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1. The type and scope of the promotional project usually have a significant effect on
A. staffing requirements.
B. payment methods.
C. design characteristics.
D. organizational goals.

2. One reason why copywriters often include testimonials in advertising copy is because the testimonials
tend to
A. feature well-known people.
B. lend credibility to the ad.
C. demonstrate product use.
D. present a certain lifestyle.

3. When measuring the results of the promotional mix, businesses often consider if __________ has
A. marketing
B. advertising
C. awareness
D. inventory

4. Which of the following is an example of a government's fiscal policy:

A. Decreasing inflation
B. Increasing taxes
C. Increasing employment
D. Decreasing prices

5. What do all technical firms need to be aware of in regard to the accounting process?
A. Management styles
B. Legal considerations
C. System specifications
D. Research techniques

6. What do telecommunications businesses develop to be able to link performance measures to the

financial outcomes of marketing?
A. Bookkeeping methods
B. Operational tactics
C. Positioning procedures
D. Quantifying strategies

7. David and Ella are in business together and each of them has unlimited liability. David and Ella's
business is an example of a
A. general partnership.
B. corporation.
C. joint venture.
D. franchise.
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8. Calculate an employee's actual take-home pay if the employee works two 40-hour weeks at a rate of
$15.25 per hour and deductions equal 18%.
A. $1,009.60
B. $1,024.80
C. $1,015.20
D. $1,000.40

9. When preparing a master budget, businesses develop financial

estimates of
A. methods of managing cash.
B. daily transactions.
C. previous discount rates.
D. all areas of operation.

10. What is the advantage to businesses of reviewing internal records to obtain information?
A. Research techniques are complex.
B. Statistics are expensive to compile.
C. Employees have limited access.
D. Data are specific to the company.

11. In the apparel industry, which of the following is a growing trend in distribution:
A. Receiving
B. Shipping
C. Warehousing
D. Importing

12. The continued growth of competition in apparel retailing is largely

due to the
A. high cost of clothing.
B. increase in availability.
C. decrease in credit.
D. low level of inventory.

13. A shoe store that runs an ad to attract customers and then sells
shoes to those customers is using
A. brands to create interest.
B. discounts to generate business.
C. pricing to influence advertising.
D. marketing to support retailing.

14. The physical and social characteristics of the population are

responsible for the ongoing changes in
A. personal selling.
B. mass marketing.
C. apparel retailing.
D. specialty advertising.

15. One of the main responsibilities of apparel merchandisers is selling clothing to

A. rack jobbers.
B. fashion houses.
C. intermediaries.
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D. final consumers.

16. Leon's Leather Coats and Accessories wants to ship all of its customers' orders within 24 hours of
order placement. This is an example of a
A. quality objective.
B. cost standard.
C. quantity objective.
D. time standard.

17. One of the advantages of using wall fixtures to display clothing and accessory items is that the
A. take the place of interior signage.
B. eliminate the need to paint the walls.
C. are inexpensive to buy.
D. are an effective use of space.

18. Which of the following factors affects international trade and increases the demand for automotive
products and services throughout the world:
A. Improved quality of life
B. Additional types of warehousing
C. Decreased interest in buying
D. Regional shopping centers

19. One advantage to muffler shops of using electronic funds transfer

technology to collect accounts receivable is that it eliminates
A. sales discounting.
B. liquidity reporting.
C. check processing.
D. payee outsourcing.

20. Which of the following is an example of marketing rather than

retailing in the automotive services industry:
A. An automotive accessory shop purchasing floor mats
B. A service station buying gasoline to resell
C. A tire and battery store selling snow tires
D. An auto-parts store advertising a special sale

21. Buying the right assortment of goods so the auto-parts store will
make a profit is an important__________ activity.
A. selling
B. merchandising
C. marketing
D. retailing

22. One way that automotive accessory stores promote certain types of merchandise is by developing
A. lists of benefits.
B. contracts with vendors.
C. themes for displays.
D. descriptions of features.

23. The relationship between a creditor and a debtor is usually based on the debtor's
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A. ability to pay. C. type of account. B. billing schedule. D. pricing method.

