[PDF] Entrepreneurship and Small Business Management Exam

212143

Entrepreneurship and Small

Business Management Exam

ENT - Entrepreneurship Series Event

ETDM - Entrepreneurship Team Decision Making Event INSTRUCTIONS: This is a timed, comprehensive exam for the occupational area identified above. Do not open this booklet until instructed to do so by the testing monitor. You will have _____ minutes to complete all questions. CAUTION: Posting these materials on a website is a copyright violation. This comprehensive exam was developed by MBA Research exclusively for DECA's 20 20 -2021 Competitive Events Program. Items have been randomly selected from the MBA

Research

Test-Item Bank and represent a variety of instructional areas. Performance indicators for this exam are at the career-sustaining, specialist, supervisor, manager, and owner levels. A descriptive test key, including question sources and answer rationale, h as been provided to the DECA chartered association advisor. Copyright © 2021 by Marketing & Business Administration Research and

Curriculum Center®

, Columbus, Ohio (dba MBA Research). Each individual test item contained herein is the exclusive property of MBA Research. Items are licensed to DECA only for use as configured within this exam, in its entirety. Use of individual items for any purpose other than as specifically authorized is prohibited. Possession of this exam, without written authorization, under any other circumstances is a copyright violation. Posting to inter- or intranet sites is specifically forbidden unless written permission is obtained prior to posting. Report violations to DECA at 703.860.5000 and MBA Research at 800.448.0398. Permission for reprinting is granted to DECA chartered associations authorized by DECA Inc. DECA Inc. will impose sanctions on chapters and chartered associations for violations of this

policy up to and including disqualification of competitors and chapters from further participation. Competency-Based

Competitive Events

*Written Exam* for State/Province Use

Test Number 1237

Booklet Number _____

Test 1237 ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT EXAM 1

Copyright © 20

21
by MBA Research and Curriculum Center , Columbus, Ohio

1. When filing a tort against a business, the plaintiff must establish that the defendant

A. breached the duty of care. C. conspired with a competitor. B. damaged property intentionally. D. violated the doctrine of sovereign immunity.

2. Before a business and a customer can enter into a valid contract, the offer to do something in return for

payment must be

A. implied. C. accepted.

B. in writing. D. expressed.

3. Which of the following is an example of a business making a reasonable accommodation for an employee in accordance with the Americans with Disabilities Act:

A. Changing required skills C. Eliminating necessary training B. Modifying work schedules D. Reducing educational requirements

4. One of the characteristics of a corporation is that it issues shares of stock. The advantage that results is that it

A. has limited financial power. C. is easy to transfer ownership.

B. has more complex requirements. D.

is easy to form and operate.

5. Channels of distribution benefit consumers by

A. increasing profits for businesses.

B. lowering the prices of all consumer products.

C. raising the quality of all consumer products.

D. making a variety of products available to them.

6. The Parnell Company buys a variety of similar goods and sells them to specialty shops for resale. What

type of intermediary is the Parnell Company?

A. Agent C. Industrial user

B. Wholesaler D. Ultimate consumer

7. Before a business can effectively evaluate members in its distribution channel, it must first

A. identify potential vendors. C. assess its logistics needs. B. conduct a location feasibility study. D. develop a strategic alliance.

8. A business's brand promise is what the business intends to

A. use as a trademark. C. name its product.

B. sell to the target market. D. provide the customer.

9. Which of the following is a way in which business profits benefit society:

A. Profits provide an incentive to entrepreneurs.

B. Profits indicate trends in consumer preferences. C. Profits encourage business owners to conserve resources. D. Profits enable businesses to compete with other businesses.

10. One way for businesses to transfer some kinds of business risk is through the purchase of

A. insurance policies. C. insurance premiums.

B. mutual funds. D. stock dividends.

11. What is the economic condition in which there is only one supplier of a certain good or service and no

competing products exist?

A. Price discrimination C. False advertising

B. Inflation D. Monopoly

12. Leaning toward people to show your interest is an effective way to use

A. listening skills. C. body language. B. persuasive words. D. facial expression. Test 1237 ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT EXAM 2

13. The manager of a large home-improvement store has decided to use a work team to help the company

improve customer service. Members of the team have been asked to develop goals and objectives for the project. Having team members ag ree on the purpose of their project is a way to build __________ the team and its work.

