2009 DECA Ontario Regionals
Test 1022 FINANCE CLUSTER EXAM 1
1.Businesses usually are unable to enter into legally binding contracts with
A.tourists. C.foreigners.
B.senior citizens. D.minors.
2.Under the Clean Water Act, the Environmental Protection Agency has the authority to
A.monitor water levels in rivers and streams.
B.set water quality standards for industry.
C.decide where you must get your water supply.
D.determine how much water you can use for your industry.
3.Which of the following pieces of legislation allows for the consolidation of commercial and investment banks, insurance companies, and securities firms:
A.Securities Exchange Act of 1934 C.Sarbanes-Oxley Act of 2002
B.Gramm-Leach-Bliley Act D.Glass-Stegall Act
4.Which of the following is a tax-deductible gift:
A.Charitable donation C.Stocks
B.Vacation home D.Inherited items
5.What can a financial-services business do to ensure that it is following government regulations?
A.Monitor service procedures C.Develop a business plan
B.Improve technical systems D.Conduct a compliance audit
6.How can a business maintain its ethical responsibility of protecting the privacy of its customers' financial information?
A.Review inventory systems C.Monitor competitors' activities
B.Develop collection procedures D.Implement security policies
7.When a manager tells an employee to take charge of a project, the employee is receiving
A.social directions. C.nonverbal directions.
B.oral directions. D.written directions.
8.Which of the following is a rule of good listening:
A.Eliminate background noise. C.Be thinking about what you will say next.
B.Listen with empathy. D.Stand as close as possible to the speaker.
9.When giving a verbal presentation, a speaker who distinctly voices the sounds of words is using proper
A.pronunciation. C.tone.
B.enunciation. D.vocabulary.
10.Which of the following actions is it important for a speaker to take when s/he makes an oral business presentation to a large group:
A.Speak loudly enough for the audience to hear the message
B.Turn away from the audience when presenting visual aids
C.Avoid eye contact with anyone in the audience
D.Relax the audience by swaying back and forth when speaking
11.The main form of written communication within a business is
A.memorandums. C.staff meetings.
B.business letters. D.telephone calls.
12.Which of the following types of messages presents evaluative information:
A.Analytic C.Simple
B.Explanatory D.Complex
13.A simple, or short, report differs from a complex report in that the simple report is
A.not in memo form. C.less formal.
B.more comprehensive. D.not used in decision making.
14.Information that is informally passed to the staff of a business is referred to as ______communication.
A.grapevine C.formal
B.vertical D.horizontal
15."The customer is ALWAYS right," is a philosophy many businesses try to follow in order to
A.make employees' jobs easier. C.create positive customer/client relations.
B.prevent any conflict with customers/clients. D.help employees handle selling objections.
16.Stock brokers sometimes have difficulty meeting the needs of customers who are
A.decisive. C.silent.
B.agreeable. D.patient.
17.A good way for bank tellers to prevent customer complaints is by
A.pressuring customers to open additional accounts.
B.discussing all of the bank’s products.
C.determining each customer’s needs.
D.asking customers personal questions about their ethnicity.
18.What do finance professionals need to do to build long-term relationships with their clients?
A.Be honest, open, and trustworthy C.Follow-up with clients every two years
B.Invest all clients' money conservatively D.Require clients to sign a short-term contract
19.Businesses use data-cleansing applications to
A.generate necessary reports. C.duplicate internal records.
B.calculate statistical data. D.update their databases.
20.For her best friend's birthday, Keisha is shopping for a unique item—no substitute will do, and price is no object. What type of item is Keisha shopping for?
A.Convenience C.Shopping
B.SpecialtyD.Industrial
21.Ronnie's Retail Mart recently began a layaway program for large-ticket items. By introducing this lay-away program, Ronnie's hopes to increase ______utility.
A.possession C.time
B.place D.form
22.If customers feel that a product's price is too high, they will probably
A.buy less of the product. C.make a formal complaint.
B.call the Better Business Bureau.D.try to negotiate the price.
23.With Rosita's pizza shop, financial analysis is used to
A.obtain funding for supplies. C.oversee the baking process.
B.attract customers. D.develop the best recipe.
