DECA Woodlands Quiz 1

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DECA Woodlands Quiz 1 - Quiz

DECA Woodlands Quiz


Questions and Answers
  • 1. 

    Joan borrowed $10,000 from a relative to start her own coffee shop. Assuming she takes all responsibility for the shop's financial risks, the shop is most likely a

    • A.

      Sole proprietorship

    • B.

      Corporation

    • C.

      Limited partnership

    • D.

      Partnership

    Correct Answer
    A. Sole proprietorship
    Explanation
    Based on the information provided, Joan borrowed money from a relative to start her own coffee shop and assumes all financial risks. This suggests that she is the sole owner and operator of the shop, making it a sole proprietorship. In a sole proprietorship, there is no legal distinction between the business and the owner, and the owner has unlimited liability for the business's debts and obligations.

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  • 2. 

    Management of a coffee shop chain should realize the importance of accepting responsibility to train and develop human resources because

    • A.

      The chain has a legal responsibility to provide training.

    • B.

      Human resources are the most important asset of the chain.

    • C.

      Employees expect their employers to provide training.

    • D.

      Schools do not provide the type of training chains need.

    Correct Answer
    B. Human resources are the most important asset of the chain.
    Explanation
    The correct answer is "human resources are the most important asset of the chain." This is because employees are the backbone of any organization, and their skills, knowledge, and abilities directly impact the success of the coffee shop chain. By investing in training and development, the management can enhance the capabilities of their employees, improve their performance, and ultimately drive the growth and profitability of the chain.

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  • 3. 

    What does a quick-serve restaurant need in order to understand why a product that has been a strong seller for a long time is now losing popularity?

    • A.

      Sales records

    • B.

      Marketing information

    • C.

      Secondary data

    • D.

      Purchasing documents

    Correct Answer
    B. Marketing information
    Explanation
    A quick-serve restaurant needs marketing information in order to understand why a product that has been a strong seller for a long time is now losing popularity. Marketing information can provide insights into consumer preferences, trends, and competition, helping the restaurant identify potential reasons for the decline in popularity and make informed decisions on how to address the issue. Sales records, secondary data, and purchasing documents may provide some information, but marketing information is specifically designed to analyze consumer behavior and market dynamics.

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  • 4. 

    Which of the following would not affect the accuracy of a sales forecast:

    • A.

      Population changes

    • B.

      Location of the cafeteria

    • C.

      Changes in demand

    • D.

      New competitors

    Correct Answer
    B. Location of the cafeteria
    Explanation
    The location of the cafeteria would not affect the accuracy of a sales forecast because it is not directly related to the sales of a product or service. Sales forecasts are typically based on factors such as population changes, changes in demand, and the presence of new competitors, which directly impact the demand and sales of a product or service. The location of the cafeteria, on the other hand, is more likely to affect the foot traffic or convenience for employees or customers, but it does not directly impact the accuracy of sales forecasts.

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  • 5. 

    Which of the following is an example of price fixing:

    • A.

      Two different types of quick-serve restaurant supply businesses export goods and sell the items below cost

    • B.

      One quick-serve restaurant supply business agrees to sell a brand item to a customer for 10 percent less than its competitor.

    • C.

      One quick-serve restaurant supply business acquires another business so that it can expand its product line.

    • D.

      Two competing quick-serve restaurant supply businesses agree to set the same price for similar items in their product lines.

    Correct Answer
    D. Two competing quick-serve restaurant supply businesses agree to set the same price for similar items in their product lines.
    Explanation
    Two competing quick-serve restaurant supply businesses agreeing to set the same price for similar items in their product lines is an example of price fixing. Price fixing occurs when competitors agree to set the same price for their products or services, eliminating competition and artificially inflating prices. This practice is illegal as it harms consumers by reducing choices and driving up prices.

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  • 6. 

    A sandwich shop that decides to add certain breakfast items to its regular menu is increasing its

    • A.

      Customer service.

    • B.

      Cooking capacity.

    • C.

      Product mix.

    • D.

      Sales revenue.

    Correct Answer
    C. Product mix.
    Explanation
    The addition of certain breakfast items to the regular menu of a sandwich shop indicates a change in the variety of products offered. This change in the range of menu items is an example of altering the product mix. It allows the shop to cater to a wider customer base and potentially attract new customers who are interested in breakfast options. Therefore, the correct answer is "product mix."

