DECA Entrepreneurship and Small
Business Management Exam Answered
Correctly!!!
1.A business that fails to protect its employees from unnecessary risk or health hazards
on the job may be
sued for CORRECT ANSWERS C. Negligence. A business might be sued for
negligence if it does not take reasonable precautions to protect workers from risks or
health hazards on the job.
2.What requirement of a legally enforceable contract requires that both of the parties
who are entering into
the contract are sane, sober, and of legal age? CORRECT ANSWERS C. Capacity.
Certain conditions must be met for a contract to be legally enforceable.
3.The owner receives all of the profits of the business and can act quickly in making
business decisions
when the form of business ownership is a CORRECT ANSWERS D. Sole
proprietorship. Other advantages of a sole proprietorship are that it is easy to start, it
has certain tax advantages, and the details of the business can be kept private.
4.Which of the following is the type of tax that businesses are required to collect from
customers when they
purchase certain goods or services: CORRECT ANSWERS C. Sales. Sales taxes are
monies charged on sales of certain goods and services by state and/or local
governments.
5.Which of the following is a condition that must exist for channels to be effective:
CORRECT ANSWERS D. They must be properly managed. To be effective, channels
must be properly managed.
6.Which of the following is a marketing function that can be performed by channel
intermediaries: CORRECT ANSWERS A. Promoting products. Channel intermediaries
are persons or businesses that perform channel functions in an indirect channel of
distribution.
7. A manufacturer of dishwashing soap has just invented a new type of soap that cleans
better. The
manufacturer should choose to distribute the soap through __________ distribution.
CORRECT ANSWERS A. Intensive. Producers of consumer goods, such as
dishwashing soap or candy, should use intensive
distribution in order to make their product as available to consumers as possible.
, 8.What type of information does a well-written proposal include? CORRECT ANSWERS
B. Specific benefits. A proposal is an informational document that presents the reader
with a call to action. A proposal often suggests ways to solve a problem or to obtain
information by taking a specific course of action.
9.There are several auto repair shops in town, but Patricia's stands out. Her auto repair
shop does great work, but what really sets her shop apart is the customer service.
Every customer is greeted by a friendly employee, and s/he is given snacks and drinks
while s/he waits for the repairs to be completed. The great customer service that people
can expect from Patricia's business is considered her CORRECT ANSWERS C.Brand
promise. A business's brand promise is its (spoken or unspoken) agreement with its
customers that it will consistently meet their expectations. When Patricia's customers
visit her business, they know they'll receive outstanding customer service every time.
10. Financial loss from investing time and money to comply with accounting standards
is an example of which strategic risk: CORRECT ANSWERS C. Regulatory and political
issues. Revenues and profits are affected by what governments require.
11.The government's mandating the use of unleaded gas in new cars is an example of
CORRECT ANSWERS B. Protecting the environment. Unleaded gas is less harmful to
the environment than leaded gas. Specific businesses are protected through subsidies
or price supports.
12. What type of business usually experiences economies of scale due to expanded
operations? CORRECT ANSWERS A. Large manufacturing plant. Economies of scale
is the concept that increasing the scale of production will lead to a decrease in the cost
of production while increasing the output.
13. Business people who respect the unique customs and habits of their foreign
customers are exhibiting CORRECT ANSWERS C. Cultural sensitivity. Culture is the
customs, habits, and traditions of a particular group of people. The way that different
people interact with one another is an expression of their culture.
14. "Yes, you'll save money instantly" is an example of a statement with CORRECT
ANSWERS C. Persuasive words. "Yes, you'll save money instantly" uses several
persuasive words. It is also directed to the person you're speaking with, instead of being
an impersonal message.
15. Which of the following is a characteristic of a self-confident leader: CORRECT
ANSWERS C. S/He is decisive, even in uncertain circumstances. Self-confidence is a
positive belief in your own talents, skills, and objectives.
16. Why is it important for team members to feel a sense of "ownership" and
engagement in the vision? CORRECT ANSWERS A.It's the only way they will become
committed to it. It's difficult to get people excited about a vision they don't really feel a
Business Management Exam Answered
Correctly!!!
