DECA Entrepreneurship Exam Verified
Study Questions And Answers
Antonio has been tasked with helping the accounting staff at his company make the
transition to a new
recordkeeping software. He has been instructed to facilitate training sessions, answer
employee
questions, and show the staff how the new software will help make their jobs easier.
Antonio is
performing __________ management. CORRECT ANSWERS Change. Change
management is a set of strategies designed to ensure that changes in an organization
are smoothly and thoroughly implemented. By helping the accounting staff make the
transition to a new software, Antonio is engaging in change management. He is not
performing human resource management, operations management, or supply chain
management.
For successful innovation in the workplace, employees should have a desire to learn
and be willing to CORRECT ANSWERS Accept change. Innovation is the process of
creating new or more effective products, processes, services, technologies, or ideas.
Creating something new requires change. When a business encourages its employees
to learn about new processes, customer wants, market needs, and trends, innovation is
more likely to occur. Exhibiting bias and suppressing ideas may have a negative effect
on innovation. Following certain types of business procedures is important for creating a
safe and fair work environment
and does not necessarily affect innovative processes.
Some general guidelines for creating a successful business plan include making the
plan clear and
concise, making the plan focused, and making the plan CORRECT ANSWERS
Realistic. A business plan should be clear, concise, focused, realistic, and accurate with
a logical structure and flow. Each section should begin with a short summary. The
executive summary should be interesting and intriguing. The goods and services should
be explained simply. The marketing analysis should include only pertinent information.
The financial plan should be simple. And you should plan ahead for tracking, follow-up,
reviews, updates, and corrections. A successful business plan should not be as long as
possible, idealistic, or complicated.
The SQZ Company uses a computer application that allows managers to view the
number of callers that
are currently in queue and waiting for a customer-service representative to help them.
This is an example
of a CORRECT ANSWERS Dashboard. Dashboards are technology applications that
allow management to view and evaluate a process or activity as it occurs. In the
example, managers can view the number of callers waiting in queue for service at a
,given time. If the calls in queue increase, management may take steps to relieve the
wait by having additional employees take calls. Dashboards may be used to forecast or
predict future
needs. By monitoring and analyzing dashboards, businesses can detect changes or
patterns in activity, and use the information to make appropriate adjustments. If
dashboards indicate a higher volume of calls between 7 p.m. - 9 p.m. on Tuesdays, the
business can take steps to add staff, so customers' wait time is decreased. In the
situation described, the business is not using a projectory or capillary.
To prevent viruses and spyware from infecting his business's computer network, Chuck
built a network
firewall. Chuck acted CORRECT ANSWERS Proactively. Rather than waiting for
viruses and spyware to cause significant damage to his business's computer network,
Chuck built a firewall to protect the network from malicious software and worms. Chuck
did not act reactively, haphazardly, or carelessly. A reactive individual waits until there is
a problem or change before taking action. Someone who acts haphazardly does things
at random and without much reason. Someone who acts carelessly is sloppy and
imprecise in his/her actions.
One of the main reasons why owners develop a business plan before starting a new
business is to CORRECT ANSWERS Estimate financial needs. Before starting a new
business, owners develop a business plan in order to establish objectives, outline the
steps to take to achieve the objectives, and estimate financial needs. Estimating
financial needs is extremely important because the owners need to know how much
money it will take to operate the new business until it begins to generate a profit. If the
owners do not have sufficient funds or cannot obtain those funds, it may not be feasible
to start the business. Owners do not develop a business plan to organize production
processes, identify qualified workers, or prepare operating manuals.
As a manager at WorkSocks, Inc., Carla has been told by her supervisor that production
on sock puppets
must begin immediately. After training a group of her best workers, Carla has moved
them from the wool
sock room to the puppet room to begin work. At what level of management is Carla's
position? CORRECT ANSWERS Supervisory. Supervisory, or first level, management
is made up of the supervisors who work directly with the employees carrying out the
directions of top and mid-level management. Middle, or mid-level, management is the
link between top and first-line management that would determine what needed to be
done in order to enter the new market. Executive, or top-level, management is
responsible for strategic
planning, including making the decisions about entering a new market.
The effect that selling should have on customer purchase decisions is to __________
those decisions. CORRECT ANSWERS Influence. The salesperson's role is to guide
customers in making effective buying decisions that will lead to customer satisfaction.
Salespeople do not determine what the customer will buy—the customer does. A
, salesperson should never try to compel a customer to purchase a product. Customers
personalize their
own purchase decisions by basing those decisions on their own personal needs and
desires.
