DECA Business Management 3 — Questions and Answers
Question 1: Which motivational theory suggests employees are motivated by five levels of needs, from physiological to self-actualization?
- Herzberg's Two-Factor Theory
- McGregor's Theory X and Y
- Maslow's Hierarchy of Needs (Correct answer)
- Vroom's Expectancy Theory
Correct answer: Maslow's Hierarchy of Needs
Maslow's Hierarchy of Needs proposes a five-level pyramid where lower needs must be satisfied before higher needs motivate behavior.
Question 2: A business that produces goods or services itself rather than purchasing them from outside suppliers is practicing:
- Outsourcing
- Franchising
- Vertical integration (Correct answer)
- Horizontal integration
Correct answer: Vertical integration
Vertical integration means a company controls multiple stages of its supply chain, producing inputs internally rather than outsourcing them.
Question 3: Which financial statement shows a company's revenues, expenses, and profit over a specific time period?
- Balance sheet
- Cash flow statement
- Income statement (Correct answer)
- Statement of retained earnings
Correct answer: Income statement
The income statement (profit and loss statement) summarizes revenues and expenses to show net profit or loss over a period.
Question 4: An employee who is terminated because their position is eliminated due to company downsizing has been:
- Discharged for cause
- Laid off (Correct answer)
- Resigned voluntarily
- Retired
Correct answer: Laid off
A layoff occurs when an employee loses their job due to organizational restructuring or downsizing, not due to personal performance.
Question 5: Which concept refers to a manager's obligation to report results to their supervisor?
- Authority
- Responsibility
- Accountability (Correct answer)
- Delegation
Correct answer: Accountability
Accountability means a manager must answer to their superior for the outcomes of tasks they were responsible for.
Question 6: A retail chain opens stores in three new cities. This growth strategy is best described as:
- Product development
- Market penetration
- Market development (Correct answer)
- Diversification
Correct answer: Market development
Market development involves selling existing products or services to new geographic markets or customer segments.
Question 7: When a manager coaches an underperforming employee before considering termination, this reflects which HR principle?
- Employment at will
- Progressive discipline (Correct answer)
- Collective bargaining
- Affirmative action
Correct answer: Progressive discipline
Progressive discipline is a step-by-step approach (coaching, warnings, suspension) used before termination to give employees a chance to improve.
DECA Business Management 3
Which motivational theory suggests employees are motivated by five levels of needs, from physiological to self-actualization?