Study Guide
Field 008: Business Education
Sample Multiple-Choice Questions
Competency 0001
Understand functions, principles, and methods of organizational management.
Which of the following actions by a manager best illustrates the management function of controlling?
- delivering an inspirational speech to new employees during a company meeting
- assessing whether short-term goals for developing a new product line have been met
- analyzing data to help determine consumer buying trends for the next quarter
- assigning employees to a team that will develop marketing strategies for new products
- Answer
Competency 0002
Understand principles of human resources management
The human resources manager of a small software development firm is attempting to predict hiring needs for the next few years. Which of the following types of data would be most useful for accomplishing this task?
- statistical analyses of the number of college graduates over the next few years who will have degrees in software development
- current industry-wide figures for turnover rate and productivity for software developers
- estimates of the number of individuals who have degrees in software development and are currently unemployed
- projections of increases in demand for the company's products over the next few years
- Answer
Competency 0003
Understand business law and issues related to ethics and social responsibility in
business.
Which of the following is the best example of an action based on a tort?
- An accountant is charged with embezzling money from the firm where the accountant works.
- A supplier sues a company for breach of contract after the company cancels an order of custom-made parts.
- A homeowner sues an appliance manufacturer after a faulty toaster causes an electrical fire.
- A jeweler is charged with fraud after selling glass rings to customers who had paid for diamond rings.
- Answer
Competency 0004
Understand business accounting.
The table below shows the income statement for the Shamrock Bakery for the year ending December 31.

According to the statement above, what is the approximate profit margin for the Shamrock Bakery for the past year?
- 20%
- 25%
- 40%
- 50%
- Answer
Competency 0005
Understand personal finance and principles of consumer economics.
An individual charges a total of $1,800 on one credit card during a one-month period. The credit card account has an APR of 16%. Which of the following represents the interest that the individual owes at the end of the month for these charges?
- $24
- $29
- $96
- $288
- Answer
Competency 0006
Understand basic techniques of computation and quantitative analysis in business.
A salesclerk who sells farm machinery receives a wage of $7.50 per hour plus a commission of 1.5% of the retail value of each item that he sells. During one week, he works 36 hours and sells three pieces of machinery for $28,000, $15,000, and $33,000. How much money will the salesclerk earn for that week?
- $870
- $1,140
- $1,410
- $2,700
- Answer
Competency 0007
Understand fundamental principles of microeconomics.
The graph below shows the supply and demand curves for chicken.

Which of the following graphs best illustrates the likely change in the supply and/or demand curves for chicken shortly after a sharp decrease in the price of fish?
- Answer
Competency 0008
Understand fundamental principles of macroeconomics.
The Federal Reserve Board would be most likely to recommend a series of interest rate cuts in order to help accomplish which of the following goals?
- bringing the economy out of a recession
- preventing devaluation of the dollar
- slowing down a too-rapid expansion of the economy
- reducing inflation
- Answer
Competency 0009
Understand international business, marketing, and trade.
Which of the following changes in the U.S. economy would most likely lead to a decrease in exports from the United States to other countries?
- a rise in the value of the U.S. dollar relative to other currencies
- an increase in the productivity of U.S. workers
- a decrease in the unemployment rate of U.S. workers
- a reduction in short-term interest rates charged by U.S. banks
- Answer
Competency 0010
Understand basic principles of marketing, marketing research, and product/service planning and placement.
At which of the following stages in the product life cycle would a marketing strategy of differentiating the product by producing related product lines be most advantageous?
- Introduction
- Growth
- Maturity
- Decline
- Answer
Competency 0011
Understand principles and procedures related to e-commerce and Internet marketing.
Which of the following best describes one use of e-commerce for one-to-one marketing?
- Banner ads for health supplements appear on the pages of a Web site that deals with fitness and health issues.
- Users logging on to a store's Web site are greeted by product recommendations based on previous purchases from that store.
- Several companies that sell different products to the same target audience place links to one another's Web sites on their own Web sites.
- E-mails advertising a sale at a regional department store chain are sent to people living in the store's geographical region.
- Answer
Competency 0012
Understand entrepreneurship and business plan development.
Which of the following best describes one role of venture capitalists in U.S. business?
- providing funds to start up new businesses
- serving as intermediaries between buyers and sellers of stocks
- purchasing assets of bankrupt companies
- providing short-term loans to established businesses
- Answer
Competency 0013
Understand principles and procedures related to business communication.
In which of the following situations would it be most important for participants to communicate in a face-to-face meeting?
- A manager wishes to inform a subordinate of topics that will be discussed at an upcoming meeting.
- An entrepreneur wishes to persuade a potential investor to back a business start-up.
- A team leader wishes to inform members of the team about specifications for an assigned task.
- A human resources director wishes to persuade employees to use company e-mail solely for business purposes.
- Answer
Competency 0014
Understand information systems in business.
A business is looking for a commercial Internet server to host its Web site. It is most likely to need a server offering SQL capabilities if it intends to offer its Web site users:
- video streaming.
- database access.
- site searches.
- interactive forms.
- Answer
Competency 0015
Understand information processing and computer technology applications in business.
An incomplete spreadsheet for a business is shown below.

What formula should be inserted in cell C9?
- B5 + B12
- SUM(B5:B7)
- B15 + B21
- SUM(C15:C21)
- Answer
Competency 0016
Understand career development and professionalism.
Which of the following steps should a person take first when choosing a career?
- assessing short- and long-term prospects for employment in various fields
- identifying one's own personal characteristics and career objectives
- reviewing strategies for writing an effective résumé and application letter
- gathering information about academic requirements for various professions
- Answer