1|Page
DECA Principles of Business
Management and Administration
Complete Exam Review | Aligned with
U.S. DECA Standards, Practice
Questions, Answer Rationales & Test-
Taking Strategies
Discuss the nature of law and sources of law in the United States.
---CORRECT- ANSWER☑️☑️☑️Law is used to keep order in
civilization. This can be enforced by the police or higher government
officials.
Describe the United States' judicial system
---CORRECT- ANSWER☑️☑️☑️The Judiciary is made up of courts --
Supreme, Circuit, the magistrate (local) and municipal (city) courts. The
Judicial branch interprets the laws.
Describe legal issues affecting businesses (SP)
---CORRECT- ANSWER☑️☑️☑️Disgruntled Employees
Discrimination/Harassment Cases
Harassment
Immigration Audits
Copyright and Patent Issues
,2|Page
Identify the basic torts relating to business enterprises (SP)
---CORRECT- ANSWER☑️☑️☑️The area of tort law covers a wide
range of misconduct, including personal injuries, negligence, and
malpractice.
Wrongful Interference
Unfair Competition
Disparagement
Computer Torts
Describe the nature of legally binding contracts (SP)
---CORRECT- ANSWER☑️☑️☑️Generally, to be legally valid, most
contracts must contain two elements:
1. All parties must agree about an offer made by one party and accepted
by the other.
2. Something of value must be exchanged for something else of value.
This can include goods, cash, services, or a pledge to exchange these
items.
Describe the nature of legal procedure (SP)
---CORRECT- ANSWER☑️☑️☑️he rules by which a court hears and
determines what happens in civil lawsuit, criminal or administrative
proceedings.
Discuss the nature of debtor-creditor relationships (SP)
,3|Page
---CORRECT- ANSWER☑️☑️☑️A creditor provides money to an
individual. Until the individual repays the amount, they are considered a
debtor.
Explain the nature of agency relationships (SP)
---CORRECT- ANSWER☑️☑️☑️an area of commercial law dealing
with a set of contractual, quasi-contractual and non-contractual fiduciary
relationships that involve a person, called the agent, that is authorized to
act on behalf of another (called the principal) to create legal relations
with a third party.
Discuss the nature of environmental law (SP)
---CORRECT- ANSWER☑️☑️☑️A legal forum for environmental and
natural resources
Discuss the role of administrative law (SP)
---CORRECT- ANSWER☑️☑️☑️the body of law that regulates the
operation and procedures of government agencies.
Explain what it means to have sole proprietorship (CS)
---CORRECT- ANSWER☑️☑️☑️A sole proprietorship is owned and
run by one individual who receives all profits and has unlimited
responsibility for all losses and debts.
Explain what it means to have General Partnership (CS)
, 4|Page
---CORRECT- ANSWER☑️☑️☑️A General Partnership is composed of
2 or more persons (usually not a married couple) who agree to contribute
money, labor, or skill to a business. Each partner shares the profits,
losses, and management of the business, and each partner is personally
and equally liable for debts of the partnership. Formal terms of the
partnership are usually contained in a written partnership agreement.
Explain what it means to have Limited Partnership (CS)
---CORRECT- ANSWER☑️☑️☑️A Limited Partnership is composed of
one or more general partners and one or more limited partners. The
general partners manage the business and share fully in its profits and
losses. Limited partners share in the profits of the business, but their
losses are limited to the extent of their investment.
Explain what it means to have Limited Liability Partnership (LLP) (CS)
---CORRECT- ANSWER☑️☑️☑️A Limited Liability Partnership (LLP)
is similar to a General Partnership except that normally a partner doesn't
have personal liability for the negligence of another partner. This
business structure is used most by professionals, such as accountants and
lawyers.
Explain what it means to have Limited Liability Limited Partnership
(LLLP) (CS)
---CORRECT- ANSWER☑️☑️☑️A Limited Liability Limited
Partnership is a Limited Partnership that chooses to become an LLLP by
including a statement to that effect in its certificate of limited
partnership. This type of business structure may shield general partners
from liability for obligations of the LLLP.