A. creativity in C. conflict between

B. communication with D. commitment to

14. How does a mission statement differ from a vision?

A. There is no difference - the two are the same.

B. A mission statement refers to the future.

C. A mission statement never changes.

D. A mission statement refers to the present.

15. Because Emma wants to excel in her job, she talks with her manager to get suggestions for ways in

which she can improve her efficiency and work quality. Emma is exhibiting an achievement orientation by

A. taking risks. C. being patient.

B. soliciting feedback. D. setting goals.

16. Which of the following is an example of informal recognition:

A. A wage bonus given to exemplary employees

B. An awards ceremony for scholarship winners

C. A trophy given to the championship swim team

D. A pat on the back from a supervisor at work

17. Anthony has worked as an IT professional at his company for three years. This year, he hopes to be

moved to the social media department so that he can learn new skills and expand his professional

network. After doing some research, he finds an employee within the department that he thinks he could

learn a lot from. In return, he figures, he can help the employee clean up her computer and teach her the

new company software. He decides to contact the employee to set up a lunch meeting. In other words,

Anthony is trying to initiate a

A. private partnership. C. relational analysis.

B. mentorship program. D. strategic relationship.

18. Which of the following is a global trend that might encourage an entrepreneur to consider international

business opportunities: A. Flexible currency rates C. Enforceable trade agreements

B. Higher allowances D. Lower tariffs

19. Owners/Managers should not conduct a feasibility study if they are

A. certain the idea is feasible. C. considering a business expansion. B. not ready to start the venture. D. unsure about the idea.

20. Which of the following is a tool that an entrepreneur develops to project sales for a new business venture:

A. Inventory report C. Promotional budget

B. Marketing objectives D. Sales forecast

21. Costs of sales for a new manufacturing venture typically include

A. raw materials, equipment, and product inventory. B. trade show attendance, raw materials, and equipment. C. trade show attendance, product inventory, and Internet access. D. internet access, attorney fees, and sales lead lists.

22. Why is it important for entrepreneurs to talk with industry experts when developing new business

concepts? A. The industry experts typically provide useful information. B. The industry experts usually improve your management skills. C. The industry experts commonly enhance your confidence. D. The industry experts frequently offer financial support. Test 1237 ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT EXAM 3

23. To determine their human resource needs, new business owners often find it helpful to

A. allocate funds for additional payroll taxes.

B. ask a technical recruiter for advice.

C. hire consultants or freelancers.

D. list all the tasks involved in operating the business.

24. What important factors should a small-business owner consider when deciding if s/he should hire an

additional employee? A. Property taxes and benefits C. Screening process and skill set B. Necessary skills and affordability D. Training needs and attitude

25. Because Connor does not know how to prepare his startup company's tax return, he decides to

outsource the activity by contracting a(n)

Entrepreneurship and Small

Business Management Exam

ENT - Entrepreneurship Series Event

ETDM - Entrepreneurship Team Decision Making Event INSTRUCTIONS: This is a timed, comprehensive exam for the occupational area identified above. Do not open this booklet until instructed to do so by the testing monitor. You will have _____ minutes to complete all questions. CAUTION: Posting these materials on a website is a copyright violation. This comprehensive exam was developed by MBA Research exclusively for DECA's 20 20 -2021 Competitive Events Program. Items have been randomly selected from the MBA

Research

Test-Item Bank and represent a variety of instructional areas. Performance indicators for this exam are at the career-sustaining, specialist, supervisor, manager, and owner levels. A descriptive test key, including question sources and answer rationale, h as been provided to the DECA chartered association advisor. Copyright © 2021 by Marketing & Business Administration Research and

Curriculum Center®

, Columbus, Ohio (dba MBA Research). Each individual test item contained herein is the exclusive property of MBA Research. Items are licensed to DECA only for use as configured within this exam, in its entirety. Use of individual items for any purpose other than as specifically authorized is prohibited. Possession of this exam, without written authorization, under any other circumstances is a copyright violation. Posting to inter- or intranet sites is specifically forbidden unless written permission is obtained prior to posting. Report violations to DECA at 703.860.5000 and MBA Research at 800.448.0398. Permission for reprinting is granted to DECA chartered associations authorized by DECA Inc. DECA Inc. will impose sanctions on chapters and chartered associations for violations of this

policy up to and including disqualification of competitors and chapters from further participation. Competency-Based

Competitive Events

*Written Exam* for State/Province Use

Test Number 1237

Booklet Number _____

Test 1237 ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT EXAM 1

Copyright © 20

21
by MBA Research and Curriculum Center , Columbus, Ohio

1. When filing a tort against a business, the plaintiff must establish that the defendant

A. breached the duty of care. C. conspired with a competitor. B. damaged property intentionally. D. violated the doctrine of sovereign immunity.

2. Before a business and a customer can enter into a valid contract, the offer to do something in return for

payment must be

A. implied. C. accepted.

B. in writing. D. expressed.

3. Which of the following is an example of a business making a reasonable accommodation for an employee in accordance with the Americans with Disabilities Act:

A. Changing required skills C. Eliminating necessary training B. Modifying work schedules D. Reducing educational requirements

4. One of the characteristics of a corporation is that it issues shares of stock. The advantage that results is that it

A. has limited financial power. C. is easy to transfer ownership.

B. has more complex requirements. D.

is easy to form and operate.