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  • 7. 

    A local buffet-style restaurant has set an amount to spend on advertising, established a promotional goal to increase sales, and scheduled its ads. This restaurant is engaged in creating a(n)

    • A.

      Promotional plan.

    • B.

      Marketing mix.

    • C.

      Balance sheet.

    • D.

      Activity quota.

    Correct Answer
    A. Promotional plan.
    Explanation
    The given scenario describes a local buffet-style restaurant that has set a budget for advertising, established a goal to increase sales, and scheduled its ads. This indicates that the restaurant is engaged in creating a promotional plan. A promotional plan is a strategic marketing tool that outlines the objectives, strategies, and tactics for promoting a product or service. It involves determining the target audience, setting promotional goals, allocating resources, and planning the timing and content of promotional activities. Therefore, the correct answer is promotional plan.

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  • 8. 

    A direct-mail campaign is often more successful when the pizza restaurant verifies that the information that it has about recipients, or the target market, is

    • A.

      Conventional.

    • B.

      Extensive.

    • C.

      Accurate.

    • D.

      Unusual.

    Correct Answer
    C. Accurate.
    Explanation
    A direct-mail campaign is more likely to be successful when the pizza restaurant ensures that the information it has about recipients or the target market is accurate. This means that the restaurant has correct and up-to-date information about the individuals it is targeting, such as their names, addresses, and preferences. Having accurate information allows the restaurant to personalize its mailings and tailor its offers to the specific needs and interests of the recipients, increasing the chances of a positive response and ultimately, a successful campaign.

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  • 9. 

    Which of the following represents the major functions of management:

    • A.

      Researching, collecting information, reporting

    • B.

      Planning, organizing, staffing, directing, controlling

    • C.

      Evaluating, motivating, training

    • D.

      Budgeting, scheduling, developing procedures, delegating

    Correct Answer
    B. Planning, organizing, staffing, directing, controlling
    Explanation
    The major functions of management are planning, organizing, staffing, directing, and controlling. Planning involves setting goals and determining the best course of action to achieve them. Organizing involves arranging resources and tasks to achieve the goals. Staffing involves selecting and hiring employees for the organization. Directing involves guiding and supervising employees to ensure they are working towards the goals. Controlling involves monitoring progress and making adjustments as necessary to ensure the goals are being met.

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  • 10. 

    One travel business promising to do something for another travel business in return for receiving compensation is an example of a(n)

    • A.

      Partnership.

    • B.

      Benefit.

    • C.

      Contract.

    • D.

      Guarantee.

    Correct Answer
    C. Contract.
    Explanation
    A travel business promising to do something for another travel business in return for compensation indicates an agreement or arrangement between the two parties. This agreement is likely to be formalized through a contract, which outlines the terms and conditions of the exchange. A contract ensures that both parties are aware of their responsibilities and obligations, providing legal protection and enforceability if any issues arise. Therefore, the correct answer is contract.

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  • 11. 

    Tying agreements between producers and distributors might be considered illegal if they substantially limit

    • A.

      Profitability.

    • B.

      Competition.

    • C.

      Management.

    • D.

      Technology.

    Correct Answer
    B. Competition.
    Explanation
    Tying agreements between producers and distributors may be deemed illegal if they substantially limit competition. This means that if such agreements create barriers or hinder fair market competition, they can be considered illegal. By restricting competition, these agreements can harm consumers by limiting their choices and potentially leading to higher prices. Therefore, it is crucial to ensure that tying agreements do not unfairly restrict competition in order to promote a healthy and competitive market environment.

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  • 12. 

    A channel of distribution that has strong leadership is often able to avoid

    • A.

      Publicity.

    • B.

      Competition

    • C.

      Regulation

    • D.

      Conflict

    Correct Answer
    D. Conflict
    Explanation
    A channel of distribution that has strong leadership is often able to avoid conflict. This is because strong leadership ensures effective communication and coordination among the different entities involved in the distribution process. It helps in resolving conflicts and addressing any issues that may arise, thereby promoting a smooth flow of goods or services. Strong leadership also fosters a sense of trust and cooperation among the channel members, reducing the likelihood of conflicts and promoting collaboration towards common goals.

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  • 13. 