Eddie is a small business owner. Every year, he identifies potential problems that could
harm his
company and takes steps to prepare for them. In other words, Eddie conducts
CORRECT ANSWERS A risk assessment. A risk assessment is a process used by
businesses to identify potential hazards that could threaten the company's livelihood.
Managerial accounting is the process of analyzing and interpreting financial data to help
a company achieve its goals. A financial calculation is any calculation involving financial
information. Eddie is not conducting managerial accounting or financial calculations in
this example. Even though Eddie is an entrepreneur, he is specifically conducting a risk
assessment in this example.
It is important for companies to practice enterprise risk management (ERM) because
CORRECT ANSWERS Most risks are predictable and manageable. Enterprise risk
management is important and helpful because most business risks are predictable and
manageable. If a company can plan for risks, it can minimize its losses. Although some
risks are surprises, most of them are not. Not managing risks can cause loss of
shareholder value. ERM should reduce business costs in the long run by helping a
business avoid or manage risks that could lose money.
Which of the following is a factor that keeps quality at the forefront of the modern
business world: CORRECT ANSWERS Consumer pressure. Consumer pressure is a
factor that keeps quality at the forefront of the modern business world. Customers
demand quality, and if a company doesn't provide it, they'll take their business
elsewhere. Various consumer groups also keep the pressure on companies to make
quality a top priority. Weather patterns, outdated technology, and currency fluctuations
are not factors keeping quality as a main concern for today's businesses.
Ben recently purchased a cell phone. The manufacturer provided a form and a special
code with the
phone's packaging. Ben completed the form, copied his sales receipt, and mailed these
items back to the
manufacturer along with the part of the packaging that contained the special code.
Within six weeks, Ben
received a $50 check from the phone manufacturer. What type of sales-promotion
technique was used? CORRECT ANSWERS Rebate. Sales-promotion techniques are
activities other than advertising, selling, and personal selling that stimulate customer
purchases. A rebate is a sales-promotion technique in which a business (manufacturer)
returns part of the price that a customer (Ben) pays for a good (cell phone) or service.
Rebates stimulate sales because customers want to receive money back for their
purchases. Couponing involves the use of printed certificates that entitle the holder to a
Study Questions And Answers
Antonio has been tasked with helping the accounting staff at his company make the
transition to a new
recordkeeping software. He has been instructed to facilitate training sessions, answer
employee
questions, and show the staff how the new software will help make their jobs easier.
Antonio is
performing __________ management. CORRECT ANSWERS Change. Change
management is a set of strategies designed to ensure that changes in an organization
are smoothly and thoroughly implemented. By helping the accounting staff make the
transition to a new software, Antonio is engaging in change management. He is not
performing human resource management, operations management, or supply chain
management.
For successful innovation in the workplace, employees should have a desire to learn
and be willing to CORRECT ANSWERS Accept change. Innovation is the process of
creating new or more effective products, processes, services, technologies, or ideas.
Creating something new requires change. When a business encourages its employees
to learn about new processes, customer wants, market needs, and trends, innovation is
more likely to occur. Exhibiting bias and suppressing ideas may have a negative effect
on innovation. Following certain types of business procedures is important for creating a
safe and fair work environment
and does not necessarily affect innovative processes.
Some general guidelines for creating a successful business plan include making the
plan clear and
concise, making the plan focused, and making the plan CORRECT ANSWERS
Realistic. A business plan should be clear, concise, focused, realistic, and accurate with
a logical structure and flow. Each section should begin with a short summary. The
executive summary should be interesting and intriguing. The goods and services should
be explained simply. The marketing analysis should include only pertinent information.
The financial plan should be simple. And you should plan ahead for tracking, follow-up,
reviews, updates, and corrections. A successful business plan should not be as long as
possible, idealistic, or complicated.
The SQZ Company uses a computer application that allows managers to view the
number of callers that
are currently in queue and waiting for a customer-service representative to help them.
This is an example
of a CORRECT ANSWERS Dashboard. Dashboards are technology applications that
allow management to view and evaluate a process or activity as it occurs. In the
example, managers can view the number of callers waiting in queue for service at a
,given time. If the calls in queue increase, management may take steps to relieve the
wait by having additional employees take calls. Dashboards may be used to forecast or
predict future
needs. By monitoring and analyzing dashboards, businesses can detect changes or
patterns in activity, and use the information to make appropriate adjustments. If
dashboards indicate a higher volume of calls between 7 p.m. - 9 p.m. on Tuesdays, the
business can take steps to add staff, so customers' wait time is decreased. In the
situation described, the business is not using a projectory or capillary.
