NOCTI Study Guide Practice Questions and Answers with Complete Solutions Graded A 2024

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 - 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. 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 - 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. Two types of business partnerships are general and: A. contractual B. fiduciary C. limited D. cooperative - 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. The planning, pricing, promoting, and distribution of goods and services is known as: A. advertising B. marketing C. logistics D. forecasting - B. marketing B is correct because marketing involves the planning, pricing, promoting, and distribution of goods and services. 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 - 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. A mission statement describes an organization's: A. absentee policy B. building plans C. purpose or goal D. job postings - 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. 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 - 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. The term for research to determine factors, conditions, and characteristics of a market is: A. brainstorming B. market analysis C. goal setting D. prototyping - B. market analysis B is correct because market analysis is the process of determining factors, conditions, and characteristics of a market. Product managers should conduct a market analysis before launching a new product.