24.Which of the following is not an external factor affecting profit:
A.Chance C.Economy
B.Risk D.Demand
25.Potential losses that businesses face are called
A.liabilities. C.insurable risks.
B.business risks. D.uninsurable risks.
26.The practice of allowing workers to assume some higher level decision making is called job
A.analysis. C.enlargement.
B.containment. D.enrichment.
27.Why does the Gross Domestic Product include only finished goods?
A.To account for public goods C.To omit welfare payments
B.To avoid double counting D.To correct for inflation
28.Brent likes to use his emotional intelligence to describe his feelings in accurate terms. What benefit of emotional intelligence is he experiencing?
A.Communicating needs effectively C.Understanding other people's needs
B.Responding to criticism D.Responding to difficult people
29.Lack of initiative cannot be tolerated for long in most occupations. Which of the following is not a result of employee initiative:
A.An employee who receives an "Employee of the Month" award
B.An employee's receiving high job evaluation ratings
C.An employee given added responsibility
D.An employee's completing an inventory assignment on time
30.How employees behave and how they treat other people at work often have an effect on whether they
A.receive fair wages. C.earn vacation time.
B.receive benefits. D.get promoted.
31.Which of the following statements about change in the workplace is true:
A.An employee often can change the behavior of coworkers.
B.Being receptive to change helps employees to be successful.
C.Employees accept change better if it is unexpected.
D.Employees usually can refuse to make changes they don't like.
32.Which of the following is a way to demonstrate empathy:
A.Develop a good imagination. C.Keep an open mind.
B.Use tact when speaking.D.Sympathize with a coworker.
33.Smiling at customers and looking them in the eye is what type of communication?
A.Negative C.Nonverbal
B.Verbal D.Effective
34.Frederick has been criticized by his supervisor and knows the criticism is justified, but he still feels defensive. This physiological response to stress is the ______response.
A.eustress C.fight or flight
B.over-reaction D.stimulus
35.How does a goal differ from a vision?
A.There is no difference—the two are the same.
B.A goal could mean different things to different people.
C.A goal is abstract and indefinite.
D.A goal is concrete and measurable.
36.Why is accepting responsibility for your own actions important to effective human relations skills?
A.It helps you to be objective. C.It helps you to be enthusiastic.
B.People will be able to depend on you. D.People will not take advantage of you.
37.Whenever a business extends credit to customers, it allows them to obtain goods and services immediately with
A.payment to be made at a future date. C.no interest charges for 90 days.
B.no identification required.D.payment spread over a 12-month period.
38.What do many individuals establish when planning for future financial needs?
A.Checking account C.Line of credit
B.Living will D.College fund
39.What is the key to successful investing?
A.Avoiding opportunity costs C.Getting started early
B.Inflation D.The rule of 72
40.Commercial banks and brokerage firms are examples of
A.insurance institutions. C.financial intermediaries.
B.legislative groups. D.nonprofit organizations.
41.Cocoa beans and corn are examples of investments that people make in which of the following financial markets:
A.Selective property C.Soft commodities
B.Insurance D.Money
42.Supervised by the Federal Reserve Board, The DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant banking services. The DAB Company is an example of a(n)
A.financial auditing institution. C.financial holding company.
B.accounting firm. D.commodities investor.
43.Which of the following is an example of arbitrage:
A.An individual earns interest on his/her money by agreeing to leave it in a financial institution for a certain timeframe.
B.An individual buys 10 shares of stock for $150 per share on one market, and immediately sells each share for $200 on another market.
C.A business places a percentage of its income into a retirement account for employees.
D.A business sells corporate bonds to obtain funds to finance major expansion efforts.
44.Which of the following is characteristic of an emerging market:
A.Low gross domestic product due to high foreign investment
B.Strong and highly developed infrastructure
C.High-yield bond markets that operate in a secure economic climate
D.Unstable stock markets in a transitional economy
45.Form 10-K is most like
A.the bottom line. C.the annual report.
B.Form 10-Q. D.the cash flow statement.
46.What might a dividend payout tell you about a company?
A.It's reinvesting its profits back into the business.
B.It's trying to rid itself of cash.
C.It's a well-established company.
D.It's paying back a loan.
