DSST Business 4 — Questions and Answers
Question 1: In human resources management, 'collective bargaining' refers to:
- Negotiations between unions and management over wages and conditions (Correct answer)
- A group buying process for corporate procurement
- A method of setting executive compensation
- Joint ventures between competing companies
Correct answer: Negotiations between unions and management over wages and conditions
Collective bargaining is the negotiation process between labor unions and employers to establish wages, benefits, and working conditions.
Question 2: What does 'depreciation' represent in accounting?
- The increase in asset value due to inflation
- The loss in value of a currency on foreign exchange markets
- The systematic allocation of an asset's cost over its useful life (Correct answer)
- An annual tax penalty on business property
Correct answer: The systematic allocation of an asset's cost over its useful life
Depreciation is an accounting method that allocates the cost of a tangible asset over its expected useful life as a non-cash expense.
Question 3: Which economic concept states that as more units of a good are consumed, the additional satisfaction from each extra unit tends to decrease?
- Law of supply
- Diminishing marginal utility (Correct answer)
- Opportunity cost
- Price elasticity
Correct answer: Diminishing marginal utility
Diminishing marginal utility explains that each additional unit of a good consumed yields less additional satisfaction than the previous unit.
Question 4: A company that holds patents, controls rare resources, and faces no close substitutes is likely operating in which market structure?
- Perfect competition
- Monopolistic competition
- Oligopoly
- Monopoly (Correct answer)
Correct answer: Monopoly
A monopoly exists when a single firm dominates a market with no close substitutes, often protected by patents, resource control, or regulation.
Question 5: In business ethics, 'corporate social responsibility' (CSR) means a company:
- Maximizes shareholder value above all other concerns
- Considers social and environmental impacts alongside profits (Correct answer)
- Follows only legally required ethical standards
- Prioritizes employee satisfaction over customer needs
Correct answer: Considers social and environmental impacts alongside profits
CSR is a management concept where companies integrate social and environmental concerns into their business operations and stakeholder interactions.
Question 6: What is 'market segmentation' in marketing strategy?
- Pricing products differently in different stores
- Dividing a broad market into distinct subgroups with common needs (Correct answer)
- Competing in multiple product categories simultaneously
- Setting geographic boundaries for sales territories
Correct answer: Dividing a broad market into distinct subgroups with common needs
Market segmentation divides a heterogeneous market into distinct groups sharing common characteristics, needs, or behaviors to target more effectively.
Question 7: Which ratio measures how efficiently a company uses its assets to generate sales?
- Current ratio
- Debt-to-equity ratio
- Asset turnover ratio (Correct answer)
- Gross profit margin
Correct answer: Asset turnover ratio
The asset turnover ratio (net sales divided by average total assets) measures how efficiently management uses assets to generate revenue.
DSST Business 4
In human resources management, 'collective bargaining' refers to: