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#154 2005 ARIZONA FBLA WINTER REGIONAL CONFERENCE

GRADES 9-10 INTRO. TO BUSINESS 1. Complete the information requested on the answer sheet. •

Check the label on the top right hand side of the sheet to make sure that your name and event are correct. If your school name is not on your label, write it under your label. Use complete school name (not NHS).

On the top left hand corner of the answer sheet, enter the nine digit number from your label. Start on line 1 and enter the numbers going down. The last number will be left blank. Darken each circle carefully and completely.

DO NOT OPEN THE TEST UNTIL GIVEN PERMISSION TO DO SO! 2.

All answers must be recorded on the answer sheet.

3.

Read each question carefully before answering. When you have decided which answer is correct, find the space on the answer sheet following the number of the problem. With a pencil, BLACK THE ENTIRE SPACE in the proper column. Do not make any other marks on the answer sheet, as the scoring machine will reject it.

4.

If you are given True/False questions, answer True questions in the “A” column and False questions in the “B” column.

5.

Do not fold your answer sheet or bend the corners.

6.

Be sure to use a #2 pencil. Erase any unwanted answers completely. Two answers for one question will be rejected by the scoring machine.

7.

You are allowed 45 minutes for completing the test. You will be given a starting signal and a warning when 10 minutes and 5 minutes are remaining. If you finish your test early, return your test and answer sheet to the test administrators.

8.

If you have any questions during the test, please raise your hand, and someone will come to help you.


9.

Test administrators will write the “time� on the top of your test when you finish.


#154 Introduction to Business

2005 FBLA WRC

WRC 2005--Introduction to Business Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____

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1. Which of the following are considered to be natural resources? a. TV announcers c. fish b. bankers d. farmers 2. Members of a family might not be able to afford the things they want because of an economic factor called ____. a. the basic economic problem c. multiple greed b. the family economic problem d. human desires 3. A weekend skiing trip, a summer home at the lake, and a new 32-inch stereo television are all examples of ____. a. needs c. resources b. wants d. scarcity 4. Which of the following is true about your worker role? a. It is the least important of the three economic roles. b. It supports your consumer role. c. Your productivity is unimportant. d. It has no relationship to your standard of living. 5. Goods that are very desirable and scarce have prices that tend to remain ____. a. high c. competitive b. low d. none of the above 6. The business that takes raw materials and turns them into some usable form is known as a(n) ____. a. manufacturer c. marketer b. extractor d. transformer 7. Helping employees feel good about their jobs is an important component of a human relations skill known as ____. a. self understanding c. communications b. understanding others d. developing job satisfaction 8. The eight marketing functions do NOT include ____. a. purchasing c. distribution b. manufacturing d. promotion 9. Anything offered to the target market to satisfy their needs is ____. a. a market c. distribution b. promotion d. the product 10. To be effective, promotion must ____. a. be noticed b. encourage consumers to pay attention to the message c. result in consumers taking action d. all of the above 11. Which of the following is a social-responsibility issue? a. protection of the environment b. employment of the physically challenged c. providing a healthy and safe workplace d. all of the above

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#154 Introduction to Business

2005 FBLA WRC

____ 12. Preserving our society's scarce resources is an act of business known as ____. a. conservation c. soil engineering b. non-polluting d. all of the above ____ 13. When a business wants its workforce to reflect various groups in the community, it is concerned about ____. a. resources c. safety b. diversity d. none of the above ____ 14. Which of the following is true about silver, nickel, tin, and chromium? a. The U.S. has an abundance of these metals. b. They are not used in production among U.S. producers. c. The U.S. must import tons of these metals. d. all of the above ____ 15. Antitrust laws prevent ____. a. false advertising c. misleading labeling b. deceptive pricing d. all of the above ____ 16. Public utilities provide ____. a. gas c. electricity b. water d. all of the above ____ 17. Which of the following would be most impressed by a business plan? a. lenders and investors c. your mother b. your ex. Partner d. none of the above ____ 18. An employee who works every Thursday and Friday for three hours each day is considered a ____. a. permanent employee c. full-time employee b. temporary employee d. part-time employee ____ 19. A type of incentive where employees receive their regular compensation plus a share of the profits earned by a company is called ____. a. profit sharing c. straight salary b. commission d. base plus incentive salary ____ 20. An employee who works 42 hours per week, Monday through Friday is considered a ____. a. part-time employee c. a temporary employee b. a full-time employee d. none of the above ____ 21. A CD-ROM can store as much information as how many 3 1/2 inch floppy disks? a. 100 c. 400 b. 200 d. 600 ____ 22. Word processing software is commonly used to create ____. a. memos c. lists of related customer data b. financial statements d. bar charts ____ 23. Which feature is usually included in spreadsheet software? a. desktop publishing b. the ability to check spelling and grammar c. database marketing d. built-in math calculations ____ 24. An organized system or processing and reporting information in an organization is called ____. a. computer applications c. desktop publishing b. management information systems d. none of the above ____ 25. Which of the following has made it possible for employees to work from ____. their homes? a. modems c. email b. fax machines d. all of the above

