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Software of the Month Club 1998 July
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Business.tx_
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1998-01-02
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BUSINESS TEST
Discover if you have the aptitudes for business to coordinate,
delegate, manage, negotiate, organize, persuade, sell, and
supervise. Can you make good business decisions?
Directions: Read the directions carefully, then work quickly and accurately
on the test. Answer as many of the 58 questions as you can within the time
limit.
Time Limit: 30 minutes
1. When it is necessary for you to reprimand one of your employees, you
should do so . . .
a) only in writing on official company stationery.
b) in private.
c) during a coffee break.
d) with an apology first, then the reprimand.
2. You are an honest person and have been selected as a mayoral candidate
in a city that has a long-standing reputation for corruption. Which of the
following should you do?
a) Promise the voters that if you are elected you will conduct a
complete, sweeping reform. Everyone in the present administration
who is even suspected of being corrupt will lose his or her job.
b) Determine through polls, surveys, and other proven techniques
those corrupt areas which affect and concern most people and promise
to try to reform them.
c) During the campaign, try to avoid the issue of corruption so that
those now profiting from it will vote for you and help finance your
campaign.
d) Avoid this political issue completely because corruption is too
"hot" an issue and will most likely continue no matter what you do.
3. Which of the following attributes is most desirable for a secretary?
a) fairness
b) self-respect
c) sense of humor
d) accuracy
4. You are informed that your superior will soon make an on-the-spot check
of the project on which you and your subordinates are now working.
Would it be appropriate for you to . . .
a) influence your people to work faster than usual?
b) go to your superior and ask why you are being picked on?
c) forget about it?
d) briefly mention it to your people?
Discover What You're Best At
5.
The competencies required to fulfill the tasks of a job vary with the level
of the job. The standards necessary for a manager should be greater than
those expected of subordinates with regard to . . .
a) skill in one aspect of the work.
b) speed.
c) ability to instruct others.
d) punctuality.
6. A new suburban neighborhood consists of twenty-six one-family houses.
The price of each house is within the range of $85,000 to $95,000. On the
last lot a more elaborate house is built and sells at a fair market price of
$155,000. The effect of this last home will be to . . .
a) raise the market value of the other twenty-five houses.
b) stabilize the market value of the less expensive houses.
c) influence the owners in the majority of houses to add more rooms
onto their homes.
d) lower the market value of the other twenty-five houses.
7. You are a typewriter manufacturer's sales representative, and your sales
manager gives you the name of a retail dealer who has been approached
many times before but has not bought any of your company's machines.
Your sales manager informs you that if you can obtain the minimum
initial order, you will receive double commission and extra paid vacation
days. In the past, the dealer has admitted that your line of typewriters is
superior to others on the market but that they also cost considerably
more. During your sales presentation, which of the following should you
emphasize most?
a) all the faults of your competitors' machines
b) the reasons that your machines are worth the extra cost
c) that you and your family really need the double commission
d) that other dealers who sell your line of typewriters will soon put
this dealer out of business if he doesn't carry your line
8. Which of the following contains only items that are usually considered
fixed monthly charges?
a) interest, taxes, insurance, rent
b) interest, taxes, power cost, labor for repairs
c) insurance, painting, amortization, power cost
d) insurance, taxes, replacement parts, travel cost
9. Which of the following industries is least affected by the ups and downs
of the business cycle?
a) food-processing industry
b) construction industry
c) automobile-manufacturing industry
d) travel industry
10. The exchange of viewpoints at a conference is most valuable for solving
problems that . . .
a) are impossible to solve.
b) necessitate a swift and decisive solution.
c) are unusual and complicated.
d) are simple and familiar to the participants.
11. Companies that wish to motivate their employees should consider
rewards rather than penalties chiefly because . . .
a) no one likes to deal out penalties.
b) rewards frequently result in earnest cooperation.
c) penalties usually have much effect on long-term behavior.
d) penalties are never serious enough to amount to much.
12. If a co-worker in the factory is having frequent accidents, it is in all
probability because that person is not . . .
a) lucky enough to escape misfortune.
b) confident enough on the job.
c) paying enough attention to safe work habits.
d) physically strong enough to do the job.
