PRAXIS Business Test

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PRAXIS Business Test

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  • 1. 
    When an organization sets a level of standards and then evaluates a  manager’s activities to determine if organizational goals are being met, this  function of business management is being performed:
    • A. 

      Planning.

    • B. 

      Organizing.

    • C. 

      Directing.

    • D. 

      Controlling.

  • 2. 
    • A. 

      Financial Plan.

    • B. 

      Sales and Marketing Plan.

    • C. 

      Executive Summary.

    • D. 

      Description of Products and Services.

  • 3. 
    • A. 

      Establishing a system of financial controls.

    • B. 

      Estimates cost of labor and materials.

    • C. 

      Market research to support sales projections.

    • D. 

      Monthly revenue projections for the first two years.

  • 4. 
    Gross Domestic Product (GDP) is different from Gross National Product  (GNP) because GDP does not include the following financial measurement:
    • A. 

      Net exports.

    • B. 

      Government purchases

    • C. 

      Quarterly products of goods and services

    • D. 

      Net income from foreign sources.

  • 5. 
    Which of the following is not a goal of labor management?
    • A. 

      Increase commission-based compensation.

    • B. 

      Improve productivity.

    • C. 

      Get new workers trained and “up to speed” more quickly.

    • D. 

      Increase employee retention.

  • 6. 
    Which of the following equations is used to determine Return on Equity  (ROE)?
    • A. 

      ROE = Net income/ Sales

    • B. 

      ROE= Gross profit/ Net equity

    • C. 

      ROE= Net income/ Average equity

    • D. 

      ROE= Net equity/ Net income

  • 7. 
    Profitability can be measured through  the following ways, except:
    • A. 

      Gross profit on sales.

    • B. 

      Return on equity.

    • C. 

      Earning per share.

    • D. 

      Net present value.

  • 8. 
    • A. 

      The amount of capital that will make up debt.

    • B. 

      The possibility of financial difficulty in the future.

    • C. 

      The amount of future inventory to be sold.

    • D. 

      The possibility of interest rate movement in the future.

  • 9. 
    Which of the following interest rates are both used for long-term  investments? 
    • A. 

      Prime rate, discount rate.

    • B. 

      Commercial paper rate, treasury bill rate.

    • C. 

      Treasury bond rate, corporate bond rate.

    • D. 

      Corporate bond rate, treasury bill rate.

  • 10. 
    The process of recording, reporting, and evaluating economic events and  transactions that affect business enterprise is called:   
    • A. 

      Marketing.

    • B. 

      Accounting.

    • C. 

      Trend analysis.

    • D. 

      Financial reliability.

  • 11. 
    Which aspect of change theory deals with developing awareness for the  need to change? 
    • A. 

      Precontemplation.

    • B. 

      Contemplation.

    • C. 

      Planning.

    • D. 

      Maintenance.

  • 12. 
    • A. 

      A) Come and go until a permanent schedule is assigned.

    • B. 

      B) Work without a contract.

    • C. 

      C) Mesh easily within communication and social culture.

    • D. 

      D) Advance within the company based upon performance, not seniority.

  • 13. 
    • A. 

      A) Pressuring group members to conform to the status quo.

    • B. 

      B) Spreading of information, true or false, from employee to employee.

    • C. 

      C) Providing support to management.

    • D. 

      D) Voting on dress codes, status symbols, and other informalities on the job.

  • 14. 
    • A. 

      A) Work history, indebtedness, race, and gender have no bearing on an applicant vying for a job.

    • B. 

      B) Recruitment efforts are not targeted toward groups already financially established.

    • C. 

      C) Underrepresented groups within the local population are proportionally represented among the organization’s employees.

    • D. 

      D) All decisions about hiring, discipline, and termination are based on objective, job-related criteria.

  • 15. 
    • A. 

      The total debits recorded during the accounting period equal the total credits recorded during the period.

    • B. 

      Every transaction that occurred during the accounting period has been recorded appropriately.

    • C. 

      Every transaction that occurred during the accounting period has been posted to the correct debit and credit accounts in the ledger.

    • D. 

      All accounts have been debited or credited appropriately for each transaction that occurred during the accounting period.

  • 16. 
    17. Which of the following roles in the buying center is incorrect?
    • A. 

      Users are the people in the organization who actually use the product or service, such as an account manager who uses a computer.

    • B. 

      Influencers affect the buying decision by helping define the specifications for what is bought. An information system manager would influence the decision to purchase a new mainframe computer.

    • C. 

      Buyers have formal authority and responsibility to select the supplier and negotiate terms of the contract.

    • D. 

      Deciders control the flow of information in the buying center. Purchasing personnel and technical experts belong to this group.

  • 17. 
    Compared with the first in, first out (FIFO) method of inventory  accounting, the last in, first out (LIFO) method of inventory accounting has which of the following characteristics? 
    • A. 

      The cost of goods sold tends to magnify net income.

    • B. 

      Balance sheet figures provide a more accurate assessment of inventory value.

    • C. 

      The cost of goods sold is lower in times of rising prices.

    • D. 

      The cost of goods sold is closer to prices at the time of sale.

  • 18. 
    • A. 

      Stores information or instructions that do not change.

    • B. 

      Contains the command necessary to boot the computer.

    • C. 

      Uses an area called firmware to store its instructions.

    • D. 

      Erases programs and stored data when the computer is shut off.

  • 19. 
    • A. 

      Link the computers via a local area network (LAN).

    • B. 

      Load the same software applications on the computers of the two departments.

    • C. 

      Link the computers via modems and phone lines.

    • D. 

      Link the computers to a CD-ROM file server.

  • 20. 
    Which of the following is not a function of telecommunications?
    • A. 

      Establish interface between sender and receiver.

    • B. 

      Perform editorial tasks on data.

    • C. 

      Release control of information flows.

    • D. 

      Convert flow of information.

  • 21. 
    • A. 

      Foreign producers of the product increase supply to stimulate demand.

    • B. 

      Domestic producers of the product increase their prices.

    • C. 

      Foreign producers of the product gain a comparative advantage.

    • D. 

      Domestic producers of the product become more efficient.

  • 22. 
    Which of the following actions by the Federal Reserve System would be  most likely to increase consumer spending?
    • A. 

      Increasing reserve requirements for member banks.

    • B. 

      Increasing the discount rate to member banks.

    • C. 

      Decreasing the discount rate to member banks.

    • D. 

      Selling large amounts of government securities.

    • E. 

      Keeping reserve requirements of member banks constant.

  • 23. 
    In information processing, a byte is: 
    • A. 

      A unit of power.

    • B. 

      A machine for inputting data.

    • C. 

      A unit of information.

    • D. 

      An on or off switch.

  • 24. 
    An account payable entry appears in the:
    • A. 

      Asset section of the balance sheet.

    • B. 

      Liability section of the balance sheet.

    • C. 

      Capital section of the balance sheet.

    • D. 

      Cost of goods sold section of the income statement.

    • E. 

      Operating expense section of the income statement.

  • 25. 
    The federal act that declared the closed shop to be illegal is the:
    • A. 

      Landrum-Griffin Act

    • B. 

      Norris-La Guardia Act

    • C. 

      Taft-Hartley Act

    • D. 

      Wagner Act

    • E. 

      Robinson-Patman Act

  • 26. 
    • A. 

      Prevent employees from having to work under poor conditions.

    • B. 

      Protect employers from striking employees.

    • C. 

      Protect union members from being terminated because of taking part in union activity.

    • D. 

      Preserve productivity standards so employers can enter into union labor negotiations with equal leverage.

  • 27. 
    The planning, pricing, promotion, and distribution involve din getting goods or services from producers to consumers is known as:
    • A. 

      Merchandising.

    • B. 

      Retailing.

    • C. 

      Wholesaling.

    • D. 

      Marketing.

    • E. 

      Producing.

  • 28. 
    Dana earns $4500 of cash in one summer from baby-sitting.  Neither party  reports this income to the IRS and no taxes are paid on it.  This income is  considered part of the: 
    • A. 

      GDP and GNP.

    • B. 

      GDP but not GNP.

    • C. 

      Underground economy.

    • D. 

      Free-market economy.

  • 29. 
    Which is the main objective of business?
    • A. 

      Organic objective.

    • B. 

      Economic objective.

    • C. 

      Social objective.

    • D. 

      All of the above.

  • 30. 
    The mindset of identifying unique opportunities in the market place and  creating wealth by bringing resources together belongs to someone in:
    • A. 

      Entrepreneurship.

    • B. 

      Organization.

    • C. 

      Marketing.

    • D. 

      Advertisement.

  • 31. 
    • A. 

      8,08,000

    • B. 

      2,000

    • C. 

      10%

    • D. 

      20%

  • 32. 
    Wally’s Department Store is having a 35% markdown sale.  What is the  sale price of a sweater that retails for $60?
    • A. 

      $30

    • B. 

      $48

    • C. 

      $45

    • D. 

      $39

  • 33. 
    Wally’s Department Store received all new inventories and must price it.   Each pair of jeans wholesales for $15, and Wally’s sells it for $25 retail.   What is the markup for these jeans?
    • A. 

      66.6%

    • B. 

      60%

    • C. 

      50%

    • D. 

      10%

  • 34. 
    Capital raised through bank or trade credit is known as:
    • A. 

      Fixed capital.

    • B. 

      Working capital.

    • C. 

      Marginal capital.

    • D. 

      None of the above.

  • 35. 
    While visiting a web site about walrus food, Agnes sees a banner  advertisement for a new pet treat for walrus.  She clicks on the banner  and places an order.  This is an example of:
    • A. 

      Creative marketing.

    • B. 

      Online retailing.

    • C. 

      Telemarketing.

    • D. 

      Direct marketing.

  • 36. 
    Accounting equation can be written as:
    • A. 

      Equity + Liabilities = Assets.

    • B. 

      Equity + Assets = Liabilities.

    • C. 

      Liabilities + Assets = Equity.

    • D. 

      Equity + Subsidy = Assets.

  • 37. 
    What is Equity?
    • A. 

      Owner’s Claim.

    • B. 

      Private property.

    • C. 

      Bank Balance.

    • D. 

      None.

  • 38. 
    Which of the following is a short term loan?
    • A. 

      One year.

    • B. 

      More than one year.

    • C. 

      About eight years.

    • D. 

      Five and a half years.

  • 39. 
    • A. 

      FIFO.

    • B. 

      LIFO.

    • C. 

      Cash and Accrual.

    • D. 

      Federal.

  • 40. 
    • A. 

      Furniture.

    • B. 

      Inventory.

    • C. 

      Cash.

    • D. 

      Land and Building.

  • 41. 
    Cost of Sales = Cost of Good Sold + ________
    • A. 

      Selling Expenses.

    • B. 

      Purchase Price.

    • C. 

      Administrative Expenses.

    • D. 

      Direct Expenses.

  • 42. 
    Which of the following is not an inventory valuation method?
    • A. 

      FIFO.

    • B. 

      LIFO.

    • C. 

      Average Price.

    • D. 

      Depreciation.

  • 43. 
    • A. 

      Liabilities + Owner’s Capital.

    • B. 

      Liabilities + Fixed Asset.

    • C. 

      Fixed Asset + Current Asset.

    • D. 

      Equity Shares + Assets.

  • 44. 
    Percentage of the working force that is not currently employed is known  as: 
    • A. 

      Unemployment rate.

    • B. 

      Ratio of unemployed workers to employed workers.

    • C. 

      Population rate.

    • D. 

      Working force rate.

  • 45. 
    As product demand decreases:
    • A. 

      Price increases.

    • B. 

      Supply increases.

