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Business & Marketing Practice Test

Total questions: 119

Worksheet time: 2hrs 5mins

Name
Class
Date
1.

A command economy is characterized by

a)

A laissez-faire approach by the government

b)

A moderate amount of government intervention in the economy

c)

Business commanding all aspects of the economy

d)

The government controlling prices and production

2.

Which of the following is not a responsibility of the Securities and Exchange Commission (SEC)?

a)

Regulating securities

b)

Investigating insider trading

c)

Setting interest rates

d)

Processing applications for initial public offerings (IPOs)

3.

In marketing, the demand for a product is directly influenced by:

a)

Customer's desire for a product

b)

Customer's ability to obtain a product

c)

Availability of a product

d)

Both A and B

4.

The Sarbanes-Oxley Act of 2002:

a)

Vastly reduced financial reporting obligations that corporation face

b)

Deregulated public utilities

c)

Was intended to fight corporate and accounting fraud

d)

Reduced tariffs on trade among North American countries

5.

An employee earns $2,000 per month in gross pay, but pays $104.36 for health insurance, 9% in federal taxes, 3% for state taxes, and 2% for local taxes. What is the employee's net pay?

a)

$2,000.00

b)

$1,615.64

c)

$1,820.00

d)

$1,720.00

6.

A market in which product availability exceeds demand is called a:

a)

Free market

b)

Seller's market

c)

Buyer's market

d)

Black market

7.

Which of the following is not part of Maslow's hierarchy of needs?

a)

Self-actualization

b)

Esteem

c)

Safety

d)

Supply and demand

8.

Which of the following countries is not part of NAFTA?

a)

Mexico

b)

United States

c)

Canada

d)

China

9.

A consumer's credit score is directly influenced by which of the following factors?

a)

Debt repayment history

b)

Employment history over the last five years

c)

Marital status

d)

Income level

10.

Upon which organization does the international community primarily rely to deal with claims of unfair protectionism by one country against another?

a)

North Atlantic Treaty Organization (NATO)

b)

World Trade Organization (WTO)

c)

Organization of Petroleum Exporting Countries (OPEC)

d)

International Red Cross (IRC)

11.

A homeowner is attempting to choose between several mortgage loans for a $200,000 home. Which of the following would have the lowest monthly payment?

a)

A 30-year fixed rate mortgage at 6%

b)

A 15-year fixed rate mortgage at 7%

c)

A 30-year fixed rate mortgage at 12%

d)

A 15-year fixed rate mortgage at 12%

12.

The biggest factor that leads American companies to manufacture their products overseas in developing countries like China and India is:

a)

Higher quality of craftsmanship

b)

Lower labor costs

c)

Decreased transportation costs

d)

Effective legal systems

13.

Which of the following correctly summarizes the accounting equation for a sole proprietorship?

a)

Assets = Liabilities + Owner's equity

b)

Liabilities = Assets + Owner's equity

c)

Owner's equity = Assets + Liabilities

d)

Revenue = Assets - Liabilities

14.

In order to present a business plan to a group of potential investors, a businessperson would most likely use which software?

a)

Powerpoint

b)

Quickbooks

c)

Peoplesoft

d)

Excel

15.

In order to start an online business, an individual would need all but which of the following:

a)

A business model

b)

A website

c)

An email address

d)

A fax machine

16.

Which of the following types of assets would not be subject to depreciation?

a)

Heavy equipment

b)

Computers

c)

Real estate

d)

Company vehicles

17.

When itemizing deductions on a federal tax return, an individual taxpayer may be able to deduct all but which of the following?

a)

Interest paid on a mortgage

b)

Charitable donations

c)

Losses from theft

d)

Groceries

18.

Which of the following terms best describes a situation where an individual enters into an agreement with a company to use the company's business model within a given territory, usually in exchange for a fee?

a)

Sole proprietorship

b)

Limited liability corporation

c)

Franchise

d)

Incorporation

19.

The par value of a bond is the:

a)

Average interest rate paid by a given type of bond over subsequent issues

b)

Amount of time until the bond matures

c)

Amount paid when the bond matures

d)

Amount of interest that the bond pays

20.

Which of the following best describes Congress' purpose in setting up Freddie Mac in 1970?

a)

Expanding opportunities for home ownership

b)

Deregulating the credit market

c)

Improving regulation of the Internet

d)

Creating a place for small businesses to get loans

21.

Which of the following countries would be considered an emerging market?

a)

Japan

b)

India

c)

Britain

d)

Canada

22.

