DSST Business 5

Question 1

Which leadership style involves the leader making decisions without consulting team members?

Accepted Answer

Autocratic

Answer

Autocratic (authoritarian) leadership involves a single leader making all decisions without input from group members.

Question 2

In contract law, 'consideration' refers to:

Accepted Answer

Something of value exchanged between the parties

Answer

Consideration is a fundamental element of a valid contract requiring each party to give or promise something of value to the other.

Question 3

What is 'just-in-time' (JIT) inventory management?

Accepted Answer

Receiving goods only as they are needed in the production process

Answer

JIT is an inventory strategy where materials arrive exactly when needed for production, minimizing storage costs and waste.

Question 4

A company's 'return on equity' (ROE) measures:

Accepted Answer

The net income generated for each dollar of shareholder equity

Answer

ROE is calculated as net income divided by shareholders' equity and indicates how effectively management generates profit from equity financing.

Question 5

Which of the following best describes 'price elasticity of demand'?

Accepted Answer

A measure of how responsive quantity demanded is to a price change

Answer

Price elasticity of demand measures the percentage change in quantity demanded resulting from a one percent change in price.

DSST - DANTES Subject Standardized Tests Practice Test