    • C. 

      Price decreases.

    • D. 

      Supply decreases.

  • 46. 
    Which of the following equations is correct for an ending accounts  ledger? 
    • A. 

      Debits (DR) = Credits (CR).

    • B. 

      Debits (DR) > Credits (CR).

    • C. 

      Debits (DR) < Credits (CR).

    • D. 

      Debits (DR) + Credits (CR) = 0.

  • 47. 
    Uncontrollable elements are always:
    • A. 

      Beyond the influence of the business.

    • B. 

      Under the influence of the business.

    • C. 

      Effected by the country.

    • D. 

      Depends on the business scale.

  • 48. 
    A monopoly in a given industry can be qualified as:
    • A. 

      One or only a few firms dominate.

    • B. 

      No firm dominates.

    • C. 

      Full market gets profit.

    • D. 

      Uncontrollable growth.

  • 49. 
    Which of the following always causes equilibrium prices to fall?
    • A. 

      Supply increases and demand increases.

    • B. 

      Supply increases and demand decreases.

    • C. 

      Supply decreases and demand increases.

    • D. 

      Supply decreases and demand decreases.

  • 50. 
    • A. 

      GNP minus spending equals GDP.

    • B. 

      GDP minus spending equals GNP.

    • C. 

      GNP does not include foreign business income made within the USA.

    • D. 

      GDP does not include foreign business income made within the USA.

  • 51. 
    Return on investment is defined as:
    • A. 

      Total investment over net profit.

    • B. 

      Total investment over gross profit.

    • C. 

      Net profit over total investment.

    • D. 

      Gross profit over total investment.

  • 52. 
    More Than Chicken Wings decides to open its own TV refurbish and  resell service.  This creates more jobs for local mechanics.  The owner of  More Than Chicken Wings sells the old TVs uses the additional income to  remodel his house, employing many local contractors, who in turn spend  their additional income.  What term best describes this situation? 
    • A. 

      Rotation of money.

    • B. 

      Multiplier effect.

    • C. 

      Money cycle.

    • D. 

      Remodel factor.

  • 53. 
    Collective bargaining is a process that:
    • A. 

      Provides an opportunity for both sides to cooperate on human resource policies so that union strike can be avoided.

    • B. 

      Provides an opportunity for the management to work by their own way.

    • C. 

      Provides an opportunity for a union to work by their own way.

    • D. 

      Provides an opportunity for both sides to cooperate through court.

  • 54. 
    Which of the following is not a marketing goal?
    • A. 

      Increase sales.

    • B. 

      Increase product quality.

    • C. 

      Increase market share.

    • D. 

      Create brand image.

  • 55. 
    Revenues, expenses, and net income are calculated by:
    • A. 

      Income statement.

    • B. 

      Revenues statement.

    • C. 

      Balance statement.

    • D. 

      Profit statement.

  • 56. 
    A process through which retail stores progressively become specialized  is known as: 
    • A. 

      Retailing cycle.

    • B. 

      Wheel of retailing.

    • C. 

      Specialization.

    • D. 

      Specialization cycle.

  • 57. 
    What is the most effective means of increasing profits?
    • A. 

      Switching accounting methods.

    • B. 

      Introducing additional products.

    • C. 

      Raising prices.

    • D. 

      Lowering expenses.

  • 58. 
    Benchmarks should be included in which component of an advertising  campaign? 
    • A. 

      Expense report.

    • B. 

      Objectives.

    • C. 

      Competition research.

    • D. 

      Media campaign.

  • 59. 
    Which of the following pairs of goods is an example of substitutes?
    • A. 

      Tea and sugar.

    • B. 

      Tea and coffee.

    • C. 

      Pen and ink.

    • D. 

      Shirt and trouser.

  • 60. 
    • A. 

      Average cost.

    • B. 

      Marginal cost.

    • C. 

      Fixed cost.

    • D. 

      Variable cost.

  • 61. 
    When the output of a firm increases, its cost per unit:
    • A. 

      Increases.

    • B. 

      Decreases.

    • C. 

      Remains constant.

    • D. 

      First declines then rises.

  • 62. 
    The cost of one item, instead of choosing an alternative item, is known  as: 
    • A. 

      Production cost.

    • B. 

      Physical cost.

    • C. 

      Real cost.

    • D. 

      Opportunity cost.

  • 63. 
    • A. 

      Large number of buyers and sellers.

    • B. 

      Homogeneous product.

    • C. 

      Freedom of entry.

    • D. 

      Absence of transport cost.

  • 64. 
    Which is the first order condition for the profit of a firm to be maximized?
    • A. 

      AC=MR

    • B. 

      MC=MR

    • C. 

      MR=AR

    • D. 

      AR=AC

  • 65. 
    • A. 

      It doesn’t pay salespeople enough.

    • B. 

      It makes accounting more complicated.

    • C. 

      Salespeople have less motivation to bring in more sales.

    • D. 

      It costs more than commission sales.

  • 66. 
    Which process of advertising is used to introducing a new product to the  market for the first time is called:
    • A. 

      Introductory advertising.

    • B. 

      Junior advertising.

    • C. 

      Pioneer advertising.

    • D. 

      First-time advertising.

  • 67. 
    This process involves fixing priorities of different items and operation:
    • A. 

      Plant layout.

    • B. 

      Scheduling.

    • C. 

      Production control.

    • D. 

      Inventory control.

  • 68. 
    Which of the following is the functional area of business?
    • A. 

      Plant location.

    • B. 

      Production.

    • C. 

      Marketing.

    • D. 

      All of the above.

  • 69. 
    In terms of computers and technology, what is a Cookie?
    • A. 

      A small text file of information that certain Web sites attach to a user's hard drive while the user is browsing the Web site. A Cookie can contain information such as user ID, user preferences, archive shopping cart information, etc. Cookies can contain Personally Identifiable Information.

    • B. 

      Gateway that limits access between networks in accordance with local security policy.