If the exchange rate between the Euro and the U.S. dollar is $2.5 to 1, how many dollars would it take to purchase a plane ticket that costs 1,5800.00 Euros?

a)

$39,500

b)

$3,950

c)

$395

d)

$632

23.

If the U.S. Federal Reserve concludes that there is significant risk of inflation, it will most likely:

a)

Raise interest rates

b)

Lower interest rates

c)

Keep interest rates the same

d)

Decrease bond yields

24.

A combination of slow economic growth and high inflation is called:

a)

Inflationary pressure

b)

Deflation

c)

Stagflation

d)

Disinflation

25.

A shareholder owns 200 shares of stock XYZ at $58 each. If there is a 2-1 stock split, how many shares will that shareholder have, and what will the new share price be?

a)

100 shares at $116 per share

b)

200 shares at $116 per share

c)

400 shares at $29 per share

d)

400 shares at $58 per share

26.

Which of the following in not true of stock dividends?

a)

They are usually taxable

b)

They are offered voluntarily by companies in order to make their stock more attractive

c)

Their amount and frequency are determined directly by shareholders at large

d)

They may be discontinued or reduced at any time

27.

If a stock has a high P/E ratio, this means that:

a)

The stock's price is low considering the value of the company's earnings

b)

The stock pays a high dividend based on its earnings per share

c)

The stock's price is high considering the value of its earnings per share

d)

The company's earnings per share are high

28.

An individual who is about to retire and wants to earn interest without risking his or her principal would most likely be advised to invest in:

a)

Value stocks

b)

An index fund

c)

A mutual fund

d)

U.S. Treasury bonds

29.

A company that is included in the Dow Jones Industrial Average most likely to be:

a)

A well-known corporation with a large market capitalization

b)

A foreign company

c)

A start-up that was recently listed on the stock exchange

d)

A small- to mid-sized technology company

30.

If one is planning to start a small business, which should one do first?

a)

Obtain a business loan

b)

Find a partner

c)

Assess one's personal financial situation

d)

Choose a location for one's business

31.

If a country is a net exporter, this means that:

a)

The value of goods that it imports exceeds the value of the goods that it exports

b)

The value of the goods that it exports exceeds the value of the goods that it imports

c)

It exports consumer products

d)

It has high tariffs

32.

If a government implements an import tariff on consumer electronics, what is it most likely trying to accomplish?

a)

It is trying to protect its domestic consumer electronics industry from competition

b)

It is trying to decrease the cost of imported consumer electronics

c)

It is trying to discourage domestic companies from producing consumer electronics

d)

It is trying to increase competition and lower prices in the consumer electronics industry

33.

If a potential business owner projects that she will need to invest $100,000 in equipment to start a dry cleaning business, and the business' monthly expenses on rent, insurance, labor costs, and other incidentals are $5,000, how many months will it take for her to earn back her initial investment if the average monthly gross revenue is $8,000?

a)

Less than 9 months

b)

Less than 20 months

c)

Less than 34 months

d)

None of the above

34.

A consumer's credit score may be a factor in all but which of the following transactions?

a)

Buying a car

b)

Buying a home

c)

Getting a personal loan

d)

Opening a bank account

35.

Comprehensive car insurance typically covers:

a)

Damage the insured does to the property of others while driving the insured vehicle

b)

Medical expenses other incur as a result of a collision with the insured vehicle

c)

Damage done to the insurer's vehicle by a vandal

d)

All of the above

36.

Which of the following is not typically cited as a potential cause of oil price increases?

a)

Price increases for consumer goods and services in the U.S.

b)

Increased global demand for oil

c)

Speculation in the oil market

d)

Insufficient refinery capacity

37.

Nations whose economies rely primarily on the export of non-oil commodities like rubber or copper are:

a)

Typically located in Northern and Western Europe

b)

Often referred to as "developing countries" or "emerging markets"

c)

Known for their world class education systems

d)

Usually among the wealthiest countries in the world

38.

A company considering manufacturing a product in several different emerging markets will most likely consider which of the following factors in choosing between them?

a)

Likelihood of political instability

b)

Labor costs and regulations

c)

Cost of shipping goods from that country to the destination country

d)

All of the above

39.

Adam Smith is best known for:

a)

Founding the doctrine of mercantilism

b)

Supporting the spread of communism

c)

Arguing for free market economics

d)

Arguing that the government should redistribute income

40.

According to standard economic theories, countries that have a comparative advantage in the production of cotton should:

a)

Export another product, and import cotton

b)

Export cotton, and import other products

c)

Implement tariffs to protect their domestic cotton industry

d)

Work hard to reduce their comparative advantage and diversify their economy

41.

