DECA BUSINESS ADMIN CORE SAMPLE EXAM

A. Sole proprietorship

1. "To form my business, I used all of my savings and borrowed from the bank, and I'm personally liable for all of the debts." This is an example of which of the following forms of business ownership: A. Sole proprietorship B. Partnership C. Corporation D. Cooperative

C. Is the information in this source up to date?

2. Tyrone is writing a research paper for his business class. What question should Tyrone ask as he looks for valid sources? A. Does this source provide relevant graphic aids? B. Is this material interesting and easy to read? C. Is the information in this source up to date? D. Do I agree with the viewpoint of this author?

D. achieve tasks.

3. It is effective to follow a step-by-step order when applying written directions to A. take notes. B. give commands. C. read materials. D. achieve tasks.

B. pay close attention to the teacher while directions are being given.

4. Emma's teacher is giving directions for an essay test in class. Emma should A. avoid looking her teacher in the eye while directions are being given. B. pay close attention to the teacher while directions are being given. C. interrupt her teacher whenever she has a question. D. get a head start on her test while the teacher is giving directions.

C. Using a verbal acknowledgment response

5. Megan is working with a group member who's explaining her part of a project. Megan wants to make sure her group member knows she's listening, so she says things like, "I see," "Okay," and "I understand." Which active listening skill is Megan demonstrating: A. Paraphrasing the message to test her understanding B. Repeating critical information C. Using a verbal acknowledgment response D. Collecting all the information possible

C. Smiling broadly

6. Which of the following is a way that you can use nonverbal communication to express your approval of an idea: A. Making a fist B. Folding your arms C. Smiling broadly D. Raising your eyebrows

A. Crossed arms

7. In North America, what nonverbal cue often indicates defensiveness? A. Crossed arms B. Fingernail biting C. Raised eyebrows D. Hands behind head

C. Place the good news at the beginning and the bad news in the secondary position(s).

8. Paul is responding to an inquiry he received in the mail. His response includes some good news and some bad news. How should he structure his response in light of the bad news? A. Place the bad news in the post-script (P.S.) section of the response. B. Place the bad news at the beginning and the good news in the closing paragraph. C. Place the good news at the beginning and the bad news in the secondary position(s). D. Give more space to bad news than good news to emphasize urgency.

B. Ask questions

9. What is important to do when giving verbal directions to make sure the audience understands? A. Maintain eye contact B. Ask questions C. Use gestures D. Explain information

B. socializing with close friends.

10. It is appropriate to use slang during conversation when you are A. meeting with a new customer. B. socializing with close friends. C. interviewing for a job. D. being introduced to a new customer.

A. chronologically.

11. Hazel is organizing her company's unpaid invoices. She orders them by date, starting with the earliest unpaid invoice and ending with the most recent. Hazel is organizing the invoices A. chronologically. B. by order of importance. C. geographically. D. deductively.

B. purpose of the message.

12. A guideline for effective, written business communication is to write clear, direct letters that immediately explain the reader the A. purpose of the company. B. purpose of the message. C. company's goals. D. company's structure.

B. Enhances the writer's credibility

13. Why is it important to use the appropriate writing style when developing research reports? A. Ensures the writer's objectivity B. Enhances the writer's credibility C. Allows the writer to express creativity D. Reduces the need to edit the content

A. An email requesting vendor pricing and discounts

14. What is an example of a written business inquiry? A. An email requesting vendor pricing and discounts B. A memo outlining an upcoming meeting agenda C. A form describing an employee's performance review D. A report summarizing annual financial information

A. A phone call

15. Penelope wants to use an interactive channel to communicate with her employees. Which channel of communication should she choose? A. A phone call B. A voice mail C. A letter D. A report

C. evaluate the solutions.

16. After solutions have been identified during a problem-solving meeting at an advertising agency, meeting participants should A. gather information about the problem. B. identify the cause of the problem. C. evaluate the solutions. D. verify the cause of the problem.

