DECA:PRINCIPLES OF BUSINESS MANAGEMENT
AND ADMINISTRATION NEWEST ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+
Discuss the nature of law and sources of law in the United States.-ANSWERS-Law is used to keep
order in civilization. This can be enforced by the police or higher government officials.
Describe the United States' judicial system-ANSWERS-The Judiciary is made up of courts --
Supreme, Circuit, the magistrate (local) and municipal (city) courts. The Judicial branch
interprets the laws.
Describe legal issues affecting businesses (SP)-ANSWERS-Disgruntled Employees
Discrimination/Harassment Cases
Harassment
Immigration Audits
Copyright and Patent Issues
Identify the basic torts relating to business enterprises (SP)-ANSWERS-The area of tort law
covers a wide range of misconduct, including personal injuries, negligence, and malpractice.
Wrongful Interference
Unfair Competition
,Disparagement
Computer Torts
Describe the nature of legally binding contracts (SP)-ANSWERS-Generally, to be legally valid,
most contracts must contain two elements:
1. All parties must agree about an offer made by one party and accepted by the other.
2. Something of value must be exchanged for something else of value. This can include goods,
cash, services, or a pledge to exchange these items.
Describe the nature of legal procedure (SP)-ANSWERS-he rules by which a court hears and
determines what happens in civil lawsuit, criminal or administrative proceedings.
Discuss the nature of debtor-creditor relationships (SP)-ANSWERS-A creditor provides money to
an individual. Until the individual repays the amount, they are considered a debtor.
Explain the nature of agency relationships (SP)-ANSWERS-an area of commercial law dealing
with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that
involve a person, called the agent, that is authorized to act on behalf of another (called the
principal) to create legal relations with a third party.
Discuss the nature of environmental law (SP)-ANSWERS-A legal forum for environmental and
natural resources
Discuss the role of administrative law (SP)-ANSWERS-the body of law that regulates the
operation and procedures of government agencies.
Explain what it means to have sole proprietorship (CS)-ANSWERS-A sole proprietorship is owned
and run by one individual who receives all profits and has unlimited responsibility for all losses
and debts.
, Explain what it means to have General Partnership (CS)-ANSWERS-A General Partnership is
composed of 2 or more persons (usually not a married couple) who agree to contribute money,
labor, or skill to a business. Each partner shares the profits, losses, and management of the
business, and each partner is personally and equally liable for debts of the partnership. Formal
terms of the partnership are usually contained in a written partnership agreement.
Explain what it means to have Limited Partnership (CS)-ANSWERS-A Limited Partnership is
composed of one or more general partners and one or more limited partners. The general
partners manage the business and share fully in its profits and losses. Limited partners share in
the profits of the business, but their losses are limited to the extent of their investment.
Explain what it means to have Limited Liability Partnership (LLP) (CS)-ANSWERS-A Limited
Liability Partnership (LLP) is similar to a General Partnership except that normally a partner
doesn't have personal liability for the negligence of another partner. This business structure is
used most by professionals, such as accountants and lawyers.
Explain what it means to have Limited Liability Limited Partnership (LLLP) (CS)-ANSWERS-A
Limited Liability Limited Partnership is a Limited Partnership that chooses to become an LLLP by
including a statement to that effect in its certificate of limited partnership. This type of business
structure may shield general partners from liability for obligations of the LLLP.
Explain what it means to have Corporation (CS)-ANSWERS-A Corporation is a more complex
business structure. A corporation has certain rights, privileges, and liabilities beyond those of an
individual. Doing business as a corporation may yield tax or financial benefits, but these can be
offset by other considerations, such as increased licensing fees or decreased personal control.
Corporations may be formed for profit or nonprofit purposes.
Explain what it means to have Limited Liability Company (LLC) (CS)-ANSWERS-A Limited Liability
Company (LLC) is formed by 1 or more individuals or entities through a special written
agreement. The agreement details the organization of the LLC, including provisions for
management, assignability of interests, and distribution of profits and losses. LLCs are permitted
to engage in any lawful, for-profit business or activity other than banking or insurance.
