BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EXAM SOLVED 100%

1. One of the main functions of the legal procedure is to A. establish laws. B. enact legislation. C. resolve disputes. D. dissolve businesses. - Answer C 2. Marsha wants to invest her savings in a business. However, she wants to protect all of her personal assets. Which type of business ownership would be most appropriate for Marsha? A. Sole proprietorship B. Franchise C. Partnership D. Corporation - Answer D 3. Which of the following statements regarding company policies is true: A. Company policies identify general company rules. B. Company policies and procedures are the same thing. C. Company policies describe emergency measures. D. Company policies identify very specific employee actions. - Answer A 4. Before an individual can follow verbal directions, s/he must first be ready to A. listen. B. write. C. speak. D. understand. - Answer A 5. What is important to do when giving verbal directions to make sure the audience understands? A. Maintain eye contact B. Ask questions C. Use gestures D. Explain information - Answer B 6. It is most appropriate for business people to use complex, technical jargon when they are A. introducing a friend to a business associate. B. greeting new customers. C. speaking with coworkers. D. informally conversing with an acquaintance. - Answer C 7. You have a customer on the phone who always ends up talking about his personal life for far too long. Today, he's telling you a long story about his recent vacation. However, you have several other calls on the line and tons of work to do. How should you handle this situation? A. Tell the customer you don't have time to talk about personal issues, so he should stay on topic. B. Tell the caller you're happy to hear about his vacation, but you have to take another call. C. Transfer the call to someone else who has more time to talk to the customer. D. Talk to the customer as long as he wants to appear more interested. - Answer B 8. When participating in group discussions, it is often helpful to A. appoint a leader. B. try to socialize. C. interrupt a speaker. D. be aggressive. - Answer A 9. What should a business employee do before writing an informational message? A. Identify the audience B. Plan a response C. Wait for feedback D. Select the medium - Answer A 10. Which of the following are characteristics of a well-written executive summary: A. Error free, simple, and creative B. Clear, concise, and error free C. Creative, concise, and informal D. Concise, informal, and error free - Answer B 11. What information should be included in the recommendations section of an analytical report? A. Benefits and risks B. Product characteristics C. Budgetary constraints D. Project status data - Answer A 12. Which of the following statements would be placed in the introductory section of a research report: A. The purpose of this study is to determine why sales have been decreasing for three consecutive quarters. B. Based on the previously stated findings, it is recommended that the XYZ Company revise its operating budget. C. The survey consisted of 250,600 respondents from the northern region of the country. D. The statistics indicate that the business is losing up to 15% of its market share to new competitors - Answer A 13. Alex is very skilled in building positive customer/client relations because he can express himself without offending others. Alex would be described as having A. tact. B. integrity. C. character. D. generosity. - Answer A 14. Kate's coworker Jack is meeting with a very important German client tomorrow. Kate has been to Germany several times, and tells Jack that German business people tend to be very formal and serious in business situations. After learning this information, Jack now knows that he should avoid A. using titles. B. using humor. C. shaking hands. D. making eye contact. - Answer B 15. Interpreting business policies to customers is usually easier if the business has created a ____________ atmosphere. A. remote B. distant C. friendly D. superior - Answer C 16. Combining steel, glass, and other raw materials into a vehicle is an example of __________ utility. A. time B. place C. form D. possession - Answer C 17. Monica has always loved to work with preschool children. She would like to open a day care center in her area. However, she does not have enough capital saved at this time. What business activity should Monica address first? A. Accounting B. Information management C. Financial analysis D. Marketing - Answer C 18. "Brain drain" occurs when A. a country loses talented employees to better opportunities overseas. B. consumers spend too much time shopping online. C. businesses outsource jobs to other countries. D. people who speak different languages try to communicate with each other. - Answer A 19. Which of the following will foster a business's ability to adapt to changing markets: A. Authoritarian leadership B. Reactive management C. Proactive management D. Conservative leadership - Answer C 20. Which of the following is most likely to be a result of competition: A. Development of new products B. Reduction in product quality C. High prices D. More monopolies - Answer A 21. Which of the following is a negative effect on businesses of government regulation: A. The use of resources is regulated. B. Unfair trade practices are prohibited. C. Additional expense and inefficiency are experienced. D. Patents, trademarks, and copyright protection are provided. - Answer C 22. What organization helps union locals to become established, recruit new members, and negotiate with management? A. Shop stewards B. Federal government C. National union D. National Labor Relations Board - Answer C 23. To calculate total revenue, a business multiplies the number of units sold by A. average price per unit. B. marginal revenue. C. fixed costs. D. marginal