    • C. 

      A measure of the capacity of a communications channel. The higher a channel's cookie load, the more information it can carry.

    • D. 

      A measure of memory, holding more capacity than a byte.

  • 70. 
    What is the relationship between gigabytes and megabytes?
    • A. 

      One gigabyte is equal to 100 megabytes.

    • B. 

      One megabyte is equal to 100 gigabytes.

    • C. 

      One gigabyte is equal to 1000 megabytes.

    • D. 

      One megabyte is equal to 1000 gigabytes.

  • 71. 
    Which of the following does not qualify as computer hardware?
    • A. 

      Computer Monitor.

    • B. 

      Connecting chords.

    • C. 

      Operating system.

    • D. 

      LAN system.

  • 72. 
    Which of the following is a realistic drawback to telecommuting?
    • A. 

      Lost productivity due to unsupervised employees working at home.

    • B. 

      Cost to equip homes with necessary home office equipment.

    • C. 

      Increase in supplies because each employee must have their own supply of paper, ink, etc.

    • D. 

      Less tax deductions for company due to less employee travel.

  • 73. 
    The three elements to IT architecture are:
    • A. 

      Processing, telecommunications, and data.

    • B. 

      Processing, analyzing, and output.

    • C. 

      Data, processing, and analyzing.

    • D. 

      Data, telecommunications, and analyzing.

  • 74. 
    Account reconciliation is the process of taking _____________ ledger  accounts, closing them, and posting the results on the ____________  ledger. 
    • A. 

      General, post-closing.

    • B. 

      Subsidiary, post-closing.

    • C. 

      General, trial balance.

    • D. 

      Subsidiary, general.

  • 75. 
    • A. 

      LIFO yields a lower ending inventory.

    • B. 

      LIFO yields a higher cost of goods sold.

    • C. 

      LIFO yields a higher gross profit.

    • D. 

      LIFO yields a lower taxable income.

  • 76. 
    • A. 

      No information can be sent or received to the location whose server is down.

    • B. 

      The entire system is unable to exchange information since the server from one location is connected to the main server of all locations.

    • C. 

      Every system location can send and receive information with exception of the location with a down server.

    • D. 

      Both a) and c) are true.

    • E. 

      None of these are true.

  • 77. 
    All of the following are business education-based student organizations  except: 
    • A. 

      Beta Gamma Sigma.

    • B. 

      Delta Beta Gamma.

    • C. 

      Alpha Beta Gamma.

    • D. 

      Sigma Beta Delta.

  • 78. 
    In 1960, President Kennedy introduced to the consumer bill of rights.   When a burger chain refuses to make nutritional information available to  customers, what consumer right is being violated?
    • A. 

      The right to choose.

    • B. 

      The right to be heard.

    • C. 

      The right to be informed.

    • D. 

      The right to education.

  • 79. 
    • A. 

      $200.

    • B. 

      $100

    • C. 

      $300

    • D. 

      $50

  • 80. 
    A clock unit is part of what piece of hardware?
    • A. 

      Register.

    • B. 

      CPU.

    • C. 

      LAN/WAN.

    • D. 

      Printer.

  • 81. 
    The steps in the organizing process include reviewing plans, listing  tasks, _______________, assigning work, and  delegating authority. 
    • A. 

      Hiring for jobs.

    • B. 

      Grouping tasks into jobs.

    • C. 

      Directing task forces.

    • D. 

      Controlling set-up of jobs.

  • 82. 
    • A. 

      Employees may be alternatively motivated or disillusioned depending on the prevailing corporate culture.

    • B. 

      Corporate culture can help determine an organization’s business effectiveness.

    • C. 

      The price of raw goods is lower than for the competition.

    • D. 

      General patters of power structure, interpersonal relations, and human- centered processes can be observed in different types of corporate cultures.

  • 83. 
    Computer programming is the process of:
    • A. 

      Defining the relationship between objects, sequencing them in an appropriate order, and producing attractive and useful graphics applications.

    • B. 

      The process of transforming a description of a system design into instructions a computer can interpret.

    • C. 

      Creating a corporate infrastructure resource that can be shared by many users and services.

    • D. 

      Storing data in a format that cannot be altered.

  • 84. 
    An employee who is adept at inputting data via alphabetical and  numerical characters by using keys has mastered the skill of:
    • A. 

      Keyboarding.

    • B. 

      Word processing.

    • C. 

      SWOT analysis.

    • D. 

      Hardware applications.

  • 85. 
    This is the series of interdependent marketing institutions that assist a  product as it transfers from producer to consumer.  Producers,  intermediaries, and final buyers are participants in a channel.  What is it? 
    • A. 

      Retailing.

    • B. 

      Public Relations.

    • C. 

      Wholesaling.

    • D. 

      A marketing channel.

  • 86. 
    Which of the following interest rates would be used if a company got a  six-year loan of $100,000 from a commercial banking institution?
    • A. 

      Corporate bond rate.

    • B. 

      Prime rate.

    • C. 

      Discount rate.

    • D. 

      Treasury bond rate.

  • 87. 
    The first step for creating an organizational budget is to:
    • A. 

      Making a list of all recurring costs.

    • B. 

      Calculating projected earnings.

    • C. 

      Making a list of one-time payments for the present year.

    • D. 

      Choosing the periodicity of the budget.

  • 88. 
    When creating a bar graph on a spreadsheet, which quadrant is used to  display the numerical information?
    • A. 

      Quadrant I.

    • B. 

      Quadrant II.

    • C. 

      Quadrant III.

    • D. 

      Quadrant IV.

  • 89. 
    Downloading MP3s from the company network on free file sharing  systems and implementing company software onto a personal computer  for personal use are best described as examples of: 
    • A. 

      Piracy.

    • B. 

      Resourcefulness.

    • C. 

      Network sharing.

    • D. 

      Downloading.