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#154 Introduction to Business

2005 FBLA WRC

____ 26. Robots would most likely be used to work in ____. a. management jobs c. training centers b. dangerous situations d. the operation of motor vehicles ____ 27. The largest user of expert systems is ____. a. the Internal Revenue Service c. churches b. schools d. none of the above ____ 28. Expanded computer use has resulted in concerns about ____. a. health and safety c. privacy b. criminal activities d. all of the above ____ 29. As technology changes career opportunities, workers will need to ____. a. update skills three or four times in their lifetimes b. leave the states in which they are living c. change companies d. none of the above ____ 30. Someone who works in a fast-food restaurant is working in ____. a. the goods-producing industry c. the extracting industry b. the service-producing industry d. none of the above ____ 31. The use of automated machinery, electronic equipment, and integrated systems to help increase the efficiency of producing goods and services is ____. a. a business cycle c. technology b. immigrants d. none of the above ____ 32. A task or series of tasks that are performed to produce a good or service is ____. a. a goal c. an occupation b. a career d. a plan ____ 33. What occurs when jobs go unfilled because qualified people are not willing to relocate? a. employment gridlock c. locational unemployment b. locational dilemma d. unemployment mismatch ____ 34. What is the best way to follow the rules? a. do not make any mistakes b. be a good listener c. be more eager than your employer and try to impress other employees d. complain about a heavy workload ____ 35. Which of the following is NOT true about small-business owners? a. They like to take charge of things. c. They have short work weeks. b. They can get others to do things. d. They have good health. ____ 36. Consumers pay for services each time they go to ____. a. a movie c. a car wash b. a dentist d. all of the above ____ 37. Underwriters Laboratories, Inc., which concerns itself with fire and electrical safety, is an example of ____. a. a product-testing organization c. a broadcast organization b. a print publisher d. all of the above ____ 38. Which group of consumers is estimated to spend $3.5 billion per year on consumer goods? a. people between the ages of 50 and 60 b. people between the ages of 36 and 45 c. people between the ages of 25 and 35 d. people between the ages of 15 and 23

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#154 Introduction to Business

2005 FBLA WRC

____ 39. Sales used to clear merchandise that stores no longer wish to carry in stock are ____. a. promotional sales c. special purchase sales b. clearance sales d. holiday sales ____ 40. Which of the following best describes promotional sales? a. sales used to clear merchandise that stores no longer wish to carry in stock b. sales in which businesses promote the sale of regular merchandise by making temporary price reductions c. end-of-the-month sales d. holiday sales ____ 41. Fraud occurs when ____. a. false information is given to a customer in order to make a sale b. a salesperson exaggerates the good qualities of a product c. a product label indicates safety standards for product use. d. a product is not graded ____ 42. Which of the following is NOT a responsibility of the Office of Consumer Affairs? a. to provide products for consumers b. to represent the interests of consumers c. to develop consumer information d. to assist other agencies in responding to complaints ____ 43. The purpose of a signature card is to ____. a. serve as identification when cashing a check b. allow a bank customer to obtain cash by just signing a special form c. allow customers to make deposits quickly d. serve as the bank's official record of a depositor's signature ____ 44. An interest rate tied to the current cost of money in the marketplace is called the ____. a. finance rate c. percentage rate b. marketplace rate d. money market rate ____ 45. A bank account that is opened by two or more people is called a ____. a. family account c. money market account b. joint account d. credit account ____ 46. A postdated check refers to a check that is ____. a. dated later than the date on which it is written b. written illegally c. written by someone not authorized on the account d. void after a certain number of days ____ 47. Which of the following would be a reason to stop payment on a check? a. accept a check from someone you know b. accept a check from someone who has proper identification c. the drawer has money on deposit d. accept a check from a stranger ____ 48. Which of the following is a correct statement? a. Your employer can pay you through a money order. b. You may be charged a fee for a stop-payment check. c. It is a wise business decision to post date your checks as you write them. d. The bearer is the owner of the account and the person who signs the checks. ____ 49. The document prepared to show agreement between the bank balance and the customer's checkbook balance is a ____. a. bank statement c. canceled check report b. bank reconciliation d. check register