An advantage of protectionism for countries that implement it is that it:

a)

Improves the country's global competitiveness

b)

Ensures that domestic jobs will be retained in the short term

c)

Encourages economic growth

d)

Prevents corruption

42.

GDP measures a country's:

a)

Employment level

b)

Education level

c)

Total economic output

d)

Wage levels

43.

A human resources manager is likely to be responsible for all but which of the following:

a)

Sales

b)

Payroll

c)

Hiring

d)

Training

44.

The main function of a human resources department is to:

a)

Meet the company's recruiting goals

b)

Maximize employee productivity while maintaining pay

c)

Facilitate communication between the employer and the employees

d)

Prevent lawsuits

45.

Which of the following questions would it be illegal to ask a job candidate at a pre-employment interview?

a)

Have you ever requested workers' compensation benefits?

b)

Do you have any disabilities that would interfere with your ability to perform this job?

c)

Both A and B

d)

Neither A nor B

46.

Technological aids can be used to directly fulfill all but which of the following human resources functions?

a)

Soliciting resumes for open positions

b)

Assessing a new employee's job readiness

c)

Communicating information about employee benefits

d)

Resolving disputes between employees and management

47.

A new manager with ABC Industries has noticed that many of his employees are chronically late to work. To remedy the problem, the manager decides to implement a bonus system that will financially reward employees who are on time to work for ten consecutive days. According to B.F. Skinner's Operant Conditioning theory, what type of behavior modification is the manager using?

a)

Extinction

b)

Punishment

c)

Negative reinforcement

d)

Positive reinforcement

48.

A successful manager will be able to effectively delegate:

a)

Responsibility

b)

Accountability

c)

Authority

d)

Ability

49.

According to Fayol's Adminisitrative Theory of Management, which of the following is a correct list of the five essential functions of management?

a)

Controlling, composing, planning, organizing, implementing

b)

Containing, controlling, implementing, planning, organizing

c)

Composing, coordinating, controlling, planning, organizing

d)

Controlling, commanding, coordinating, planning, organizing

50.

According to the National Environmental Protection Act of 1967, a business is required to prepare an environmental impact statement (EIS) when it:

a)

Hires a new worker

b)

Makes a charitable contribution

c)

Develops a new marketing initiative

d)

Build a new factory

51.

A manufacturing company implements anti-pollution measures as outlined by applicable legislation, but opts not to adopt any additional anti-pollution measures. This company has most likely adopted which of the following approaches to business-society relations?

a)

Social Responsiveness Approach

b)

Social Responsibility Approach

c)

Social Obligation Approach

d)

Cost-Benefit Approach

52.

Which of the following constitutes a binding contract?

a)

An agreement signed and dated by one party and one witness

b)

An agreement signed and dated by both parties

c)

An agreement signed by both parties and witnessed by a third party

d)

An agreement signed and dated by both parties and a witness

53.

Corporation X, the largest oil refiner in the U.S. wants to purchase Corporation Y, the only other oil refiner in the U.S. This situation may be of concern to the government because:

a)

It may violate environmental laws

b)

It may constitute a violation of antitrust laws

c)

It could violate labor laws by reducing employees' choice of employers

d)

It could constitute a pyramid scheme

54.

The Equal Employment Opportunity Commission (EEOC) is responsible for enforcing all but which of the following laws?

a)

Civil Rights Act of 1964

b)

Equal Pay Act

c)

Environmental Protection Act

d)

Americans with Disabilities Act

55.

Anna is interested in purchasing a computer for her small landscaping business. She wants to be able to compose simple fliers and advertising materials, communicate with clients via email, and order supplies online. Which of the following lists best describes the hardware and software components that Anna's computer should have?

a)

Internet connection, Quickbooks, and at least 10 GB of memory

b)

Work processing software, Quickbooks, and an Internet connection

c)

Work processing software, an Internet connection, and 1-5 GB of memory

d)

Quickbooks, an Internet connection, and 1-5 GB of memory

56.

Microsoft Excel would most likely be used for which of the following tasks?

a)

Developing a strategic plan

b)

Filing invoices

c)

Creating a sales presentation

d)

Analyzing numerical sales data

57.

Which of the following steps might a company take in order to prevent unauthorized individuals from accessing confidential data?

a)

Requiring a username and password to access its computer system

b)

Constructing a firewall to protect access its computer system

c)

Both A and B

d)

Neither A nor B

58.