  • 90. 
    An employee who is climbing up the corporate ladder and is working hard  to achieve organizational goals and earning the next promotion is  demonstrating progress toward which level of Maslow Hierarch of Needs.
    • A. 

      Physiological needs.

    • B. 

      Belonging Needs.

    • C. 

      Esteem needs.

    • D. 

      Self-actualization needs.

  • 91. 
    Production capacity, production costs, and amount of competition in a  given market are all factors affecting:
    • A. 

      Supply.

    • B. 

      Demand.

    • C. 

      Elasticity.

    • D. 

      Labor capacity.

  • 92. 
    This process, associated with local area networks and wide area network,  is the process that combines outputs of several channels into a single  composite output. 
    • A. 

      ROM.

    • B. 

      B) Local loop transmission.

    • C. 

      MNP.

    • D. 

      Multiplexing.

  • 93. 
    Local area networks are implemented for all of the reasons except:
    • A. 

      Increased data accessibility.

    • B. 

      Increase technology-based tax deductions.

    • C. 

      Increase productivity.

    • D. 

      Recognition of information as a corporate asset to be leveraged to competitive advantage.

  • 94. 
    There are several attributes of a good customer relationship  management (CRM).  If an organization is striving to understand the  customer and is pursuing the driving forces of future customer  interaction, they are exuding which capability of CRM? 
    • A. 

      Customer service.

    • B. 

      Marketing integration.

    • C. 

      Predictive modeling.

    • D. 

      Performance measurement.

  • 95. 
    An S-Corporation currently has 73 shareholders, and will be doubling the  amount of shareholders over the next year.  What major transition must the  Corporation look to make? 
    • A. 

      Making the transition from FIFO to LIFO so profitability appears greater and shareholder value is more likely to increase.

    • B. 

      Increasing the amount of subsidiary ledgers to account for increasing amounts of accounts.

    • C. 

      Filing out of S-Corporation status due to the number of shareholders.

    • D. 

      Hiring a board of directors to ensure profitability and shareholder value increase.

  • 96. 
    Where can consumers find information resources to protect and educate  them? 
    • A. 

      U.S. Office of Consumer Affairs.

    • B. 

      Consumer Product Safety Commission.

    • C. 

      Better Business Bureau.

    • D. 

      All of the above.

  • 97. 
    Bandwidth can best be described as: 
    • A. 

      A range of frequencies.

    • B. 

      An access protocol.

    • C. 

      Signal strength during transmission.

    • D. 

      None of these.

  • 98. 
    • A. 

      Body language.

    • B. 

      Vocabulary.

    • C. 

      Syntax.

    • D. 

      Grammar.

  • 99. 
    During his first college presentation, Rico earned some laughs from a few male  classmates, a few frowns from his female classmates, and criticism from his  instructor for having a scantily clad woman on each slide of his slideshow  presentation.  What suggestion might his instructor have for him for future  presentations? 
    • A. 

      Some female students might be offended, and interpret his material as being a step toward sexual harassment.

    • B. 

      Gender bias was evident in the presentation, and must be avoided in the future.

    • C. 

      Rico struggled to adapt his presentation to his audience effectively, and should consider his audience and their feelings when putting a presentation together.

    • D. 

      All of the above.

  • 100. 
    The Quick Ratio examines the same thing as the Current Ratio, but doesn’t  consider the value of inventories and prepayments.  What do they measure?
    • A. 

      Profitability.

    • B. 

      The present value of an organization’s investments.

    • C. 

      Earnings per share for investors.

    • D. 

      The possibility of economic difficulty in the future.

  • 101. 
    Rocky wants to make yet another movie about himself, his sixth.  Assuming  Rocky has once again found financial ruin and lost his house, what needs is Rocky  attempting to meet from Maslow’s Hierarchy?
    • A. 

      Safety needs.

    • B. 

      Physiological needs.

    • C. 

      Self-actualization needs.

    • D. 

      Medical needs.

  • 102. 
    What two groups are the targets of public relations?
    • A. 

      Ultimate consumers and future consumers.

    • B. 

      Target publics and other publics.

    • C. 

      Ultimate consumers and target publics.

    • D. 

      Ultimate consumers and other publics.

  • 103. 
    • A. 

      As a cost saving measure.

    • B. 

      As an environmental measure.

    • C. 

      To increase interpersonal communication.

    • D. 

      All of these.

  • 104. 
    Statistics indicate that from 2005-2010, one in three persons will become a  victim of identity theft.  In order for corporations to protect important information,  all of the following measures should be implemented except:
    • A. 

      Mandatory use of passwords for unsecured communications.

    • B. 

      Virus protection and virus scan software installed on every computer.

    • C. 

      Increased telecommuting.

    • D. 

      Increased use of voice imprinting.

  • 105. 
    The four categories of personnel evaluations include between persons, within-  person development, ______________, and documentation for human resource  decisions. 
    • A. 

      Employment maintenance.

    • B. 

      Hiring and firing decisions.

    • C. 

      Productivity improvement.

    • D. 

      Career advancement.

  • 106. 
    In the accounting cycle, what is the importance of calculating the unadjusted  trial balance? 
    • A. 

      To ensure debits and credits are equal.

    • B. 

      To ensure subsidiary ledgers can be funneled into general ledger accounts.

    • C. 

      To create more backup information.

    • D. 

      To make an accountant look busy.

  • 107. 
    The three main strategies for conflict resolution are:
    • A. 

      Mediation, arbitration, and grievance procedures.

    • B. 

      Intercede, arbitrate, and settle.

    • C. 

      Arbitration, grievance, and settle.

    • D. 

      Intercede, grievance, and settle.

  • 108. 
    Which of the following is not a method of conducting or interpreting market  studies?
    • A. 

      Delphi method.

    • B. 

      Expert surveys.

    • C. 

      Customer life cycle.

    • D. 

      Jury of executive opinion.

  • 109. 
    All of the following are consistent with sales promotions functions except:
    • A. 

