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WorksheetsRRHS DECA Entrepreneurship Cluster Exam
Total questions: 50
Worksheet time: 25mins
Which of the following is a legal concept that affects businesses that operate in foreign countries:
A. Sovereign immunity
B. Eminent domain
C. Absolute privilege
D. Social responsibility
Because operations managers control so much of a business's money, they must focus on
A. keeping costs low.
B. hiring the best employees.
C. creating effective advertising campaigns.
D. generating publicity.
Why do businesses often maintain several different personnel files for each employee?
A. To organize general information
B. To make record keeping easier
C. To protect employees' privacy
D. To be prepared for an emergency
The goal of most marketing promotions is to communicate with
A. all consumers.
B. business partners.
C. target audiences.
D. competitors.
What is one reason why many people decide to become entrepreneurs?
A. Flexibility
B. Long hours
C. Less risk
D. Less responsibility
Obtaining goods that will satisfy the needs and wants of a business's customers is a function of
A. advertising.
B. selling.
C. marketing.
D. purchasing.
A local business raises money to help people in the community who were affected by a tornado. This is an example of which of the following positive actions that businesses should take:
A. Providing excellent customer service
B. Providing proper training for employees
C. Demonstrating corporate responsibility
D. Protecting the business's reputation
What is an example of a company using a direct marketing channel?
A. Responding to customer ideas and requests via email
B. Hiring a research company to conduct marketing surveys
C. Advertising products in a popular magazine
D. Creating an ad that is promoted on social media
Mike is thinking about expanding his manufacturing business internationally. Which of the following is a risk he might encounter:
A. Encountering new markets
B. Dealing with cultural and language barriers
C. Dealing with fewer government regulations
D. Saving money on taxes
Why is it important for businesses to have efficient production?
A. To be competitive
B. To remain flexible
C. To pay employees
D. To buy resources
Heyman's discount store planned to participate in a variety of promotional activities in order to meet its goal of increasing the store's market share. Heyman's promotional plan is a marketing
A. strategy.
B. tactic.
C. concept.
D. objective.
Which of the following is the most likely reason why some established, successful companies with popular consumer products don't use coupons to increase sales:
A. Coupons are expensive to create and distribute.
B. Loyal customers purchase products without coupons.
C. Customers equate discounts with lower quality.
D. Customers become angry when coupons expire.
Claire needs to determine the feasibility of a new venture idea. What are three factors that Claire should consider when conducting her feasibility study?
A. The venture's staffing needs, raw material needs, and estimated return on investment
B. The venture's staffing needs, raw material needs, and past sales
C. The venture's staffing needs, estimated return on investment, and past sales
D. The venture's raw material needs, estimated return on investment, and past sales
What do managers need to do to develop and maintain the level of quality that customers expect?
A. Obtain industry information
B. Monitor all aspects of the business
C. Consider the type of competition
D. Prepare an operating budget
Which of the following is a financial consideration when measuring the effectiveness of online advertising based on a click-through rate:
A. Software expense
B. Website design
C. Cost versus response
D. Access and frequency
Why are news releases considered one of the most effective public relations tools?
A. News sources have a broader reach than social media.
B. People are willing to pay for quality news.
C. People consider news sources as more trustworthy.
D. News sources only report factual information.
What type of planning involves setting short-term goals for a new business venture?
A. Tactical
B. Strategic
C. Systematic
D. Environmental
Expenses such as payroll and rent that are necessary to the running of a business are called __________ expenses.
A. operating
B. fixed
C. variable
D. liability
What are important considerations in establishing hardware/software specifications for a business?
A. Strategic planning, training, upgrades, and cost
B. User needs, mobility, delivery terms, and technical support
C. Security, social media policies, performance, and licensing
D. Capabilities, compatibility, reliability, and cost
An organization-wide system that businesses use to ensure that products meet quality standards is known as quality
A. assurance.
B. control.
C. management.
D. improvement.
Which of the following is an effective, inexpensive external resource that entrepreneurs use to research and develop the venture's concept:
A. The Internet
B. Marketing research firm
C. Focus groups
D. Professional consultants
A business negotiates a two-year lease on 2,250 square feet of space for $2.60 per square foot with an option on a third year at a 5% increase in rent. What will the monthly rent be if the business extends the lease for a third year?
A. $6,265.50
B. $5,976.00
C. $5,850.00
D. $6,142.50
During the busy tourist season, a coastal surf shop sold 398 beach balls in June, 924 beach balls in July, and 537 beach balls in August. This information reveals that
A. the demand for beach balls peaked during July.
B. more tourists purchased beach balls in July than June and August combined.
C. beach-ball production rates increased in August.
D. the supply of beach balls declined in June by four percent.
The first step in an organizational risk assessment is
A. pinpointing who might be harmed.
B. recording and implementing your findings.
C. identifying the potential hazards.
D. evaluating the risks and making a plan.
When developing a business plan for a new venture, an entrepreneur should include a comprehensive description of the customers the new business wants to attract in the
A. market-segment analysis.
B. SWOT analysis.
C. promotional plan.
D. corporate philosophy summary.
Most company budgets are based on
A. net profit.
B. expenses.
C. sales.
D. gross profit.
Why is it important for businesses to identify potential security issues?