13. You own a retail shoe store. While attempting to sell to a customer a more
expensive pair of shoes, you would not . . .
a) suggest that this pair of shoes would most likely last longer, thus
lowering the ultimate cost.
b) emphasize that the style of this pair of shoes lends itself to many
different outfits and occasions.
c) degrade your own less expensive shoes.
d) mention that this expensive shoe is worn by a select group in town
and will certainly be admired.
14. As an applicant for a management position, you should be somewhat
cautious if the available position is . . .
a) due to an advancement.
b) due to a resignation.
c) newly created.
d) just what you've wanted.
15. Sales managers should keep the personnel turnover at a reasonable rate.
If you were a sales manager, which of the following causes of turnover of
sales personnel would be reason for your greatest concern?
a) promotion to a higher position
b) illness or physical disability
c) inadequate supervision
d) retirement
16. When selecting one of your employees for a supervisory role, you should
place the greatest significance on the applicant's . . .
a) intellectual capacity and formal education completed.
b) ability to perform the work that will be supervised.
c) knowledge of the work and potential for leadership.
d) sincerity and loyalty to the company.
Discover What You're Best At
17. A file clerk under your supervision reports that the information you now
want is missing and guesses that it has been removed from the file drawer
and is currently being used by some other department. To ensure that
this situation does not recur, you should ...
a) not allow other departments to borrow your files.
b) have your file clerk inform you of all materials borrowed by the
other departments.
c) set a limit on the number of items that can be borrowed from your
files.
d) have an out-of-file card filled out and inserted for each item as it is
borrowed.
18. Your supervisor has asked for periodic, clear, and thorough reports on
the progress you are making in meeting your objectives. You should
present...
a) oral reports; it is easier for your supervisor to relay your oral reports
up the chain of command.
b) oral reports; they require less time and effort to prepare.
c) written reports; they provide permanent records which can be
referred to later.
d) written reports; they create less time for discussion.
19. A business conference can be used as a training technique. It will be
least effective when . . .
a) the agenda avoids problem areas.
b) each of the participants is an expert in the problem to be discussed.
c) each of the participants is most articulate.
d) each of the participants has a different point of view.
20. As a life-insurance salesperson you should have information about a
prospective client before you can recommend a particular policy. Which of
the following is the least important factor that you should consider?
a) the present financial situation of the prospective client
b) the expected future financial earning capacity of the prospective
client
c) how many years the prospective client expects to live in your sales
district
d) the kinds of insurance and other investments the prospective client
now owns
21. Which of the following characteristics would apply least to entrepreneurs?
Entrepreneurs are usually . . .
a) the firstborn child in their family.
b) excellent managers.
c) moderate risk takers.
d) adept at maximizing their ability as "doers."
22. For years, advertising firms have used famous people to promote products
To be most effective in persuading the public to purchase a particular
product, what characteristics should the famous person have?
a) credibility, attractiveness, a position of power or prestige
b) attractiveness, wealth, a good command of today's "in" sayings
c) forcefulness, attractiveness, height
d) credibility, a big smile, a melodious voice
23. You are a sales representative for an advertising agency and have clearly
explained to your prospective client how your services would benefit his
company. Now which of the following questions should you ask to close
this business deal?
a) "Would you like our company to represent you? Yes or No?"
b) "I should think three daily advertisements on radio would be about
right to start with, don't you?"
c) "Why don't you give me a call sometime, when you think we could
help you?"
d) "Don't you think we do a great job?"