AND ADMINISTRATION NEWEST ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+
Discuss the nature of law and sources of law in the United States.-ANSWERS-Law is used to keep
order in civilization. This can be enforced by the police or higher government officials.
Describe the United States' judicial system-ANSWERS-The Judiciary is made up of courts --
Supreme, Circuit, the magistrate (local) and municipal (city) courts. The Judicial branch
interprets the laws.
Describe legal issues affecting businesses (SP)-ANSWERS-Disgruntled Employees
Discrimination/Harassment Cases
Harassment
Immigration Audits
Copyright and Patent Issues
Identify the basic torts relating to business enterprises (SP)-ANSWERS-The area of tort law
covers a wide range of misconduct, including personal injuries, negligence, and malpractice.
Wrongful Interference
Unfair Competition
,Disparagement
Computer Torts
Describe the nature of legally binding contracts (SP)-ANSWERS-Generally, to be legally valid,
most contracts must contain two elements:
1. All parties must agree about an offer made by one party and accepted by the other.
2. Something of value must be exchanged for something else of value. This can include goods,
cash, services, or a pledge to exchange these items.
Describe the nature of legal procedure (SP)-ANSWERS-he rules by which a court hears and
determines what happens in civil lawsuit, criminal or administrative proceedings.
Discuss the nature of debtor-creditor relationships (SP)-ANSWERS-A creditor provides money to
an individual. Until the individual repays the amount, they are considered a debtor.
Explain the nature of agency relationships (SP)-ANSWERS-an area of commercial law dealing
with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that
involve a person, called the agent, that is authorized to act on behalf of another (called the
principal) to create legal relations with a third party.
Discuss the nature of environmental law (SP)-ANSWERS-A legal forum for environmental and
natural resources
Discuss the role of administrative law (SP)-ANSWERS-the body of law that regulates the
operation and procedures of government agencies.
Explain what it means to have sole proprietorship (CS)-ANSWERS-A sole proprietorship is owned
and run by one individual who receives all profits and has unlimited responsibility for all losses
and debts.
, Explain what it means to have General Partnership (CS)-ANSWERS-A General Partnership is
composed of 2 or more persons (usually not a married couple) who agree to contribute money,
labor, or skill to a business. Each partner shares the profits, losses, and management of the
business, and each partner is personally and equally liable for debts of the partnership. Formal
terms of the partnership are usually contained in a written partnership agreement.
Explain what it means to have Limited Partnership (CS)-ANSWERS-A Limited Partnership is
composed of one or more general partners and one or more limited partners. The general
partners manage the business and share fully in its profits and losses. Limited partners share in
the profits of the business, but their losses are limited to the extent of their investment.
Explain what it means to have Limited Liability Partnership (LLP) (CS)-ANSWERS-A Limited
Liability Partnership (LLP) is similar to a General Partnership except that normally a partner
doesn't have personal liability for the negligence of another partner. This business structure is
used most by professionals, such as accountants and lawyers.
Explain what it means to have Limited Liability Limited Partnership (LLLP) (CS)-ANSWERS-A
Limited Liability Limited Partnership is a Limited Partnership that chooses to become an LLLP by
including a statement to that effect in its certificate of limited partnership. This type of business
structure may shield general partners from liability for obligations of the LLLP.
Explain what it means to have Corporation (CS)-ANSWERS-A Corporation is a more complex
business structure. A corporation has certain rights, privileges, and liabilities beyond those of an
individual. Doing business as a corporation may yield tax or financial benefits, but these can be
offset by other considerations, such as increased licensing fees or decreased personal control.
Corporations may be formed for profit or nonprofit purposes.
Explain what it means to have Limited Liability Company (LLC) (CS)-ANSWERS-A Limited Liability
Company (LLC) is formed by 1 or more individuals or entities through a special written
agreement. The agreement details the organization of the LLC, including provisions for
management, assignability of interests, and distribution of profits and losses. LLCs are permitted
to engage in any lawful, for-profit business or activity other than banking or insurance.