5. Channels of distribution benefit consumers by

A. increasing profits for businesses.

B. lowering the prices of all consumer products.

C. raising the quality of all consumer products.

D. making a variety of products available to them.

6. The Parnell Company buys a variety of similar goods and sells them to specialty shops for resale. What

type of intermediary is the Parnell Company?

A. Agent C. Industrial user

B. Wholesaler D. Ultimate consumer

7. Before a business can effectively evaluate members in its distribution channel, it must first

A. identify potential vendors. C. assess its logistics needs. B. conduct a location feasibility study. D. develop a strategic alliance.

8. A business's brand promise is what the business intends to

A. use as a trademark. C. name its product.

B. sell to the target market. D. provide the customer.

9. Which of the following is a way in which business profits benefit society:

A. Profits provide an incentive to entrepreneurs.

B. Profits indicate trends in consumer preferences. C. Profits encourage business owners to conserve resources. D. Profits enable businesses to compete with other businesses.

10. One way for businesses to transfer some kinds of business risk is through the purchase of

A. insurance policies. C. insurance premiums.

B. mutual funds. D. stock dividends.

11. What is the economic condition in which there is only one supplier of a certain good or service and no

competing products exist?

A. Price discrimination C. False advertising

B. Inflation D. Monopoly

12. Leaning toward people to show your interest is an effective way to use

A. listening skills. C. body language. B. persuasive words. D. facial expression. Test 1237 ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT EXAM 2

13. The manager of a large home-improvement store has decided to use a work team to help the company

improve customer service. Members of the team have been asked to develop goals and objectives for the project. Having team members ag ree on the purpose of their project is a way to build __________ the team and its work.

A. creativity in C. conflict between

B. communication with D. commitment to

14. How does a mission statement differ from a vision?

A. There is no difference - the two are the same.

B. A mission statement refers to the future.

C. A mission statement never changes.

D. A mission statement refers to the present.

15. Because Emma wants to excel in her job, she talks with her manager to get suggestions for ways in

which she can improve her efficiency and work quality. Emma is exhibiting an achievement orientation by

A. taking risks. C. being patient.

B. soliciting feedback. D. setting goals.

16. Which of the following is an example of informal recognition:

A. A wage bonus given to exemplary employees

B. An awards ceremony for scholarship winners

C. A trophy given to the championship swim team

D. A pat on the back from a supervisor at work

17. Anthony has worked as an IT professional at his company for three years. This year, he hopes to be

moved to the social media department so that he can learn new skills and expand his professional

network. After doing some research, he finds an employee within the department that he thinks he could

learn a lot from. In return, he figures, he can help the employee clean up her computer and teach her the

new company software. He decides to contact the employee to set up a lunch meeting. In other words,

Anthony is trying to initiate a

A. private partnership. C. relational analysis.

B. mentorship program. D. strategic relationship.

18. Which of the following is a global trend that might encourage an entrepreneur to consider international

business opportunities: A. Flexible currency rates C. Enforceable trade agreements

B. Higher allowances D. Lower tariffs

19. Owners/Managers should not conduct a feasibility study if they are

A. certain the idea is feasible. C. considering a business expansion. B. not ready to start the venture. D. unsure about the idea.

20. Which of the following is a tool that an entrepreneur develops to project sales for a new business venture:

A. Inventory report C. Promotional budget

B. Marketing objectives D. Sales forecast

21. Costs of sales for a new manufacturing venture typically include

A. raw materials, equipment, and product inventory. B. trade show attendance, raw materials, and equipment. C. trade show attendance, product inventory, and Internet access. D. internet access, attorney fees, and sales lead lists.

22. Why is it important for entrepreneurs to talk with industry experts when developing new business

concepts? A. The industry experts typically provide useful information. B. The industry experts usually improve your management skills. C. The industry experts commonly enhance your confidence. D. The industry experts frequently offer financial support. Test 1237 ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT EXAM 3

23. To determine their human resource needs, new business owners often find it helpful to

A. allocate funds for additional payroll taxes.

B. ask a technical recruiter for advice.

C. hire consultants or freelancers.

D. list all the tasks involved in operating the business.

24. What important factors should a small-business owner consider when deciding if s/he should hire an

additional employee? A. Property taxes and benefits C. Screening process and skill set B. Necessary skills and affordability D. Training needs and attitude

25. Because Connor does not know how to prepare his startup company's tax return, he decides to

outsource the activity by contracting a(n)