24. Initially, which of the following specific activities would beginning,
inexperienced accountants most frequently be performing?
a) preparing comparative financial statements
b) checking petty-cash vouchers
c) interpreting financial reports
d) using billing machines
25. Independent companies can improve their sales records by controlling
certain selling activities. One common method of control is to assign
salespeople to specific sales territories. Which of the following improvements
would not take place when sales territories are established?
a) an improvement in customer relations
b) a reduction in sales expenses by eliminating duplication of effort
c) an attainment of a more thorough coverage of your market
d) a creation of more buying power in the sales territory
26. A customer in your restaurant requests a particular brand of wine that
you do not stock. It would be best for you to . . .
a) tell the customer to bring that particular wine from home from now
on.
b) inform the customer that you do not have that brand but you have
others that are of equal flavor, body, and bouquet which you would
like to serve.
c) ignore the customer's request for that specific brand and proceed to
serve a comparable one, since it is hard to tell the difference.
d) tell the customer that only cheap restaurants serve that particular
brand and you wouldn't stock it.
27. It is your very first day at work in a chemical plant and you are assigned
to work with an experienced technician. At one point during the day, you
realize that the technician is about to violate a basic safety rule. The best
thing for you to do is ...
a) turn your back so that you will be unable to witness the violation.
b) say nothing until the rule is actually broken, then mention it.
c) call it to the technician's attention without delay.
d) say nothing now, but discuss it during coffee break with other workers.
28. Your position requires you to submit a number of forms and reports once
each week. The most advisable system for fulfilling this task is to . . .
a) schedule a definite period of time each day, or on a weekly basis,
for the completion of these reports.
b) complete the forms whenever you have spare time.
c) delegate this task to one of your subordinates.
d) abbreviate your answers and refer your supervisor to last week's
forms.
29. Most industrial psychologists would say that it is generally undesirable
for middle-management employees to become aware of changes in
company policy through the informal grapevine because . . .
a) it shows that someone involved in upper-level decision-making has
leaked information and cannot be trusted.
b) it shows that the decision-making body does trust middle management.
c) it distorts and exaggerates the information out of proportion.
d) it duplicates the work of the formal information dissemination
procedures.
30. Which of the following characteristics would least likely apply to sales
executives? The sales executive . . .
a) is mentally superior to the majority of his subordinates, but is not
surrounded exclusively by less capable people.
b) readily accepts responsibility.
c) has the ability to teach and motivate others.
d) is often moody and inconsistent in order to keep the sales force alert
and attentive.
31. In your attempt to deal satisfactorily with a complaint that is imagined
rather than real, the complaint should be considered . . .
a) just as important as a real grievance.
b) trivial, since it has no real basis.
c) indicative of a labor union's attempt to initiate unrest within the
company.
d) when you get around to it. There is little need to rush, since it is
not real anyway.
The Tests 27
32. Usually the price of a two-pound can of pineapple slices is less than that
of two one-pound cans because . . .
a) on larger cans the company can do more advertising.
b) a lower grade of pineapple is used in larger cans.
c) customs officials do not tax large cans that come from Hawaii.
d) packaging costs are not relative to the amount of pineapple in the
can.
33. You are an office manager, and one of your nine clerks, Alice, has voiced
a complaint. Her complaint is that her co-worker, Bob, has a much easier
work load and far less complicated assignments than any of the other
clerks. Which of the following actions would be most appropriate?
a) Schedule a meeting of your nine clerical workers and discuss this
problem.
b) Explore the basis of Alice's complaint.
c) Politely explain that Bob's work load is none other business.
d) Reduce Alice's work load and give some to Bob.
34. As a department-store manager should you encourage or discourage your
employees from making suggestions for increasing the sales and efficiency
of the store?
a) Discourage; employees may take offense at your asking them to do
something extra.
b) Encourage; employees will find fault wiJth one another's work and
may produce rival factions, which will lead to competition and
efficiency.
c) Encourage; employees may develop pride and added interest in
their tasks, which will improve overall efficiency.
d) Discourage; employees will think less of you, for it will seem that
you do not know how to manage the store.
35. As manager of a supermarket, you should assign tasks to a new employee
that...
a) give the widest exposure to all facets of the supermarket.
b) isolate this worker to ensure a minimum amount of distraction.
c) will be the most interesting in order to promote an interest in the
food industry.
d) offer the best chance to attain concrete results.
36. The primary reason for a senior department supervisor to delegate
authority to a junior supervisor is to . . .
a) see if the junior can find new or better ways to get things done.
b) provide an opportunity for the junior to "sink or swim."
c) make the senior's job easier.
d) release the senior for more important duties.
