Study Guide

Field 098: Business, Management, Marketing, and Technology
Sample Multiple-Choice Questions

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BUSINESS

Objective 001
Understand the accounting equation and the accounting cycle.

1. Which of the following accounting forms is the source of the information used to journalize adjusting entries?

  1. income statement
  2. trial balance
  3. work sheet
  4. balance sheet
Answer
Correct Response: C.

Objective 002
Apply procedures for using and interpreting source documents, ledgers, journals, and work sheets in manual and computerized accounting systems.

2. Use the information in the table below to answer the question that follows.

On April 5th, the End Zone, a sole proprietorship, received $3,430 from a customer in payment of Sales Slip 101 for $3,500 less a cash discount of $70, Receipt 502.

Which of the following would be the correct journal entry for End Zone's accountant to make?

  1. Debit Accounts Receivable 3,430;
    Debit Sales Discounts 70;
    Credit Sales 3,500
  2. Debit Cash 3,500;
    Credit Sales 3,500
  3. Debit Cash 3,430;
    Debit Sales Discounts 70;
    Credit Accounts Receivable 3,500
  4. Debit Cash 3,430;
    Credit Accounts Receivable 3,430
Answer
Correct Response: C.

Objective 003
Apply principles of law to business situations.

3. Which of the following actions on the part of corporate officers would be considered unethical but not illegal?

  1. agreeing with competitors to charge the same prices for certain products
  2. coercing a price reduction from a supplier by suggesting future increases in business
  3. selling stock in the corporation just prior to announcing an earnings decline
  4. inflating revenues by booking salespersons' demonstration products as goods sold
Answer
Correct Response: B.

Objective 004
Apply principles of mathematics to analyze and solve business problems.

4. Use the information in the table below to answer the question that follows.

Newman's Auto Repair Shop and Car Wash
Revenue and Expenses for the month of February
Revenue or Expense Cost
Car Repair Revenue $4,120
Car Wash Revenue $6,523
Advertising Expense $875
Maintenance Expense $1,245
Rent Expense $3,200
Utilities Expense $950

Which of the following percentages represents the return on sales for the month of February?

  1. 37%
  2. 41%
  3. 59%
  4. 63%
Answer
Correct Response: B.

Objective 005
Apply principles of business communication.

5. When sending a follow-up survey to consumers who have recently bought a product, it is most important to communicate which of the following to survey recipients?

  1. the process by which they were selected to receive the survey
  2. the importance of following the instructions carefully
  3. the number of consumers to whom the survey is being sent
  4. the purpose of the survey and how its results will be used
Answer
Correct Response: D.

MANAGEMENT

Objective 006
Understand types, structures, and functions of business management.

6. Which of the following best illustrates the organizing function of business management?

  1. Managers at a business organize their individual schedules around weekly and monthly meetings.
  2. A business organizes its financial reporting functions according to standard accounting practices.
  3. Owners organize a business along functional lines into several different departments.
  4. A business organizes its information technology access according to need and managerial level.
Answer
Correct Response: C.

Objective 007
Understand human resource management, labor relations, and the role of corporate, group, and interpersonal behavior in business management.

7. There is frequent confusion involving incoming merchandise at a department store. Sometimes boxes are unpacked by receiving clerks; sometimes they are left sealed for inventory clerks or even salespeople to unpack and arrange for display. Which of the following would be the most appropriate initial role for the human resources department to play in solving this problem?

  1. performing job function analyses and creating job descriptions
  2. forecasting the future labor needs for the receiving department
  3. hiring and training new workers for the receiving department
  4. meeting with workers individually to discuss their job responsibilities
Answer
Correct Response: A.

Objective 008
Understand principles of macroeconomics and their application to business.

8. The government of an industrialized nation passes a budget that calls for increased borrowing to finance large spending increases on infrastructure, public transportation, education, health care, and housing. Which of the following is most likely to be a short-term effect of this action on the nation's economy?

  1. Business failures and bankruptcies will increase.
  2. Inflation will remain stable or gradually decrease.
  3. Gross domestic product (GDP) will increase.
  4. Job growth will decrease or remain stable.
Answer
Correct Response: C.

Objective 009
Understand principles of microeconomics and their application to business.

9. Which of the following is one characteristic of a perfectly competitive market structure?

  1. Price is determined primarily by the decisions of a few large suppliers.
  2. The output of each supplier can be distinguished from that of rivals by factors other than price.
  3. New suppliers can enter the market freely with few restrictions.
  4. Suppliers base their decisions about production and price on the probable reactions of rival suppliers.
Answer
Correct Response: C.

Objective 010
Apply principles of personal finance.

10. Julia has an opportunity to take a new job that will pay her a higher salary. The new job will require her to move from a rural to an urban area of Michigan. Which of the following financial factors should be most important when making her decision?

  1. whether the differences in costs of living will offset her higher salary
  2. whether she can roll over her current 401(k) retirement plan
  3. whether her new salary will place her in a higher tax bracket
  4. whether a change of jobs would affect her credit rating
Answer
Correct Response: A.

