DECA Entrepreneurship Exam (correctly
answered to pass)
Which of the following is a legal concept that affects businesses that operate in
foreign countries:
A. Sovereign immunity
B. Eminent domain
C. Absolute privilege
D. Social responsibility - correct answer ✔✔A
The ABC Company published an incorrect statement about the quality of the
Marston Company's
product. As a result, Marston's sales have dramatically decreased. This is an
example of a legal tort
related to
A. infringement.
B. privacy.
C. defamation.
D. trespassing. - correct answer ✔✔C
Which of the following is an example of consideration in a contract:
A. Promising to make a gift
B. Putting the price in writing
C. Selling an item for $500
,D. Giving away an item worth $500 - correct answer ✔✔C
What federal law prohibits businesses from asking potential employees about
their medical history?
A. National Labor Relations Act
B. Vocational Rehabilitation Act
C. Fair Labor Standards Act
D. Americans with Disabilities Act - correct answer ✔✔D
Erick and Jacob are college graduates who want to open an accounting firm.
However, Erick has a full-
time position that he plans to continue but still wants to be a part of this business
venture. Which form of
business ownership would you recommend to Erick and Jacob?
A. Consolidation
B. General partnership
C. Limited partnership
D. Open corporation - correct answer ✔✔C
The goal of channels of distribution is to move products from producers to
A. intermediaries.
B. final consumers.
C. industrial distributors.
D. middlemen. - correct answer ✔✔B
, To build and repair bridges, Campbell Construction Company buys steel beams
from Horton
Manufacturing. In this situation, Campbell Construction Company is the
A. wholesaler.
B. industrial user.
C. producer.
D. indirect agent. - correct answer ✔✔B
Which of the following is a criterion that an investment company might use to
evaluate the performance
of its independent agents:
A. Inventory level
B. Customer service
C. Business plan
D. Operating policy - correct answer ✔✔B
When preparing a long, complex report, it is generally a good idea to include a
background statement
about the purpose of the report in the
A. body of the report.
B. letter of transmittal.
C. executive summary.
D. writer's recommendations. - correct answer ✔✔B
answered to pass)
Which of the following is a legal concept that affects businesses that operate in
foreign countries:
A. Sovereign immunity
B. Eminent domain
C. Absolute privilege
D. Social responsibility - correct answer ✔✔A
The ABC Company published an incorrect statement about the quality of the
Marston Company's
product. As a result, Marston's sales have dramatically decreased. This is an
example of a legal tort
related to
A. infringement.
B. privacy.
C. defamation.
D. trespassing. - correct answer ✔✔C
Which of the following is an example of consideration in a contract:
A. Promising to make a gift
B. Putting the price in writing
C. Selling an item for $500
,D. Giving away an item worth $500 - correct answer ✔✔C
What federal law prohibits businesses from asking potential employees about
their medical history?
A. National Labor Relations Act
B. Vocational Rehabilitation Act
C. Fair Labor Standards Act
D. Americans with Disabilities Act - correct answer ✔✔D
Erick and Jacob are college graduates who want to open an accounting firm.
However, Erick has a full-
time position that he plans to continue but still wants to be a part of this business
venture. Which form of
business ownership would you recommend to Erick and Jacob?
A. Consolidation
B. General partnership
C. Limited partnership
D. Open corporation - correct answer ✔✔C
The goal of channels of distribution is to move products from producers to
A. intermediaries.
B. final consumers.
C. industrial distributors.
D. middlemen. - correct answer ✔✔B
, To build and repair bridges, Campbell Construction Company buys steel beams
from Horton
Manufacturing. In this situation, Campbell Construction Company is the
A. wholesaler.
B. industrial user.
C. producer.
D. indirect agent. - correct answer ✔✔B
Which of the following is a criterion that an investment company might use to
evaluate the performance
of its independent agents:
A. Inventory level
B. Customer service
C. Business plan
D. Operating policy - correct answer ✔✔B
When preparing a long, complex report, it is generally a good idea to include a
background statement
about the purpose of the report in the
A. body of the report.
B. letter of transmittal.
C. executive summary.
D. writer's recommendations. - correct answer ✔✔B