47.It's a good idea for an investor to watch the numbers on a stock table
A.once a year. C.over a period of time.
B.just for a given day. D.when dividends are paid.
48.What kind of insurance will help to pay your hospital bill if you are seriously ill?
A.Homeowner's C.Liability
B.Disability D.Health
49.The impact of some business risks can be reduced if the business transfers the risk to another business by
A.purchasing insurance. C.employing security guards.
B.hiring a risk specialist. D.installing burglar alarms.
50.A business has an inventory valued at $750,000. This amount would appear in the business's balance sheet under
A.current assets. C.cash.
B.liabilities. D.income.
51.To stay in business, a firm that has periods of cash shortages and cash surpluses should plan to ______its cash flow.
A.spend C.invest
B.monitor D.control
52.Which of the following is an example of an expense that a business would include in the operating-expenses category of an income statement:
A.Customer returns C.Insurance payments
B.Cost of raw materials D.Shipping charges
53.Money owed to the business is known as
A.assets. C.accounts receivable.
B.equity. D.accounts payable.
54.When Alana prepares a report so that all of the financial data is clearly disclosed, she is ensuring that the information is
A.comparable. C.timely.
B.transparent. D.flexible.
55.Which of the following is a consequence of poor financial-information management:
A.Simplified processes C.Ineffective leadership
B.Inaccurate data D.Understandable feedback
56.The reason that businesses use virtual auditor technology to scan their financial records is to
A.detect correlations among customer data. C.calculate debt-equity ratios.
B.ensure that they are complying with laws. D.analyze their financial statements.
57.By installing firewalls on its computer networks, a business can protect its online customers' credit-card information from
A.trade barriers. C.investment scams.
B.tax evasion. D.identity theft.
58.Which of the following is a technological tool that businesses use to archive their financial records:
A.Direct-response software C.Electronic data interchange
B.Digital microfilm scanner D.Web-development programs
59.Businesses often use the patterns and relationships detected during the data mining process to
A.select intermediaries. C.predict trends.
B.identify procedures. D.negotiate contracts.
60.Alex is using a computer software program to develop the operating budget for his small company. He has two part-time employees who work 12 hours per week. How should Alex categorize the company's payroll in his budget?
A.Sales C.Expense
B.Income D.Charges
61.If Jennifer wants to determine the degree to which the business uses its debt to finance its assets, she should use a financial analysis application that indicates the business's
A.depreciation rates. C.cash budget.
B.leverage ratio. D.transaction costs.
62.In which of the following situations would a firm use cost-analysis applications:
A.To predict sales volume for a certain period of time
B.To determine the number of delinquent accounts
C.To assess income changes over a certain period of time
D.To evaluate the amount of money associated with inventory storage
63.What function allows users to customize and automate tasks when developing a database?
A.SplitC.Break
B.Macro D.Consolidate
64.Large corporations that sell stock to the public are required by the Securities and Exchange Commission to provide ______to their stockholders.
A.regular dividends C.copies of expense reports
B.accurate financial statements D.organizational charts
65.A business needs to accurately report its financial position because that information indicates the business's
A.net worth. C.price policy.
B.sales forecast. D.target market.
66.A business that is experiencing a cash-flow deficit should take steps to
A.reduce income. C.increase costs.
B.lower expenses. D.spend revenues.
67.A business uses the financial accounting system to report the business's financial position to
A.regional managers. C.external users.
B.bookkeepers. D.internal users.
68.What is a potential benefit to a business that uses financial information to identify trends?
A.Ensured profitability C.Improved forecasting
B.Enhanced liability D.Increased premiums
69.Which of the following are factors that affect a business's decision to offer credit to a customer:
A.Debt ratio, credit rating, and education C.Credit rating, objectives, and income
B.Income, debt ratio, and credit rating D.Debt ratio, education, and objectives
70.While Karl reviews financial reports, he compares and contrasts similar data from different quarters and years. The primary reason that Karl is reviewing the reports is to
A.reduce costs. C.analyze variances.
B.make improvements. D.change processes.
71.An important function of human resources management in business is
A.equipment acquisition. C.domain development.
B.technical investment. D.employee recruitment.