37. In order to have your employees willing to follow new standardized
procedures, you should be prepared to . . .
a) explain the advantages of the new procedures.
b) do part of the work yourself until the employees learn the new
procedures.
c) give the employees extra time off if they save time by using the new
procedures.
d) deal with a labor strike.
38. From management's point of view, the most desirable quality in a newly
hired office clerk is . . .
a) the absence of outside hobbies or interests.
b) the ability to sufficiently perform the assigned duties.
c) the eagerness to ask questions about all aspects of the business.
d) the ability to organize other people for a worthy cause.
39. A new office worker is told by a more experienced employee that he is
making a few serious errors in his work. The best reason for him to heed
this advice is that the experienced employee . . .
a) will not offer advice again, unless it is taken the first time.
b) has had more experience on the job and probably knows what
should be done.
c) will become an enemy unless the advice is taken.
d) will probably become a supervisor quite soon.
40. The more highly specialized your work becomes, usually the . . .
a) more geographic mobility you have.
b) more protection you have from unemployment.
c) larger the city you will live in.
d) more travel you must do for the company.
41. You are an optician whose eye-care center features a large selection of
fashion eyewear for the whole family. One of your customers is purchasing
her first pair of prescription glasses, and you would also like to sell
her a pair of prescription sunglasses. In attempting to make this
additional sale, you should say . . .
a) "You should get sunglasses, too."
b) "Do you need sunglasses?"
c) "While you're here, let's take a look at frames that make attractive
sunglasses."
d) "You will need sunglasses this summer, and it would be silly for
you to look anywhere else, for we have the best selection in town."
42. Which of the following characteristics would apply least to entrepreneurs?
Entrepreneurs...
a) prefer tasks involving some objective risks.
b) work harder when influenced by a financial reward.
c) tend to think ahead.
d) work harder at tasks that require mental manipulation.
43. Personnel workers should have good interview techniques. The more
capable ones regard the interview process as . . .
a) a warm, friendly, wandering conversation.
b) a warm, friendly conversation guided by a definite purpose.
c) a rather rigid, purposeful discussion.
d) a rather rigid procedure which clearly separates the interviewer
from the interviewee and is systematized to evoke all the information
needed.
44. You are a front-desk clerk at a downtown hotel. You are talking with one
of the guests, who has obviously misunderstood what you have said. At
this point it is best for you to say . . .
a) "I'm sorry I didn't make it clear."
b) "You are wrong about that."
c) "I think you misunderstood me."
d) "Excuse me, but I think you are somewhat confused about that."
45. The members of the board of directors of the Candle Golf Club in Nevada
realize that the association's profits have fallen dramatically over the past
few years. They call a general-membership meeting and cooperatively
decide to initiate three possible solutions. First, they decide to raise the
club dues by 20 percent. Secondly, they decide to obtain a limited gaming
license so they can make extra money during special club events.
Their third solution is to conduct a membership drive and to charge only
an initial $385 for all newly enrolled families. The three plans were
initiated, and the club's accounting book showed a profit for the first time
in the past four years.
On the basis of the above information, which of the following is most
likely true?
a) The membership drive netted only two families, because many
families cancelled their membership when the dues increase was
announced.
b) These actions prompted a complete audit of the club's financial
records, and it was found that the accountant and a member of the
board of directors had been systematically investing the club's
funds in stocks that had depreciated.
c) The community felt that $385 was a small fee for membership in
this club, so many rushed to enroll.
d) In the fifth year of these new policies, the club had to close because
of lack of funds.
46. A department administrator should realize that it is usually best not to . .
a) assign specific responsibilities to immediate subordinates.
b) delegate authority wherever responsibilities have been assigned.
c) make a subordinate responsible to more than one administrator.
d) check the progress of delegated assignments.
47. You have decided to begin a mail-order business from your home. Which
of the following procedures would you use?
a) Select a product that is widely sold in retail stores so that your
prospective customers will be familiar with it.
b) Have a post-office box number as part of your address so you will
not be bothered by crank phone calls from customers who find your
telephone number in the telephone book.
c) Try to minimize expenses by avoiding mailing labels that have
"Return Postage Guaranteed" printed on them.
d) Offer a money-back guarantee on everything you sell, for it promotes confidence in your product.
