DECA Mixed Cluster Quiz 1 (Qs from DECA.org Exams)

The owner of the Vidal Boutique verbally offers to sell Briele's original hat designs in the shop and to give her a 50% commission on the sale of the hats. Briele verbally agrees to deliver two new hats for the shop to sell each week. Briele and the boutique owner's agreement is an example of a(n) __________ contract.

• voidable

• implied

• express

• executed

Answer explanation

Express. Since both parties have verbally expressed or agreed to what they will do, an express contract exists. An implied contract is not a formal agreement, but an understanding that develops from conducting business with another party. A voidable contract exists when one party has committed fraud or misrepresentation; there is no indication of misconduct in the situation described. An executed contract only exists after both parties have met their obligations.

Which of the following prevents individuals other than the holder from making, selling, or using an invention:

• Trademark

• Patent

• Copyright

• Trade secret

Answer explanation

Patent. There are three primary protections for intellectual property: patents, trademarks, and copyrights. Patents provide legal protection for an invention, meaning that the patent holder can legally exclude other entities from making, selling, or using the patented invention. A trademark is a symbol, design, or word used by a producer to identify a good or service and registered with the government to prevent use by others. A copyright provides legal protection for books and other artistic works. A trade secret is undisclosed information within a particular business or industry. There is no legal protection for trade secrets.

Allison just started her own photography business. She will be working alone, and she doesn't anticipate many business expenses or lawsuits. Which type of business ownership is best for Allison?

• Sole proprietorship

• Limited liability company (LLC)

• Corporation

• Partnership

Answer explanation

Sole proprietorship. Sole proprietorships are businesses with just one owner. They are typically the easiest type of business to start. However, the business owner is legally responsible for all debts and lawsuits. Since Allison is starting a business by herself and doesn't expect many lawsuits, a sole proprietorship is ideal for her. A partnership is similar to a sole proprietorship, except that it involves two business owners. A corporation is a separate legal entity owned by shareholders. The corporation itself is responsible for debts and legal actions. Corporations are complex and usually recommended for much larger businesses than Allison's. Limited liability companies (LLCs) combine features of corporations and partnerships. They make more sense for business owners who have a large amount of debt or a higher risk of being sued.

Which of the following is the type of tax that businesses are required to collect from customers when they purchase certain goods or services:

• Corporate

• Income

• Estate

• Sales

Answer explanation

Sales. Sales taxes are monies charged on sales of certain goods and services by state and/or local governments. The tax amount varies by location. After the business collects the sales tax from customers for their purchases, it pays the monies to the appropriate government agency. Income taxes are monies that the business withholds from its employees' wages. Estate taxes are monies that are collected from a person's estate upon his/her death. Corporations rather than customers pay corporate taxes.

After only her seventh month in business, Martha realized that her new business venture was paying off, and she would be taking home a $1,000 profit for the month. Finally, she could reap the financial rewards of being the boss. This is an advantage of what type of business ownership?

• Merger

• Partnership

• Corporation

• Sole proprietorship

Answer explanation

Sole proprietorship. This is a form of business ownership in which the business is owned by only one person, and that person receives any profits made by the business. A merger is the absorption of one company by another rather than a type of business ownership. A partnership is owned by two or more people, and profits would be split between them. A corporation is owned by people who own stock in the business, and they split the profits.

For her new job, Tasha has been asked to write a report. She has found a website with information regarding her topic. Which of the following would help her identify whether the information on this site is accurate:

• A table of contents

• A bibliography

• A professional-looking website design

• A date of modification less than one year old

Answer explanation

A bibliography. Citing sources verifies that a website is using accurate information in the same manner that citing sources in a written report confirms accuracy. A table of contents simply shows what is included in the site. It doesn't confirm the accuracy of the contents. A professional look to a website only confirms that the site is designed by a good designer. It does not guarantee that any of the content is accurate. While a recently updated website confirms that information is timely, it does not confirm that the information is accurate. Opinions expressed yesterday by one person are not necessarily accurate, even though they may be current.

The office photocopier is jammed again! Fortunately, there is an instruction manual to guide you through the process of removing the jammed paper. What is the best way to use the manual to clear the photocopier?

• Perform the first step, and then verify that you have performed it correctly in the manual. Repeat

  this process in sequential order until all the steps are completed.

• Read the entire manual in sequential order and then perform all of the steps in reverse order to

  remove the jammed paper.

• Briefly skim the manual in reverse order and then follow the steps in sequential order to remove

  the jammed paper.

• Read step one and then perform step one. Repeat this process in sequential order until all of the

  steps are completed and you have removed the paper.

Answer explanation

Read step one and then perform step one. Repeat this process in sequential order until all of the steps are completed and you have removed the paper.

When assembling or fixing equipment, it is usually easier to understand directions by reading the step, performing the step, and then moving on to the next step in the sequence. By doing so, you are less likely to hurt yourself or the machine. You are more likely to make mistakes (and more likely to hurt yourself or the machine) if you briefly skim the manual, read the manual before performing the steps, perform the steps in reverse order, or perform the step before reading the instructions.

What is an effective way to support and encourage someone who is talking to you?

• Avoid making any noise while the speaker is talking

• Interrupt the speaker to debate what s/he has said

• Clap as the speaker makes each of her/his main points

• Make comments such as “yes” or “I see” occasionally

Answer explanation

Make comments such as “yes” or “I see” occasionally. When someone talks to you, nod and make short comments such as “yes” or “I see” occasionally. By doing so, you signal that you are listening to the speaker and hearing what s/he has to say. And, when you nod and make short comments, you show your support and encouragement for the speaker. It is very rude to interrupt the speaker to debate what s/he has said. It is not necessary to clap as the speaker makes each of her/his main points. Rather than not making any noise while the speaker is talking, you should limit yourself to short comments.

A business that effectively coordinates channel management with marketing activities is more likely to provide

• good customer service.

• attractive product displays.

• free delivery.

• flexible credit terms.

Answer explanation

Good customer service. Channel management is one of the marketing functions that must work with the other marketing activities to get goods and services from producers to consumers. The goal of marketing is to satisfy consumer wants and needs while achieving company goals. Businesses cannot satisfy those needs and provide quality customer service unless all the marketing activities work together. For example, businesses are only able to serve customers when they have the advertised items on hand and at the right price. Not all businesses need or use product displays, provide free delivery, or offer flexible credit terms.

Which of the following types of business organizations reduces or limits the risk of its stockholders:

• Franchise

• Sole proprietorship

• Corporation

• Partnership

Answer explanation

Corporation. A corporation, which is owned by its stockholders, limits the losses or risks to the amount each individual owner has invested in the corporation. The other types of business organizations are not owned by stockholders. A partnership usually divides the risk among two or three partners. In a sole proprietorship, the owner generally assumes all of the risk. A franchise is a contractual agreement between a parent company and a franchisee to distribute goods and services.