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#154 Introduction to Business

2005 FBLA WRC

____ 50. When doing a bank reconciliation, which of the following is added to the checkbook balance? a. outstanding checks c. interest earned b. canceled checks d. service fees ____ 51. Check clearing may be done through a ____. a. bank c. the Federal Reserve System b. clearinghouse d. all of the above ____ 52. The purpose of a clearinghouse is ____. a. selling government bonds to investors b. settling accounts among different banks for checks being presented for payment c. setting interest rates charged for loans d. reporting errors for electronic banking transactions ____ 53. A business that receives an invoice with the terms 2/10, n/30 ____. a. must pay the entire amount right away b. must pay $10 now and $30 later c. can deduct 2% from the amount owed if payment is made within ten days d. does not have any time limit on the amount to be paid ____ 54. The value of your possessions is called ____. a. capacity c. capital b. character d. all of the above ____ 55. Which of the following are uses of credit by American consumers? a. buying homes c. borrowing to pay taxes b. buying cars d. all of the above ____ 56. Which of the following is NOT true of a bank card? a. there is no annual fee b. there may be a finance charge c. the cardholder has a good credit rating d. a credit sales slip may be asked of the merchant ____ 57. The date on which a loan must be repaid is called ____. a. expiration date c. maturity date b. renewal date d. payment date ____ 58. When you purchase a certificate of deposit you usually receive a ____. a. check c. signature card b. numbered certificate d. statement of account ____ 59. An example of an equity security is a ____. a. type of debt c. share of stock b. bond d. municipal bond ____ 60. If interest rates on similar bonds are higher than a certain bond's stated interest rate, the price of the particular bond will tend to ____. a. rise c. change in an uncertain manner b. remain constant d. decline ____ 61. A common stockholder is entitled to ____. a. a fixed rate of dividends b. vote to elect the corporation's officers c. receive dividends before any other stockholders d. lower taxes on dividends received ____ 62. Lung Jen is concerned about changing interest rates in the future. Which mortgage would be the best recommendation? a. adjustable rate c. condominium

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#154 Introduction to Business

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2005 FBLA WRC

b. fixed rate d. equity The risk associated with illness, disability, loss of income, unemployment, old age, and premature death is ____. a. insurance c. property risk b. liability risk d. personal risk The money a policyholder must pay for insurance coverage is ____. a. a premium c. self-insurance b. a claim d. a deductible A policyholder can influence the cost of insurance by ____. a. driving safely c. practicing good health habits b. shoplifting d. all of the above Collision coverage provides for payment of damages up to ____. a. the current value of the car b. the purchase price of the car when you bought it c. the price of a new car similar to the car damaged d. all of the above are true; the method chosen depends on the insurance company Which of the following determines the cost of automobile insurance? a. the age of the driver c. the purpose for which the car is used b. the driver's accident record d. all of the above Property permanently attached to land, such as a house or garage, is ____. a. insured property c. real property b. personal property d. attached property Replacement insurance actually ____. a. replaces an item that has been destroyed at its current replacement price b. replaces an item without showing proof of loss c. replaces an item at the purchase price d. none of the above If the homeowners personal property is worth more than 50 percent of the coverage on the home, additional coverage is available at ____. a. no extra cost c. 50 percent more b. a slightly higher premium d. none of the above The decrease in value of property is called ____. a. evaluation c. depreciation b. resale value d. appreciation A life insurance policy that provides financial protection from losses resulting from loss of life during a definite period of time is ____. a. term life insurance c. level term insurance b. decreasing term insurance d. renewable insurance When you buy life insurance you will be asked to ____. a. name a beneficiary c. pay a premium b. take a physical examination d. all of the above When policyholders are expected to pay a certain percentage of the costs over and above the deductible amount, they are paying the ____. a. coinsurance c. deductible additional expense b. premium d. coverage expense Another name for HMO is ____. a. hospital medical organization c. hospital maintenance operation b. health maintenance organization d. none of the above

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#154 Introduction to Business

