DECA-FINANCE CLUSTER EXAM QUESTIONS &
ANSWERS
1. Which of the following is a type of intangible business property that is protected by
law:
A. Equipment
B. Inventory
C. Acreage
D. Trademark - Answers -D
2. When filing a tort against a business, the plaintiff must establish that the defendant
A. damaged property intentionally.
B. breached the duty of care.
C. conspired with a competitor.
D. violated the doctrine of sovereign immunity. - Answers -B
3. Which of the following is an example of a voluntary debtor-creditor relationship:
A. Requiring specific information
B. Receiving a monetary gift
C. Obtaining a loan from a bank
D. Owing punitive damages - Answers -C
4. Chris purchased 500 shares of microcap HRR stock. Then, he posted false
information about HRR on several investment websites to hype up the stock. After
driving up the price of HRR stock, Chris quickly sold all of his stock in the company and
earned a large profit. The price of the stock then fell, leaving HRR investors with
worthless stock. What type of investment scam did Chris commit?
A. Phishing
B. Pyramid scheme
C. Ponzi scheme
D. Pump and dump - Answers -D
5. Which of the following statements best describes the taxation of Roth IRAs:
A. Contributions and withdrawals during retirement are both taxed.
B. Contributions are tax deductible, but withdrawals during retirement are taxed.
C. Contributions are taxed, but withdrawals during retirement are not.
D. Contributions and withdrawals during retirement are tax deductible. - Answers -C
,6. Compliance in the finance industry involves financial institutions operating within
A. specific territories.
B. regulatory guidelines.
C. organizational plans.
D. different relationships. - Answers -B
7. In general, a governance, risk, and compliance (GRC) software system identifies and
measures risk; monitors the risk-management system; routinely checks adherence to
company-wide policies; and ensures compliance with
A. reporting requirements.
B. union demands.
C. product standards.
D. contingency plans. - Answers -A
8. While conducting a staff meeting, the speaker noticed that Colin was texting on his
smartphone. Colin's nonverbal behavior indicates that he was
A. distracted.
B. annoyed.
C. listening to the speaker.
D. interested in the topic. - Answers -A
9. Before DiAnn presents her new idea to her boss, she searches the Internet and jots
down two statistics that reinforce the idea. This is an example of
A. obtaining primary information.
B. supporting ideas with evidence.
C. giving alternative ideas.
D. clarifying a new idea. - Answers -B
10. At work, Bob is assigned to be on a team of five people that will create a new
product. Which action can Bob take to participate in the team in a useful way?
A. Keep the group on track by stopping others from offering unusual ideas
B. Encourage the team to avoid setting ground rules
C. Find out what other people in the group know about the product
D. Walk around the room during discussions to keep energy in the group - Answers -C
11. Alma is preparing a presentation about her department's budget to make to the
company president. She wants to use a visual representation of the budget that shows
parts in relation to the whole. Alma should consider using a
A. table.
B. pie chart.
, C. line graph.
D. bar graph. - Answers -B
12. What type of letter should a business include when sending copies of a contract to a
vendor?
A. Request
B. Acknowledgment
C. Claim
D. Transmittal - Answers -D
13. Identify the type of appeal used in the following persuasive message: "This new
book is written by Dr. Juliet Browne, who holds a doctorate from the Harvard School of
Medicine and is the Chair of the World Health Organization."
A. Emotions
B. Reason
C. Credibility
D. Shock value - Answers -C
14. What is a type of informal communication that coworkers often use to communicate
with each other?
A. Network
B. Feedback
C. Grapevine
D. Structured - Answers -C
15. What is one of the benefits to a business of reinforcing service orientation through
communication?
A. Rewards customers for their support
B. Promotes the sale of new products
C. Builds positive relationships with customers
D. Encourages employees to be aggressive - Answers -C
16. When Mr. Schwarz's order did not arrive at the expected time, he called Karl, the
salesperson with whom he had placed his order. Karl apologized for the delay and told
Mr. Schwarz that he would check into the issue. After Karl talked with the transportation
company, he immediately called Mr. Schwarz to let him know where the order was and
when to expect delivery. Mr. Schwarz thanked Karl for getting back with him so quickly.
