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Competency-Based
Competitive Events
*Written Exam*
for State/Province Use
Test Number 1239
Booklet Number _____

Business Administration
Core Exam
PBM - Principles of Business Management and Administration Event
PFN - Principles of Finance Event
PHT - Principles of Hospitality and Tourism Event
PMK - Principles of Marketing Event

INSTRUCTIONS: This is a timed, comprehensive exam for the occupational area
identified above
...
You will have _____ minutes to complete all questions
...

This comprehensive exam was developed by MBA Research exclusively for DECA’s 2020-2021
Competitive Events Program
...
Performance indicators for this
exam are at the prerequisite and career-sustaining levels
...


Copyright © 2021 by Marketing & Business Administration Research and
Curriculum Center®, Columbus, Ohio (dba MBA Research)
...
Items are licensed to DECA only for use as
configured within this exam, in its entirety
...
Possession of this exam, without written authorization,
under any other circumstances is a copyright violation
...
Report violations to
DECA at 703
...
5000 and MBA Research at 800
...
0398
...

DECA Inc
...


Test 1239

BUSINESS ADMINISTRATION CORE EXAM

1

1
...
Your state passes a ban against texting while driving
...
The USDA sets standards for organic food
...
A judge rules that a prosecutor violated a defendant's rights
...
Congress passes educational reform
...
Brandon has been given a 385-page report and does not have time to review the entire document, but he
does need to understand specific information that is included in the report
...
Bibliography
C
...
Table of contents
D
...
Which of the following business resources provides information about a company's dress codes and
vacation policies, and general rules for appropriate behavior:
A
...
Customer newsletter
B
...
Personnel record
4
...
Keep a straight face to communicate that you are serious
...
Refrain from asking questions
...
Smile
...
Quietly discuss the speech with the person sitting next to you
...
When giving a verbal presentation, a speaker who distinctly voices the sounds of words is using proper
A
...

C
...

B
...

D
...

6
...
To quickly establish control
C
...
To analyze feedback
D
...
During a brainstorming session, should participants be allowed to add new ideas to the list that are based
on another group member's idea?
A
...

B
...

C
...

D
...

8
...
He wants to know how much money he actually gets to deposit into his
bank account after taxes and other expenses have been taken out
...
net income
...
taxable income
...
gross income
...
dividends
...
At work, Bob is assigned to be on a team of five people that will create a new product
...
Find out what other people in the group know about the product
B
...
Keep the group on track by stopping others from offering unusual ideas
D
...
Brooke is attending a meeting to discuss an upcoming project that she will be working on
...
answer questions
...
express opinions
...
listen carefully
...
develop a briefing
...
Which of the following is an example of a text-oriented graphic that is often used to illustrate a business
process or organizational structure:
A
...
Map
B
...
Pie chart
12
...
proofread the message for spelling and grammatical errors
...
code the message's importance as “high priority
...
make sure that the message is typed in capital letters
...
insert a vague statement in the message subject line
...
Which of the following information should be included in the inside address section of a business letter:
A
...
Date
B
...
Message
14
...
develop communication procedures
...
set reasonable business objectives
...
follow health and safety regulations
...
manage their sales and profits effectively
...
One of the most effective ways for employees to communicate with management is to
A
...

B
...

C
...

D
...

16
...
share information
...
conduct research
...
achieve a task
...
develop a message
...
What is one technique that businesses can use to build positive customer/client relations?
A
...
Buying advertising
B
...
Conducting research
18
...
Greater profits
C
...
Increased assets
D
...
A customer asks a salesperson about a specific advertisement in last Sunday's newspaper
...
Knowledge of the products being promoted
B
...
Knowledge of the store's policies
D
...
What should salespeople do when they must cope with customers who are being disagreeable?
A
...
Listen patiently and try to stay calm
C
...
Ask them to come back when they are ready to buy
21
...
He wants his customers to be able to depend on him to
consistently deliver high-quality, healthy food that will simplify their busy lives
...
company promise
...
brand promise
...
touchpoint
...
brand point
...
Producers are responsible for choosing and using the __________ resources
...
best combination of
C
...
least costly
D
...
Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another
friend
...
If he decides to go to the movies, the opportunity cost
of his choice is
A
...

C
...

B
...

D
...

24
...
Which of the following types of utility
has Atwicks demonstrated:
A
...
Form
B
...
Time
25
...
Marketing
C
...
Financial analysis
D
...
What is one of the problems often associated with a communist command economy?
A
...
Lack of growth
B
...
High tax burden
27
...

A
...
reducing
B
...
preventing
28
...
Reduced use of technology
C
...
Improved standard of living
D
...
Which of the following indicates a high level of self-esteem:
A
...
Believing that you should always put others ahead of yourself
C
...
Imagining how you would feel if you had already graduated
30
...
follow the instruction manual
...
purchase the newest equipment
...
purchase the most efficient equipment
...
know standard first aid
...
What is one factor that contributes to people's interest in and enthusiasm for different things?
A
...
Personality
B
...
Integrity
32
...
live up to their promises
...
exchange rumors and gossip
...
focus on creating harmony
...
are more willing to share
...
When Trina's sales team won the company-wide competition, she was sure to share the credit with all of
her team members
...
generous
...
consistent
...
open-minded
...
impartial
...
A limited decision is one that requires
A
...

B
...


C
...

D
...


35
...
Is money at stake?
C
...
Could someone be unhappy?
D
...
In an ambiguous situation, what is the first thing you should do to learn more?
A
...

C
...

B
...

D
...

37
...
"My coworkers are so annoying
...
“I wish I were smarter
...
“If I fail, I'll be embarrassed
...
“I can do it!”
38
...
What tool is Marie using?
A
...
Patience
B
...
Body language
39
...
complain to your supervisor
...
start looking for another job
...
use it to improve your job performance
...
simply ignore it
...
Which of the following is not a main cause of cultural insensitivity:
A
...
Fear
B
...
Ignorance
41
...