D. customer.

17. Most businesses stress to their sales force that the most important person is the A. supervisor. B. wholesaler. C. manager. D. customer.

B. By requesting input through employee and customer surveys

18. How do service-oriented companies often improve their levels of service? A. By evaluating internal product development procedures B. By requesting input through employee and customer surveys C. By providing customers with product testimonials D. By conducting a feasibility analysis for company expansion

D. research the culture and history of the people with whom you're doing business.

19. When doing business with clients from another culture, you should always be sure to A. always speak English, since it's considered the international language of business. B. take the opportunity to tell the other person how you do things in your culture. C. use humor to ease tension and make everyone more comfortable. D. research the culture and history of the people with whom you're doing business.

B. Reduce misunderstanding and ill will

20. A store's written policy concerning returns states that "Refunds will be issued when a receipt is presented; other returns will be given store credit." Mrs. Garcia, a regular, returns a product without a receipt, complains about the store's policy, and is given a full refund even though she doesn't have a receipt. Another customer overhears the conversation and asks for a refund without a receipt, but the store denies that request. How would enforcing the return policy have a positive impact on the business? A. Ensure fair treatment of employees B. Reduce misunderstanding and ill will C. Eliminate consistent behavior D. Guide customers' actions and protect their decisions.

B. touch points.

21. Elizabeth has many ways of interactions with her favorite store. She can visit it in person and speak to an employee, check out the store's website online, receive one of its newsletters, or look at its Facebook page. The way Elizabeth interacts with the store are A. contact spots. B. touch points. C. brand interactions. D. customer exchanges.

D. industrial

22. Goods and services that are purchased by producers for resale, to make other goods and services, and/or to use in operating a business are known as __ goods and services. A. convenience B. shopping C. specialty D. industrial

B. A printing press purchased by a newspaper

Which of the following is an example of a capital good: A. A hot dog purchased at the stadium B. A printing press purchased by a newspaper C. A cap and gown rented for graduation D. A shirt monogrammed with your initials

D. increase.

IF the money supply is low and the demand for money is high, interest rates on loans will A. increase, then decrease. B. decrease. C. stay about the same D. increase.

D. users

25. A business that produces a product should be socially responsible to the __ of the product. A. producers B. providers C. endorsers D. users

B. speculative

26. A change in local conditions and government intervention are examples of __ business risks. A. avoidable B. speculative C. pure D. unprofitable

C. Robinson-Patman Act

27. Fraction Enterprises and Garland Manufacturing are identical businesses that are supplied by Alta Wholesale. Fraction provides a holiday party for its suppliers, while Garland does not. Because of the holiday party, Alta Wholesalers charges Fraction less for its merchandise than it charges Garland for purchasing the same quantity of merchandise. Which government regulation of competition is Alta violating? A. Sherman Antitrust Act B. Clayton Act C. Robinson-Patman Act D. Celler-Kefauver Antimerger Act

D. taxes.

28. the costs of government regulation of business are paid for through A. tariffs. B. interest. C. prices. D. taxes.

B. self-awareness

29. When you know your emotions, you are demonstrating A. self-control. B. self-awareness. C. social relationships. D. social restraint.

B. To be fair and equitable

30. Why is it important to avoid considering prejudice and bias when judging others? A. to improve negotiation B. To be fair and equitable C. To be persuasive D. To communicate effectively

A. Identify one strength for every weakness

31. As Ben assesses his personal strengths and weaknesses, what can he do to keep from focusing too much on his weaknesses? A. Identify one strength for every weakness B. Compare himself to others C. Develop a list of false generalizations D. Ask others for critical feedback

D. personal achievement.

32. The ability to demonstrate interest and enthusiasm often leads to greater A. emotional instability. B. individual recognition. C. personal integrity. D. personal achievement.

B. initiative.

33. Your supervisor has given you a job to do which must be completed before you leave for the day. Another employee has finished her assignment and offers to help you. This person is demonstrating A. honesty. B. initiative. C. empathy. D. assertiveness.