To prevent viruses and spyware from infecting his business's computer network, Chuck
built a network
firewall. Chuck acted CORRECT ANSWERS Proactively. Rather than waiting for
viruses and spyware to cause significant damage to his business's computer network,
Chuck built a firewall to protect the network from malicious software and worms. Chuck
did not act reactively, haphazardly, or carelessly. A reactive individual waits until there is
a problem or change before taking action. Someone who acts haphazardly does things
at random and without much reason. Someone who acts carelessly is sloppy and
imprecise in his/her actions.
One of the main reasons why owners develop a business plan before starting a new
business is to CORRECT ANSWERS Estimate financial needs. Before starting a new
business, owners develop a business plan in order to establish objectives, outline the
steps to take to achieve the objectives, and estimate financial needs. Estimating
financial needs is extremely important because the owners need to know how much
money it will take to operate the new business until it begins to generate a profit. If the
owners do not have sufficient funds or cannot obtain those funds, it may not be feasible
to start the business. Owners do not develop a business plan to organize production
processes, identify qualified workers, or prepare operating manuals.
As a manager at WorkSocks, Inc., Carla has been told by her supervisor that production
on sock puppets
must begin immediately. After training a group of her best workers, Carla has moved
them from the wool
sock room to the puppet room to begin work. At what level of management is Carla's
position? CORRECT ANSWERS Supervisory. Supervisory, or first level, management
is made up of the supervisors who work directly with the employees carrying out the
directions of top and mid-level management. Middle, or mid-level, management is the
link between top and first-line management that would determine what needed to be
done in order to enter the new market. Executive, or top-level, management is
responsible for strategic
planning, including making the decisions about entering a new market.
The effect that selling should have on customer purchase decisions is to __________
those decisions. CORRECT ANSWERS Influence. The salesperson's role is to guide
customers in making effective buying decisions that will lead to customer satisfaction.
Salespeople do not determine what the customer will buy—the customer does. A
, salesperson should never try to compel a customer to purchase a product. Customers
personalize their
own purchase decisions by basing those decisions on their own personal needs and
desires.
Eddie is a small business owner. Every year, he identifies potential problems that could
harm his
company and takes steps to prepare for them. In other words, Eddie conducts
CORRECT ANSWERS A risk assessment. A risk assessment is a process used by
businesses to identify potential hazards that could threaten the company's livelihood.
Managerial accounting is the process of analyzing and interpreting financial data to help
a company achieve its goals. A financial calculation is any calculation involving financial
information. Eddie is not conducting managerial accounting or financial calculations in
this example. Even though Eddie is an entrepreneur, he is specifically conducting a risk
assessment in this example.
It is important for companies to practice enterprise risk management (ERM) because
CORRECT ANSWERS Most risks are predictable and manageable. Enterprise risk
management is important and helpful because most business risks are predictable and
manageable. If a company can plan for risks, it can minimize its losses. Although some
risks are surprises, most of them are not. Not managing risks can cause loss of
shareholder value. ERM should reduce business costs in the long run by helping a
business avoid or manage risks that could lose money.
Which of the following is a factor that keeps quality at the forefront of the modern
business world: CORRECT ANSWERS Consumer pressure. Consumer pressure is a
factor that keeps quality at the forefront of the modern business world. Customers
demand quality, and if a company doesn't provide it, they'll take their business
elsewhere. Various consumer groups also keep the pressure on companies to make
quality a top priority. Weather patterns, outdated technology, and currency fluctuations
are not factors keeping quality as a main concern for today's businesses.
Ben recently purchased a cell phone. The manufacturer provided a form and a special
code with the
phone's packaging. Ben completed the form, copied his sales receipt, and mailed these
items back to the
manufacturer along with the part of the packaging that contained the special code.
Within six weeks, Ben
received a $50 check from the phone manufacturer. What type of sales-promotion
technique was used? CORRECT ANSWERS Rebate. Sales-promotion techniques are
activities other than advertising, selling, and personal selling that stimulate customer
purchases. A rebate is a sales-promotion technique in which a business (manufacturer)
returns part of the price that a customer (Ben) pays for a good (cell phone) or service.
Rebates stimulate sales because customers want to receive money back for their
purchases. Couponing involves the use of printed certificates that entitle the holder to a
