DECA Entrepreneurship Exam Solved
Correctly To Score A+
Which of the following is a type of intangible business property that is protected by law.
CORRECT ANSWERS 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.
Basic torts relating to businesses often involve disputes concerning. CORRECT
ANSWERS 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.
Which of the following is a characteristic of a business-format franchise. CORRECT
ANSWERS Continuous assistance is provided by the franchiser. 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 franchiser 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 franchiser's list of approved vendors. The franchisee must
operate under the trade name of the franchiser.
Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of
ownership are considered advantages of a. CORRECT ANSWERS 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.
Channels of distribution benefit consumers by. CORRECT ANSWERS 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.
For which of the following markets would producers use a short channel of distribution.
CORRECT ANSWERS Local consumers. A short channel can be used when the
potential customers are few and/or located close together.
If a business considers where the consumers are and who they are before selecting a
channel of distribution, the business is considering the __________ factor. CORRECT
, ANSWERS 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.
What do business employees often need to do before they are able to write proposals?
CORRECT ANSWERS 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.
Which of the following is an example of a manager developing a policy that impacts
customer relations. CORRECT ANSWERS Extending business hours on weekends.
Management is responsible for developing policies, and many of these policies have an
impact on customer relations. An example of a policy that usually improves customer
relations is providing extended business hours on weekends. Many customers work
during the week and only have free time in the evenings and on weekends. Businesses
that offer extended hours on weekends are making it easy for customers to buy when it
is convenient for them.
What should a successful brand promise be able to do? CORRECT ANSWERS
Communicate an appealing benefit. A brand promise is a business's agreement (spoken
or unspoken) with customers that it will consistently meet their expectations and deliver
on its brand characteristics and values. Before the business can deliver on its brand
promise, it must have a product that offers an appealing benefit—one that persuades
the target market to buy.
Which of the following is one way that freedom in a private enterprise system is limited
by laws. CORRECT ANSWERS Certain occupations must be licensed. Even though
there are many economic freedoms in a private enterprise system, there are certain
limits. Economic freedom is limited by laws that have been created to
protect everyone. Workers in certain occupations must be licensed to safeguard public
health and safety. Pay scales are not regulated but vary greatly depending on the
occupation, area of the country, and current economic conditions.
During the month of July, sales at Handy's Shoe Mart totaled $2,500. The cost of the
shoes was $1,025. The owner paid $866 for supplies, insurance, rent, and utilities
during the month. The $609 left over represents the owner's. CORRECT ANSWERS
Net profit. Net profit is the amount of money left over after operating expenses are
subtracted from gross
profit.
Correctly To Score A+
Which of the following is a type of intangible business property that is protected by law.
CORRECT ANSWERS 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.
Basic torts relating to businesses often involve disputes concerning. CORRECT
ANSWERS 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.
Which of the following is a characteristic of a business-format franchise. CORRECT
ANSWERS Continuous assistance is provided by the franchiser. 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 franchiser 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 franchiser's list of approved vendors. The franchisee must
operate under the trade name of the franchiser.
Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of
ownership are considered advantages of a. CORRECT ANSWERS 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.
Channels of distribution benefit consumers by. CORRECT ANSWERS 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.
For which of the following markets would producers use a short channel of distribution.
CORRECT ANSWERS Local consumers. A short channel can be used when the
potential customers are few and/or located close together.
If a business considers where the consumers are and who they are before selecting a
channel of distribution, the business is considering the __________ factor. CORRECT
, ANSWERS 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.
What do business employees often need to do before they are able to write proposals?
CORRECT ANSWERS 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.
Which of the following is an example of a manager developing a policy that impacts
customer relations. CORRECT ANSWERS Extending business hours on weekends.
Management is responsible for developing policies, and many of these policies have an
impact on customer relations. An example of a policy that usually improves customer
relations is providing extended business hours on weekends. Many customers work
during the week and only have free time in the evenings and on weekends. Businesses
that offer extended hours on weekends are making it easy for customers to buy when it
is convenient for them.
What should a successful brand promise be able to do? CORRECT ANSWERS
Communicate an appealing benefit. A brand promise is a business's agreement (spoken
or unspoken) with customers that it will consistently meet their expectations and deliver
on its brand characteristics and values. Before the business can deliver on its brand
promise, it must have a product that offers an appealing benefit—one that persuades
the target market to buy.
Which of the following is one way that freedom in a private enterprise system is limited
by laws. CORRECT ANSWERS Certain occupations must be licensed. Even though
there are many economic freedoms in a private enterprise system, there are certain
limits. Economic freedom is limited by laws that have been created to
protect everyone. Workers in certain occupations must be licensed to safeguard public
health and safety. Pay scales are not regulated but vary greatly depending on the
occupation, area of the country, and current economic conditions.
During the month of July, sales at Handy's Shoe Mart totaled $2,500. The cost of the
shoes was $1,025. The owner paid $866 for supplies, insurance, rent, and utilities
during the month. The $609 left over represents the owner's. CORRECT ANSWERS
Net profit. Net profit is the amount of money left over after operating expenses are
subtracted from gross
profit.