48. You are the head of a large departmental office. Your attitude toward
grievances should be to . . .
a) pay little attention to them.
b) attend to grievances and make the necessary adjustments to
alleviate all of them.
c) maintain strict discipline and that will eliminate nearly all
grievances.
d) know which grievances occur most frequently and attempt to
prevent them from occurring.
49. You are the sales manager of a stockbrokerage firm, and a customer has
complained that one of your salespeople has been inattentive and unable
to help with a financial problem. You then investigate the situation, talk
with your salesperson at length, and determine that the customer's
complaint is a by-product of overanxiety about finances. Of the following,
your most appropriate option is to . . .
a) refer the customer back to the salesperson.
b) handle this customer yourself.
c) refer the customer to another salesperson.
d) refer the customer to another stockbrokerage firm.
50. As a good manager you certainly foster initiative in your staff, but you
realize that at times it can be counterproductive. The greatest detriment
occurs when the staff member ...
a) wastes time and energy in an unprofitable activity.
b) does things differently from what you would have done.
c) acts superior to the other workers.
d) makes errors in judgment.
51. Your supervisor insists on explaining the procedure for doing a job which
you know how to do very well. You should listen attentively because . . .
a) you can still do the job your own way after the supervisor leaves.
b) you may catch the supervisor in an error and thus prove to yourself
that you know more.
c) your attentiveness might impress the supervisor.
d) it will be your job to perform the task the way the supervisor wants
it done.
52. Which of the following is the least sensible cash and finance practice for
a small retailer?
a) Maintain a close personal relationship with your local banker.
b) Make checks out to "cash" and assign them to various expense
accounts.
c) Establish, in advance, a line of credit at your bank.
d) Deposit each day's cash receipts in the bank.
53. Certain factors can promote a higher level of employee performance.
Select the one most frequently suggested by industrial psychologists.
a) recognition of a job well done
b) job security after a certain amount of time on the job
c) close supervision by a manager
d) a full package of money-related employee benefits
54. The most significant reason for a company to establish definite work
schedules for its employees is that . . .
a) it clears the relationship between the administration and the
subordinates.
b) the workers are more satisfied when a routine is created.
c) it lessens the chance that an important task will be inadvertently
overlooked.
d) it helps the bookkeeper compute the payroll.
55. If a committee of employees is to meet with an administrative officer for
the specific purpose of improving relations and dealing with grievances,
it would be best if the meetings were held . . .
a) whenever the need becomes apparent.
b) whenever requested by the employee committee.
c) upon the consideration of the administrative officer.
d) at regularly scheduled times.
56. As a member of a corporate policy-making committee you generally make
your best contributions to the committee when you . . .
a) abandon your own point of view and accept the view of others.
b) overcome other committee members' resistance to your ideas.
c) persuade the other committee members to accept your major ideas
but back off on minor points.
d) combine your ideas with the ideas of the other committee members.
57. There are very few tools for measuring average amounts of work accomplished
by an employee. Considerable emphasis is usually placed on the
fallible judgment of other people to construct these standards of measurement.
These time standards are set either by experienced workers or by
a time-study industrial engineer. Once these time standards are set . . .
a) they can be used to schedule production.
b) they cannot be changed.
c) they cannot be used to estimate the cost of sales.
d) they can eliminate the need for supervisory personnel.
58. Many business careers have become extremely specialized. The narrow
scope of these jobs frequently leads to boredom and a lack of excitement.
In order to counteract some of these negative effects of specialization,
many large corporations use job enlargement as a device to improve
employee motivation and efficiency. Which of the following is least likely
to be an example of beneficial job enlargement?
a) adding more complexity to the tasks performed on a job
b) increasing the time spent at a task and adding a number of similar
tasks.
c) involving employees more in the decision-making processes.
d) training employees to handle more than one job and utilizing a
system of rotation.