In this situation, Karl reinforced the company's image by
A. delegating work tasks.
B. giving vague answers.
C. providing efficient follow-up.
ANSWERS
1. Which of the following is a type of intangible business property that is protected by
law:
A. Equipment
B. Inventory
C. Acreage
D. Trademark - Answers -D
2. When filing a tort against a business, the plaintiff must establish that the defendant
A. damaged property intentionally.
B. breached the duty of care.
C. conspired with a competitor.
D. violated the doctrine of sovereign immunity. - Answers -B
3. Which of the following is an example of a voluntary debtor-creditor relationship:
A. Requiring specific information
B. Receiving a monetary gift
C. Obtaining a loan from a bank
D. Owing punitive damages - Answers -C
4. Chris purchased 500 shares of microcap HRR stock. Then, he posted false
information about HRR on several investment websites to hype up the stock. After
driving up the price of HRR stock, Chris quickly sold all of his stock in the company and
earned a large profit. The price of the stock then fell, leaving HRR investors with
worthless stock. What type of investment scam did Chris commit?
A. Phishing
B. Pyramid scheme
C. Ponzi scheme
D. Pump and dump - Answers -D
5. Which of the following statements best describes the taxation of Roth IRAs:
A. Contributions and withdrawals during retirement are both taxed.
B. Contributions are tax deductible, but withdrawals during retirement are taxed.
C. Contributions are taxed, but withdrawals during retirement are not.
D. Contributions and withdrawals during retirement are tax deductible. - Answers -C
,6. Compliance in the finance industry involves financial institutions operating within
A. specific territories.
B. regulatory guidelines.
C. organizational plans.
D. different relationships. - Answers -B
7. In general, a governance, risk, and compliance (GRC) software system identifies and
measures risk; monitors the risk-management system; routinely checks adherence to
company-wide policies; and ensures compliance with
A. reporting requirements.
B. union demands.
C. product standards.
D. contingency plans. - Answers -A
8. While conducting a staff meeting, the speaker noticed that Colin was texting on his
smartphone. Colin's nonverbal behavior indicates that he was
A. distracted.
B. annoyed.
C. listening to the speaker.
D. interested in the topic. - Answers -A
9. Before DiAnn presents her new idea to her boss, she searches the Internet and jots
down two statistics that reinforce the idea. This is an example of
A. obtaining primary information.
B. supporting ideas with evidence.
C. giving alternative ideas.
D. clarifying a new idea. - Answers -B
10. At work, Bob is assigned to be on a team of five people that will create a new
product. Which action can Bob take to participate in the team in a useful way?
A. Keep the group on track by stopping others from offering unusual ideas
B. Encourage the team to avoid setting ground rules
C. Find out what other people in the group know about the product
D. Walk around the room during discussions to keep energy in the group - Answers -C
11. Alma is preparing a presentation about her department's budget to make to the
company president. She wants to use a visual representation of the budget that shows
parts in relation to the whole. Alma should consider using a
A. table.
B. pie chart.
, C. line graph.
D. bar graph. - Answers -B
12. What type of letter should a business include when sending copies of a contract to a
vendor?
A. Request
B. Acknowledgment
C. Claim
D. Transmittal - Answers -D
13. Identify the type of appeal used in the following persuasive message: "This new
book is written by Dr. Juliet Browne, who holds a doctorate from the Harvard School of
Medicine and is the Chair of the World Health Organization."
A. Emotions
B. Reason
C. Credibility
D. Shock value - Answers -C
14. What is a type of informal communication that coworkers often use to communicate
with each other?
A. Network
B. Feedback
C. Grapevine
D. Structured - Answers -C
15. What is one of the benefits to a business of reinforcing service orientation through
communication?
A. Rewards customers for their support
B. Promotes the sale of new products
C. Builds positive relationships with customers
D. Encourages employees to be aggressive - Answers -C
16. When Mr. Schwarz's order did not arrive at the expected time, he called Karl, the
salesperson with whom he had placed his order. Karl apologized for the delay and told
Mr. Schwarz that he would check into the issue. After Karl talked with the transportation
company, he immediately called Mr. Schwarz to let him know where the order was and
when to expect delivery. Mr. Schwarz thanked Karl for getting back with him so quickly.
In this situation, Karl reinforced the company's image by
A. delegating work tasks.
B. giving vague answers.
C. providing efficient follow-up.