A business education teacher has allotted one class period to help students identify potential career options. Which of the following activities would be most appropriate given these circumstances?

a)

Having students complete an internship

b)

Having each student deliver a five-minute presentation describing their parents' jobs

c)

Administering a test that advises students about what careers might fit their interests and talents

d)

Asking students to write an essay describing their "dream job"

59.

Choose the list that best describes the most important content of a resume:

a)

Salary requirements, relevant work experience, educational attainment, objective

b)

Contact information, grade point average, relevant work experience, objective

c)

References, objective, educational attainment, salary requirements

d)

Contact information, objective, educational attainment, relevant work experience

60.

Which of the following business careers could a teacher safely recommend for a student who would not enjoy working with the public on a regualr basis?

a)

Financial advisor

b)

Insurance salesperson

c)

Real estate agent

d)

None of the above

61.

At a meeting with shareholders, an executive would be most likely to use which of the following visual aids to present a report on monthly stock gains and losses over a one-year period?

a)

Bar chart

b)

Pie chart

c)

Line graph

d)

Scatterplot

62.

When researching a presentation about a national shipping business, the most detailed and comprehensive source of information about the top management of the company and its competitors would most likely be:

a)

Microfilm records from local newspapers

b)

Hoovers.com

c)

LexisNexis.com

d)

The catalogue at your local library

63.

Which of the following lists contains only types of computer software?

a)

Internet, Microsoft Office, Quicken

b)

Motherboard, Quicken, Excel

c)

Quicken, Peoplesoft, Microsoft Office

d)

Monitor, Mouse, Keyboard

64.

A business education teacher wants students to complete an activity that teaches them skills that are necessary for working in a culturally diverse environment. Which of the following activities would fulfill this goal?

a)

Collaborating with the social studies teacher to teach students about work customs in other cultures

b)

Asking students to read and discuss written accounts of minorities' experiences in the workplace

c)

Teaching students about laws and regulations that protect people from diverse ethnic and cultural backgrounds

d)

All of the above

65.

What deductions should a part-time W-4 employee have?

a)

401k and health insurance

b)

Social security and Medicare

c)

Social security, Medicare, and income taxes

d)

None of the above

66.

What is the correct order for businesses from least to most risky?

a)

BB, BBB, AA, AAA

b)

BBB, BB, AAA, AA

c)

AAA, AA, BBB, BB

d)

AA, AAA, BB, BBB

67.

The company that Scott Smith works for provides full-time employment with a 100% 401k match after one year on the job if they contribute 4% of their paycheck. If Scott becomes a full-time employee after one year, makes $2,000 per paycheck, and contributes 4% to this 401k each pay period, how much would the company have to contribute to his 401k during each pay period?

a)

$160

b)

$80

c)

$40

d)

Cannot be determined

68.

Accounts receivable are:

a)

Fixed assets

b)

Fixed liabilities

c)

Current assets

d)

Current liabilities

69.

Owners' equity is comprised of:

a)

The personal net worth of the owners plus the amount of their initial investment in the business

b)

The amount of the owners' initial investment in the business

c)

The owners' unclaimed profits from the business' operation

d)

Both B and C

70.

Which of the following are not protected by copyright laws?

a)

Architectural drawings

b)

Scripts for plays

c)

Advertising slogans

d)

Books of poetry

71.

A phrase that is associated with a particular product would be protected by which of the following?

a)

Trademark law

b)

Patent law

c)

Copyright law

d)

Both A and C

72.

Which of the following is true of a corporation?

a)

It is always owned by shareholders

b)

Its shareholders are personally liable if it fails

c)

Its board of directors is personally liable if it fails

d)

It cannot sue another entity or be sued

73.

Which of the following would be a violation of the Occupational Safety and Health Act (OSHA)?

a)

An employee becoming injured while commuting to work

b)

An employee becoming injured because an employer did not provide equipment in good working order

c)

An employer requiring employees to work with toxic chemicals

d)

An employer failing to accompany an OSHA compliance officer on an inspection

74.

The following are each statements from a job description. Select the sentence that clearly and correctly communicates its intended meaning.

a)

The employee, will have excellent oral communication skills.

b)

The employees oral communication skills will be excellent.

c)

The employee will communicate orally and in writing well.

d)

The employee will have excellent writing skills.

75.

Which of the following is true of a Wide Area Network (WAN)?

a)

A WAN is equivalent to a LAN

b)

Businesses usually have their own WAN

c)

The Internet is an example of a WAN

d)

Businesses prefer WANs to LANs because their data transfer speeds are higher

76.