24. The use of statistical data might present an ethical issue for medical businesses if the information is

A. perceptive. C. objective.
B. documented. D. manipulated.

25. Why does a home-security business analyze and identify its unique selling proposition?

A. To determine what sets it apart from competitors

B. To prepare specification sheets for employees
C. To create attractive advertising campaigns
D. To manage internal operating procedures

26. Which of the following is an example of a pre-sale opportunity to provide service to customers:

A. Including a long-term maintenance plan

B. Processing an order in a timely manner
C. Arranging for on-the-job training
D. Making only promises that can be kept

27. The food marketing industry consists of business activities that are primarily related to the production,
distribution, and sale of
A. edible products. C. raw materials.
B. intangible goods. D. dining services.

28. The primary cost factors that food marketers must consider when developing a direct advertising
campaign include list acquisition, delivery, and
A. inventory. C. research.
B. production. D. follow-up.

29. In what part of a sales letter should a specialty food market tell customers to return an enclosed
postcard, send for a free gift, call for additional information, or fill out an order blank?
A. Selling paragraph C. Headline
B. Opening paragraph D. Closing paragraph

30. What do some hotel chains develop to establish formal relationships with employees?
A. Applications C. Policies
B. Regulations D. Contracts

31. What do all hospitality businesses need to be aware of in regard to the accounting process?
A. Management styles C. System specifications
B. Legal considerations D. Research techniques

32. Which of the following is a primary factor that a hotel chain considers when positioning its corporate
A. Target market C. Form utility
DECA MGCI Practice Exam Page 5 of 8

B. Employees' expectations D. Promotional budget

33. The primary goal of using electronic data interchange (EDI) systems is to help retail merchandisers to
A. summarize customer data. C. obtain competitors' pricing.
B. process orders efficiently. D. import foreign goods.

34. When applying the law of diminishing returns, businesses know that
there is a point at which production
A. reaches its maximum level. C. equals the amount of revenue.
B. is too expensive to continue. D. passes that of the competition.

35. If a merchandising business has a net profit of $225,000 and its net
sales are $975,000, what is its profitability ratio?
A. 20% C. 22%
B. 23% D. 21%

36. Which of the following do young people often buy that will pay them
an income in the future:
A. Real estate C. Deferred annuities
B. Escrow accounts D. Stock dividends

37. Which of the following is one of the methods used to pay financial services providers:
A. Cash value C. Trade credit
B. Price point D. Hourly fee

38. New businesses estimating start-up costs and operating costs for a period of time are determining the
A. amount of funds they need. C. level of inventory to buy.
B. risk of starting a business. D. profit they plan to earn.

39. What do some hotel chains develop to establish formal relationships with employees?
A. Applications C. Policies
B. Regulations D. Contracts

40. What do all hospitality businesses need to be aware of in regard to the accounting process?
A. Management styles C. System specifications
B. Legal considerations D. Research techniques

41. A marketing-research brief helps the researcher perform which of the following functions:
A. Observing C. Planning
B. Editing D. Hiring

42. Which of the following is a reason why importing is a growing distribution trend in the retail industry:
A. Many foreign manufacturers are able to make products for a low cost.
B. Shipping products from one country to another is inexpensive.
C. All products should be available to all customers throughout the world.
D. International marketing tends to decrease competition.

43. Immediately contacting the credit-card company if credit cards are lost is one way to protect against
A. excessive penalties. C. financial risk.
B. identity theft. D. high interest rates.
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44. Generating sufficient revenue to pay for providing necessary services to the public is the reason for
A. taxes. C. prices.
B. sales. D. quotas.

45. Which of following situations is an example of a response error:

A. Ben found that the sample group was not representative of the target market.
B. Jenny coded a survey respondent's answer with the number two instead of the number three.
C. Tim did not answer the last two questions on a written survey.
D. Angela developed a written survey containing open-ended questions.

46. Putting up exterior promotional signs to publicize low prices for a January clearance is an example of
a retailer preparing for a(n)
A. in-store giveaway. C. loyalty marketing program.
B. demonstration of new merchandise. D. special sales event.

47. What do many retailers plan to attract customers and encourage them to visit
the store?
A. Special events C. Rebate programs
B. Trade shows D. Market trips

48. What research technique is intended to obtain information about people's opinions?
A. Qualitative C. Market
B. Quantitative D. Attitude

49. Why is it important for sports and entertainment businesses to interpret statistical findings?
A. To organize a database C. To calculate the median
B. To develop charts and tables D. To obtain useful information

50. When an event planner seeks celebrity endorsements for an

upcoming event, s/he should make sure they are credible and
A. trustworthy. C. neutral.
B. innovative. D. resourceful.