D. Compassion

34. Which of the following is an essential element of responsible behavior: A. Positivity B. Hopefulness C. Decisiveness D. Compassion

D. open-minded.

35. Although Nolan feels that he has the right solution for a problem at work, he listens to what others have to say and takes their opinions seriously. Nolan is A. generous. B. empathetic. C. reliable. D. open-minded.

C. an employee's decision and actions can negatively impact others.

36. After Porter realized that he processed an order incorrectly, he waited too long to correct the problem. As a result, an incorrect item was shipped to the customer. Now, the customer will need to ship the item back to the warehouse, and Porter's company will need to pay extra charges to have the product returned. This situation illustrates that A. the company has unexpected expectations about Porter's ability to perform his job. B. employees should tell their supervisors about all problems as soon as they occur. C. an employee's decision and actions can negatively impact others. D. customers are likely to be very angry when employees make simple mistakes.

B. trust

37. You are able to rely on your boss to answer your questions and treat all of your coworkers fairly. This means that you __ your boss. A. support B. trust C. like D. resemble

B. desire to prove yourself.

38. You want to get straight A's and impress your teachers, so you consider cheating on tests to make sure you do well. You're facing an ethical dilemma because of your A. conflicting values. B. desire to prove yourself. C. pressure from others. D. bad role models.

B. goal setting.

39. You have just started a new job with coworkers who have been working together and are now friends. Whenever you ask a job-related question, your coworkers laugh at you. You can use self-control in this situation to help you with A. job enrichment. B. goal setting. C. pressure from others. D. operational changes.

C. businesses.

40. Associations with colors are cultural issues that are most important for A. travelers. B. goal setting. C. businesses. D. individuals.

B. worthwhile

41. It is important to your assertiveness for you to consider yourself to be a(n) __ person. A. inferior B. worthwhile C. superior D. enviable

C. disagreement is not handled well.

42. A person is most likely to experience frustration or health problems when the A. conflict is about something tangible or concrete. B. other person does not use the yielding conflict response mode. C. disagreement is not handled well. D. other person uses problem-solving techniques.

D. accountability.

43. If you and your teammates cooperate with each other and you feel like you're "all in this together," you benefit from shared A. reflection. B. competition. C. innovation. D. accountability.

C. Better, easier decision-making

44. What is a benefit of behaving ethically? A. Tense relationships with customers B. Decreased organizational productivity C. Better, easier decision-making D. Increased risk of legal trouble

B. contingency.

45. Keegan is taking a business course, but he doesn't like his instructor's style. He decides he'll go to two more classes to see if it improves, and if not, he'll switch to a different course. Keegan is showing adaptability by developing a(n) __ plan. A. objective B. contingency C. corrective D. learning

B. Not being satisfied with current performance

46. Carmen had an accuracy rating of 91 percent last year. This year, she won't be satisfied unless her accuracy rating is at least 92 percent or higher. Which behavior of an achievement-oriented person does this illustrate? A. Taking moderate risks B. Not being satisfied with current performance C. Demonstrating leadership D. Desiring feedback

D. explain how the change will benefit them.

47. When persuading others to go along with a proposed change, you should A. reinforce your proposal with facts and statistics. B. tell them that there's a better way of doing things C. demonstrating leadership D. explain how the change will benefit them.

D. involves being receptive to feedback.

48. Team leaders enlisting others in working toward a shared vision must remember that communication A. is not important in a team setting. B. is more important than collaboration. C. only involves conveying the vision to team members. D. involves being receptive to feedback.

B. Increased employee loyalty

49. Which of the following is an advantage of practicing effective human relations skills at work: A. Decline in employee morale B. Increased employee loyalty C. Increased employee absenteeism D. Decreased customer loyalty and patronage

A. Respect

50. Ava doesn't agree with her classmate's opinion, but she listens carefully instead of starting an argument or insulting her. Which ethical principle is Ava illustrating? A. Respect B. integrity C. Transparency D. Trust

A. When Naomi purchased office supplies, she presented the cashier with a card that automatically withdrew funds from her business's checking account.