      Sales promotions are run for a short-term time frame.

    • B. 

      Sales promotions are used to sell out of store inventory.

    • C. 

      Sales promotions are aimed at increasing product trial.

    • D. 

      Sales promotions are not designed to create customer loyalty.

  • 110. 
    What tax forms are necessary to become a sole proprietor in the United  States? 
    • A. 

      Form 1040, W-2, and state-issued Sole Proprietor Tax ID license.

    • B. 

      Form 1040 Schedule C.

    • C. 

      Form Limited Liability Company in state of business location.

    • D. 

      Federal Tax ID form, Employee Identification Number, and Form 1040.

  • 111. 
    What important aspect of the workplace hinges on employee feelings, informal  procedures, symbols, stories, and formal rites and ceremonies?
    • A. 

      Change theory.

    • B. 

      Corporate culture.

    • C. 

      Public relations.

    • D. 

      Business communication systems.

  • 112. 
    Computer storage is considered to be part of computer hardware. True or  false? 
    • A. 

      True.

    • B. 

      False.

  • 113. 
    In terms of accounting, timeliness, predictive value, and feedback value are  characteristics of accounting geared toward assisting shareholders.  What term  best describes the category of items above.
    • A. 

      Validity.

    • B. 

      Relevance.

    • C. 

      Reliability.

    • D. 

      Qualitative.

  • 114. 
    This business function is accomplished through uncontrollable factors  (production, price, promotion, and place) and is determined by uncontrollable  factors (sociocultural, economic, political, technological, and competitive).  What is  this business function? 
    • A. 

      Sales.

    • B. 

      Marketing.

    • C. 

      Advertising.

    • D. 

      Customer service.

  • 115. 
    The Carl D. Perkins Act of 1963 brought about what crucial governmental role  in business? 
    • A. 

      The Equal Employment Opportunity Commission was created to protect employment rights.

    • B. 

      The National Labor Relations Board was created to protect union employees.

    • C. 

      Governmental funds were provided to support business education.

    • D. 

      The Consumer Rights Commission was created to intervene and protect consumers.

  • 116. 
    One of the major focus points of the Occupational Safety and Health  Administration is to make sure that organizations are educating and monitoring  _____________. 
    • A. 

      Group formation.

    • B. 

      Depression.

    • C. 

      Ergonomics.

    • D. 

      Work groups.

  • 117. 
    On a CPU, what is the function of the arithmetic logic unit?
    • A. 

      Direct and control activities of internal and external devices.

    • B. 

      To make computations.

    • C. 

      Serve as memory and data manipulation function.

    • D. 

      Manage the interaction between computers.

  • 118. 
    Under what circumstance would a disposable asset result in a gain?
    • A. 

      If the asset was sold after its declared value had reached zero.

    • B. 

      If the asset was sold for more than the depreciable value.

    • C. 

      If the asset was used after its deprecation.

    • D. 

      Both a) and b) are correct.

    • E. 

      None of these are correct.

  • 119. 
    What is the relationship between public relations and publicity? 
    • A. 

      Public relations are the result of publicity.

    • B. 

      Publicity is the result of public relations.

    • C. 

      Public relations counteracts publicity.

    • D. 

      Publicity counteracts public relations.

  • 120. 
    What do “trusts” accomplish?
    • A. 

      Formed upon the death of an individual, a trust is designed to provide continuity of the investments and business activities of the deceased individual.

    • B. 

      Trusts are charitable or civic organizations that have substantial responsibilities for reporting activities, income, and assets to ensure they are in compliance with federal and state laws governing charities.

    • C. 

      Created from a business perspective, trusts are the strategies a company quietly honors.

    • D. 

      Trusts are pieces of paper receipt issued by a stock broker to a buyer before a stock transaction has been officially completed.

  • 121. 
    Lawsuits such as NLRB v. Transportation Management (1983) and Board of  Regents of State Colleges v. Roth (1972) were major court cases that resulted in  increased power for: 
    • A. 

      Equal Employment Opportunity Commission.

    • B. 

      Federal Reserve.

    • C. 

      National Vocational Education Service.

    • D. 

      National Labor Deregulation Commission.

  • 122. 
    If an organization is implementing Goldmine, a database management system,  they are installing a software program from which software category? 
    • A. 

      Systems.

    • B. 

      Customized software.

    • C. 

      Generic Software.

    • D. 

      Application software.

  • 123. 
    Which financial statement summarizes the results of operations for a given  period? 
    • A. 

      Balance sheet.

    • B. 

      Income statement.

    • C. 

      Statement of retained earnings.

    • D. 

      Cash flow statement.

  • 124. 
    Producers of convenience goods strive to have their product present in as  many outlets as possible.  Producers of convenience goods are working under  which distributing strategy?
    • A. 

      Dual distribution.

    • B. 

      Intensive distribution.

    • C. 

      Selective distribution.

    • D. 

      Exclusive distribution.

  • 125. 
    When a loan is issued, the date(s) for erasing the debt is put together.  What is  payment set-up called? 
    • A. 

      Time to maturity.

    • B. 

      Interest.

    • C. 

      Repayment schedule.

    • D. 

      Project termination.

  • 126. 
    Empowerment, creativity and innovation, learning, quality of life, monetary  incentive, and other incentives are the categories for which of the following  answers? 
    • A. 

      Motivational tools.

    • B. 

      Leadership tools.

    • C. 

      Group dynamic tools.

    • D. 

      Management tools.

  • 127. 
    Which of the following is not a common leadership method?
    • A. 

      Contingency method.

    • B. 

      Path-goal method.

    • C. 

      Results-oriented method.

    • D. 

      Situational leadership method.

  • 128. 
    A typical USB “A” connection is plugged into a __________ while a typical USB  “B” connection is plugged into a ____________. 
    • A. 

      Printer, computer

    • B. 

      Computer, local area network.

    • C. 

