DECA - Finance Exam // Practice 1

Which of the following is an example of a policy that's influenced by environmental law:

• A. Medicine must be approved to be marketed to the public.

• B. In many places, seatbelts are required by the government.

• C. Drinking water must meet state, provincial, and federal quality standards.

• D. Drivers must obey posted speed limits.

A primary responsibility of administrative law is to

• A. establish congressional/parliamentary committees.

• B. interpret constitutional laws.

• C. overturn lower courts' decisions.

• D. enforce agency regulations.

A public corporation's board of directors has the fiduciary responsibility to ensure that the company makes decisions that protect the financial interests of

• A. board members.

• B. all shareholders.

• C. the community at large.

• D. government entities.

Several months ago, Erin convinced Sebastian to invest in her new business that sells health supplements. Erin promised that Sebastian would receive a 10% return on his investment every month. Since investing in Erin's company, though, Sebastian hasn't earned any money on his investment. Instead, Erin seems to have used his investment to financially reward earlier investors. Which type of investment scheme does this example most likely describe?

• A. Ponzi scheme

• B. Prime bank scheme

• C. Annuities scam

• D. Predatory lending

Which of the following is a tax-deductible gift:

• A. Inherited items

• B. Stocks

• C. Charitable donation

• D. Vacation home

The Frank and Fitzer Corporation pays federal and state income tax on its earnings. Its stockholders also pay taxes on any dividends that they receive from the company. Frank and Fitzer's earnings are subject to __________ taxation.

• A. proportional

• B. regressive

• C. double

• D. progressive

A financial institution fails to comply with an important government regulation. The financial institution will most likely

• A. get a better reputation.

• B. pay a fine.

• C. gain new business.

• D. avoid an audit.

Which of the following is a benefit of using technology in compliance:

• A. Less need for procedures and policies

• B. Better risk management

• C. Lower cost of implementing compliance

• D. Decreased transparency

Megan is working with a group member who's explaining her part of a project. Megan wants to make sure her group member knows she's listening, so she says things like, “I see,” “uh-huh,” and “I understand.” Which active listening skill is Megan demonstrating?

• A. Paraphrasing the message to test her understanding

• B. Collecting all the information possible

• C. Repeating critical information

• D. Using a verbal acknowledgment response

Which of the following is an example of an informational message geared toward an external audience:

• A. An inventory report

• B. An office calendar

• C. An employee handbook

• D. A print advertisement