2005 FBLA WRC

____ 76. The two common financial statements used in money management are ____. a. the budget and income statement b. the balance sheet and income statement c. the balance sheet and cash flow statement d. the budget and balance sheet ____ 77. A statement that reports net wages and other income along with spending for a given period of time, such as for a month, is ____. a. a cash flow statement c. a balance sheet b. a capital statement d. an income statement ____ 78. Which of the following is NOT an example of a long-range financial goal? a. to buy a computer b. to provide college education for children c. to buy a house d. to take a trip to a foreign country ____ 79. The amount budgeted for savings and other expenditures is referred to as ____. a. a fixed expense c. an allowance b. a variable expense d. a budget ____ 80. A financial plan must be ____. a. short b. focused on future purchases of large items such as cars c. developed after a person is 60 years old d. flexible ____ 81. What is the effect of dollar votes by consumers? a. Demand, but not supply, is affected. b. Businesses learn about consumer preferences. c. Businesses ignore them because they are unreliable. d. Supply, but not demand, is affected. ____ 82. Which of the following is the best definition of supply? a. the quantity consumers are willing and able to buy b. the quantity producers would like to produce c. the quantity producers are able to produce at a given price d. the quantity businesses would like consumers to buy ____ 83. Gross domestic product is ____. a. the total value of all goods produced in a year b. the total value of all final goods and services produced in a year c. the total value of all services produced in a year d. none of the above ____ 84. A business that moves goods from producer to consumer is a ____. a. manufacturer c. extractor b. marketer d. government agency ____ 85. Barriers to trade may be set for which of the following reasons? a. to express disapproval with the social behavior of a country b. to protect domestic industries c. to keep supplies low and prices at a certain level d. all of the above ____ 86. The federal organization set up to enforce standards for air quality is ____. a. the EPA c. the AEP b. the SPC d. none of the above 7


#154 Introduction to Business

2005 FBLA WRC

____ 87. When a country imports more than it exports, it has a ____. a. positive balance of trade b. negative balance of payments c. positive balance of payments d. negative balance of trade ____ 88. SMART cards would be most helpful when ____. a. traveling c. trying to prevent a computer virus b. creating a new computer program d. training new workers ____ 89. Protection of the privacy of information in customer databases has ____. a. become easier with new computer systems b. declined as a concern for consumers in recent years c. reduced the amount of white-collar crime d. become an increased priority for many businesses ____ 90. Which of the following is NOT true about our U.S. work force? a. Most jobs require at least a high school education. b. Most jobs require some special training. c. Few jobs require a high school education and special training. d. Some jobs are high paying and some are low paying. ____ 91. Comparing the price, quality, and services associated with one product with those of another product is ____. a. impulse buying c. unit price b. convenience shopping d. comparison shopping ____ 92. The agency or agencies that help protect the consumer's right to be heard are ____. a. the Federal Trade Commission c. Better Business Bureaus b. the Office of Consumer Affairs d. all the above ____ 93. An organization of businesses engaged in the same type of business is ____. a. a consumer movement c. a guarantee b. a trade association d. none of the above ____ 94. Which of the following is an example of a deposit-type financial institution? a. an investment company b. a consumer finance company c. a mutual savings bank d. a life insurance company ____ 95. The law that requires prompt correction of billing errors after they have been reported to a creditor is ____. a. the Fair Credit Reporting Act b. the Fair Credit Billing Act c. the Truth-in-Lending Law d. none of the above ____ 96. The risk of potential losses to others as a result of injury or damage you may have caused is ____. a. insurance c. property risk b. liability risk d. personal risk ____ 97. A life insurance policy that provides financial protection from losses resulting from loss of life during a definite period of time is ____. a. term life insurance c. level term insurance b. decreasing term insurance d. renewable insurance ____ 98. Income you spend to buy the things you want for pleasure, satisfaction, and comfort is ____. a. discretionary income c. expenditures b. net income d. money management

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#154 Introduction to Business

2005 FBLA WRC

____ 99. A statement that reports net wages and other income along with spending for a given period of time, such as for a month, is a(n) ____. a. cash flow statement c. balance sheet b. capital statement d. income statement ____ 100. Evaluating one's financial position, setting financial goals, and guiding activities and resources toward reaching those goals is ____. a. an income statement b. estate planning c. financial planning d. an owner's equity statement

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#154 Introduction to Business

2005 FBLA WRC

Answer Key 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.

C A B B A A D B D D D A B C D D A D A B D A D B D

26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.

B A D A B C C C B C D A D B B A A D D B A D B B C

51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75.

D B C C D A C B C D B B D A D A D C A B C A D A B

76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100.

C A A C D B C B B D A D A D C D D B C B B A A A C

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