72.Which of the following is nota touch point businesses could utilize to reinforce company image:
A.Interaction with a salesperson C.Television advertisement
B.Employee holiday party D.Bill or invoice
73.You have been asked to quickly locate information comparing the number of home foreclosures in Arkansas in 2000 with those in 2010. Which of the following searches should yield the fastest, most relevant search results:
A."home foreclosures"; Arkansas; years: 2000 OR 2010
B.“home foreclosures in Arkansas in 2000 AND 2010”
C.Arkansas home foreclosures between 2000 and 2010
D.“home foreclosures; Arkansas”; “2000 OR 2010”
74.Your web search results contain URLs from a variety of sources. Which of the following sources should provide the most reliable data:
A.A government agency C.A personal blog
B.A term paper D.A Wikipedia site
75.A benefit of informed business decisions is that they
A.hurt a business's chances at competing. C.cost less money.
B.are usually bad decisions. D.reduce a business's risk.
76.One way that many businesses use database software programs is to
A.analyze customer information. C.prepare governmental reports.
B.design company stationery. D.monitor accounting functions.
77.What type of information about equipment is important for businesses to keep in their records?
A.Serial numbers C.Inventory status
B.Mechanical repairs D.Production process
78.Maxton Mart is being pressured by its vendors to pay for inventory it purchased more than 30 days ago. However, Maxton Mart has not received its accounts receivable from customers. What business record has Maxton Mart failed to monitor successfully?
A.Income statement C.Balance sheet
B.Cash flow D.Open to buy
79.Your statistical findings show that the mean and the median of the following data are the same:
Data Set A: 2, 5, 8, 10, 10
Data Set B: 7, 7, 7, 7, 7
Data Set A: Mean = 7, Median = 7
Data Set B: Mean = 7, Median = 7
Just by looking at the data, you can tell the data results are quite different. What statistic do you need to use to show that difference?
A.Mode C.Geometric mean
B.Variance D.Measure of central tendency
80.Operations managers must work closely with managers and employees in
A.all other parts of the business. C.competitive businesses.
B.the marketing department only. D.foreign markets.
81.Accidents in the workplace may be prevented by all of the following techniques except
A.correcting poor lighting. C.taking periodic inventory.
B.providing employee training. D.inspecting equipment regularly.
82.Monitoring activities at the point of sale can protect the business from
A.payroll fraud. C.shoplifting losses.
B.liability claims. D.theft by employees.
83.If a business is planning a project that will take 40 hours to complete and must be done in one week, which two employees should be assigned the project if the business has four part-time employees who work the following schedule:
Employee A—Mon-Fri, 9-12;
Employee B—Mon-Fri, 1-4:30;
Employee C—Mon-Fri, 7:30-12;
Employee D—Mon-Fri, 11-2
A.Employees B & C C.Employees C & A
B.Employees A & D D.Employees D & C
84.General Motors decided to produce a new car called the "Shark." Since the parts of the car will be easily interchangeable and the company expects to produce a large quantity of cars, the best method of production would be ______production.
A.unit C.batch
B.mass D.custom
85.Alert salespeople can help businesses control expenses by discouraging
A.exchanging.C.shoplifting.
B.purchasing. D.selling.
86.Determine whether the following statement is true or false: Housekeeping practices do not affect the success of a business.
A.False, housekeeping is the most important factor affecting business success.
B.True, housekeeping practices are unrelated to business success.
C.True, customers are more concerned with price than with appearance.
D.False, a business's poor housekeeping can damage the business.
87.Goals which normally take a year or more to achieve are referred to as ______goals.
A.long-termC.immediate
B.intermediate D.short-term
88.Which of the following activities reflects creativity:
A.Completing a sales check according to company policy
B.Replacing merchandise sold from a window display
C.Referring an irate customer to the store manager
D.Suggesting a new use for an existing product
89.When using exploratory interviews to identify occupational interests, you should try to interview someone who
A.has an executive position in the company.C.holds the kind of job you want.
B.used to have the kind of job you want.D.hires people for the kind of job you want.
90.Michelle's primary reason for starting her own business is her desire to make her own schedule. Michelle is looking forward to the ______she hopes to have as a business owner.