    In oral presentations, a closing method used specifically for getting the audience to do something is

    • A.

      Using a quotation

    • B.

      Making an appeal for action

    • C.

      Using humor

    • D.

      Making a comparison

    Correct Answer
    B. Making an appeal for action
    Explanation
    In oral presentations, making an appeal for action is a closing method used specifically for getting the audience to do something. This involves urging or persuading the audience to take a specific action based on the information presented. By making a strong and compelling appeal, the speaker aims to motivate the audience to act upon the message conveyed during the presentation. This closing method is effective in encouraging the audience to actively engage and participate in the desired outcome.

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  • 14. 

    Which of the following would be the most likely cause of customer complaints:

    • A.

      Price reductions

    • B.

      Institutional ads

    • C.

      Extended hours

    • D.

      Product quality

    Correct Answer
    D. Product quality
    Explanation
    Product quality would be the most likely cause of customer complaints because if the quality of a product is poor or does not meet the customer's expectations, they are likely to be dissatisfied and complain about it. Price reductions, institutional ads, and extended hours may not directly impact the quality of the product, so they would be less likely to cause customer complaints.

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  • 15. 

    When confirming a hotel reservation for a client, a travel agent must be sure to

    • A.

      Ask the room number the client will be staying in

    • B.

      Ask how large the hotel is.

    • C.

      Find out how large the parking lot is.

    • D.

      Get a confirmation number.

    Correct Answer
    D. Get a confirmation number.
    Explanation
    When confirming a hotel reservation for a client, a travel agent must get a confirmation number. This is important because the confirmation number serves as proof that the reservation has been made and ensures that the client's room is reserved and available upon arrival. The confirmation number is also useful in case there are any issues or discrepancies with the reservation, as it can be used to track and verify the details with the hotel. Asking for the room number, the size of the hotel, or the size of the parking lot are not necessary steps in confirming a hotel reservation.

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  • 16. 

    When preparing rooming lists for large tour accommodations, the travel agency manager must have information about the people who will be traveling and

    • A.

      The number of motels located in destination cities.

    • B.

      Directions to the selected motels.

    • C.

      The policies and regulations of the selected motels.

    • D.

      Managers of the selected motels.

    Correct Answer
    C. The policies and regulations of the selected motels.
    Explanation
    The travel agency manager needs information about the policies and regulations of the selected motels in order to prepare rooming lists for large tour accommodations. This is because different motels may have different rules and regulations regarding room assignments, occupancy limits, check-in and check-out times, and other policies. By having this information, the manager can ensure that the rooming lists are prepared in accordance with the policies and regulations of the selected motels, ensuring a smooth and hassle-free accommodation experience for the travelers.

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  • 17. 

    An insurance company will insure your travel and tourism business to protect it from __________ risk.

    • A.

      Speculative

    • B.

      Pure

    • C.

      Economic

    • D.

      Competitive

    Correct Answer
    B. Pure
    Explanation
    An insurance company will insure your travel and tourism business to protect it from pure risk. Pure risk refers to situations where there is only a possibility of loss or no loss at all, and no possibility of gain. In the context of the travel and tourism business, pure risk could include events such as natural disasters, accidents, or unforeseen circumstances that could lead to financial loss. By insuring against pure risk, the insurance company provides coverage and financial protection for the business in case any of these unforeseen events occur.

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  • 18. 

    Which marketing function can remind customers of items that they want to purchase?

    • A.

      Distribution

    • B.

      Product/Service management

    • C.

      Financing

    • D.

      Promotion

    Correct Answer
    D. Promotion
    Explanation
    Promotion is the marketing function that can remind customers of items they want to purchase. This is because promotion involves various communication activities aimed at promoting and creating awareness about products or services to potential customers. Through advertising, personal selling, sales promotion, and public relations, promotion helps to remind customers about the availability and benefits of the items they want to purchase, thus influencing their buying decisions.

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  • 19. 

    When opening the grocery store for the day, the first employee to arrive should look for

    • A.

      Vendors waiting to deliver.

    • B.

      The security alarm switch.

    • C.

      Customers who are in a hurry.

    • D.

      Suspicious vehicles nearby.