Which of the following would violate federal child labor regulations?

a)

Hiring your own child to work in your small business if the child is under 14

b)

Employing someone under 14 as a newspaper carrier

c)

Employing someone under 18 in a job deemed hazardous

d)

Employing anyone under 18 as a babysitter

77.

A U.S. based automobile manufacturing firm is entering into the market of a country overseas where automobile manufacturing firms already operate. The United States-based firm and a local firm in the other country contract with each other to create a joint venture. One of the key features of the joint venture is that the two firms will:

a)

be chartered as a limited partnership

b)

employ a workforce from both countries

c)

be subject to intentional legal codes

d)

share governance, return, and risks

78.

In contrast to a leader characterized by an autocratic style of business leadership, a leader using a democratic style is most likely to place a greater emphasis on:

a)

planning for long-term goals rather than short-term targets

b)

investing in employees' skills rather than cultivating their talents

c)

expanding one market niche rather than growing into new niches

d)

inspiring employees to create rather than incentivizing them to perform

79.

In a matrix organizational structure, cross-functional teams from different parts of a firm work together on various projects. One significant advantage of this type of structure is that it provides:

a)

strategies and metrics for evaluating job performances of staff

b)

a clear division of labor where all staff know their roles and responsibilities

c)

increased flexibility that allows more effective responses to change

d)

a clear chain of command for making and communicating decisions

80.

Federal laws governing discrimination based on disabilities allow an employer to engage in which practice?

a)

asking job applicants whether they can perform the job and how they would perform the job

b)

making medical records of employees available to insurance companies and other interested parties

c)

asking job applicants to take a medical exam before extending a job offer

d)

offering a different package of fringe benefits to employees with and without disabilities

81.

Most bankruptcy events in the United States occur under either Chapter 7 or Chapter 11 of the federal Bankruptcy Code. What is a situational distinction between these two forms of bankruptcy?

a)

Chapter 7 governs the liquidation of the business; Chapter 11 allows for reorganization of the business

b)

Chapter 7 prioritizes creditors based on the size of the debt; Chapter 11 prioritizes based on the date of the debt

c)

Chapter 7 is overseen by a federal court; Chapter 11 is conducted through arbitration and mediation

d)

Chapter 7 applies to corporations and partnerships; Chapter 11 applies to sole proprietorships and individuals

82.

According to United States copyright law, material that appears on the Internet:

a)

can be copyrighted only if the URL for the website in which it is found ends in .com

b)

is only protected if it is found within a website that is listed with a registered domain name

c)

enjoys the same copyright protection as equivalent material that appears in print or other media

d)

is not protected by copyright unless it meets the criteria for a registered trademark

83.

Which step in the accounting cycle ends with the preparation of a trial balance and the careful correction of any mistakes revealed in the process?

a)

examining source documents

b)

recording transactions

c)

posting to the ledger

d)

creating financial statements

84.

Which expression can be used to calculate the amount (N) of money in an account at the end of 4 years, beginning with $1,000 and growing at a rate of 5% compounded annually?

a)

N = (1000 × 1.5)4

b)

N = 1000 + (100.05 × 4)

c)

N = (1000 × 5) × 4

d)

N = 1000 × (1.05)4

85.

How do taxes under the Federal Insurance Contributions Act (FICA) differ from federal and state income taxes?

a)

All employees must pay the FICA taxes, but many employees are exempt from federal and state income taxes

b)

Individuals who are receiving Medicare and/or social security do not have to pay FICA taxes regardless of how many hours they work

c)

The amount of FICA taxes individuals owe is calculated on their after-tax income rather than their gross income

d)

FICA taxes are paid by each employee and by the employer, but only employees pay personal income taxes

86.

A wiki-based website created and continually modified by a large number of users is most likely to contain reliable and accurate information on topics that involve:

a)

highly specialized technical subjects

b)

highly divisive controversies

c)

matters of longstanding general interest

d)

unexpected breaking news

87.

A U.S. business is beginning a dialogue with a business in a foreign country about a partnership, and a senior manager in the United States business is leading a team to the foreign country for preliminary talks. The senior manager has been advised that cultural norms in that country emphasize personal relationships in business, and that a primary goal of the meeting is for the two companies' managers to establish a courteous working relationship. To best help achieve this goal, the senior manager should take which step before the preliminary talks?

a)

arranging for a consultant familiar with the customs of the foreign country to present information about the country's culture, etiquette, and manners to team members

b)

reminding team members that these are preliminary meetings and that they should take care not to discuss details of company operations with their counterparts

c)

discussing perceptions of other cultures with each team member to screen out individuals who are prone to stereotyping or have ethnocentric attitudes

d)

providing team members with a list of words and phrases in the primary language of the foreign country and their English translations for use in conversations with their counterparts

88.