MARKETING

Objective 011
Apply principles of marketing to business situations.

11. Which of the following best defines the marketing concept?

  1. allocating a fixed percentage of revenues for promoting products to consumers
  2. implementing procedures for helping potential customers meet their needs and wants
  3. creating processes for increasing the efficiency of producing and distributing goods
  4. designing strategies for hiring and training a knowledgeable and effective sales force
Answer
Correct Response: B.

Objective 012
Apply financial concepts to marketing decision making.

12. A company would most appropriately use primary sources such as focus groups or surveys to investigate:

  1. the market share of the company's line of products compared with the market shares of its closest competitors.
  2. the demographics of neighborhoods near proposed locations of a new retail outlet.
  3. the likely consumer reaction to the introduction of a new line of products.
  4. the effectiveness of promotional activities such as coupon inserts in increasing sales of products.
Answer
Correct Response: C.

Objective 013
Understand entrepreneurship and its role in the economy.

13. The Small Business Association's (SBA) guaranty loan program helps entrepreneurs who are starting a business by:

  1. assuming much of the risk for loans made by private lenders so that they will be more willing to loan money to entrepreneurs.
  2. providing a government-funded pool of money from which entrepreneurs can draw when starting a new business.
  3. enforcing truth-in-lending laws and antidiscriminatory practices when private lenders provide loans to entrepreneurs.
  4. capping the amount of interest that private lenders can charge entrepreneurs who are starting a new business.
Answer
Correct Response: A.

Objective 014
Understand international trade and the global economy.

14. A U.S. cosmetics manufacturer is planning a marketing campaign to introduce a new line of hair care products into several other countries. Which of the following would be the most appropriate and effective way to ensure that the campaign is consistent with cultural values and beliefs in these countries?

  1. Analyze the success of similar marketing themes among different ethnic groups in the U.S. market.
  2. Use focus groups made up of targeted segments of the native populations to test the marketing themes.
  3. Test market the product in several cities in each country, using a variety of alternative marketing themes.
  4. Ask bilingual members of the company's U.S. staff to review the marketing themes to identify areas of cultural bias.
Answer
Correct Response: B.

Objective 015
Understand and apply procedures and techniques for selecting and preparing for, obtaining, and maintaining a career in business.

15. For a student planning for a career in business, which of the following would be the best first step to take?

  1. completing an aptitude and personal interests assessment
  2. determining the educational requirements for various positions
  3. constructing a résumé documenting relevant courses and experience
  4. identifying career paths with the highest growth potential
Answer
Correct Response: A.

TECHNOLOGY

Objective 016
Understand the basic principles of technology and information systems.

16. One of the servers at a small company has crashed three times in one day. When attempting to fix this problem, which of the following should the Information Technology (IT) staff do first?

  1. Compare the costs of repair and replacement.
  2. Evaluate the merits of alternative solutions.
  3. Identify criteria for determining when the problem is solved.
  4. Brainstorm potential sources of the problem.
Answer
Correct Response: D.

Objective 017
Apply the principles of technology and information systems in a business environment.

17. In which of the following situations would the ability to incorporate real-time data into a technology product be most useful?

  1. An accounting firm is preparing taxes for several corporations at the end of a business quarter.
  2. A brokerage firm wants to allow clients to view the current status of their investments.
  3. An e-commerce firm is preparing an order to ship materials from its warehouse to its customers.
  4. A marketing firm is performing a statistical analysis of the results of a customer satisfaction survey.
Answer
Correct Response: B.

Objective 018
Apply appropriate technology tools to enhance organizational performance.

18. A large retail chain uses software that monitors data in real time, compares the data to a standard, and instructs the system to make compensatory adjustments if the data are outside tolerances. This software would be most appropriate for which of the following applications?

  1. comparing the average shelf life of different brands of the same product
  2. balancing the cash received with the sales recorded
  3. ordering new products when inventory reaches a certain level
  4. collecting information on the buying patterns of individual customers
Answer
Correct Response: C.

Objective 019
Understand how technology impacts key organizational systems.

19. A company's design team is evaluating a prototype of a product that the company wants to release as soon as possible. The production team is planning the retooling process while the marketing team creates a marketing mix. Which of the following types of software would be most useful for coordinating the work of the three departments?

  1. computer-aided manufacturing
  2. project management
  3. concept mapping
  4. data analysis
Answer
Correct Response: B.

Objective 020
Understand professional ethics and legal responsibility as they relate to the information technology field.

20. Which of the following uses of a software program would constitute a violation of the End User License Agreement (EULA)?

  1. A teacher makes copies for his students of a single-license program purchased by the school.
  2. A student lends her laptop to another student so he can use programs installed on the computer.
  3. A computer programmer enhances a software program to make it more functional for her needs.
  4. A student downloads demo software from a company's Web site and shares it with friends.
Answer
Correct Response: A.