    Correct Answer
    D. Suspicious vehicles nearby.
    Explanation
    The first employee to arrive at the grocery store should look for suspicious vehicles nearby. This is important for the safety and security of the store and its employees. Suspicious vehicles could potentially indicate criminal activity or a security threat. By being vigilant and reporting any suspicious vehicles, the employee can help prevent potential incidents and ensure a safe environment for everyone.

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  • 20. 

    Which of the following types of fraud is most likely to be committed by an unscrupulous competitor:

    • A.

      Point-of-sale

    • B.

      Robbery

    • C.

      Pilferage

    • D.

      Computer

    Correct Answer
    D. Computer
    Explanation
    An unscrupulous competitor is most likely to commit fraud using a computer. This is because computers provide a wide range of opportunities for fraudulent activities, such as hacking into a competitor's systems to gain sensitive information, manipulating data or transactions to gain an unfair advantage, or launching cyber attacks to disrupt their operations. Computer fraud allows the competitor to carry out their fraudulent activities remotely and discreetly, making it an attractive option for those with malicious intentions.

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  • 21. 

    Which of the following situations is an example of a business violating the Equal Pay Act:

    • A.

      Paying a higher wage to women who have many years of seniority

    • B.

      Paying bonuses to men for accomplishing specific sales goals

    • C.

      Paying a different wage to men and women doing comparable work

    • D.

      Paying a different wage to men and women doing the same work

    Correct Answer
    D. Paying a different wage to men and women doing the same work
    Explanation
    The Equal Pay Act requires that men and women be paid equally for performing the same work. Paying a different wage to men and women doing the same work violates this act because it constitutes gender-based wage discrimination.

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  • 22. 

    Which of the following is confidential information that would be unethical for a supermarket employee to provide to others without permission from the supermarket:

    • A.

      Posting of available positions

    • B.

      List of employees who will be promoted

    • C.

      Well-publicized expansion plans

    • D.

      Dates of an upcoming special sale

    Correct Answer
    B. List of employees who will be promoted
    Explanation
    The list of employees who will be promoted is confidential information that would be unethical for a supermarket employee to provide to others without permission from the supermarket. This information is internal and should only be shared with the concerned employees and authorized individuals within the organization. Sharing this information without permission could lead to unfair advantages or biases in the promotion process and compromise the integrity of the supermarket's operations.

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  • 23. 

    One of the steps in the receiving process is to compare the items listed on the delivery receipt with the items listed on the

    • A.

      Dummy invoice.

    • B.

      Purchase order.

    • C.

      Receiving log.

    • D.

      Bill of lading.

    Correct Answer
    B. Purchase order.
    Explanation
    In the receiving process, one of the steps is to compare the items listed on the delivery receipt with the items listed on the purchase order. This is done to ensure that the correct items have been received and to verify the accuracy of the order. The purchase order is a document that is created by the buyer and sent to the supplier, specifying the details of the products or services to be purchased. Comparing the items listed on the delivery receipt with the purchase order helps in identifying any discrepancies or errors in the shipment.

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  • 24. 

    Which of the following is an example of a measurable customer-service goal that many food producers set in order to facilitate the distribution process:

    • A.

      Fill orders within a specified amount of time

    • B.

      Organize warehouse to handle orders

    • C.

      Prepare orders for shipment

    • D.

      Develop a procedure for invoicing orders quickly

    Correct Answer
    A. Fill orders within a specified amount of time
    Explanation
    The correct answer is "Fill orders within a specified amount of time." This goal is measurable because it can be quantified by setting a specific time frame for order fulfillment. By setting this goal, food producers can ensure that orders are processed and shipped in a timely manner, which helps facilitate the distribution process and ensures customer satisfaction.

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  • 25. 

    One reason why it is important for supermarkets to maintain adequate inventory levels is to avoid __________ needed goods.

    • A.

      Paying taxes on

    • B.

      Stockpiling

    • C.

      Running out of

    • D.

      Depreciating

    Correct Answer
    C. Running out of
    Explanation
    It is important for supermarkets to maintain adequate inventory levels in order to avoid running out of needed goods. By having enough stock on hand, supermarkets can ensure that they are able to meet customer demand and prevent situations where popular items are unavailable. This helps to maintain customer satisfaction and loyalty, as well as ensuring a steady flow of sales for the supermarket. Additionally, by avoiding stockouts, supermarkets can minimize the risk of losing potential revenue and customers to competitors. Therefore, maintaining adequate inventory levels is crucial for supermarkets to avoid running out of needed goods.