51. Which of the following types of sport/event businesses would be most likely to place a banner
advertisement on a ski resort's web site:
A. Snowboard retailer C. Cross-training equipment distributor
B. Shoe manufacturer D. Rock-climbing boot retailer

52. Sports and entertainment businesses often participate in trade shows as a way of communicating with
A. target audiences. C. investors.
B. out-of-town employees. D. sales staff.

53. One of the main functions of the legal procedure is to

A. resolve disputes. C. establish laws.
B. enact legislation. D. regulate business.

54. When the court orders a wrongdoer to pay a victim for his/her medical expenses and lost wages, the
court is awarding __________ damages.
A. consequential C. aggregate
B. punitive D. compensatory
DECA MGCI Practice Exam Page 7 of 8

55. An effective team-building technique involves allowing team members to

A. work independently. C. share responsibility.
B. make individual decisions. D. set personal goals.

56. What do many businesses identify and strive to improve in order to attract customers and be
A. Commission plans C. Personal characteristics
B. Service standards D. Operating quotas

57. The three local widget distributors agreeing to charge the same amount for the new, improved model
is an example of
A. unethical pricing. C. price fixing.
B. price skimming. D. predatory pricing.

58. The relationship between a creditor and a debtor is usually based on the debtor's
A. pricing method. C. type of account.
B. billing schedule. D. ability to pay.

59. The increased use of online sport/event ticket sources has reduced distribution problems associated
with box-office sales, such as
A. ticket duplications. C. limited stock.
B. ticket scalping. D. sales force expertise.

60. Why is it important for sports and entertainment businesses to interpret statistical findings?
A. To organize a database C. To calculate the median
B. To develop charts and tables D. To obtain useful information

61. Which of the following is an important factor that affects the legal procedure:
A. Freedom C. Misdemeanor
B. Jurisdiction D. Larceny

62. What do travel agency managers need in order to harmonize tasks and employees in the context of
business priorities?
A. Natural aptitudes C. Professional development
B. Aggressive personality D. Organizational skills

63. Which of the following is an advantage to customers of product bundling:

A. Discount pricing C. Brand awareness
B. High quality D. Sales increases

64. A factor that often motivates people to attend events that explain the history of an area/destination is
A. entertainment. C. relaxation.
B. recreation. D. education.

65. Basic torts relating to online businesses often involve disputes concerning
A. contracts. C. defamation.
B. assaults. D. emotional stress.

66. Setting the marketing budget is an important step in developing the marketing
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A. strategy. C. plan.
B. concept. D. idea.

67. Which of the following is an example of an e-commerce standard:

A. Site registration procedure
B. Online intellectual property
C. Proposed distribution system
D. Accepted programming language

68. Which of the following are the elements of an advertisement that should be coordinated to make the
ad effective:
A. Headline, illustration, copy, signature
B. Copy, typeface, color, slogan
C. Illustration, layout, artwork, text
D. Signature, slogan, type size, font

69. What is one way that management can obtain feedback from customers to improve the customer
A. Follow up after a sale. C. Take a random poll.
B. Consider a questionnaire. D. Observe shopping behavior.

70. Businesses often access their competitors' web sites to obtain relevant __________ data.
A. demographic C. governmental
B. population D. secondary

71. As a result of evaluating the product mix, a business might decide to

A. implement product substitution.
B. eliminate product liability.
C. expand an existing product line.
D. institute a product recall.

72. Which of the following is one of management's roles in customer relations:

A. Making promises that are difficult to keep C. Acting with self-confidence
B. Demonstrating product knowledge D. Being committed to improvement

73. If a quick-serve restaurant supply business purchases a product for $235, has 35% of that amount in
expenses, and wants to generate a 20% profit on each product, what is the final price of the product to a
A. $364.25 C. $372.40
B. $380.70 D. $396.55

74. When planning the amount of meat to order, quick-serve restaurants subtract the shrinkage amount
from the purchase weight to determine the
A. type of processing. C. water content.
B. percentage of fat. D. edible portion weight.

75. Making breads and desserts in-house rather than buying those items from suppliers is one way that
many restaurants are able to
A. offer complimentary foods. C. save money on preparation costs.
B. purchase inexpensive ingredients. D. maintain quality control standards.