A
...
intangible
B
...
specific
42
...
keeps your emotions under control
...
improves your decision-making skills
...
helps ease any tension that arises
...
gives you more self-confidence
...
A person with vision for the future wants to
A
...

B
...


C
...

D
...


44
...
New opportunities
C
...
Ability to bend the rules
D
...
Adaptability is often described as
A
...

B
...


C
...

D
...


46
...
Allowing followers to take moderate risks
B
...
Withholding feedback
D
...
An arrangement that allows customers to purchase and use goods or services and pay for them at a
future time is referred to as a __________ sale
...
budget
C
...
credit
D
...
Which of the following is an example of illegal conduct on the job:
A
...
Sleeping
B
...
Arriving late
49
...
Stop paying attention to the viewpoint
...
Avoid jumping to conclusions about the viewpoint
...
Listen to or read about the viewpoint impatiently
...
Refuse to learn more about the viewpoint
...
Tayari communicates openly, even when it’s difficult
...
transparency
...
viability
...
fairness
...
accountability
...
Which of the following is a disadvantage of a checking account:
A
...
Account balance requirement
B
...
Online transaction options
52
...
He can keep this money for a few weeks, and when he is ready to
spend it, it will still be worth the same amount
...
unlimited
...
a medium of exchange
...
a unit of account
...
a store of value
...
Which of the following elements are needed to determine the future value of money that is placed in a
savings account for one year:
A
...
Late fees and insurance rates
B
...
Principal amount and interest rate
54
...
have management experience
...
have a desire to get promoted
...
be able to encourage teamwork
...
demand others to accept change
...
An individual who decides to save a certain amount every month in order to have enough money on hand
to buy a car in two years is
A
...

C
...

B
...

D
...

56
...
Today, gasoline
prices are much higher
...
interest
...
compounding growth
...
inflation
...
investment
...
Luke is a college student
...
This made him "feel rich," and he immediately went online and spent $5,000 on a laptop
...
No, because net worth includes assets that are not liquid
...
No, because a positive net worth indicates he has more liabilities than assets
...
Yes, because he has $5,000 available to use immediately
...
Yes, because even if his assets include real estate, he can quickly sell it to pay for the computer
...
Which of the following is a technique you can use to demonstrate a positive attitude over the telephone:
A
...

C
...

B
...

D
...

59
...
Add them to your beginning balance
...
Ignore them until next month
...
Subtract them from your statement balance
...
Add them to your ending balance
...
Morgan received an email that claimed to be from her credit card company
...
After Morgan did so, she found out that the email wasn't actually from her credit card
company
...
Morgan was a victim of
A
...

C
...

B
...

D
...

61
...
How could her bank help her with this goal?
A
...
Offer mobile check deposit
B
...
Provide brokerage services
62
...
Bonds, certificates of deposit, and collectibles
B
...
Savings accounts, collectibles, and stocks
D
...
How does contributing to a 401(k) retirement plan reduce the taxes withheld from a person's paycheck?
A
...

B
...

C
...

D
...

64
...
recommendations
...
investment analysis
...
footnotes
...
language
...
A business has an inventory valued at $750,000
...
liabilities
...
capital gains
...
current assets
...
income
...
Aisha wants to buy new ovens for her bakery
...
Aisha plans to finance her new equipment using
A
...

C
...

B
...

D
...

67
...
Barry accepted a position with another company and will begin his new job next week
...
What human resources activity was Lily performing?
A
...
Application screening
B
...
Exit interview

Test 1239

BUSINESS ADMINISTRATION CORE EXAM

68
...
can of soda
...
television
...
pillow
...
bus tour
...
Which of the following statements is an example of an opinion:
A
...

B
...

C
...
14159
...
James Polk was the 11th President of the United States
...
Information that has been printed for publication is often more reliable than many internet sources
because
A
...

B
...

C
...

D
...

71
...
S
...
The Taft-Hartley Act
C
...
The Sherman Anti-Trust Act
D
...
A good way to prevent accidents in the workplace is to
A
...

C
...

B
...
D
...
vgf
73
...
transfer protocol
...
operating system
...
digital connection
...
electronic resource
...
A website that ends in
...
com
...
more recent
C
...
less trustworthy
D
...
Which of the following do many businesses include on their websites in order to obtain feedback from
customers:
A
...
Electronic file attachment
B
...
Computer programming code
76
...
She has selected a ready-to-use letter template
...

A
...
clipboard
B
...
font
77
...
jump
...
transition
...
feed
...
lead
...
The primary purpose of collaborative software applications in the business environment is to
A
...

C
...

B
...

D
...

79
...
Mason develops a production schedule, he is carrying out __________ activities
...
sales
C
...
maintenance
D
...
When Cheri arrived at her new job at a deli, her manager immediately instructed her to operate the meat
slicer
...
Who is ultimately
responsible for Cheri's injury?
A
...
Cheri's manager
B
...
The government
81
...
An application
C
...
An inquiry
D
...
When Omar's boss compliments him on his recent email marketing campaign, he smiles, says thank you,
and tells his boss that he worked really hard and is glad his effort paid off
...
initiative
...
transparency
...
arrogance
...
self-confidence
...
Which of the following is the most appropriate response for an employee to make when s/he discovers a
safety hazard:
A
...
Determine the cause of the hazard
B
...
Report or correct the hazard
84
...
Management policies
C
...
Operating procedures
D
...
Not allowing employees to bring personal belongings into the work area helps to prevent
A
...

C
...

B
...

D
...

86
...
This is an example of how
A
...

B
...

C
...

D
...

