DECA Entrepreneurship Exam questions
& answers rated A+ passed
Libel - correct answer ✔✔Making false statements that harm a person's
reputation
Misrepresentation - correct answer ✔✔unrealistic claims about products
Negligence - correct answer ✔✔careless neglect, often resulting in injury
incompetent - correct answer ✔✔not having or showing the necessary skills to do
something successfully
Genuineness of assent - correct answer ✔✔all parties know what they are
agreeing to
Consideration - correct answer ✔✔must include something of value that both
parties bargain for
Capacity - correct answer ✔✔having the mental and cognitive ability to male and
understand the agreement and the consequences of their actions
Legality of Purpose - correct answer ✔✔any agreement must not violate any laws
, Corporation - correct answer ✔✔In a corporation, the profits are divided among
the stockholders. The officers of the corporation are responsible for the actual
operation and management of the firm.
Partnership - correct answer ✔✔Profits are divided among the people involved
and sometimes there is a disagreement between partners
Joint venture - correct answer ✔✔an arrangement that involves two or more
businesses entering into a relationship by combining resources, such as tech.,
skills, capital, and distribution channels, for the benefit of all parties
Sole Proprietorship - correct answer ✔✔Benefits may include:
- owner can act quickly
- owner receives all profits
- easy to start
- has certain tax advantages
- the details of the business are kept private
Sales Tax - correct answer ✔✔A tax on a sale of merchandise or services (Varies by
location)
Income Tax - correct answer ✔✔Tax paid to the state, federal, and local
governments based on income earned over the past year. (this comes from
employees)
Corporate Tax - correct answer ✔✔a tax charged to businesses based on their
total revenues
& answers rated A+ passed
Libel - correct answer ✔✔Making false statements that harm a person's
reputation
Misrepresentation - correct answer ✔✔unrealistic claims about products
Negligence - correct answer ✔✔careless neglect, often resulting in injury
incompetent - correct answer ✔✔not having or showing the necessary skills to do
something successfully
Genuineness of assent - correct answer ✔✔all parties know what they are
agreeing to
Consideration - correct answer ✔✔must include something of value that both
parties bargain for
Capacity - correct answer ✔✔having the mental and cognitive ability to male and
understand the agreement and the consequences of their actions
Legality of Purpose - correct answer ✔✔any agreement must not violate any laws
, Corporation - correct answer ✔✔In a corporation, the profits are divided among
the stockholders. The officers of the corporation are responsible for the actual
operation and management of the firm.
Partnership - correct answer ✔✔Profits are divided among the people involved
and sometimes there is a disagreement between partners
Joint venture - correct answer ✔✔an arrangement that involves two or more
businesses entering into a relationship by combining resources, such as tech.,
skills, capital, and distribution channels, for the benefit of all parties
Sole Proprietorship - correct answer ✔✔Benefits may include:
- owner can act quickly
- owner receives all profits
- easy to start
- has certain tax advantages
- the details of the business are kept private
Sales Tax - correct answer ✔✔A tax on a sale of merchandise or services (Varies by
location)
Income Tax - correct answer ✔✔Tax paid to the state, federal, and local
governments based on income earned over the past year. (this comes from
employees)
Corporate Tax - correct answer ✔✔a tax charged to businesses based on their
total revenues
