DECA BUSINESS FINANCE KPIS EXAM
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
What is business law? - ANS The body of law that governs business and commercial
transactions, including regulations and statutes that businesses must follow.
What are the sources of law in the United States? - ANS The primary sources of law include
the Constitution, statutes enacted by legislatures, regulations created by administrative
agencies, and case law established by judicial decisions.
What is the United States' judicial system? - ANS The judicial system consists of federal and
state courts that interpret and apply the law, resolve disputes, and ensure justice.
What are intellectual property protections? - ANS Legal rights that grant creators control over
the use of their inventions, designs, and artistic works, including patents, copyrights, and
trademarks.
What are common legal issues affecting businesses? - ANS Legal issues can include contract
disputes, employment law violations, intellectual property infringement, and regulatory
compliance challenges.
What are torts in business? - ANS Torts are civil wrongs that cause harm or loss to individuals
or entities, which can result in legal liability for businesses.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What constitutes a legally binding contract? - ANS A legally binding contract is an agreement
between parties that is enforceable by law, requiring an offer, acceptance, consideration, and
mutual intent to be bound.
What is the nature of legal procedure? - ANS Legal procedure refers to the rules and
processes that govern how legal cases are conducted in court, including filing, hearings, and
appeals.
What are debtor-creditor relationships? - ANS Debtor-creditor relationships involve the
obligations and rights between a borrower (debtor) and a lender (creditor), including terms of
repayment and interest.
What are agency relationships? - ANS Agency relationships occur when one party (the agent)
is authorized to act on behalf of another party (the principal) in business transactions.
What is environmental law? - ANS Environmental law encompasses regulations and statutes
that protect the environment and public health by controlling pollution and managing natural
resources.
What is administrative law? - ANS Administrative law governs the activities of administrative
agencies of government, including rulemaking, enforcement, and adjudication.
What are the types of business ownership? - ANS Types of business ownership include sole
proprietorships, partnerships, corporations, and limited liability companies (LLCs).
What is import/export law? - ANS Import/export law regulates the movement of goods
across international borders, including tariffs, trade agreements, and compliance with customs
regulations.
What are customs regulations? - ANS Customs regulations are laws governing the import and
export of goods, including duties, tariffs, and documentation required for trade.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What are effective communication techniques? - ANS Effective communication techniques
include active listening, clear verbal expression, appropriate body language, and adapting
messages to the audience.
What is active listening? - ANS Active listening is the practice of fully concentrating,
understanding, responding, and remembering what is being said in a conversation.
What is the nature of effective verbal communications? - ANS Effective verbal
communications involve clarity, conciseness, and the ability to convey information in a way that
is easily understood by the audience.
What are customer relations? - ANS Customer relations refer to the strategies and practices
that businesses use to manage interactions with customers and build positive relationships.
What is customer relationship management (CRM)? - ANS CRM is a strategy for managing a
company's interactions with current and potential customers, using data analysis to improve
relationships and retention.
What are economic goods? - ANS Economic goods are tangible products that can be bought
or sold, as opposed to services, which are intangible.
What are economic resources? - ANS Economic resources are the inputs used to produce
goods and services, including land, labor, capital, and entrepreneurship.
What is the principle of supply and demand? - ANS The principle of supply and demand
states that the price of a good or service is determined by the relationship between its
availability (supply) and the desire for it (demand).
What are the functions of prices in markets? - ANS Prices in markets serve to allocate
resources, signal information to consumers and producers, and provide incentives for
production and consumption.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is the role of business in society? - ANS Businesses contribute to society by providing
goods and services, creating jobs, and driving economic growth.
What are types of business activities? - ANS Business activities include production,
marketing, sales, and service delivery.
What are types of business models? - ANS Business models include B2B (business-to-
business), B2C (business-to-consumer), C2C (consumer-to-consumer), and subscription models.
What is organizational design in businesses? - ANS Organizational design refers to the
structure of a business, including roles, responsibilities, and communication systems.
What is the global environment in which businesses operate? - ANS The global environment
includes international markets, trade regulations, cultural differences, and global economic
conditions.
What factors affect the business environment? - ANS Factors include economic conditions,
competition, technology, regulations, and social trends.
What is business ethics? - ANS Business ethics involves the principles and standards that
guide behavior in the business world.
How do organizations adapt to today's markets? - ANS Organizations adapt by innovating,
responding to consumer demands, and leveraging technology.
What are types of economic systems? - ANS Types of economic systems include capitalism,
socialism, and mixed economies.