87
...
Employee productivity decreases
...
Employee productivity increases
...
Restocking fees increase
...
Restocking fees decrease
...
Production processes that rely heavily on expensive equipment and materials are __________
processes
...
standardized
C
...
labor-intensive
D
...
Which of the following activities is part of a supply chain:
A
...
Communicating with customers
B
...
Setting prices
90
...
their image affects the company's image
...
it makes them attractive to others
...
workers with a good appearance usually get promotions
...
unattractive workers are unlikely to be hired
...
Which of the following is an effective strategy for setting and reaching financial goals:
A
...
Setting goals with an open time frame
C
...
Setting vague goals to change as needed
92
...
Which type of innovation is this?
A
...
Product
B
...
Paradigm
93
...
As she compares and contrasts
information about each job opportunity, Mel is showing that she is aware of which decision-making
influence?
A
...
Input
B
...
Logic
94
...
Trade associations
C
...
National corporations
D
...
Jared was just hired for a new job
...
operations management
...
banking services
...
marketing management
...
human resources management
...
Which of the following would help a job applicant fill out job application forms easily:
A
...
Keeping a file of job leads
B
...
Knowing someone at the business
97
...
When George writes his follow-up email, should he include this information?
A
...

B
...

C
...

D
...

98
...
Work experience, education, and personal interests
B
...
Contact information, political affiliation, and education
D
...
What should employees in today's changing world do to prevent their skills from becoming obsolete?
A
...
Delegate responsibility
B
...
Change jobs frequently
100
...
Rules of conduct
C
...
Organizational chart
D
...

This comprehensive exam was developed by MBA Research exclusively for DECA’s 2020-2021
Competitive Events Program
...
Performance indicators for this
exam are at the prerequisite and career-sustaining levels
...


Copyright © 2021 by Marketing & Business Administration Research and
Curriculum Center®, Columbus, Ohio (dba MBA Research)
...
Items are licensed to DECA only for use as
configured within this exam, in its entirety
...
Possession of this exam, without written authorization,
under any other circumstances is a copyright violation
...
Report violations to
DECA at 703
...
5000 and MBA Research at 800
...
0398
...

DECA Inc
...


Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

10

1
...
Regulations are standards and rules that dictate how laws
will be enforced
...
A state ban
against texting while driving is a law, not a regulation
...

Educational reform passed by Congress is law, not regulation
...
B
Table of contents
...
The table of contents is the portion of the text in which the
sections are listed with their page numbers for easy access
...
The
bibliography contains the citations, or sources used to construct the primary document
...
Some
research reports contain an analysis of the document's contents or research
...

SOURCE: CO:055 Extract relevant information from written materials
SOURCE: Benjamin, A
...
What is the purpose of a table of contents? Retrieved October 14,
2020, from https://penandthepad
...
html
3
...
Businesses often develop employee handbooks that provide information about
their general policies and procedures
...
Employee handbooks are usually given to new employees when they first start
their jobs
...

SOURCE: CO:057 Analyze company resources to ascertain policies and procedures
SOURCE: Clarke, V
...
How to write an employee handbook [Examples + tips]
...
com/blog/employee-handbook-examples/
4
...
A smile shows the speaker that you support and encourage him/her
...
It shows interest in the topic
...
It may mean a person is upset, is daydreaming, or is seriously listening
...

SOURCE: CO:082 Explain communication techniques that support and encourage a speaker
SOURCE: Robinson, L
...
, & Smith, M
...
Effective communication
...
helpguide
...
htm
5
...
Proper enunciation involves clearly and distinctly voicing the sounds of words
...
Jargon is specialized language known only to a certain group of people
...
Tone communicates emotions and attitudes
through the voice
...
(2019, October 15)
...
Retrieved
October 14, 2020, from https://www
...
com/speak-for-success-lesson-1enunciation-2948543

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

11

6
...
Certain communication styles are more appropriate for some
audiences than for others
...
For example, the communication style that is effective when
speaking to coworkers on the same level is probably not the same style that will be effective when
speaking to a group of managers or customers
...

Organizing presentations involves gathering information and developing visuals
...

SOURCE: CO:084 Employ communication styles appropriate to target audience
SOURCE: University of Pittsburgh
...
Approaching the speaking situation: Audience, occasion,
purpose
...
comm
...
edu/approachingspeaking-situation-audience-occasion-purpose
7
...
This process is called stepping-stones or
triggers, and it is encouraged in brainstorming because one person's ideas can easily trigger new and
different ideas
...
Adding a stepping-stone idea to a brainstorming list is not a
form of evaluating the original ideas
...

SOURCE: CO:061 Defend ideas objectively
SOURCE: Day, J
...
Brainstorming tools on steroids: Using triggers to stimulate
ideas
...
com/brainstorming-tools-onsteroids-using-triggers-to-stimulate-ideas/
8
...
Net income is the money remaining after expenses are subtracted from gross income
...
Gross income, on the other hand, is the total amount of money earned before taxes
...
A dividend is a
sum of money paid to an investor or stockholder as earnings on an investment
...

SOURCE: FI:068 Interpret a pay stub
SOURCE: Fiorillo, S
...
What's the difference between gross vs
...
thestreet
...
A
Find out what other people in the group know about the product
...
Some ground rules are needed to let everyone know how the group operates
...
Unusual ideas should not be avoided
...
Walking around the room during discussions could be distracting to
Bob's group members
...
(2020, April 28)
...
Retrieved October 14, 2020,
from https://www
...
com/speaking/discussions/participate/
10
...
Brooke must listen to the speaker so she can identify the key points that she wants to
write down
...
Effective note-taking does not involve answering questions or expressing opinions
...