Which piece of technology can perform as both an input device and an output device?

a)

microphone

b)

external speaker

c)

scanner

d)

flash drive

89.

A worker uses a company-issued laptop computer for business purposes. Recently, the worker deleted all cookies from the Internet browser. The worker can expect that this change could affect the next visit to a familiar Web page in which way?

a)

The worker may be required to enter the Web page login information

b)

The Web page may be more likely to display an error message

c)

The worker may see different images load on the Web page

d)

The Web page may be missing from the browser history

90.

United States firms involved in the growth and production of sugar, and representatives of their workers have successfully lobbied Congress to impose tariff-rate quotas on imported sugar and sugar products. Under this regulation, a limited quantity of sugar can enter the United States under a low tariff, with higher import quantities subject to a higher, over-quota tariff. The tariffs have raised the price of raw sugar in the U.S. substantially above the worldwide price. The sugar industry's lobby asserts that the higher prices have helped to sustain the employment and elevate the income of over 140,000 workers. Which consideration not included in the passage forms the strongest economic argument against the tariff-rate quota?

a)

The higher the price of sugar has caused inflation that has destabilized the monetary system

b)

Millions of U.S. workers are employed in industries that depend on sugar as an input

c)

Public support for protectionist policies has been trending downward in recent decades

d)

The jobs linked to the sugar industry tend to pay low incomes and require few skills

91.

An entrepreneur is starting an online business that will offer a course in Internet skills. Customers will expand their knowledge of Internet search and safety strategies and learn how to evaluate Internet sites and acquire and use apps. When designing a website for the business, the entrepreneur should emphasize:

a)

the use of colorful graphics and animation to capture the attention of potential customers

b)

a sophisticated layout for the website to demonstrate the business owner's computer skills

c)

a simple design for the website to ensure that it is easy to use and does not intimidate potential customers

d)

an interactive design that allows customers to ask questions and leave comments for the business owner

92.

Year 1 - Rate of Inflation: 2.1%, Rate of Unemployment: 3.8%, Short-term Interest Rates: 3.5%

Year 2 - Rate of Inflation: 0.7%, Rate of Unemployment: 5.4%, Short-term Interest Rates: 2.0%

Changes in the state of the economy from Year 1 to Year 2 can best be summarized by which statement?

a)

The economy showed signs of slipping into a recession, and the Federal Reserve responded with a monetary stimulus

b)

The falling rate of inflation and lower borrowing costs helped consumers balance their household budgets

c)

High interest rates raised the cost of doing business, and employers responded with layoffs and higher prices

d)

Fluctuations in the business cycle led to a decrease in productivity and an expansionary fiscal policy

93.

People selecting a life insurance policy would most likely prefer whole life insurance to term life insurance, if they prioritize which of these features?

a)

the option to change the designated beneficiary from one person to another

b)

an annuity that provides a fixed benefit amount for the duration of the contract

c)

premiums that will not fluctuate over a predetermined and guaranteed period of time

d)

a death benefit combined with an investment component that accumulates a cash value

94.

Many financial advisors believe that the practice of "pay yourself first" is helpful for managing personal finances. This practice is generally thought to involve:

a)

renting an apartment for many years until savings allow for a large down payment on a purchased home

b)

receiving as much income as possible in the form of cash to increase budgeting flexibility

c)

enjoying some affordable luxuries and indulgences to enhance the quality of life

d)

depositing savings into a retirement account as a permanent part of the monthly budget

95.

A regulatory agency is making rules about the ability of Internet Service Providers to collect sensitive data from customers and use the data for ad-targeting purposes. If the agency changes the rule from opt-out consent to opt-in consent, what effect would this have on the customers?

a)

Customers should expect to be exposed to an overall lower volume of advertising

b)

Customers will have a greater chance to control the types of advertisements that they see

c)

Customers will likely see more advertising related to their specific browsing histories

d)

Customers will have fewer enforceable legal rights against unwanted marketing

96.

In which situation would an informational advertising campaign be most appropriate and effective?

a)

An electronics store is advertising a new "smart watch" that will be priced the same as competitors but will have more features

b)

A newspaper publisher is advertising a free subscription for the first 30 days to its online version of daily news stories

c)

A supermarket is advertising a 20-percent price discount to reduce overstock of a particular brand of shampoo and other personal care products

d)

A restaurant is advertising reduced-priced appetizers during a two-hour "happy hour" period during the late afternoon on weekdays

97.

