BUSINESS ADMINISTRATION CORE EXAM

Karla and Brad are college graduates who have received a small inheritance from their grandfather's estate. Karla and Brad have always wanted to own a business, and they are committed to devoting both time and money to making it a success. What type of business ownership would you recommend to Karla and Brad?

D General partnership

Gabriella is writing a professional report about the trends occurring in a specific industry. What source would provide Gabriella with the most relevant, up-to-date information?

A Trade publications

.Millie is reading a book to learn how to knit. She wants to make her sister a scarf for Christmas, but it's only a week away, and she doesn't have much time. Millie decides to skip ahead of the directions, and the scarf winds up looking more like a potholder. Which of the following tips for following directions did Millie ignore:

D Don't rush

Which of the following is an example of a good listening skill:

B Asking appropriate questions

In all business occupations, it is important for workers to have effective use of

B Correct grammar

The most effective way to interpret others' nonverbal cues often is to look at their

D Facial expressions

An effective technique to use to clarify information when giving verbal directions involves

C Demonstrating a procedure

It is most appropriate for business people to use complex, technical jargon when they are

A Speaking with coworkers

A recommended way to find out why the caller has phoned your business is to

B Ask the caller, "How may I help you?

When taking notes during a seminar, a business person should write down

D Key points

A guideline for effective, written business communication is to write clear, direct letters that immediately explain to the reader the

B Purpose of the message

Which of the following would help Caitlin emphasize the most important points and clarify the crucial concepts of her business report:

C Bullet-pointed list

When writing a business report, Thomas might check his writing and style manual to determine the

B Appropriate way to cite his resources

The following information appears at the end of all of Molly's outgoing e-mails: Molly S. Glenn; Assistant Manager; The Creekside Café; 4422 Clear Creek Road, Danville, TN 44882; (774) 555-2047; msglenn@creeksidecafe.com. This information is Molly's e-mail

B Signature

A business letter that presents its message in as few words as possible would be described as having

D Conciseness

Which type of communication is being used when a salesperson sends a message to the store manager?

B Upward

Which of the following is the most appropriate method for supervisors to use when communicating about personal or confidential issues with individual employees:

D Face-to-face meeting

An unhappy customer wants to return some merchandise. The salesperson listens well and is polite and courteous to the customer. As a result of this professional approach, the customer leaves the business satisfied. This is an example of

A Building positive customer relations

What should you do to be prepared to answer customer questions?

B Find out what you need to know to do your job well

Which of the following is a guideline for employees to follow in handling customer inquiries

B Make sure you clearly understand customers' inquiries

By accurately explaining the company's policies to customers, salespeople often are able to avoid misunderstandings with customers and improve the company's

A Image

When assisting domineering/superior customers, which of the following is not an action to take:

C Do most of the talking yourself

The first step in handling customer complaints is to

A Listen to what the customer has to say

Cash-register tapes and shipping forms used by a business would be classified as industrial

D Supplies

Sara told her mother that she'd like a new bicycle for her birthday to ride to the park. What type of want or need is this?

C Economic want

Which of the following is an example of creating form utility:

C Sewing a dress

When the price of a product is high, consumer demand will usually be

A Low

A business owner who is acquiring a partner in order to obtain additional operating funds is performing which business activity?

B Financial analysis

Which of the following is a statement that is true for all economic systems:

A People are interdependent

What is one of the identifying characteristics of private enterprise?

B Freedom in the marketplace

The type of business organization that offers its owners the most protection from risk is a

C Public corporation

Government bans or controls monopolies because monopolies

A Do not always benefit consumers

Which of the following parts of self-management reflects the ability to adjust to new and changing situations:

B Adaptability

Which of the following describes the relationship between self-esteem and your success in life:

C Important to success

Eliminating undesirable traits requires

A Taking some action

An example of a nonverbal signal that you can use to establish a connection with others and indicate that you are tuned in to what they are saying is

A Eye contact

Which of the following is a method a responsible worker could use in order to become more productive:

C Read current industry materials

What should be a responsible worker's primary work goal?

A To be as efficient as possible

The characteristics that reflect an individual's honesty, dependability, and fairness are referred to as

D Ethical standards

Mr. Field makes all the important decisions and gives his employees very specific instructions. Which of the following describes Mr. Field's management style:

A Authoritarian

What is the not-so-good news about maintaining a positive attitude?

C It takes more effort to be positive than to be negative

Which of the following is not a guideline for responding to criticism in a constructive manner:

B Tell the person involved exactly what you think of the situation

Tom believes that his own culture is naturally better than other cultures. This is an example of

A Ethnocentrism

In order for the process of communication to work effectively, it must include __________ of the information transmitted.

D Understanding

Five minutes before closing time, a customer requested a special order to be delivered that day. Lee was in the process of closing for the day, but the customer was insistent. Lee agreed to assemble the order and deliver it. Lee's behavior would be described as

C Passive

The XYZ Company has a committee whose members are appointed for three-year terms to review the company's hiring policies. This committee is an example of a __________ committee.

