Introduction to Business
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Transcript of Introduction to Business
Introduction to Business
Final Exam Study Guide2010
Chapter 1
• Wants – things you can live without• Needs – things you cannot live without• Service Business– Hair care, doctor, lawyer
• Scarcity– Not enough resources to satisfy every need
Chapter 1
• The Rational Decision Making Process– Specify– Search– Sift – Select – Study
Chapter 1
• Opportunity Cost– The value of the next best alternative
• Impulse Purchase– Buying on a whim
Chapter 1
• Types of Economies– Command (Government is in charge)– Market (People are in charge)– Traditional (things are done the same for
generations)– Mixed = Market + Command
Chapter 1
• Law of demand:– As prices goes up, demand goes down
• Principles of US Economy– Private property (own use and dispose of things)– Freedom of choice (can make own decisions but
must accept consequences)– Profit (Price – Cost)– Competition (contest among sellers to win
customers)
Chapter 15
• Government Agencies– USDA – inspect and grades meat products– FTC – protects against unfair business practices– CPSC – protects consumers from dangerous
products– FDA – regulates food and prescription drugs
Chapter 15
• Types of advertising– Persuasive (appeals to emotions)– Informative (educates you)– Puffery (legal exaggeration)
Chapter 15
• Right to be informed– Businesses must provide accurate information– Read labels
• Right to Safety– Products cannot harm– Follow directions
Chapter 15
• Right to choose– Businesses must provide a variety– Use the 5 S’s
• Right to be heard– Government must listen to consumers– Tell the government
• Right to remedy– Businesses must provide solutions– Go back to business and ask for refund or exchange
Chapter 15
• Right to Consumer education– Information or classes must be available– Take classes
• Right to Service– Businesses must be respectful– Go back to businesses that are respectful
Chapter 15
• Monopoly– Company that has an unfair advantage over other
businesses
• Complaint process– Go back to the seller– Write the manufacturer– Go to the Better Business Bureau (BBB)– File a lawsuit
Chapter 15
• Arbitration– Third party that resolves a dispute between a
consumer and business. The decision is legally binding
• Mediation– Third party that attempts to resolve a dispute
between a consumer and business. Their decision is not legally binding
Chapter 15
• Class Action Lawsuit– When a lawsuit is filed on behalf of many people
against one business.
• Guaranty– Company’s promise that products will work or
they will fix it
• Implied Warranty– Unwritten guarantee
Chapter 15
• Brand– Name given to a product to distinguish it from
other products
Chapter 16
• Budget– Plan for dividing income among saving and
spending
• Advantages of a financial plan– Reduces uncertainties
Chapter 16
• Assets– Things you owe
• Liabilities– Things you own
• Net worth = Assets – liabilities• If net worth is 8,000 and liabilities is 5,000
what are assets?
Chapter 16
• Fixed Expenses– Savings– Rent– Cell phone bill
• Variable Expenses– Going out to eat– Going to the movies– shopping
Chapter 16
• Successful budgets are– Realistic and flexible
• Pay yourself first means– Put money in savings before spending on anything
else
• Living within your income means that you don’t spend more than you earn
Chapter 16
• Most uncertain aspect of budgeting is– Estimating variable expenses
• Most common source of retirement is– Social security
Chapter 9
• Mobility– Willingness to move where the jobs are
• Talent– Natural ability to do certain things
• Purpose of a cover letter– to get you the interview
• Reference– People who can report on your character
Chapter 9
• Ways to prepare for an interview– Dress appropriately– Be on time– Practice questions– Go alone
Chapter 9
• Good source that gives in-depth information on hundreds of occupations– Occupational Outlook Handbook
• Values– Things that are important to you
• Interview– Face-to-face meeting with a potential employer to
see if you are a good fit for a job
Chapter 9
• It is important to leave a job on good terms because you might want to use them as a reference for a future job
• Job success strategies– Ask questions– Don’t be late– Don’t complain– Honor break times– Be friendly to everyone
Chapter 9
• Civil Rights Act of 1964 prohibits job discrimination for these five areas– Race– Color– National origin– Religion– gender