1.A business that fails to protect its employees from unnecessary risk or health hazards
on the job may be
sued for CORRECT ANSWERS C. Negligence. A business might be sued for
negligence if it does not take reasonable precautions to protect workers from risks or
health hazards on the job.
2.What requirement of a legally enforceable contract requires that both of the parties
who are entering into
the contract are sane, sober, and of legal age? CORRECT ANSWERS C. Capacity.
Certain conditions must be met for a contract to be legally enforceable.
3.The owner receives all of the profits of the business and can act quickly in making
business decisions
when the form of business ownership is a CORRECT ANSWERS D. Sole
proprietorship. Other advantages of a sole proprietorship are that it is easy to start, it
has certain tax advantages, and the details of the business can be kept private.
4.Which of the following is the type of tax that businesses are required to collect from
customers when they
purchase certain goods or services: CORRECT ANSWERS C. Sales. Sales taxes are
monies charged on sales of certain goods and services by state and/or local
governments.
5.Which of the following is a condition that must exist for channels to be effective:
CORRECT ANSWERS D. They must be properly managed. To be effective, channels
must be properly managed.
6.Which of the following is a marketing function that can be performed by channel
intermediaries: CORRECT ANSWERS A. Promoting products. Channel intermediaries
are persons or businesses that perform channel functions in an indirect channel of
distribution.
7. A manufacturer of dishwashing soap has just invented a new type of soap that cleans
better. The
manufacturer should choose to distribute the soap through __________ distribution.
CORRECT ANSWERS A. Intensive. Producers of consumer goods, such as
dishwashing soap or candy, should use intensive
distribution in order to make their product as available to consumers as possible.
, 8.What type of information does a well-written proposal include? CORRECT ANSWERS
B. Specific benefits. A proposal is an informational document that presents the reader
with a call to action. A proposal often suggests ways to solve a problem or to obtain
information by taking a specific course of action.
9.There are several auto repair shops in town, but Patricia's stands out. Her auto repair
shop does great work, but what really sets her shop apart is the customer service.
Every customer is greeted by a friendly employee, and s/he is given snacks and drinks
while s/he waits for the repairs to be completed. The great customer service that people
can expect from Patricia's business is considered her CORRECT ANSWERS C.Brand
promise. A business's brand promise is its (spoken or unspoken) agreement with its
customers that it will consistently meet their expectations. When Patricia's customers
visit her business, they know they'll receive outstanding customer service every time.
10. Financial loss from investing time and money to comply with accounting standards
is an example of which strategic risk: CORRECT ANSWERS C. Regulatory and political
issues. Revenues and profits are affected by what governments require.
11.The government's mandating the use of unleaded gas in new cars is an example of
CORRECT ANSWERS B. Protecting the environment. Unleaded gas is less harmful to
the environment than leaded gas. Specific businesses are protected through subsidies
or price supports.
12. What type of business usually experiences economies of scale due to expanded
operations? CORRECT ANSWERS A. Large manufacturing plant. Economies of scale
is the concept that increasing the scale of production will lead to a decrease in the cost
of production while increasing the output.
13. Business people who respect the unique customs and habits of their foreign
customers are exhibiting CORRECT ANSWERS C. Cultural sensitivity. Culture is the
customs, habits, and traditions of a particular group of people. The way that different
people interact with one another is an expression of their culture.
14. "Yes, you'll save money instantly" is an example of a statement with CORRECT
ANSWERS C. Persuasive words. "Yes, you'll save money instantly" uses several
persuasive words. It is also directed to the person you're speaking with, instead of being
an impersonal message.
15. Which of the following is a characteristic of a self-confident leader: CORRECT
ANSWERS C. S/He is decisive, even in uncertain circumstances. Self-confidence is a
positive belief in your own talents, skills, and objectives.
16. Why is it important for team members to feel a sense of "ownership" and
engagement in the vision? CORRECT ANSWERS A.It's the only way they will become
committed to it. It's difficult to get people excited about a vision they don't really feel a