SOURCE: CO:085 Utilize note-taking strategies
SOURCE: Emerald Publishing
...
Effective note taking
...
emeraldgrouppublishing
...
ht
m

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

12

11
...
Some graphics that are used in business reports are textual (text-oriented) because their
content is presented in the form of words and numbers
...
A common flowchart is an organizational chart that
depicts the hierarchy of positions and departments within an organization
...
Although they may contain some
words and numbers, they also contain visuals such as bars, columns, and drawings
...
(2020)
...
org/quality-resources/flowchart
12
...
Although many people view email as an
informal method of communication, it is a vital communication tool in today's business world
...
The text in a
professional email should contain proper grammar and correct spelling
...
Only the most critical
email messages should be sent as high priority messages
...
Although the subject line should be brief, it
should contain enough information for the message recipient to determine the message content
...

SOURCE: CO:090 Write professional emails
SOURCE: Colorado State University
...
Netiquette rules
...
colostate
...
cfm?pageid=1498&guideid=74
13
...
The inside address section of a business letter should include the addressee's title, which might be
both a courtesy title and a job title, if known
...
or Ms
...
A correct inside address with title
is as follows: Mr
...
The subject, date, and message are not part of the inside address
section of a business letter
...
(2020)
...
Retrieved October 14,
2020, from
https://owl
...
edu/owl/subject_specific_writing/professional_technical_writing/basic_busi
ness_letters/index
...
B
Follow health and safety regulations
...
When a business does not follow the regulations,
employees should report the noncompliance to the government
...
Communication procedures and business objectives are internal factors that affect
the business rather than issues that government agencies oversee
...

SOURCE: OP:005 Report noncompliance with business health and safety regulations
SOURCE: OSHA Education Center
...
How to report labor violations
...
oshaeducationcenter
...
A
Drop notes in a suggestion box
...
Management may not have time to listen or may not want to be bothered during lunch or
during their own time away from work
...

SOURCE: CO:014 Explain the nature of staff communication
SOURCE: Indeed
...
Ideas on a suggestion box in the office: Do's and don'ts
...
indeed
...
A
Share information
...
The purpose of
participating in staff meetings is usually to share information
...
The goal is for everyone in the business to have the information they need to
function effectively
...

SOURCE: CO:063 Participate in a staff meeting
SOURCE: Castro, A
...
7 reasons regular staff meetings are a must
...
com/blog/7-reasons-regular-staff-meetings-are-a-must/
17
...
Being consistent involves offering the same reliable goods and services on a regular
basis
...

Being consistent is a good technique for building positive customer relations because customers know
that they can count on getting what they need from the business
...
Businesses should be open to change in order to meet the
changing needs of their customers
...

SOURCE: CR:003 Explain the nature of positive customer relations
SOURCE: LAP-CR-003—Accentuate the Positive (Nature of Customer Relations)
18
...
Businesses that provide good customer service usually retain their current customers
...
Publicity is any nonpersonal presentation of goods, services, or ideas that is not paid for by the
company which benefits from it
...
A season is a
certain time of year
...
(2016, May 16)
...
merchantproexpress
...
&text=Whether%20you%20own
%20a%20restaurant,major%20role%20in%20your%20success
19
...
Information regarding planned promotions of products
prepares salespeople to handle customer inquiries
...
Personal customer information also would not
help to answer the customer's question
...
(2018, May 23)
...
Retrieved October
14, 2020, from https://www
...
com/benefits-of-product-knowledge-2890302

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

14

20
...
In order to keep the channel of communication open, salespeople
must remain calm and courteous
...
Proving someone else is wrong seldom improves a situation and may make it
worse
...

SOURCE: CR:009 Handle difficult customers
SOURCE: LAP-CR-009—Making Mad Glad (Handling Difficult Customers)
21
...
A brand promise is a business's agreement (spoken or unspoken) with its customers that
it will consistently meet their expectations and deliver on its characteristics and values
...
Touchpoints are all the
opportunities that businesses have to connect with customers and reinforce their brand value
...

SOURCE: CR:001 Identify company's brand promise
SOURCE: Frederiksen, L
...
Elements of a successful brand 4: Brand promise
...
com/blog/story/elements-of-a-successfulbrand-4-brand-promise1
22
...
Producers try to choose the best combination of resources in order to achieve their
goals
...
Producers should
try to keep their costs down but should not always purchase the least expensive or most available
resources if quality will be sacrificed
...

SOURCE: EC:003 Explain the concept of economic resources
SOURCE: LAP-EC-014—Be Resourceful (Economic Resources)
23
...
The opportunity cost is the alternative that is given up when a choice is made
about the best use of resources
...
The movie is the alternative he chose to spend his $5 resource on
...

SOURCE: EC:001 Describe the concepts of economics and economic activities
SOURCE: LAP-EC-006—Are You Satisfied? (Economics and Economic Activities)
24
...
To be useful to customers, products must be available at the time when they are most desired
...
Form utility is usefulness created by altering or
changing the form or shape of a good to make it more useful to the consumer
...

SOURCE: EC:004 Determine economic utilities created by business activities
SOURCE: LAP-EC-013—Use It (Economic Utility)

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

15

25
...
Marketing is an organizational function and a set of processes for creating, communicating,
and delivering value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders
...
The more goods that are marketed and
sold, the greater the increase in production
...
Information management is the
process of maintaining, evaluating, and disseminating data
...

SOURCE: EC:071 Describe types of business activities
SOURCE: LAP-EC-071—Strictly Business (Business Activities)
26
...
One of the problems often associated with a communist command economy is that there
is no competition
...
The possibility of financial loss is one of the
problems of a market economy
...
Lack of
growth is the major problem for traditional economies
...
B
Transferring
...
If the contract is not fulfilled as expected, the surety bond is paid to the
business that stands to lose
...
Reducing risk is preventing or controlling it
...

