DECA Entrepreneurship Sample Exam 2023 with 100% correct answers

1. Which of the following is a type of intangible business property that is protected by law: Trademark. A trademark is a symbol, design, or word used by a business to identify a good or service and is registered with the government to prevent its use by others. A trademark is an example of intangible business property. Federal law protects a business's intangible property from being used by competitors. A business's inventory, acreage, and equipment are types of tangible property. 2. Basic torts relating to businesses often involve disputes concerning Contracts. Business torts are wrongful actions against a business that cause it harm in some way. Disputes concerning contracts are often the basis for businesses suing individuals or other businesses. Many businesses have contractual arrangements with employees or vendors. If these contracts are broken, the business might be harmed and seek compensation through the legal system. Basic torts relating to businesses do not involve disputes concerning assaults, defamation, or emotional stress. 3. Which of the following is a characteristic of a business-format franchise: Continuous assistance is provided by the franchisor. A business-format franchise is a more complex and more popular type of franchise arrangement than the product trade-name franchise. It involves a close, continuous working relationship between the franchisor and the franchisee. Examples of the business-format franchise are McDonald's, Holiday Inn, and Jiffy Lube. Products and other materials usually must be purchased from the franchisor's list of approved vendors. The franchisee must operate under the trade name of the franchisor. 4. Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are considered advantages of a Corporation. Corporations are advantageous due to the separate legal body that is created by a state charter. The charter limits individual liability, allows for permanency of existence, ease in transferring ownership, and a greater number of resources for financial growth. Both the sole proprietorship and partnership have unlimited liability, definitive life spans, difficulty in raising capital, and are not separate legal entities. A trade union is a group that represents people in similar occupational skill areas. 5. Channels of distribution benefit consumers by Making a variety of products available to them. Channels of distribution benefit consumers by making a variety of products available to them. Without these channels, consumers could only buy products directly from producers, which would be impractical. Channels may lower some but not all consumer product prices. They may raise the quality of some but not all consumer products. Increased profits for businesses is not a benefit for consumers. 6. For which of the following markets would producers use a short channel of distribution: Local consumers. A short channel can be used when the potential customers are few and/or located close together. The baby boomer, senior citizen, and Generation X markets have many potential customers who are widely dispersed. 7. If a business considers where the consumers are and who they are before selecting a channel of distribution, the business is considering the __________ factor. Market. Market factors deal with where the consumers are, who they are, the information they require, and the size of their orders. Understanding the market is an important aspect of selecting the best channel of distribution. For example, it is important for businesses to know that most consumers prefer to buy products from retailers. Promotion, human, and sales are not factors that businesses consider when selecting a channel of distribution. 8. What do business employees often need to do before they are able to write proposals? Research the problem. Proposals are intended to answer questions or provide recommendations to solve problems. Business employees often need to research a particular situation or problem before they are able to write proposals. After employees do research and gather information, they write proposals that explain the problem and the solutions. The proposal is intended to persuade the business to follow the recommendations. Employees usually do not need to analyze personal biases, contact the customer, or evaluate technical skills before they are able to write proposals.