      Printer, local area network.

    • D. 

      Computer, hardware device.

  • 129. 
    Below is a diagram of the product life cycle.  Which of the following  stages features the introduction of repeat purchasers, increased  competition, and initial changes in the product?
    • A. 

      Introduction stage.

    • B. 

      Growth stage.

    • C. 

      Maturity stage.

    • D. 

      Decline.

  • 130. 
    • A. 

      Creating charts comparing the beginner, intermediate, and advance skiers.

    • B. 

      Adding comments to given cells such that when a mouse hovers over the cell the comment appears.

    • C. 

      Adding colors to the background, chart, and chart key.

    • D. 

      Adding equations that would not appear on the spreadsheet.

  • 131. 
    An entrepreneur is looking to pick a business that will take advantage of  current consumer trends and maximize his profit.  Based on the graph below, which  business idea is the strongest investment? 
    • A. 

      Real estate development.

    • B. 

      Debt consolidation.

    • C. 

      Stock broking.

    • D. 

      Investing in a foreign market.

  • 132. 
    What model is depicted in the chart below?
    • A. 

      Corporate culture factors.

    • B. 

      Public relations recovery.

    • C. 

      Reasons for underperforming.

    • D. 

      Resistance to change.

  • 133. 
    • A. 

      To ensure girls received equal funding for education as boys.

    • B. 

      To ensure that black men were not discriminated against with employment opportunities.

    • C. 

      To ensure that black women were not discriminated against with employment opportunities

    • D. 

      To ensure that black men, and women of any race, were not discriminated against with employment opportunities.

  • 134. 
    • A. 

      Product advertising.

    • B. 

      Institutional advertising.

    • C. 

      Both product and institutional advertising.

    • D. 

      Neither product nor institutional advertising.

  • 135. 
    • A. 

      The discount industry is a matured industry.

    • B. 

      Full-line stores are gaining market share.

    • C. 

      The discount industry is well-segmented,

    • D. 

      The discount industry has room for new entrants.

  • 136. 
    Word processing, spreadsheets, and presentation programs are examples of:
    • A. 

      Business software applications.

    • B. 

      Database management.

    • C. 

      Control units.

    • D. 

      None of these.

  • 137. 
    Raffy owns Affiliated Investment Resources, a small investment firm.  Affiliated  Investment Resources is known for making low-risk level decisions and repeating  known, tested, and true investment methods.  Based on how investment decisions  are made, what type of corporate culture does Affiliated Investment Resources exude? 
    • A. 

      Job-oriented culture.

    • B. 

      Results-oriented culture.

    • C. 

      Process-oriented culture.

    • D. 

      Professional culture.

  • 138. 
    Satellites, wide area networks, and local area networks are best described as:
    • A. 

      Technology.

    • B. 

      Internet devices.

    • C. 

      Communication processors.

    • D. 

      Software.

  • 139. 
    For the following equation, what is r?
    • A. 

      Prime rate.

    • B. 

      Discount rate.

    • C. 

      Fixed rate.

    • D. 

      Corporate bond rate.

  • 140. 
    Use the graph below to answer the question that follows.These data would be most useful for answering which of the following  marketing questions?
    • A. 

      Which market segments are most likely to grow between 2005 and 2020?

    • B. 

      What changes are likely to occur in cultural norms between 2005 and 2020?

    • C. 

      What changers are likely to occur in public relations between 2005 and 2020?

    • D. 

      What products are likely to reach maturity in the product life cycle between 2005 and 2020?

  • 141. 
    A sales manager is preparing a report comparing the projected and actual  sales figures for the company’s two main products, Product A and  Product B.  The report will include the graphs below. Which of the following statements most accurately summarized the  information in the graphs? 
    • A. 

      Sales projections for Product A were more accurate than those of Product B.

    • B. 

      Sales of both products increased more rapidly than was projected toward the end of the year.

    • C. 

      Sales of both products started below projected levels and steadily increased throughout the year.

    • D. 

      Sales of Product B started lower but increased more rapidly than sales of Product A.

  • 142. 
    In the Consumer Bill of Rights established in 1960, the right to redress is best  described by as the right to: 
    • A. 

      Resell products that are defective.

    • B. 

      Have access to programs and information that help consumers make better marketplace decisions.

    • C. 

      Be assured that consumer interests will receive full and sympathetic consideration.

    • D. 

      Work with established mechanisms in order to have problems corrected and to receive compensation for poor service or for products which do not function properly.

  • 143. 
    • A. 

      Spreading information about the production and distribution of new or existing products.

    • B. 

      Establishing a system for consumer correspondence to answers consumers’ questions about any matters regarding the organization.

    • C. 

      Making adjustments in response to complaints such that policies, practices, and products appeal to the ultimate consumer.

    • D. 

      Establishing incentives for ultimate consumers to further endorse an organization’s products.

  • 144. 
    Developing an organizational culture of tolerance and acceptance requires  training and human resource management in what area?
    • A. 

      Continuing education.

    • B. 

      Diversity training.

    • C. 

      Employee communication.

    • D. 

      Productivity training.

  • 145. 
    Reasons for legal termination of an employee include all of the following    except:: 
    • A. 

      Falsification of records.

    • B. 

      Physical violence.

    • C. 

      Repeated lateness.

    • D. 

      Taking a leave of absence to correct substance abuse.

  • 146. 
    A SWOT analysis examines the strengths, weaknesses, opportunities, and  threats for an organization.  Strengths and weaknesses are separated from  opportunities and threats by a categorical difference.  What is that difference?   
    • A. 

      Strengths and weaknesses are slow in developing while opportunities and threats are fast in developing.

    • B. 

      Strengths and weaknesses are primary while opportunities and threats are secondary.

    • C. 

      Strengths and weaknesses are internal while opportunities and threats are external.

    • D. 

      Strengths and weaknesses are profitable than opportunities and threats.