SOURCE: EC:011 Determine factors affecting business risk
SOURCE: LAP-EC-003—Lose, Win, or Draw (Business Risk)
28
...
When productivity increases, the GDP per capita increases
...
A decrease in the standard of living results from a reduction in productivity
...
More use of technology would be needed to
keep up with increased productivity
...
A
Seeing an advertisement for a job and feeling that you could handle it
...
Your level of self-esteem can fluctuate from high to low
...
Imagining how you would
feel if you had already graduated is an example of visualization that can be used to support self-esteem
...

SOURCE: EI:016 Explain the concept of self-esteem
SOURCE: Wignall, N
...
7 ways to build high self-esteem
...
com/high-self-esteem/
30
...
Each piece of machinery comes with an instruction manual that outlines its
proper use
...
Without proper usage
(as written in the instruction manual), a worker can be injured on any type of equipment, including
machines that are very new and very efficient
...

SOURCE: OP:006 Follow instructions for use of equipment, tools, and machinery
SOURCE: Augustine, P
...
Why you should always read your operating manuals
...
bartfireside
...
C
Personality
...
Because people's personalities
differ greatly, the things they are interested in and enthusiastic about will also differ greatly
...
Credibility is believability
...
Integrity is adhering
to an established set of personal ethics
...
(2020)
...
Retrieved October 14, 2020, from
https://www
...
com/us/basics/personality
32
...
Coworkers know they can count on honest workers to do what they say they
will do, to give them straight answers, and to try to do the right thing
...
Honest workers refrain from exchanging rumors
and gossip
...

SOURCE: EI:022 Demonstrate honesty and integrity
SOURCE: Long, N
...
How to create an atmosphere of honesty in the workplace
...
chron
...
html
33
...
Those who are fair to others share with everyone
...
In this case, Trina is being generous
by sharing the credit for a job well done with everyone rather than keeping all the praise for herself
...

SOURCE: EI:127 Demonstrate fairness
SOURCE: LAP-EI-127—Fair or Foul? (Demonstrating Fairness)
34
...
Limited decisions require some thought because they carry some risk
...
Routine decisions require little thought
...

SOURCE: EI:091 Assess risks of personal decisions
SOURCE: LAP-EI-091—Worth the Risk (Assessing Risks of Personal Decisions)
35
...
Ethical dilemmas are not determined by whether the choices are easy or
hard or whether there is money at stake
...
D
Ask questions
...
You might be able to reduce doubt by asking the right questions and gaining
information
...

SOURCE: EI:092 Develop tolerance for ambiguity
SOURCE: LAP-EI-092—Embrace the Unknown (Developing a Tolerance for Ambiguity)
37
...
Positive self-talk is a form of positive thinking
in which you focus on your abilities and successes
...

SOURCE: EI:019 Exhibit a positive attitude
SOURCE: LAP-EI-003—Opt for Optimism (Positive Attitude)

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

17

38
...
Body language includes gestures, facial expressions, posture, eye contact, and any
other form of communicating without words
...
A service attitude is the salesperson's commitment to the client's
needs as expressed through professional behavior
...
Empathy is the ability to put yourself in another person's place
...
B
Use it to improve your job performance
...
Ignoring the criticism or complaining would be of no benefit
...

SOURCE: EI:003 Explain the use of feedback for personal growth
SOURCE: LAP-EI-903—Grin and Bear It (Using Feedback for Personal Growth)
40
...
The role of women is a common cultural issue, not a main cause of cultural
insensitivity
...

SOURCE: EI:033 Exhibit cultural sensitivity
SOURCE: LAP-EI-033—Getting To Know You (Cultural Sensitivity)
41
...
Functional conflict exists when people disagree about something tangible or concrete
...
Coworkers
disagreeing about the best way to solve a problem are involved in functional conflict
...
Emotional conflict arises when
people have different personal beliefs, values, or experiences
...

SOURCE: EI:015 Use conflict-resolution skills
SOURCE: LAP-EI-007—Stop the Madness (Conflict Resolution in Business)
42
...
A sense of humor can ease the kinds of difficult situations and
conflicts that often affect team effort
...
Keeping your emotions under control requires self-discipline
...

SOURCE: EI:045 Participate as a team member
SOURCE: LAP-EI-045—Team Up (Participating as a Team Member)
43
...
Vision is the future you desire to create and involves making positive changes to
make it happen, which requires determination and hard work
...
Visionary people often
make important decisions, but making important decisions is not their primary desire
...
A
New opportunities
...
Maintaining a reputation for leadership
does not allow you to bend the rules—it is important for leaders to hold themselves to the same high
standards as everyone else
...

SOURCE: EI:133 Inspire others
SOURCE: LAP-EI-133—A Force for Good (Inspiring Others)

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

18

45
...
Adaptability is often described as flexibility, although taking a few yoga classes won't
necessarily make you more adaptable
...
Adaptability is the opposite of rigidity and inelasticity
...

SOURCE: EI:006 Demonstrate adaptability
SOURCE: LAP-EI-023—Go With the Flow (Demonstrating Adaptability)
46
...
Achievement-oriented leaders allow their followers to take
moderate risks
...
Achievement-oriented leaders set challenging goals for their followers, not easy goals
...

SOURCE: EI:027 Develop an achievement orientation
SOURCE: LAP-EI-027—High Hopes (Developing an Achievement Orientation)
47
...
There are different kinds of credit accounts that allow customers to buy now and pay later
...
In a cash sale, the full price is paid at the time of purchase
...

SOURCE: FI:002 Explain the purposes and importance of credit
SOURCE: LAP-FI-002—Give Credit Where Credit Is Due (Credit and Its Importance)
48
...
Federal, state, and local laws require employees to treat each other with respect
...
Reading the newspaper, sleeping on the job, and arriving late take time away
from job performance and may result in a reprimand, but they are not illegal
...
B
Avoid jumping to conclusions about the viewpoint
...
Instead, you should
pay attention with an open mind and a willingness to learn
...
These behaviors are disrespectful and
inappropriate
...
A
Transparency
...
It involves speaking up about
your feelings and communicating openly, even when it’s difficult
...