51. Which of the following is an example of processing a transaction with a debit card: A. When Naomi purchased office supplies, she presented the cashier with a card that automatically withdrew funds from her business's checking account. B. Tyler provided his card number and expiration date to the online travel agency so he could obtain his airline tickets now and receive his bill for the tickets later. C. After Ava finished her meal at an upstate restaurant, she presented the server with a card that provided Ava with a special discount off her bill. D. Jayden purchased a new video game from Great Deal Electronics using a store-issued card given to him by his grandfather.

D. value.

52. One way money functions in society is that it helps people communicate a product's A. attributes. B. income. C. market. D. value.

C. Truth-in-Lending Act

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

C. The balance of the loan owed

54. What is the co-signer of a bank loan legally responsible to pay if the borrower defaults on the loan? A. The interest amount owed only B. The principle amount owed only C. The balance of the loan owed D. The original amount of the loan

B. Saving for retirement

55. For budgeting purposes, which of the following would be considered a long-term financial goal: A. Buying a used car B. Saving for retirement C. Saving for an annual vacation D. Creating an emergency fund

A. specific.

56. When setting financial goals, it is important to make sure that they are realistic and A. specific. B. general. C. conservative. D. durable.

A. net pay.

57. Althea just received her first paycheck at work. She's excited, but as she looks at her pay stub she gets confused. She wants to know how much money she's made this pay period, but there are so many different numbers. If Althea wants to know how much money will be actually deposited in her bank account, she should look at the A. net pay. B. gross pay. C. federal tax income. D. state tax.

A. back of the check.

58. To endorse a check, the payee must sign his/her name on the A. back of the check. B. signature block of the check. C. Check's memo line. D. check's "Pay to the order of" section.

B. Buy more with his card than he thinks he can afford

59. Jeff is a college student who just opened his first credit card. Which of the following should he NOT do: A. Pay his bill on time B. Buy more with his card than he think he can afford C. Think of his card as a loan D. Track his spending habits

A. Use unusual passwords rather than your date of birth to access your bank accounts.

60. What is one thing you can do to protect yourself from becoming a victim of identity theft? A. Use unusual passwords rather than your date of birth to access your bank accounts. B. Place your Social Security number or your social insurance number on all documents. C. Keep your passport on you at all times. D. Always pay with cash rather than credit cards or checks.

A. Credit union

61. Which of the following is a user-owned, nonprofit, cooperative financial institution: A. Credit union B. Commercial bank C. Insurance company D. Savings and loan association

A. The rate of return doesn't keep up with inflation.

62. Which of the following is a disadvantage of investing in a savings account: A. The rate of return doesn't keep up with inflation. B. A minimum balance is required to keep the account active. C. You must pay a penalty for withdrawing your money early. D. There is a high potential for loss.

A. language.

63. Financial information is not useful if it does not contain understandable A. language. B. footnotes. C. investment analysis. D. recommendations.

C. Assets minus liabilities should equal owner's equity.

64. What components must "balance" in a balanced sheet? A. Assets plus liabilities should equal net profit. B. Income plus expenses should equal owner's equity. C. Assets minus liabilities should equal owner's equity. D. Income minus expenses should equal owner's equity.

D. equity.

65. Aisha wants to buy new ovens for her bakery. They'll be expensive, but she has some money saved up that she can use for her purchase. Aisha plans to finance her new equipment using A. accounts receivable. B. dividends. C. debt. D. equity.

C. repossession.

66. Two years ago, Tommy borrowed $12,500 from his bank to purchase a new vehicle. Unfortunately, he lost his job about a year ago, and he hasn't been able to make a payment on the loan for six months. As a result, the bank is taking steps to seize his automobile. This is called A. forbearance. B. foreclosure. C. repossession. D. debt consolidation.