A salesperson in the electronics department of a large department store approaches a potential customer and engages in conversation. After exchanging pleasantries, the salesperson continues to talk to the customer and determines that the customer is thinking of buying a laptop computer. Which step in the selling process should the salesperson take next?

a)

closing the sale by asking if the customer is willing to purchase one of the laptops for sale

b)

continuing the conversation and attempting to ascertain the customer's specific needs

c)

providing information about specifications, warranties, and prices for a variety of laptops

d)

anticipating and providing specific answers to any objections the customer might have

98.

A student is beginning to think about a future career. This stage of the career development process will be most shaped by the student's answers to which question?

a)

What roles do I see myself playing in my local community?

b)

How will I be able to accumulate enough wealth to afford retirement

c)

Which activities and interests give me the most satisfaction?

d)

Will I need a higher education in order to be credentialed for a good job?

99.

Each employee in an office of 30 people works on several different projects in the course of a typical week, involving the work of different small teams. The projects are deadline-driven, with each task needing to be done before the next team can perform the next task. In these circumstances, the success of the enterprise requires that new employees become particularly attentive to which workplace expectation?

a)

pursuing individual development goals that are specific and measurable, and revisiting them regularly

b)

asking colleagues or managers for assistance when there is a possibility of falling behind in the work

c)

receiving feedback from colleagues graciously, and giving feedback that is direct and actionable

d)

identifying personal strengths and weaknesses when monitoring progress toward improvement

100.

Which pair of characteristics of goal setting is likely to be most difficult to balance?

a)

Goals should be simple and timely

b)

Goals should be challenging and attainable

c)

Goals should be specific and measurable

d)

Goals should be clear and realistic

101.

Which of the following correctly explains the Classical Theory Management Approach?

a)

Productivity can be improved through the application of mathematical models

b)

Understanding the worker's perspective is key to successful management

c)

There's no correct theory-instead managers should apply the theory that's most sensible in a given situation

d)

Productivity can be maximized by presenting the right combination of incentives, and correctly designing job

102.

Which of the following correctly explains the Behavioral Theory Management Approach?

a)

Productivity can be improved through the application of mathematical models

b)

Understanding the worker's perspective is key to successful management

c)

There's no single "correct" theory-instead managers should apply the theory that is most sensible in a given situation

d)

Productivity can be maximized by presenting the right combination of incentives, and correctly designing jobs

103.

Which of the following correctly explains the Management Science Management Approach?

a)

Productivity can be improved through the application of mathematical models

b)

Understanding the worker's perspective is key to successful management

c)

There's no single correct theory-instead managers should apply the theory that is most sensible in a given situation

d)

Productivity can be maximized by presenting the right combination of incentives, and correctly designing jobs

104.

Which of the following correctly explains the Contingency Management Approach?

a)

Productivity can be improved through the application of mathematical models

b)

Understanding the worker's perspective is key to successful management

c)

There's no single correct theory-instead managers should apply the theory that is most sensible in a given situation

d)

Productivity can be maximized by presenting the right combination of incentives, and correctly designing jobs

105.

Which of the following correctly describes the Expansion phase of the Business Cycle?

a)

the increase in income, supply and demand. There's an increase in consumer confidence leading to spending more money

b)

prices are at their highest, and the economy can "overheat" (business can't satisfy demand)

c)

business owners focus on finding ways to improve their financial situation (save money, compete)

d)

supply and demand decline, and employees do not have nearly as many materials. Unemployment is high and some companies close.

106.

Which of the following correctly describes the Peak phase of the Business Cycle?

a)

the increase in income, supply and demand. There's an increase in consumer confidence leading to spending more money

b)

prices are at their highest, and the economy can "overheat" (business can't satisfy demand)

c)

business owners focus on finding ways to improve their financial situation (save money, compete)

d)

supply and demand decline, and employees do not have nearly as many materials. Unemployment is high and some companies close

107.

Which of the following correctly describes the Contraction phase of the Business Cycle?

a)

the increase in income, supply and demand. There's an increase in consumer confidence leading to spending more money

b)

prices are at their highest, and the economy can "overheat" (business can't satisfy demand)

c)

business owners focus on finding ways to improve their financial situation (save money, compete)

d)

supply and demand decline, and employees do not have nearly as many materials. Unemployment is high and some companies close

108.

