, they are expressing their need
or want for the product. It also indicates that they are willing to pay a certain price to obtain the product.
Purchasing certain products does not mean that consumers are making informed choices or using their
resources efficiently. For example, an individual may purchase an expensive flat-screen television
without knowing anything about the television or its manufacturer. The same individual may decide to
purchase the television instead of something s/he really needs. When this occurs, the individual is not
making informed decisions nor is s/he using his/her financial resources wisely. Businesses rather than
consumers determine what to produce. Businesses determine what to produce by monitoring what
consumers are buying.
6
Q
- The gross domestic product (GDP) is most likely to decrease when the
A. consumer sector dramatically increases its spending on domestic goods and services.
B. government significantly decreases its spending on domestic goods and services.
C. business sector increases its production of goods and services.
D. consumer sector decreases its spending on imported goods and services.
A
- B
Government significantly decreases its spending on domestic goods and services. Gross domestic
product (GDP) is the final total value of all goods and services produced within a country’s geographic
boundaries during a year’s time. Changes in the business cycle and how the government responds to
those changes affect a nation’s GDP. When the business cycle enters a period of contraction,
unemployment tends to increase, and consumers tend to spend less money, which affects the amount of
tax revenue the government obtains. When the government has less money, it often cuts government-
sponsored initiatives and programs, many of which are outsourced to the private sector. When the
economy rebounds and enters a period of expansion, businesses increase production; and the
government, consumer, and business sectors increase their spending. Imported goods are not a
consideration when measuring the GDP.
7
Q
- Which of the following are secondary dimensions of diversity:
A. Work experience, nationality, and age
B. Religion, work experience, and gender
C. Family status, ethnicity, and communication style
D. Income, family status, and education level
A
- D
Income, family status, and education level. Secondary dimensions of diversity are differences that may
change at various points throughout one’s lifetime and include such characteristics as language, religion,
income, geographic location, family status, communication style, and education level. Primary
dimensions of diversity are inborn differences that cannot be changed and affect a person’s entire life
and include such characteristics as age, gender, race/ethnicity, nationality, physical traits, and abilities
(both mental and physical).
8
Q
- When Armand is comparing his checkbook balance with his bank statement, he must make sure that he
has subtracted the ____________ from his checkbook.
A. payroll deposits C. transaction fees
B. accumulated interest D. check numbers
A
- C
Transaction fees. Reconciling bank statements involves comparing the entries in a checkbook with the
entries listed on the bank statement. It is important to make these comparisons to determine
inconsistencies and mistakes. If a check is not recorded correctly, and if the mistake is not caught, the
individual runs the risk of having insufficient funds in his/her checking account, which results in bounced
checks. Some financial institutions charge transaction fees for checking accounts, so it is important to
make sure that those fees are subtracted from the checking account balance. Accumulated interest and
payroll deposits are added to the checking account balance rather than subtracted from it. Check
numbers are not subtracted from the checkbook when reconciling bank statements and checkbook
balances.
9
Q
- Why is it important for businesses to follow local health ordinances?
A. To reduce the risk of widespread illness C. To protect the natural environment
B. To prevent accidents in the workplace D. To lower the need for medical care facilities
A
- A
To reduce the risk of widespread illness. The purpose of health regulations is to protect the population
from widespread illnesses. Depending on the industry or business type, most localities require
businesses to follow certain rules to reduce the risk of illness. For example, various levels of government
are likely to require that restaurants handle, store, and cook foods in certain ways to prevent illnesses
such as e coli. Safety regulations intend to reduce the risk of accidents. The purpose of environmental
regulations is to protect the natural environment from such issues as air pollution and waste
management. Following health ordinances does not lower a community’s need for medical care facilities.
10
Q
- What type of computer program helps protect digital business information from the negative effects of
malware?
A. Cookies C. Firewalls
B. Spyware D. Shareware
A
- C
Firewalls. Malware (malicious software) is an illegal computer program that is used to disrupt computer
processes, destroy computer programs, and access confidential business information. Firewalls are
types of computer programs that combat these types of dishonest activities and protect a business’s
digital information. Spyware is a computer program that tracks and captures a computer user’s Internet
usage habits, e-mail messages, etc. Cookies are text files that are put on a web-site visitor’s hard disk
and then later retrieved during subsequent visits to the site to track Internet behavior. Shareware is a
type of computer program in which computer users can sign up for the software on a trial basis. After the
trial expires, the computer user can purchase and register the program, if desired.
11
Q
- What project-management activity involves determining when project tasks should be performed?
A. Processing C. Evaluating
B. Monitoring D. Scheduling
A
- D
Scheduling. Project management is the process of planning, scheduling, and monitoring the progress of
a project to achieve a specific goal. Scheduling is the process of developing plans that list the order of
tasks that need to be performed and their completion dates. Schedules are tools that help project
managers and team members organize their tasks, manage their time, and meet stated deadlines.
Monitoring is periodically checking the progress of an activity or task. Evaluating is reviewing or
examining the value or importance of something. Processing is carrying out a task.
12
Q
- Seminars and workshops that are sponsored by trade associations are ways to obtain job training for
people who
A. work in a specific industry. C. want to obtain a graduate degree.
B. are getting ready to retire. D. need to improve their management skills.
A
- A
Work in a specific industry. Trade associations often provide continuing educational options for workers
who want or need to expand their skills and knowledge in a specific industry, such as plumbing or
building. As technology evolves, workers often need to attend classes, seminars, and workshops to keep
up with the changes in their industry. Some trade associations offer management training classes, but
not all workers need or want these types of skills. Workers who want to obtain a graduate degree need to
attend a college or university that offers graduate-level programs. People who are near retirement are
unlikely to attend continuing education classes or professional development seminars and workshops.
13
Q
- When managers have the ability to understand how all of the functions of the company are interrelated,
they possess
A. technical competence. C. conceptual skills.
B. interpersonal skills. D. innovative ideas.
A
- C
Conceptual skills. Conceptual skills involve the ability to see the “big picture” and think about how things
will work together. The ability to see the “big picture” and how things fit together facilitates sound decision
making, idea generation, and creative problem solving activities because the manager understands how
various changes can impact other departments and employees. Interpersonal skills involve the ability to
communicate, interact, and build relationships with others. Technical skills or competence is the ability to
understand the specialized aspects of jobs.