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  • 26. 

    Horizontal conflict occurs among channel members that are __________ of the channel.

    • A.

      On different levels

    • B.

      At the same level

    • C.

      At a low level

    • D.

      On high levels

    Correct Answer
    B. At the same level
    Explanation
    Horizontal conflict occurs among channel members that are at the same level of the channel. This means that the conflict arises between members who are at the same level of the distribution channel, such as between two retailers or between two wholesalers. This type of conflict can occur due to competition for customers, territories, or resources, and can lead to issues such as price wars or undercutting.

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  • 27. 

    A candy store is open six days a week and has annual sales of $540,000. What is the store's average inventory in dollars if it has a stock turnover rate of nine?

    • A.

      $70,000

    • B.

      $60,000

    • C.

      $90,000

    • D.

      $85,000

    Correct Answer
    B. $60,000
    Explanation
    The stock turnover rate is calculated by dividing the annual sales by the average inventory. In this case, the annual sales are $540,000 and the stock turnover rate is given as nine. By rearranging the formula, we can solve for the average inventory. Dividing the annual sales by the stock turnover rate of nine gives us $60,000 as the average inventory in dollars.

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  • 28. 

    The basic ways of dealing with business risk are to

    • A.

      Prevent or control, transfer, retain, or avoid the risk.

    • B.

      Accept or reject, transfer, decrease, or carry the risk.

    • C.

      Reduce or eliminate, estimate, identify, or reveal the risk.

    • D.

      Eliminate or avoid, transfer, estimate, or plan for the risk.

    Correct Answer
    A. Prevent or control, transfer, retain, or avoid the risk.
    Explanation
    The basic ways of dealing with business risk are to prevent or control, transfer, retain, or avoid the risk. These strategies involve taking proactive measures to mitigate the risk by implementing preventive measures or establishing control mechanisms. Additionally, businesses can transfer the risk to another party through insurance or contracts, retain the risk by accepting it and preparing for potential losses, or avoid the risk altogether by not engaging in activities that pose a risk. These approaches provide businesses with a comprehensive framework to manage and address various types of risks they may encounter.

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  • 29. 

    What category of people does the federal government leave out when it calculates the rate of unemployment?

    • A.

      Full-time students

    • B.

      Unemployed job seekers

    • C.

      Part-time workers

    • D.

      Full-time employees

    Correct Answer
    A. Full-time students
    Explanation
    The federal government leaves out full-time students when calculating the rate of unemployment. This is because full-time students are not considered part of the labor force as they are primarily focused on their studies and not actively seeking employment. The unemployment rate is calculated by dividing the number of unemployed individuals by the number of individuals in the labor force, which excludes full-time students.

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  • 30. 

    Market segmentation can benefit supermarkets by helping them to

    • A.

      Make operational changes.

    • B.

      Market products efficiently.

    • C.

      Reduce production costs.

    • D.

      Appeal to the general population.

    Correct Answer
    B. Market products efficiently.
    Explanation
    Market segmentation refers to dividing a market into distinct groups of consumers based on their characteristics, preferences, and behaviors. By segmenting the market, supermarkets can identify the specific needs and wants of different customer groups. This allows them to tailor their products and marketing strategies to effectively target each segment, resulting in the ability to market products efficiently. By understanding the unique requirements of different segments, supermarkets can optimize their product offerings, promotions, and distribution channels to meet the demands of each segment, ultimately leading to increased sales and customer satisfaction.

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  • 31. 

    What is a potential opportunity a manager might identify in a SWOT analysis?

    • A.

      Strong research and development

    • B.

      Falling trade barriers

    • C.

      Management turnover

    • D.

      Risk of takeover

    Correct Answer
    B. Falling trade barriers
    Explanation
    A potential opportunity that a manager might identify in a SWOT analysis is falling trade barriers. This means that there are fewer restrictions and obstacles in international trade, allowing businesses to expand their markets and increase their profitability. With falling trade barriers, companies can explore new markets, access cheaper resources and labor, and potentially gain a competitive advantage over their rivals. This presents a favorable environment for growth and expansion in the global marketplace.

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  • 32. 

