NOCTI STUDY GUIDE QUESTIONS UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

NOCTI STUDY GUIDE QUESTIONS UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS

Question:
1. If a business conducts SWOT analysis to decide whether or not to expand, which of the following would
be categorized as an ''O''?
A. money is available for the expansion
B. there is the potential for increased profits
C. new competition could enter the market
D. company expenses have increased
Answer:
B. there is the potential for increased profits
B is correct because a SWOT analysis is a planning tool used to determine or evaluate an organization's
strengths, weaknesses, opportunities, and threats as related to a project or decision. An opportunity refers
to an external condition or possibility that may benefit a company if it pursues the action or decision. A
potential for increased profits is an example of an opportunity.

Question:
2. The North American Free Trade Agreement (NAFTA) created a free-trade area for:
A. Mexico, the U.S., and Canada
B. Mexico and Canada
C. Mexico and Panama
D. Mexico, Guatemala, and Belize
Answer:
A. Mexico, the U.S., and Canada
A is correct because the North American Free Trade Agreement (NAFTA) created a freetrade area for
Mexico, the United States, and Canada.

Question:
3. Two types of business partnerships are general and:
A. contractual
B. fiduciary
C. limited
D. cooperative
Answer:
C. limited
C is correct because the two types of business partnerships are general and limited. A general partnership is
a business that is made up of two or more individuals where each partner contributes money, property,
labor, or special skills and each partner shares in the business's profits or losses. A limited partnership
resembles a general partnership but the limited partner is not liable for the partnership's debts other than
the funds that were contributed to the partnership. The limited partner will not normally participate in the
activities of the partnership.

, Question:
4. The planning, pricing, promoting, and distribution of goods and services is known as:
A. advertising
B. marketing
C. logistics
D. forecasting
Answer:
B. marketing
B is correct because marketing involves the planning, pricing, promoting, and distribution of goods and
services.

Question:
5. The main purpose of an effective performance evaluation is to:
A. help companies determine who to fire when times get hard
B. help workers to determine when they should ask for a salary increase
C. help workers develop their strengths and work on their weaknesses
D. help companies to determine what other jobs workers might be good at
Answer:
C. help workers develop their strengths and work on their weaknesses
C is correct because the main purpose of an effective performance evaluation is to help workers develop
their strengths and work on their weaknesses.

Question:
6. A mission statement describes an organization's:
A. absentee policy
B. building plans
C. purpose or goal
D. job postings
Answer:
C. purpose or goal
C is correct because the communication of the purpose and goal is generally the reason for an
organization's mission statement.

Question:
7. The best way to motivate workers to do a good job is:
A. providing positive feedback to reinforce what they do correctly
B. providing negative feedback to discourage them from what they do incorrectly
C. making them compete against each other to encourage a spirit of achievement
D. acknowledging only group achievements rather than individual ones to reinforce the team attitude
Answer:
A. providing positive feedback to reinforce what they do correctly
A is correct because providing positive feedback to reinforce what workers do correctly is most likely to
motivate workers to work the best they can and to improve their performance.