What is the impact of small business/entrepreneurship on market economies? - ANS Small
businesses drive innovation, create jobs, and contribute to economic growth.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
What is business law? - ANS The body of law that governs business and commercial
transactions, including regulations and statutes that businesses must follow.
What are the sources of law in the United States? - ANS The primary sources of law include
the Constitution, statutes enacted by legislatures, regulations created by administrative
agencies, and case law established by judicial decisions.
What is the United States' judicial system? - ANS The judicial system consists of federal and
state courts that interpret and apply the law, resolve disputes, and ensure justice.
What are intellectual property protections? - ANS Legal rights that grant creators control over
the use of their inventions, designs, and artistic works, including patents, copyrights, and
trademarks.
What are common legal issues affecting businesses? - ANS Legal issues can include contract
disputes, employment law violations, intellectual property infringement, and regulatory
compliance challenges.
What are torts in business? - ANS Torts are civil wrongs that cause harm or loss to individuals
or entities, which can result in legal liability for businesses.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What constitutes a legally binding contract? - ANS A legally binding contract is an agreement
between parties that is enforceable by law, requiring an offer, acceptance, consideration, and
mutual intent to be bound.
What is the nature of legal procedure? - ANS Legal procedure refers to the rules and
processes that govern how legal cases are conducted in court, including filing, hearings, and
appeals.
What are debtor-creditor relationships? - ANS Debtor-creditor relationships involve the
obligations and rights between a borrower (debtor) and a lender (creditor), including terms of
repayment and interest.
What are agency relationships? - ANS Agency relationships occur when one party (the agent)
is authorized to act on behalf of another party (the principal) in business transactions.
What is environmental law? - ANS Environmental law encompasses regulations and statutes
that protect the environment and public health by controlling pollution and managing natural
resources.
What is administrative law? - ANS Administrative law governs the activities of administrative
agencies of government, including rulemaking, enforcement, and adjudication.
What are the types of business ownership? - ANS Types of business ownership include sole
proprietorships, partnerships, corporations, and limited liability companies (LLCs).
What is import/export law? - ANS Import/export law regulates the movement of goods
across international borders, including tariffs, trade agreements, and compliance with customs
regulations.
What are customs regulations? - ANS Customs regulations are laws governing the import and
export of goods, including duties, tariffs, and documentation required for trade.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What are effective communication techniques? - ANS Effective communication techniques
include active listening, clear verbal expression, appropriate body language, and adapting
messages to the audience.
What is active listening? - ANS Active listening is the practice of fully concentrating,
understanding, responding, and remembering what is being said in a conversation.
What is the nature of effective verbal communications? - ANS Effective verbal
communications involve clarity, conciseness, and the ability to convey information in a way that
is easily understood by the audience.
What are customer relations? - ANS Customer relations refer to the strategies and practices
that businesses use to manage interactions with customers and build positive relationships.
What is customer relationship management (CRM)? - ANS CRM is a strategy for managing a
company's interactions with current and potential customers, using data analysis to improve
relationships and retention.
What are economic goods? - ANS Economic goods are tangible products that can be bought
or sold, as opposed to services, which are intangible.
What are economic resources? - ANS Economic resources are the inputs used to produce
goods and services, including land, labor, capital, and entrepreneurship.
What is the principle of supply and demand? - ANS The principle of supply and demand
states that the price of a good or service is determined by the relationship between its
availability (supply) and the desire for it (demand).
What are the functions of prices in markets? - ANS Prices in markets serve to allocate
resources, signal information to consumers and producers, and provide incentives for
production and consumption.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is the role of business in society? - ANS Businesses contribute to society by providing
goods and services, creating jobs, and driving economic growth.
What are types of business activities? - ANS Business activities include production,
marketing, sales, and service delivery.
What are types of business models? - ANS Business models include B2B (business-to-
business), B2C (business-to-consumer), C2C (consumer-to-consumer), and subscription models.
What is organizational design in businesses? - ANS Organizational design refers to the
structure of a business, including roles, responsibilities, and communication systems.
What is the global environment in which businesses operate? - ANS The global environment
includes international markets, trade regulations, cultural differences, and global economic
conditions.
What factors affect the business environment? - ANS Factors include economic conditions,
competition, technology, regulations, and social trends.
What is business ethics? - ANS Business ethics involves the principles and standards that
guide behavior in the business world.
How do organizations adapt to today's markets? - ANS Organizations adapt by innovating,
responding to consumer demands, and leveraging technology.
What are types of economic systems? - ANS Types of economic systems include capitalism,
socialism, and mixed economies.
What is the impact of small business/entrepreneurship on market economies? - ANS Small
businesses drive innovation, create jobs, and contribute to economic growth.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