    Calculate a business's sales forecast for next year based on the following information: 90% of the 500 current customers say they will buy again next year and spend an average of $750. Thirty of the competitor's customers say they will buy and spend an average of $500.

    • A.

      $337,500

    • B.

      $350,000

    • C.

      $352,500

    • D.

      $375,000

    Correct Answer
    C. $352,500
    Explanation
    Based on the given information, the sales forecast for next year can be calculated by multiplying the number of current customers who will buy again (90% of 500) by the average amount they will spend ($750), and adding to it the number of competitor's customers who will buy (30) multiplied by the average amount they will spend ($500). Therefore, the sales forecast for next year is $352,500.

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  • 33. 

    Which of the following approaches should a manager take in dealing with a legitimate employee complaint:

    • A.

      Ignore the complaint as long as possible

    • B.

      Allow the complaint to work itself out

    • C.

      Identify the cause(s) of the complaint

    • D.

      Wait until the complaint becomes a grievance

    Correct Answer
    C. Identify the cause(s) of the complaint
    Explanation
    The manager should identify the cause(s) of the complaint. This approach is important because it allows the manager to understand the underlying issues that led to the complaint. By identifying the cause(s), the manager can then take appropriate actions to address and resolve the complaint effectively. Ignoring the complaint, allowing it to work itself out, or waiting until it becomes a grievance can lead to further dissatisfaction and potential escalation of the issue.

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  • 34. 

    Which of the following statements is true regarding business plans:

    • A.

      Lending institutions do not usually require loan applicants to submit a business plan.

    • B.

      The operating plan details information regarding the business's services.

    • C.

      Owners often use business plans as a tool to help them achieve their objectives.

    • D.

      A corporation is the only legal form of business ownership that should develop a business plan.

    Correct Answer
    C. Owners often use business plans as a tool to help them achieve their objectives.
    Explanation
    Owners often use business plans as a tool to help them achieve their objectives. Business plans serve as a roadmap for owners to outline their goals, strategies, and financial projections. They provide a clear vision of the business's direction and help owners make informed decisions. Additionally, business plans are often required by investors, partners, and stakeholders to evaluate the feasibility and potential of the business. Therefore, owners find business plans crucial in guiding their actions and ensuring the success of their ventures.

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  • 35. 

    When a natural disaster occurs in a certain part of the country, a food distribution company refuses to raise the prices of its products, which are in high demand. The business is being 

    • A.

      Socially responsible.

    • B.

      Economically unsound.

    • C.

      Legally reasonable.

    • D.

      Politically correct.

    Correct Answer
    A. Socially responsible.
    Explanation
    The correct answer is socially responsible. This is because the company is choosing not to take advantage of the high demand for its products during a natural disaster by raising prices. Instead, it is prioritizing the well-being of the affected individuals by keeping the prices stable, thereby acting in a socially responsible manner.

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  • 36. 

    When a food manufacturer uses its product wrapping to state its corporate views on controversial issues such as use of growth hormones in animals, it is engaging in an ethical practice called

    • A.

      Provocative branding.

    • B.

      Environmental labeling.

    • C.

      Political lobbying.

    • D.

      Cause packaging.

    Correct Answer
    D. Cause packaging.
    Explanation
    The correct answer is cause packaging. Cause packaging refers to when a food manufacturer uses its product wrapping to express its stance on controversial issues such as the use of growth hormones in animals. This practice is considered ethical as it allows the company to align its products with its corporate views and values, giving consumers the opportunity to make informed choices based on their own beliefs and preferences.

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  • 37. 

    Which of the following categories of food has a high sales volume and usually is placed near the entrance of the grocery store:

    • A.

      Frozen

    • B.

      Seafood

    • C.

      Produce

    • D.

      Cereal

    Correct Answer
    C. Produce
    Explanation
    Produce has a high sales volume and is usually placed near the entrance of the grocery store because it is a highly perishable item and needs to be restocked frequently. Placing it near the entrance ensures that customers see and purchase fresh fruits and vegetables as soon as they enter the store. Additionally, produce is a staple item in most households and is often included in the weekly shopping list, contributing to its high sales volume.

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  • 38. 

    Which of the following is a reason that food marketers often use bulk produce displays:

    • A.

      Bulk displays are less expensive.

    • B.

      Bulk produce looks fresh longer.

    • C.

      Losses caused by customer handling are reduced.