costs. - Answer A 24. The United States' business culture tends to embrace self-reliance and personal accomplishment, which are characteristics of A. an individualist society. B. the concept of collectivism. C. a long-term orientation. D. a team-oriented mindset. - Answer A 25. During a meeting with German business people, an American businessperson introduced a change to the agenda. Because the German business people were caught off guard by this change, they became upset, which indicates that German culture tends to A. have a low tolerance for uncertainty. B. be highly ethnocentric. C. take greater risks than other cultures. D. prefer a less-structured environment. - Answer A 26. Because Costa Ricans do not like to be kept waiting, it is important for business people to A. arrive at meetings on time. B. schedule frequent meeting breaks. C. discuss business during lunch. D. comply with local ordinances. - Answer A 27. Which of the following is an example of a Saudi Arabian custom that relates to gender: A. Friday is the day of rest. B. Women are not permitted to drive a car. C. The "thumbs up" symbol is offensive. D. It is illegal to eat pork. - Answer B 28. A businessperson offended a foreign client when s/he continuously made an insulting gesture. As a result, the client severed ties with the businessperson's company. This situation could have been avoided if the businessperson had A. made an effort to learn the country's language before the meeting. B. asked the client why s/he was upset during the meeting. C. taken the time to learn about the client's culture before the meeting. D. sent a letter of apology to the country's ambassador after the meeting. - Answer C 29. Refusing to do things you really don't want to do is __________ your self-esteem. A. not good for B. harmful to C. of no help to D. good for - Answer D 30. As the manager of her own company, Brooke is able to guide the company and its employees in a desired manner. Brooke possesses the trait of A. leadership. B. creativity. C. empathy. D. initiative. - Answer A 31. What is often a positive result of accepting responsibility for a poor decision? A. You reinforce skeptical attitudes. B. You control others' opinions. C. You demonstrate self-importance. D. You gain others' respect. - Answer D 32. To manage their work commitments in a timely manner, business people should A. estimate the time that it takes them to perform their tasks. B. ask their coworkers to help them with routine activities. C. work on enjoyable tasks before tackling the unpleasant tasks. D. identify shortcuts that they can take get their work done quickly. - Answer A 33. As a new employee, you receive constructive criticism about your job performance. This criticism is designed to A. improve your ability to do the job. B. show your lack of ability. C. hurt and discredit you. D. demonstrate the supervisor's superior job knowledge. - Answer A 34. Effective managers involve employees in planning changes because people who help to initiate changes are usually more __________ to those changes. A. resigned B. receptive C. resistant D. indifferent - Answer B 35. During a negotiation, a non-verbal behavior that indicates a negotiator's high level of confidence is A. foot tapping. B. direct eye contact. C. arm crossing. D. defensive facial expression. - Answer B 36. Which of the following is an indication that employees might be experiencing a lot of stress: A. Drinking one or two cups of coffee a day B. Being irritated when dealing with customers C. Concentrating on doing the job correctly D. Having occasional conversations with coworkers - Answer B 37. Henry's been at his current job for five years. He doesn't really like it but doesn't want to look for a new job because he's so used to this one. Henry avoids adapting because of A. fear. B. contentment. C. lack of control or trust. D. a desire for change. - Answer B 38. Naya truly cares about her coachee, Jamie, and she wants Jamie to succeed. Which of the following coaching characteristics does Naya illustrate: A. Positivity/Enthusiasm B. Humility C. Flexibility D. Genuine concern for others - Answer D 39. How does empathy help coworkers to be fair to each other? A. Empathy gives coworkers the ability to learn a job quickly. B. Coworkers with empathy are better able to understand others. C. Coworkers with empathy are not likely to have disagreements. D. Empathy helps coworkers to understand legal guidelines. - Answer B 40. For an investment to yield positive results at the end of the investment period, the earnings should A. grow by at least ten percent. B. exceed the rate of inflation. C. be accrued on a debt security. D. be documented appropriately. - Answer B 41. Regular credit accounts are sometimes called open accounts because they allow A. first-time credit users to buy without having a credit check. B. credit users to buy at any time during a set period. C. credit users to make minimum payments any time during the month. D. long-time credit users to make purchases without finance charges. - Answer B 42. What do many individuals establish when planning for future financial needs? A. Living will B. College fund C. Emotional intelligence D. A work history - Answer B 43. Ian's employer electronically places Ian's paycheck directly into his bank checking account every pay period. In what column on Ian's bank statement will he find these transactions? A. Deposits and debits B. Withdrawals and debits C. Deposits and credits D. Withdrawals and credits - Answer C 44. Which of the following is the most likely action that the government takes when a person misses the deadline for filing his/her income tax return: A. Penalty B. Refund C. Extension D. Allowance - Answer A 45. The section of the marketing plan that should address where the business will be located is the __________ section. A. promotion B. price C. product D. place - Answer D