A. To develop procedures to protect the workplace
B. To take steps to avoid all risk
C. To provide employees with safety information
D. To investigate causes of illness
Objective setting, risk assessment, risk response, and the distribution of an action plan are all components of which of the following business practices:
A. Quality assurance
B. Managerial accounting
C. Enterprise risk management
D. Entrepreneurship
Because Connor does not know how to prepare his start-up company's tax return, he decides to outsource the activity by contracting a(n)
A. probate attorney.
B. licensed accountant.
C. trusted colleague.
D. insurance agent.
Which of the following situations would supply chain managers encounter during the final stage of supply chain management:
A. A customer returns a defective product.
B. The company finds reliable suppliers.
C. The business plans to deliver goods to customers.
D. Managers develop a supply chain strategy.
Which of the following is an important purchasing activity in a business:
A. Developing financial statements
B. Setting prices
C. Selecting vendors
D. Managing employee benefits
Risk should be managed
A. on a case-by-case basis.
B. as a part of business strategy.
C. after an incident has occurred.
D. through the purchase of insurance.
When a new business is growing quickly, which of the following activities will increase new employees' productivity levels in order to maintain adequate supply for increasing demand:
A. Management changes
B. Equipment improvements
C. Challenging quotas
D. Comprehensive training
What is Claire doing when she reviews a report that compares the purchase transactions of the company's four largest customers?
A. Conducting a sales analysis
B. Preparing a purchasing forecast
C. Organizing an inventory report
D. Analyzing service performance
The sum of the operating and direct expenses required to make a product is its
A. total cost.
B. price markup.
C. gross cost.
D. break-even point.
Which of the following statements regarding the selling function is true:
A. Selling is unplanned communication.
B. Selling is not personalized to the customer.
C. Selling is planned communication.
D. Selling usually doesn't result in future purchases.
After preparing her business's cash flow statement, Jackie determines that the business will have a deficit for the next few weeks. What is the best way for Jackie to cover her expenses?
A. Sell assets
B. Close the business temporarily
C. Hire additional salespeople
D. Obtain a loan
When bottlenecks in business processes develop that cause a company to miss deadlines and waste resources, an effective manager would most likely choose to
A. invest in quality control.
B. redesign the business processes.
C. implement an employee incentive program.
D. speed up production.
Why does a business conduct a break-even analysis?
A. To determine the approximate consumer demand levels
B. So it can receive a tax break from the government
C. So it can evaluate product sales from the previous year
D. To determine a product's possible range of profit
Which management function includes providing professional development for employees?
A. Organizing
B. Staffing
C. Controlling
D. Planning
Which of the following often provides trade credit to businesses:
A. Wholesalers
B. Corporations
C. Investors
D. Financiers
One of the main external factors that may cause a firm to change its business processes is
A. desire for growth.
B. competition.
C. low employee morale.
D. high operating costs.
When negotiating maintenance contracts, which of the following should businesses consider that often adds to the overall cost:
A. Training sessions
B. Installment requirements
C. Optional features
D. Additional supplies
A mission statement can be thought of as the __________ of the business strategy.
A. "why"
B. “who”
C. “when”
D. “how”
What is often the best source of credit for business start-ups?
A. Traditional lenders
B. Commercial banks
C. Stock market
D. State or local governments
Which of the following is a benefit of corporate governance:
A. It encourages transparency.
B. It decreases investor confidence.
C. It creates a less definable brand.
D. It maximizes corruption.
In which of the following situations might a business lose money from bad debts by failing to monitor information in its budget and making necessary adjustments:
A. Total cash receipts are higher than usual.
B. Large amount of accounts receivable are past due.
C. Many customers are paying with personal checks.
D. Credit card sales are growing in number.
An investor is looking at a company's business plan for a new product launch and wants to find information on the industry trends that inspired the new product's development. This investor would probably turn to the __________ section.
A. product(s) offered
B. market analysis
C. appendices
D. strategy and implementation
A small restaurant wants to expand, but first it needs to raise funds. John wants to raise capital through debt financing, but his partner, Damien, isn't sure that's a good idea. What is one downside of debt financing that Damien could cite to prove his point to John?
A. Shareholders will own part of their business.
B. They will have to pay interest on the borrowed amount.
C. They will need to sell stock in their business.
D. They will be required to repay the money immediately.
Members of a board of directors are
A. required to be stockholders.
B. elected by stockholders.
C. a business's vendors.
D. not able to make decisions.