    • D.

      Produce can be marked individually with price labels.

    Correct Answer
    A. Bulk displays are less expensive.
    Explanation
    Food marketers often use bulk produce displays because they are less expensive. This means that they can save on packaging and other costs associated with individually packaging each item. Bulk displays also allow for larger quantities of produce to be displayed, which can attract customers and increase sales. Additionally, bulk displays can create a perception of abundance and freshness, making the produce more appealing to customers. Overall, using bulk displays can be a cost-effective and visually appealing strategy for food marketers.

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  • 39. 

    Which of the following statements is true about the selling process:

    • A.

      Its steps can be performed in any order.

    • B.

      It is used only in retail sales.

    • C.

      It is complex.

    • D.

      It is the same across industries, products, and customers.

    Correct Answer
    C. It is complex.
    Explanation
    The selling process is complex because it involves various steps and variables that can influence the outcome. It requires understanding the customer's needs, building relationships, and effectively communicating the value of the product or service. Additionally, the selling process can vary depending on the industry, product, and customer, making it even more intricate.

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  • 40. 

    One reason that a grocery store sales manager might evaluate the sales volume of a specific product is to

    • A.

      Measure customer loyalty in terms of overall reorder sales.

    • B.

      Determine if the item should be eliminated from the product line.

    • C.

      Evaluate the company's overall financial status.

    • D.

      Rate the relationship between sales personnel and their customers.

    Correct Answer
    B. Determine if the item should be eliminated from the product line.
    Explanation
    The sales volume of a specific product can be evaluated to determine if the item should be eliminated from the product line. By analyzing the sales volume, the grocery store sales manager can assess whether the product is popular among customers and generating enough revenue. If the sales volume is consistently low, it may indicate that the item is not in demand and removing it from the product line could be a viable option. This evaluation helps the store make informed decisions about their product offerings and optimize their inventory.

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  • 41. 

    Clothing stores that carry a considerable assortment of goods but in only one or a few related product lines are __________ stores.

    • A.

      Specialty

    • B.

      Discount

    • C.

      Service

    • D.

      Limited-line

    Correct Answer
    D. Limited-line
    Explanation
    Limited-line stores are clothing stores that carry a considerable assortment of goods but in only one or a few related product lines. This means that they specialize in a specific type of clothing or a specific category of clothing, rather than offering a wide range of different types of clothing. They may focus on a particular style, brand, or demographic, allowing them to cater to a specific niche market. This specialization can help them to provide a more focused and curated shopping experience for their customers.

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  • 42. 

    Consumers who have credit cards and telephones are able to order apparel and accessory merchandise that is displayed on a television or a computer screen. This is known as

    • A.

      QVC.

    • B.

      E-mail.

    • C.

      Electronic retailing.

    • D.

      Telemarketing.

    Correct Answer
    C. Electronic retailing.
    Explanation
    Consumers who have credit cards and telephones can order apparel and accessory merchandise that is displayed on a television or a computer screen. This process is known as electronic retailing, as it involves the use of electronic devices and online platforms to facilitate the purchase of goods.

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  • 43. 

    What is the major difference between the layout of a deposit slip for a personal bank account and a deposit slip for a dress shop's business account?

    • A.

      The bank account number appears on a personal deposit slip.

    • B.

      There is more space to list checks on a business deposit slip.

    • C.

      Coins can only be listed on business deposit slips.

    • D.

      There is no difference between the two types of deposit slips.

    Correct Answer
    B. There is more space to list checks on a business deposit slip.
    Explanation
    The major difference between the layout of a deposit slip for a personal bank account and a deposit slip for a dress shop's business account is that there is more space to list checks on a business deposit slip.

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  • 44. 

    Which of the following factors affects the type of business ownership individuals choose:

    • A.

      Location of the business

    • B.

      Willingness to assume risk

    • C.

      Size of the community

    • D.

      Stage of product's life cycle

    Correct Answer
    B. Willingness to assume risk
    Explanation
    The factor that affects the type of business ownership individuals choose is their willingness to assume risk. This means that individuals who are more willing to take risks are more likely to choose ownership options such as sole proprietorship or partnership, where they have more control and responsibility. On the other hand, individuals who are risk-averse may prefer ownership options such as corporations, where the risk is spread among shareholders. The other factors listed, such as location of the business, size of the community, and stage of product's life cycle, may have an impact on the business but do not directly determine the type of ownership chosen.