  • 147. 
    When security is offered for a loan, what is offered?
    • A. 

      Information privacy.

    • B. 

      Collateral.

    • C. 

      An armored car for the transaction.

    • D. 

      Several copies of paperwork for records purposes.

  • 148. 
    The availability of a competitor’s goods and services is a factor affecting: 
    • A. 

      Supply and demand.

    • B. 

      Demand.

    • C. 

      Supply.

    • D. 

      All of the above.

  • 149. 
    • A. 

      (A) Increasing reserve requirements for member banks

    • B. 

      (B) Increasing the discount rate to member banks

    • C. 

      (C) Decreasing the discount rate to member banks

    • D. 

      (D) Selling large amounts of government securities

    • E. 

      Keeping reserve requirements of member banks constant

  • 150. 
    Which of the following describes the effect of federal vocational legislation on business education in the United States?
    • A. 

      It has had little impact in that business education is not covered by such legislation.

    • B. 

      It has served to standardize high school business education offerings nationwide.

    • C. 

      It has placed business education youth organizations, such as FBLA and DECA, under central federal authority.

    • D. 

      It has provided states with fi nancial assistance for the operation of vocational business education programs.

    • E. 

      It has provided numerous textbooks and other instructional materials published by the United States Government Printing Offi ce.

  • 151. 
    Which of the following statements best refl ects a sound approach to teaching production work in keyboarding ?
    • A. 

      Extensive practice in self-selected production work in a keyboarding class should be required.

    • B. 

      A positive relationship must exist between straight-copy work and production work.

    • C. 

      Only one type of correction process should be introduced in a keyboarding class involved in extensive production work.

    • D. 

      Production work should incorporate little decision-making, but should stress copying and nonjudgmental tasks.

    • E. 

      Production work should be practiced and completed from actual source documents obtained from businesses.

  • 152. 
    A six-step procedure is usually associated with the preparation of correspondence for fi ling. Which of the following is NOT considered a part of the procedure?
    • A. 

      Inspecting and indexing

    • B. 

      Date stamping

    • C. 

      Cross-referencing

    • D. 

      Constant Sorting and storing

    • E. 

      Coding

  • 153. 
    Which of the following is the regulator for all securities fi rms operating in the United States?
    • A. 

      Federal Trade Commission

    • B. 

      Federal Deposit Insurance Corporation

    • C. 

      Federal Reserve Board

    • D. 

      Financial Industry Regulatory Authority

    • E. 

      Federal Exchange Commission

  • 154. 
    The primary objective of teaching advanced lessons on fi nancial statements is to teach students to
    • A. 

      Determine how to set up each statement

    • B. 

      Identify common account titles

    • C. 

      Analyze the fi nancial information

    • D. 

      Identify each component of a statement

    • E. 

      Determine which accounts are used in each statement

  • 155. 
    An important source of information on the credit rating of retail businesses is
    • A. 

      The Retail Merchants Association

    • B. 

      The Chamber of Commerce

    • C. 

      Dun and Bradstreet, Inc.

    • D. 

      The National Retail Credit Association

    • E. 

      The Federal Trade Commission

  • 156. 
    If one party to a contract is forced to sign, the contract is defi ned as
    • A. 

      Enforceable

    • B. 

      Executory

    • C. 

      Unenforceable

    • D. 

      Unilateral

    • E. 

      Voidable

  • 157. 
    An accounts payable entry appears in the
    • A. 

      Asset section of the balance sheet

    • B. 

      Liability section of the balance sheet

    • C. 

      Capital section of the balance sheet

    • D. 

      Cost of goods sold section of the income statement

    • E. 

      Operating expense section of the income statement

  • 158. 
    The planning, pricing, promotion, and distribution involved in getting goods or services from producers to consumers is known as 
    • A. 

      Merchandising

    • B. 

      Retailing

    • C. 

      Wholesaling

    • D. 

      Marketing

    • E. 

      Producing

  • 159. 
    In connection with the purchase of a house, the term “abstract” refers to a document that
    • A. 

      Transfers the title of the property from one party to another

    • B. 

      Provides a history of the ownership of the property

    • C. 

      Quits a claim against a property that one may have held at any time

    • D. 

      Guarantees that there is no encumbrance against the property

    • E. 

      Certifi es that the records of the property have been examined

  • 160. 
    Which of the following best describes the situation after the price is raised on a product that has an inelastic demand?
    • A. 

      The quantity demand will not change.

    • B. 

      The quantity demand will increase.

    • C. 

      The quantity demand will decrease.

    • D. 

      Total revenue will decrease.

    • E. 

      Total revenue will not change.

  • 161. 
    Kahlil scanned a PDF containing simple text into a document to avoid keying in the text. Which of the following allows the text to be scanned into a document rather than entered manually?
    • A. 

      COM

    • B. 

      DLP

    • C. 

      OCR

    • D. 

      NPC

    • E. 

      TTS

  • 162. 
    The total retail market value of all the goods and services produced in a nation, usually stated in annual terms, is the 6. An accounts payable entry appears in the 
    • A. 

      Ratio of profi t to sales

    • B. 

      Current ratio

    • C. 

      Gross domestic product

    • D. 

      Consumer price index

    • E. 

      Trade surplus

  • 163. 
    Which of the following defenses may NOT be used to legally avoid payment on a negotiable instrument?
    • A. 

      Breach of contract

    • B. 

      Lack of consideration

    • C. 

      Fraud in the inducement

    • D. 

      Mental incapacity

    • E. 

      Diminished economic resources

  • 164. 
    Ms. Robinson, a new business teacher, looks up the academic profi le of every student in her fi fth-period class. For each student, she customizes a report containing their contact information, the grades earned in previous business courses, and their current career pathway/  cluster.  The report is generated from a collection of the student’s records called a
    • A. 

      Spreadsheet

    • B. 

      Database

    • C. 

      Fi eld

    • D. 

      Table

    • E. 

      Template