SOURCE: EI:123 Describe the nature of ethics
SOURCE: LAP-EI-123—Rules To Live By (Nature of Ethics)

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

19

51
...
Financial institutions often require customers to maintain a certain amount
of money in their bank accounts
...
Direct payroll deposit, overdraft protection, and online transaction options are
benefits or services that many types of checking account products offer that customers may need to pay
fees to obtain
...
)
SOURCE: Query Genie
...
d
...

Retrieved October 14, 2020, from http://querygenie
...
D
A store of value
...
Some goods, such as food, cannot be a store of value because they do not last over time
...
A medium of exchange is something of value that can be
exchanged to obtain goods and services; money falls into this category as well, but it is not demonstrated
in this example
...

SOURCE: FI:060 Describe functions of money (medium of exchange, unit of measure, store of value)
SOURCE: Federal Reserve Bank of St
...
(n
...
Functions of money: The economic lowdown
podcast series, episode 9
...
stlouisfed
...
D
Principal amount and interest rate
...
g
...
The
interest is paid to the customer's account by the financial institution
...

To calculate the future value of the savings account, it is necessary to know the principal amount, the
interest rate, and the length of time that the principal is in the account
...

SOURCE: FI:062 Explain the time value of money
SOURCE: Heyford, S
...
(2020, September 23)
...
Retrieved
October 14, 2020, from http://www
...
com/articles/03/082703
...
B
Be able to encourage teamwork
...
Anyone can lead change regardless of his/her work experience or desire to
be promoted
...

SOURCE: EI:005 Lead change
SOURCE: LAP-EI-022—Start the Revolution (Leading Change)
55
...
Financial goals are objectives related to finances that individuals want to achieve
...
Individuals often set financial goals
based on a time factor because they have a need that they want to satisfy
...
Deciding to save money is
not an investment, although the money that is saved might be invested or placed in a savings account
...

SOURCE: FI:065 Set financial goals
SOURCE: Fontinelle, A
...
Setting financial goals for your future
...
investopedia
...
B
Inflation
...
Interest is the reward
earned for saving or lending money
...
Investment is using money to make more money
...
(2020, March 26)
...
Retrieved October 14, 2020, from
http://www
...
com/terms/i/inflation
...
A
No, because net worth includes assets that are not liquid
...
Luke may not have $5,000 in cash available to pay for the computer
...
Even though he could sell some of his less liquid
assets, such as real estate, he would likely need to pay for the computer before he can sell his assets
...
(2020)
...
Retrieved October 14, 2020, from
http://www
...
com/calculators/smart-spending/personal-net-worth-calculator
...
A
Smile when you answer the telephone
...
A smile or a frown
can actually be "heard" in your voice by the person on the other end of the line
...
Using a wide vocabulary, being informed
about the business's rules, and shutting out distractions while you are talking to a caller are all helpful in
providing service, but they are not ways to demonstrate a positive attitude
...
(2019)
...
Retrieved October 14,
2020, from https://www
...
com/blog/7-fundamentals-professional-phone-etiquette/
59
...
The purpose of reconciling your bank statement with the
information in your checkbook is to find potential errors and to calculate an accurate ending balance
...
You must subtract any outstanding checks from your statement balance to
properly reconcile your bank statement
...
Ignoring
an outstanding check can put you at risk of missing a payment or even fraud
...

SOURCE: FI:070 Read and reconcile bank statements
SOURCE: Caldwell, M
...
Learn how to balance your checkbook
...
thebalance
...
D
Phishing
...
The phisher typically
sends readers to a fake website that asks them to enter personal information, which can include credit
card numbers, social security numbers, bank account numbers, etc
...
Avoid giving out personal
information unless you contact the company yourself
...
Hacking involves a person gaining access to a
computer system to steal information
...

SOURCE: FI:073 Protect against identity theft
SOURCE: Microsoft
...
Protect yourself from phishing
...
microsoft
...
B
Provide a mortgage
...
While
banks offer wealth management, mobile check deposits, and brokerage services, none of these is
specifically related to buying a home
...
(2020)
...
Retrieved October 14, 2020,
from https://localfirstbank
...
B
Money market accounts, certificates of deposit, and bonds
...
Money market accounts, certificates of deposit, bonds, and savings accounts are types of
lending investments
...
Collectibles, stocks, and real estate are types of ownership investments
...
A
Contributions are deducted before earnings are taxed
...
Contributions
to a 401(k) are not taxed when they are contributed, but are taxed upon withdrawal instead
...
While many employers match 401(k) contributions, doing so doesn't reduce the taxes
withheld from a person's paycheck
...
(2020, July 30)
...
Retrieved October 14,
2020, from https://www
...
com/articles/retirement/08/401k-info
...
D
Language
...
It is often not necessary for readers to understand each footnote in a financial report
...
It does not have to include recommendations to be understandable
...
B
Current assets
...
Current assets would include cash on
hand, accounts receivable, and inventory owned by the business
...
Liabilities are debts that the business owes
...

SOURCE: FI:085 Explain the concept of accounting
SOURCE: LAP-FI-085—Show Me the Money (Nature of Accounting)
66
...
Assets a company already owns and can use to finance a new venture are known as equity
...
Dividends
are sums of money paid to investors or stockholders as earnings on investments
...
Since Aisha already has her money, she doesn't have
to go into debt to buy the new ovens
...

SOURCE: FI:354 Explain the role of finance in business
SOURCE: LAP-FI-354—Money Matters (Role of Finance)

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

22

67
...
Exit interviews are discussions with employees who are leaving that are designed to gain
feedback for the business
...
Application screening involves weeding out the applicants
that do not meet minimum requirements for the job or have not satisfactorily completed the application
...
g
...