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  • 45. 

    When developing a system to safeguard cash, a clothing store manager should

    • A.

      Have each cashier reconcile and balance her/his own cash drawer at the end of a shift.

    • B.

      Carry the funds in unlocked bank bags when making the deposit at the bank.

    • C.

      Consider how much cash should be kept on hand and when bank deposits should be made.

    • D.

      Designate more than one cashier to each cash drawer so registers do not need to be locked.

    Correct Answer
    C. Consider how much cash should be kept on hand and when bank deposits should be made.
    Explanation
    When developing a system to safeguard cash, a clothing store manager should consider how much cash should be kept on hand and when bank deposits should be made. This is important to ensure that the store has enough cash available for daily operations, while also minimizing the risk of theft or loss. By regularly evaluating the cash needs of the store and determining the appropriate timing for bank deposits, the manager can maintain a balance between convenience and security. This approach also allows for proper tracking and monitoring of cash flow, reducing the potential for errors or discrepancies.

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  • 46. 

    What is the best source of information that the owner of a new T-shirt shop could use to find out how to collect sales tax?

    • A.

      A financial institution

    • B.

      The state taxation agency

    • C.

      The Internal Revenue Service

    • D.

      The local chamber of commerce

    Correct Answer
    B. The state taxation agency
    Explanation
    The best source of information that the owner of a new T-shirt shop could use to find out how to collect sales tax is the state taxation agency. This agency is responsible for overseeing and enforcing tax laws within the state, including sales tax. They will have the most up-to-date and accurate information regarding the specific requirements and procedures for collecting and remitting sales tax in the state where the T-shirt shop is located.

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  • 47. 

    Certain environmental regulations require businesses to develop operating and production systems that are intended to

    • A.

      Consume resources.

    • B.

      Create waste.

    • C.

      Control pollution.

    • D.

      Collect samples.

    Correct Answer
    C. Control pollution.
    Explanation
    Certain environmental regulations require businesses to develop operating and production systems that are intended to control pollution. This means that businesses must implement measures and practices to minimize or eliminate the release of harmful pollutants into the environment. This can include using cleaner technologies, implementing waste management strategies, and adhering to emission standards. By controlling pollution, businesses can reduce their negative impact on the environment and contribute to sustainable practices.

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  • 48. 

    Why should businesses coordinate distribution with pricing to successfully sell products to customers?

    • A.

      Customers expect to receive significant discounts.

    • B.

      Businesses must pay transportation charges.

    • C.

      Most customers are only willing to pay a certain price.

    • D.

      Many businesses need to obtain warehouse space.

    Correct Answer
    C. Most customers are only willing to pay a certain price.
    Explanation
    Businesses should coordinate distribution with pricing to successfully sell products to customers because most customers are only willing to pay a certain price. By aligning the distribution strategy with the pricing strategy, businesses can ensure that their products are priced appropriately and are accessible to their target customers. This helps in maximizing sales and profitability by meeting customer expectations and demand.

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  • 49. 

    Putting forth effort in order to understand what is being said is called

    • A.

      Active listening.

    • B.

      Communication.

    • C.

      Listening.

    • D.

      Nonverbal communication.

    Correct Answer
    A. Active listening.
    Explanation
    Active listening refers to the act of making a conscious effort to fully understand and engage with what is being said. It involves giving full attention to the speaker, asking clarifying questions, and providing feedback. This goes beyond simply hearing the words and requires active participation in the communication process. Therefore, active listening is the most appropriate term to describe the act of putting forth effort to understand what is being said.

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  • 50. 

    A salesperson who is well informed about the products that the business provides can easily answer which of the following customer questions:

    • A.

      What hours is the business open?

    • B.

      What is the business's return policy?

    • C.

      What type of credit does the business offer?

    • D.

      What types of services are offered by the business?

    Correct Answer
    D. What types of services are offered by the business?
    Explanation
    A salesperson who is well informed about the products that the business provides can easily answer the question "What types of services are offered by the business?" because they have knowledge about the range of services the business offers. They can provide detailed information about the services, their features, and benefits, helping the customer make an informed decision.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 18, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 20, 2009
    Quiz Created by
    Weilydai
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