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BBI2O0ExamReview Grade10–IntroductiontoBusiness  DateofExam:Monday,January28,2008 TimeofExam:9:00–10:30 Room:203  ExamReviewCreditedto: DavidKong RagavanGaneshathasan ShehzadSewani VineelaRudrabhatla MinuWalia  PartAMultipleChoice PartBShortAnswer PartCCookieProgram 

GeneralAssumptions Thiscourseisan“Open”course,whichmeansthattheexamwillensurethatidiotshavetheability topass.However,inordertoencouragetheselfesteemtheseidiots,theteacherwillnaturallydeduct marksfromthetopstudentsbasedonarbitraryreasons.Studentswouldjustliketoexpresstheir discontentthatthisOPENcourseismoredifficulttostudyforthancomparativelymorechallengingIB coursesandotherUniversityPreparationcourses. Onafinalnote,Ragavanisfat–andthisassumptionisentirelyfactualasopposedtoarbitrary.

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Eachchapterhasthreesections: x Notes x Questions x Terminology 

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[INTRODUCTIONBUSINESSEXAMINATIONREVIEW]

  12. Identifythefourconditionsthatcreate demand.

12.Thefourconditionsthatcreatedemand areasfollows: Theconsumerawareorinterestedingoodor service Theremustbeanamplysupplyofthegoodof service–fortheconsumertobuy Thegoodorservicemustbeofferedata reasonableprice Theconsumermustbeabletoaccessthegood orservice.Ifitisnotconvenientlylocated, consumerswillusuallynotsearchhardtofindit.  13. Namefourfactorsthataffectsupply. 13.Consumerincomes,consumertastes, futureexpectations,population  14. Whatarethethreefactorsofproduction? 14.Naturalresources,humanresources, capitalresources  15. Define"cobranding"andgivean 15.Cobrandingisthesharingofbusiness exampleofbusinesseswhoareinvolved. premisesbytwoormorebusinesses.Oneexample ofcobrandingisHarvey’sandHomeDepot.  16.Identifythreeessentialgoodsandthree 16.Threeessentialgoods:food,clothing, essentialservices. shelter Threeessentialservices:Utilitiessuchas heating,lighting,andwater  17. Howdoconsumersbenefitfrom 17.Consumersbenefitfromcompetition competitionamongbusinesses? amongbusinessinmanyways.Forexampleyou’re offeredlowerprices,higherqualitygoodsor services,andcompetitioncanleadtothe developmentandintroductionofnewproducts.  18.Increasedcompetitioncanaffectprofitina 18. Howmightincreasedcompetitionaffect positiveway.Businessesconstantlymonitortheir profit? competitorssothatcanmatchorbettertheprice  oftheircompetitorsgoodorservices.Asaresult pricesarelowered.Thiscreatesagreaterdemand, thusincreasingprofit.  19.Explainhowsomeonecanbebothaproducer 19.Apersoncanbebothaproduceranda andaconsumerofthesamegoodorservice. consumerofthesameproduct.Whenacomputer storeownercombinescomponentpartstomake computersystems,heorsheisaproducer. However,whenthesameownerusesapersonal computerforaccounting,inventory,pricing,and GlenforestSecondarySchool|Chapter1:TheRoleofBusiness 

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  202.Whatiscreditandwhousesit? 203.Name6typesofCredit

204.List5advantagesofbuyingncredit.List fourdisadvantagesofbuyingoncredit.

202.Everyoneusescredit 203.SixtypesofCredit x LayawayPlansthestoresetsproduct asidewhilethecustomermakesequal paymentforasetnumberofweeksuntil ithasbeenpaidinfull x BankissuedCreditCardsVisaand Mastercard x TravelandEntertainmentcards x TermLoansmakefixedmonthly payments x DemandLoansshorttermandflexiblein termsofrepayment x StudentLoansinterestfreeuntilsix monthsaftergraduationwhenitis expectedtobepaid 204.AdvantagesofCredit x Instantenjoyment x Convenience x Emergencies x Purchaserecordcanhelpyoubudgetyour moneyandtraceyourspending Disadvantages x Creditcosts x Impulsivepurchasing x Financialdifficulties x Overbuying

206.Interest=principalxRevenuexTime 206.Listthreevariablesrequiredtocalculate simpleinterst. 214.Whatistheformulaforcalculatingsimple interest? 207.Namethethreemajorsourcesthat 207.InfoforCreditbureaus providecreditbureauswithinformation. x Consumerinfoconsumergivebirthdate,  phone# x Majorcreditgrantorsfinancialinstitutions regularlysendhistoriesofpayment x PublicRecordscourtjudgmentsand bankruptciesaremattersofpublicrecords 208.5waystoprotectyourselffromfraud 208.Name5waystoprotectyourselffrom fraud. x Don’tleavepinnumberbyitself  x Memorizepininsteadofwritingitdown x Makesurecreditcardisreturnedafter makingapurchase x Checkchargesofmonthlystatements x Neverleavecardsunattendedatwork#1 GlenforestSecondarySchool|Chapter14 

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[INTRODUCTIONBUSINESSEXAMINATIONREVIEW]

 betweenaservicebusinessandaretailbusiness?  112.Forwhatpurposesdobusinessesuseabalance sheet?

Seechangesthathavetakenplacewithina businessandtoidentifyanyproblemsor challengesthatthebusinessfaces.

‡ˆ‹‹–‹‘• FixedexpensesExpensesthatoccurregularlyandforthesameamounteachtime;forexample, rentormortgagepayments. VariableexpenseAnexpensethatdifferseachtimeandisdifficulttoestimateinadvancefor example,food,clothing,entertainment. BalancesheetAfinancialstatementthatshowsthefinancialpositionofabusinessonaspecific date. IncomestatementAfinancialstatementthatshowsabusiness'sprofit(orloss)overastatedperiod oftime. RevenueThemoneyabusines:receivesfortheproductsand/orservicesitsellsorfromits investments. LiquidityTheabilitytoturnanassetorinvestmentintocash

Chapter9:Marketing ‘–‡• Productlifecycle:introgrowthmaturitydeclinedecisionpoint Nontraditionalproductlifecycle:niche,fad,seasonal Pushstrategy:sellingtoretailers Pull:sellingtocustomers Marketingresearch: • Competitive • Pricing • Consumer • Advertising • Product • Motivation • Market Indirectchannelsofdistribution:importers,wholesalers,andretailers Specialtychannels:donotinvolvearetailstorevendingmachine,telemarketing,catalogue,e commerce,doortodoor Typesofads—directtohome,outofhome,radio,TV,newspaper,magazines Salespromotions:coupons,contests,premiums,samples,specialevents 

—‡•–‹‘• 113.Nikeisafad. False  False(5%) 114.Theaverageredemption rateformostcouponsis25%.T F  115.Publicityiseasiertobelieve True thanadvertising. GlenforestSecondarySchool|Chapter9:Marketing 

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