B Standing

Which of the following leadership characteristics would be too difficult to "fake":

B Passion for work and people

When management and employees see the same image of what the business is capable of being in the future, they are sharing a(n)

C Vision

Which of the following is a true statement about coaching:

A Coaching is enabling others to reach their potential

In which of the following situations might a business be held liable for the unethical behavior of its employees while they are on the job:

D Female applicants are harassed during interviews

Which of the following is the opportunity cost for a person who decides to place $500 in the bank rather than purchase something s/he really wants but does not need

C Immediate gratification

Hanson Supermarket wanted to establish a form of business credit with Smith Wholesale Company that would allow the owner to purchase meat, vegetables, bread, and milk products on a "90 days same as cash" basis. The owner also wanted a credit account that would require payments every 30 days so that s/he would not have to make large payments. The type of credit account that would best suit Hanson Supermarket is a(n) ___________ credit account.

C Budget

Ali is borrowing $275,000 from a bank. So Ali understands the terms of the loan, the bank outlines the terms in a formal agreement and requires Ali to sign it. This is an example of a financial

C Contract

One advantage to setting attainable goals is that you

A Are less likely to become discouraged

One advantage to setting attainable goals is that you

A Salary

Each year, Marla must pay a certain percentage of the value of her home to the local government. Which of the following is the tax liability Marla is responsible for paying:

B Property

Which of the following is a safeguard that can be used when writing checks:

C Don't sign blank checks that could be filled out by a dishonest person

When reconciling bank statements, it is important to consider

D Checks that have not cleared

It is important to protect against identity theft to prevent unauthorized individuals from

B Obtaining credit in your name

While preparing her annual income tax return, Kate determined that she had her employer withhold more tax than necessary. As a result, Kate is eligible for a government

C Refund

Which of the following types of broker usually charges the highest commissions:

B Full-service

Of the following lending investments, which is not offered by a bank:

B Municipal bond

How does insurance benefit a business?

A Protects against financial loss

Information that a business keeps in its accounting records includes its

C Revenues and expenses

A company's current balance of assets and liabilities falls under the focus of

A Working capital management

Which of the following is not a purpose of an exit interview:

D To negotiate compensation and benefits

To improve a business's effectiveness in providing customer satisfaction, the business's marketing activities and its other business functions should be

D Coordinated

Which of the following statements is an example of an opinion:

D Politicians are unethical and should not be trusted

Emma is preparing a report about business trends in her industry, which she must submit to her manager in two days. The most efficient, cost-effective way for Emma to obtain the information is to

D Analyze information that is posted on the industry's trade association's web site

One way for a person to verify the reliability of an online article's information is by

B Comparing the information with other articles about the topic

An advertising agency wants to communicate its television commercial idea to a client. What format would be the best for the agency to use?

C Storyboard

What portable device can business people use to store electronic documents, so they can later retrieve them from other computers?

C Flash drive

Appropriate information management saves businesses time and money by

D Maintaining higher levels of productivity

Which of the following is the type of information system that contains word-processing and spreadsheet applications:

A Office automation

JavaScript, BETA, AppleScript, and Ubercode are examples of computer

A Programming languages

Which of the following is an Internet-access source that allows computer users to log onto the Internet without a physical connection:

C Wireless Fidelity

Business people often use the calendar applications on their cellular telephones to

A Track their appointments

To streamline its information systems, the Mason Company wants to purchase a computer program that performs a variety of related functions, such as accounts payable, accounts receivable, and general ledger applications. The Mason Company should purchase a(n) ____________ computer package.

C Integrated software

Which of the following is needed to post a web page:

D Web server

Which of the following is an example of one of a business's inputs:

A Employees

Which of the following statements about practicing good safety habits is true:

B Employees should always be thinking about safety

Which of the following is a true statement:

B Accidents and injuries occur frequently in the workplace

To best handle serious illnesses or injuries in the workplace, employees should thoroughly understand the company's __________ procedures.

A Medical emergency

Which of the following situations is an example of business security:

A Employees are required to enter and exit the business through one door

Providing an uninterrupted flow of goods or materials is an important aspect of which of the following business activities:

B Purchasing

Which of the following is an example of a business placing a blanket order with a vendor:

B Ordering goods without specifying style

Which of the following lists the components of the production process:

A Inputs, a conversion process, and outputs

Your body language affects how you present yourself in terms of your nonverbal cues and the

C Manner in which you carry yourself

A personal characteristic that helps people to reach their goals is

C Perseverance

Which of the following does not describe decision making:

B Changing one requirement

A man comes to pick up his order at the office where Courtney works. When she tells him his order hasn't arrived yet, he seems a little upset. She asks for his order number again so she can double-check it and find out where it is. Which step of the seven-step problem-solving method does this situation illustrate?

D Collect information

Which of the following is an external source of information about yourself that could help you to develop self-understanding:

D Friends

To help make tentative career decisions, you should know the educational and training requirements as well as

D Your major strengths, aptitudes, and interests

What do employees need to be successful in most business careers?

B Basic academic skills

Entrepreneurs protect the profitability of their businesses by developing which of the following skills:

B Financial and problem-solving

Students searching for a job should check the listings posted in the school's

C Guidance office

One way that an applicant can indicate a sincere interest in the job during an employment interview is to

B Listen attentively

What should job applicants offer to do in the closing paragraph of an interview follow-up letter?

C Provide further information

One way that individuals can obtain valuable work experience before applying for full-time paying positions is to

A Serve an internship

As president of her large company, which should be Sandra's first priority?

C Planning