SOURCE: HR:410 Discuss the nature of human resources management
SOURCE: LAP-HR-410—People Pusher (Nature of Human Resources Management)
68
...
Nondurable goods are tangible items, such as a can of soda, that are consumed within a
short time
...
Durable goods, such as televisions or pillows, are
intended to last a relatively long period of time
...
A
Politicians are unethical and should not be trusted
...
Facts contain true data or information
...
A person may believe that all politicians are unethical and untrustworthy, but not
all people believe this statement, nor can the statement be proven
...

SOURCE: NF:077 Assess information needs
SOURCE: St
...
(2020, July 9)
...
Retrieved October 14, 2020, from
https://brooklyn
...
libguides
...
php?g=648836&p=4692986
70
...
Most printed publications go through several
rounds of editing and review to ensure they are accurate
...

Published information can become quickly outdated
...

SOURCE: NF:079 Evaluate quality and source of information
SOURCE: Purdue Online Writing Lab
...
Evaluating sources: Introduction
...
purdue
...
html
71
...
The Sarbanes-Oxley Act of 2002 is a major federal law regarding information
management and accounting records
...

The Sherman Anti-Trust Act relates to monopolies
...

SOURCE: NF:110 Discuss the nature of information management
SOURCE: LAP-NF-110—In the Know (Nature of Information Management)

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

23

72
...
Poor housekeeping is a frequent cause of all kinds of accidents
...
The purchase of workers' compensation insurance guarantees payment of wages and
medical expenses to employees injured on the job
...
Posting emergency numbers would aid in calling for help when an accident
occurs
...
(2020, May 28)
...
Retrieved
October 14, 2020, from https://azbigmedia
...
C
Operating system
...
The system connects the software to the hardware and controls the overall operation of the
computer
...

SOURCE: NF:085 Use basic operating systems
SOURCE: Goodwill Community Foundation
...
What is an operating system? Retrieved October
14, 2020, from https://edu
...
org/en/computerbasics/understanding-operatingsystems/1/
74
...
If a website ends in
...

Websites that end in
...
com can be owned and operated by anyone
...
gov are not necessarily more or less
recent than sites ending in
...

SOURCE: NF:086 Describe the scope of the Internet
SOURCE: Western Kentucky University Libraries
...
Website evaluation tools
...
wku
...
php?g=271525&p=6517711#:~:text=gov%20or%20
...
B
Email inquiry field
...
The email inquiry field is an effective
method of providing customer service as long as the business responds in an appropriate amount of
time
...
An
electronic file attachment allows a user to send an attachment with an email message
...

SOURCE: NF:004 Demonstrate basic e-mail functions
SOURCE: JotForm
...
Inquiry form
...
jotform
...
D
Font
...
It provides a set of buttons that enables users to
change or format different aspects of the document
...
Other buttons in the font format bar enable users to bold or
italicize text or change the typeface or color of the text
...

SOURCE: NF:007 Demonstrate basic word processing skills
SOURCE: Computer Hope
...
How do I change the font color, size, or type in
Word? Retrieved October 14, 2020, from
http://www
...
com/issues/ch000829
...
C
Transition
...
This option is called a transition
...
The addition of visual and sound effects
between slides is not referred to as a feed, jump, or lead
...
(2020)
...
Retrieved October 14, 2020, from
https://support
...
com/en-us/office/add-transitions-between-slides-e89a076e-ed81404e-9598-021a918fa1ba
78
...
Collaborative computer software allows employees to access the same business
information
...
A salesperson may need to retrieve a
customer's purchasing history from the database to obtain the necessary facts s/he needs to process an
order
...
The accounting staff may access the customer database to check the customers'
billing information
...
The primary
purpose of collaborative software is not to archive old documents, interpret data, or maintain authority
...
(n
...
Collaborative software (groupware)
...
bestpricecomputers
...
uk/glossary/collaborative-software
...
C
Operations
...
Because planning a production schedule involves
making sure that resources (e
...
, workers, equipment, raw materials) are available to produce the
company's goods and/or services, Mr
...
Without these
resources, the business cannot function
...
Maintenance
activities involve the upkeep of facilities and equipment
...

SOURCE: OP:189 Explain the nature of operations
SOURCE: Hayes, A
...
Operating activities
...
investopedia
...
asp
80
...
Employers are required to have policies in place to train employees in the proper use
of equipment and protective devices to avoid injury
...
Employees should use safe techniques and safety
equipment as instructed, but companies need to ensure that safe methods are used and followed
...

SOURCE: OP:004 Describe health and safety regulations in business
SOURCE: ROSPA
...
Health and safety advice pack for smaller firms
...
rospa
...
B
An inquiry
...
An
application is a form requesting acceptance into an organization, group, or company
...
A proposal suggests a course of action to be taken
...
(2019, May 27)
...
Retrieved
October 14, 2020, from https://www
...
com/inquiry-letters-1210169

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

25

82
...
Self-confidence is a positive belief in your own talents, skills, and objectives
...
Rather than dismissing his boss's
compliment or shrugging it off, Omar accepts the compliment with confidence in himself by thanking his
boss and acknowledging his hard work
...
Omar is not
being arrogant in his response to the compliment
...
Omar is not necessarily demonstrating transparency in this situation
...
Omar is not necessarily demonstrating initiative in
this situation
...
(2020)
...
Retrieved October 14, 2020, from
https://www
...
com/selfconf
...
D
Report or correct the hazard
...
Such hazards might include water on the floor that can easily be
wiped up, a wrinkle in a floor mat that can be straightened, or a rough edge on a counter that can
temporarily be covered with tape
...

Avoiding or recording the hazard and its location is not helpful
...

SOURCE: OP:007 Follow safety precautions
SOURCE: Smithers, J
...
11 steps to properly reporting and investigating safety hazards
...
bizjournals
...
html
84
...
An information system is a method of gathering, storing, and analyzing data for the
purpose of making business decisions
...
An effective information system enables a business to quickly and
accurately process information and use that information to make decisions
...

