DECA-Finance Cluster Exam with questions and
detailed verified answers 2026
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 - ANSWERD
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. - ANSWERB
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 - ANSWERC
,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 - ANSWERD
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. - ANSWERC
6. Compliance in the finance industry involves financial institutions operating within
A. specific territories.
B. regulatory guidelines.
C. organizational plans.
D. different relationships. - ANSWERB
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. - ANSWERA
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. - ANSWERA
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. - ANSWERB
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 - ANSWERC
, 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. - ANSWERB
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 - ANSWERD
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 - ANSWERC
14. What is a type of informal communication that coworkers often use to communicate with each
other?
A. Network
B. Feedback
detailed verified answers 2026
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 - ANSWERD
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. - ANSWERB
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 - ANSWERC
,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 - ANSWERD
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. - ANSWERC
6. Compliance in the finance industry involves financial institutions operating within
A. specific territories.
B. regulatory guidelines.
C. organizational plans.
D. different relationships. - ANSWERB
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. - ANSWERA
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. - ANSWERA
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. - ANSWERB
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 - ANSWERC
, 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. - ANSWERB
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 - ANSWERD
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 - ANSWERC
14. What is a type of informal communication that coworkers often use to communicate with each
other?
A. Network
B. Feedback