DECA Principles of Business
Management and Administration
Complete Exam Review | Aligned with
U.S. DECA Standards, Practice
Questions, Answer Rationales & Test-
Taking Strategies
Discuss the nature of law and sources of law in the United States.
---CORRECT- ANSWER☑️☑️☑️Law is used to keep order in
civilization. This can be enforced by the police or higher government
officials.
Describe the United States' judicial system
---CORRECT- ANSWER☑️☑️☑️The Judiciary is made up of courts --
Supreme, Circuit, the magistrate (local) and municipal (city) courts. The
Judicial branch interprets the laws.
Describe legal issues affecting businesses (SP)
---CORRECT- ANSWER☑️☑️☑️Disgruntled Employees
Discrimination/Harassment Cases
Harassment
Immigration Audits
Copyright and Patent Issues
,2|Page
Identify the basic torts relating to business enterprises (SP)
---CORRECT- ANSWER☑️☑️☑️The area of tort law covers a wide
range of misconduct, including personal injuries, negligence, and
malpractice.
Wrongful Interference
Unfair Competition
Disparagement
Computer Torts
Describe the nature of legally binding contracts (SP)
---CORRECT- ANSWER☑️☑️☑️Generally, to be legally valid, most
contracts must contain two elements:
1. All parties must agree about an offer made by one party and accepted
by the other.
2. Something of value must be exchanged for something else of value.
This can include goods, cash, services, or a pledge to exchange these
items.
Describe the nature of legal procedure (SP)
---CORRECT- ANSWER☑️☑️☑️he rules by which a court hears and
determines what happens in civil lawsuit, criminal or administrative
proceedings.
Discuss the nature of debtor-creditor relationships (SP)
,3|Page
---CORRECT- ANSWER☑️☑️☑️A creditor provides money to an
individual. Until the individual repays the amount, they are considered a
debtor.
Explain the nature of agency relationships (SP)
---CORRECT- ANSWER☑️☑️☑️an area of commercial law dealing
with a set of contractual, quasi-contractual and non-contractual fiduciary
relationships that involve a person, called the agent, that is authorized to
act on behalf of another (called the principal) to create legal relations
with a third party.
Discuss the nature of environmental law (SP)
---CORRECT- ANSWER☑️☑️☑️A legal forum for environmental and
natural resources
Discuss the role of administrative law (SP)
---CORRECT- ANSWER☑️☑️☑️the body of law that regulates the
operation and procedures of government agencies.
Explain what it means to have sole proprietorship (CS)
---CORRECT- ANSWER☑️☑️☑️A sole proprietorship is owned and
run by one individual who receives all profits and has unlimited
responsibility for all losses and debts.
Explain what it means to have General Partnership (CS)
, 4|Page
---CORRECT- ANSWER☑️☑️☑️A General Partnership is composed of
2 or more persons (usually not a married couple) who agree to contribute
money, labor, or skill to a business. Each partner shares the profits,
losses, and management of the business, and each partner is personally
and equally liable for debts of the partnership. Formal terms of the
partnership are usually contained in a written partnership agreement.
Explain what it means to have Limited Partnership (CS)
---CORRECT- ANSWER☑️☑️☑️A Limited Partnership is composed of
one or more general partners and one or more limited partners. The
general partners manage the business and share fully in its profits and
losses. Limited partners share in the profits of the business, but their
losses are limited to the extent of their investment.
Explain what it means to have Limited Liability Partnership (LLP) (CS)
---CORRECT- ANSWER☑️☑️☑️A Limited Liability Partnership (LLP)
is similar to a General Partnership except that normally a partner doesn't
have personal liability for the negligence of another partner. This
business structure is used most by professionals, such as accountants and
lawyers.
Explain what it means to have Limited Liability Limited Partnership
(LLLP) (CS)
---CORRECT- ANSWER☑️☑️☑️A Limited Liability Limited
Partnership is a Limited Partnership that chooses to become an LLLP by
including a statement to that effect in its certificate of limited
partnership. This type of business structure may shield general partners
from liability for obligations of the LLLP.