SOURCE: NF:083 Explain the role of information systems
SOURCE: Zwass, V
...
Information system
...
britannica
...
D
Fraud
...
Not allowing
employees to bring personal belongings into the work area reduces the possibility that employees will try
to conceal goods and carry them out of the business
...
Burglary is any illegal entry into a building to commit a theft
...

SOURCE: OP:013 Explain routine security precautions
SOURCE: Chen, J
...
Fraud
...
investopedia
...
asp
86
...
Monitoring projects keeps everyone on track and makes sure
everyone knows what is expected of them, such as the case with Vicki and Dalton
...

SOURCE: OP:520 Monitor projects and take corrective actions
SOURCE: LAP-OP-520—Check Your (Project) Pulse (Monitoring Projects and Taking Corrective
Actions)

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

26

87
...
Businesses need office supplies to operate efficiently
...
For example, if a business runs out of copy paper and forms, its
employees cannot print letters, reports, or invoices or conduct other activities that are necessary to keep
the business operating smoothly
...
Businesses (e
...
, manufacturers) charge their
customers restocking fees for returning ordered goods that the customers no longer want or need
...

SOURCE: OP:031 Maintain inventory of supplies
SOURCE: Cake
...
5 critical factors affecting employee productivity at work
...
cake
...
C
Capital-intensive
...
Facilities that generate electrical power are
examples of capital-intensive production processes because they use expensive equipment but few
workers
...
Labor-intensive
production processes cannot take place without skilled workers
...

SOURCE: OP:017 Explain the concept of production
SOURCE: LAP-OP-017—Can You Make It? (Nature of Production)
89
...
Early stages in the supply chain involve procuring raw materials and developing
them into a valuable product
...

SOURCE: OP:443 Explain the concept of supply chain
SOURCE: Lumen
...
d
...
Retrieved October 14, 2020, from
https://courses
...
com/marketing-spring2016/chapter/reading-components-of-asupply-chain/
90
...
Employees of many businesses can expect a great deal of
customer contact
...
Appearance doesn't necessarily prevent employment or ensure
promotion
...

SOURCE: PD:002 Maintain appropriate personal appearance
SOURCE: LAP-PD-002—Brand Me (Personal Appearance)
91
...
It's important to put your goals on paper
...
But, a written goal is something you
can refer back to at any time
...
Writing out your goals also helps you clarify them in your own mind
...
You are
unlikely to meet goals that are vague, unattainable, or with an open time frame
...
C
Product
...
When a
computer company creates a new kind of software, this is considered product innovation
...
Positioning innovation occurs when the purpose of a
product is changed
...

SOURCE: PD:126 Explain the need for innovation skills
SOURCE: LAP-PD-126—Ideas in Action (Innovation Skills)

Test 1239

BUSINESS ADMINISTRATION CORE EXAM—KEY

27

93
...
Logic is a way to make sense of the facts—apart from personal or outside influence
...
Input is the actual information received from others—not
the way it is presented
...

SOURCE: PD:017 Make decisions
SOURCE: LAP-PD-017—Weigh Your Options (Decision-Making)
94
...
A trade association is a group of persons in the same industry or geographic area
who form a society to solve their common problems
...
For example, the local builders' association knows which construction companies are hiring
and for which jobs
...
National corporations
are a source of local career information only if they have locations in the community
...

SOURCE: PD:022 Identify sources of career information
SOURCE: Property Care Association
...
What is a trade association? Retrieved October 14, 2020,
from https://www
...
org/us/trade-association/
95
...
The employee who interviewed Jared and took him through the hiring
process works in human resources management
...
This employee does not work in marketing
management, banking services, or operations management
...
Banking services include cash management, shortterm investments, mortgages and other loans, credit cards, and bill payment
...

SOURCE: PD:025 Explain employment opportunities in business
SOURCE: LAP-PD-025—Go for It! (Careers in Business)
96
...
A personal data sheet is a list of information such as the applicant's Social
Security number; the names, addresses, and telephone numbers of references; dates of previous
employment; grade point average; and any other data that might be asked for on a job application
...
Keeping a file of job leads helps the
applicant organize his/her search for a job
...
Having customer service experience, while a valuable skill,
would not necessarily be helpful in filling out job application forms
...
(2020, March 26)
...
Retrieved October 14,
2020, from http://www
...
com/Make-a-Personal-Data-Sheet
97
...
One of the benefits to the job applicant of
sending a follow-up email after a job interview is that it presents an opportunity to add important
information that may not have been mentioned during the interview
...
The email should include
appreciation for the interview, but it does not need to be limited to a few words of thanks
...

SOURCE: PD:029 Write a follow-up letter after job interviews
SOURCE: Indeed
...
Follow-up email examples for after the interview
...
indeed
...
B
Education, work experience, and contact information
...
References are often listed on a separate
document
...

SOURCE: PD:031 Prepare a résumé
SOURCE: Indeed
...
Here's everything you should include on a resume
...
indeed
...
A
Continue their education
...
For example, many businesses are replacing existing equipment with
advanced models that are more complex or perform more operations
...

Employees should not change jobs frequently
...
Many employees
are responsible for performing specific tasks and are not able to delegate that responsibility to others
...
(2015, July 9)
...
Retrieved October
14, 2020, from https://www
...
com/pulse/benefits-continuing-education-everyone-iancohen/
100
...
The rules of conduct outline a company's policies, procedures, and expectations
regarding employees' behavior in the workplace
...
Formal methods of settling disagreements between workers
and employers are grievance procedures
...

SOURCE: PD:251 Follow rules of conduct
SOURCE: Brunot, T
...
The importance of the code of conduct
...
com/about-6559640-importance-code-conduct

---