Which of the following correctly describes the Trough phase of the Business Cycle?

a)

the increase in income, supply and demand. There's an increase in consumer confidence leading to spending more money

b)

prices are at their highest, and the economy can "overheat" (business can't satisfy demand)

c)

business owners focus on finding ways to improve their financial situation (save money, compete)

d)

supply and demand decline, and employees do not have nearly as many materials. Unemployment is high and some companies close

109.

Which of the following correctly describes Cooperative Advertising?

a)

a joint promotional strategy or cost sharing agreement between two or more companies (e.g. manufacturer and retailer/distributor)

b)

a marketing technique in which marketers focus on appealing to the customer through other brands and retailers

c)

a method in which one manufacturer sells its finished product to another for resale under a different label

110.

Which of the following correctly describes Trade Advertising?

a)

a joint promotional strategy or cost sharing agreement between two or more companies (e.g. manufacturer and retailer/distributor)

b)

a marketing technique in which marketers focus on appealing to the customer through other brands and retailers

c)

a method in which one manufacturer sells its finished product to another for resale under a different label

111.

Which of the following correctly describes Symbiotic Advertising/Marketing?

a)

a joint promotional strategy or cost sharing agreement between two or more companies (e.g. manufacturer and retailer/distributor)

b)

a marketing technique in which marketers focus on appealing to the customer through other brands and retailers

c)

a method in which one manufacturer sells its finished product to another for resale under a different label

112.

What is the Consumer Protection Act?

a)

safeguards purchasers of goods and services against defective products and deceptive, fraudulent business practices

b)

prevents unfair methods of competition, bans the practices of price discrimination and anticompetitive mergers, also declared strikes, boycotts, and labor unions legal

c)

authorized the federal government to institute proceedings against trusts in order to dissolve them. Outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade (declared monopolies illegal)

113.

What is the Clayton Act?

a)

safeguards purchasers of goods and services against defective products and deceptive, fraudulent business practices

b)

prevents unfair methods of competition, bans the practices of price discrimination and anticompetitive mergers, also declared strikes, boycotts, and labor unions legal

c)

authorized the federal government to institute proceedings against trusts in order to dissolve them. Outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade (declared monopolies illegal)

114.

What is the Sherman Antitrust Act?

a)

safeguards purchasers of goods and services against defective products and deceptive, fraudulent business practices

b)

prevents unfair methods of competition, bans the practices of price discrimination and anticompetitive mergers, also declared strikes, boycotts, and labor unions legal

c)

authorized the federal government to institute proceedings against trusts in order to dissolve them. Outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade (declared monopolies illegal)

115.

What is a qualified endorsement?

a)

passes title to a negotiable instrument with certain restrictions

b)

includes the signature of the endorser, the words "For Deposit Only" and the bank account number

c)

allows the payee to make the check payable to another person (i.e. "Pay to the order of Mr. X")

d)

consists only of the payee's signature (has no designated payee)

e)

occurs when an administrative agency allows a company to stop doing something (usually illegal) without admitting any illegal behaviors

116.

What is a restrictive endorsement?

a)

passes title to a negotiable instrument with certain restrictions

b)

includes the signature of the endorser, the words "For Deposit Only" and the bank account number

c)

allows the payee to make the check payable to another person (i.e. "Pay to the order of Mr. X")

d)

consists only of the payee's signature (has no designated payee)

e)

occurs when an administrative agency allows a company to stop doing something (usually illegal) without admitting any illegal behaviors)

117.

What is a special endorsement?

a)

passes title to a negotiable instrument with certain restrictions

b)

includes the signature of the endorsee, the words "For Deposit Only" and the bank account number

c)

allows the payee to make the check payable to another person (i.e. "Pay to the order of Mr. X")

d)

consists only of the payee's signature (has no designated payee)

e)

occurs when an administrative agency allows a company to stop doing something (usually illegal) without admitting any illegal behaviors

118.

What is a blank endorsement?

a)

passes title to a negotiable instrument with certain restrictions

b)

allows the payee to make the check payable to another person (i.e. "Pay to the order of Mr. X")

c)

includes the signature of the endorser, the words "For Deposit Only" and the bank account number

d)

consists only of the payee's signature (has no designated payee)

e)

occurs when an administrative agency allows a company to stop doing something (usually illegal) without admitting any illegal behaviors

119.

What is a consent order?

a)

passes title to a negotiable instrument with certain restrictions

b)

consists only of the payee's signature (has no designated payee)

c)

allows the payee to make the check payable to another person (i.e. "Pay to the order of Mr. X")

d)

includes the signature of the endorser, the words "For Deposit Only" and the bank account number

e)

occurs when an administrative agency allows a company to stop doing something (usually illegal) without admitting any illegal behaviors