REVIEW OF BUSINESS BASICS

1. REVIEW OF BUSINESS BASICS

2. DECA JEOPARDY SWOT Analysis Marketing Mix Human Resources Business Ownership Distribution Channels 100 100 100 100 100 200 200 200 200 200 300 300 300 300 300 400 400 400 400 400

3. Q:A business does not have enough money to increase its research spending, but they can get a new sponsor to help them. The part of the SWOT analysis that this sponsor represents. A: Opportunities – the sponsor provides an opportunity for the business to improve

4. Q: The internal factors of the SWOT analysis, What are strengths and weaknesses A: These are things that the company evaluates itself and are not usually affected by external factors such as cultural change and legislation

5. Q: What does PEST stands for (and give brief outline of the main factors) A: Political factors are how and to what degree a government intervenes in the economy. Economic factors include economic growth, interest rates, exchange rates and the inflation rate. Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change.

6. Q: One main reason a company would perform the SWOT analysis. A: Identifying viable opportunities to improve the business OR Identifying the business’s strengths and weaknesses OR Identifying possible competition to the business and how to avoid this competition

7. Q: What are helping a business determine its target market and giving consumers what they want? A:The two main functions of marketing.

8. Q: Two types of media that advertising can be done through. A: Newspapers, magazines, radio, television, internet, direct mail, outdoor advertising

9. Q: What are the 4 Ps of marketing (and give small description of each) A: : Product - not just the design of product/service and what the business is selling, also includes product/service’s name, product’s packaging and labeling and its guarantees. Price – the price the product is sold for. Some businesses price their products/services low to sell more. Others price them high to make more profit but with fewer sales. Place: where a company sells its products Promotion: informs consumers about a product/service and encourages them to buy it. Involves personal selling, sales promotion, publicity, public relations and advertising

10. Q: What the AIDA formula is used for and what it stands for. A: What is: used for personal selling as a part of promotion, AIDA stands for attract attention, hold interest, arouse desire, and take action

11. Q:What are four different aspects of HR that a company deals with? A: Recruiting, Selecting, Training & Developing, and Dealing With Turnovers

12. Q: Name two different methods that companies can compensate/pay their employees? A: Weekly payment, hourly payment, or by commission.

13. Q: Companies can recruit internally which involves posting a job notice within the company and transferring people to different departments. Name and explain the other method of recruiting. A: Externally – post job advertisements in newspapers, trade journals, the company’s website or various employment websites.

14. Q: Telling employees what is expected of them in the business workplace is known as what? A: Performance Standards

15. Q: Name at least two types of Ownerships and define them A: Sole proprietorship - It is a business owned and operated by one person Partnership - A form of business organization in which two or more people own and operate it Corporation - Legal entity that exists independently of its owners (shareholders) Co-operatives – Business owned by a group of people with common interests Franchise – Already established and franchisor sells to another person the rights to use the name.

16. Q: Which business type has the advantage of making all the decisions by one person? A: Sole Proprietorships

17. Q:Explain two reasons why a Franchise is better than opening a Partnership business? A: Partnerships have unlimited liabilities for other partners and the profits are shared. Also there could be several conflicts. In a franchise, it is already an established business with a well-known name and there is also support from the franchisor.

18. Q:What are two advantages and disadvantages of a Corporation business? A: Advantages - Limited liability, shareholders do not operate the company, exist after the death of the owner, Corporations usually have a lower tax rate than the other two, and raise funds easier than sole proprietorships and partnerships Disadvantages - More complicated than other ownership types, value of company shares can change depending on the changes in the stock market, Corporations must publish annual reports, which could give away important secrets to competitors

19. Q: What two categories are distribution channels divided into? A: Direct and indirect

20. Q: What is a distribution channel? Provide an example of a product going through one. A: The path a product takes to get from the manufacturer to a consumer. It may or may not involve intermediaries. Answers may vary Ex: Farmer grows strawberries  consumer buys strawberries

21. Q: Mitchel’s Forestry and Mill Company sells wood to Smith Wood Products. Smith sells the wood to Ackley construction company, who uses the wood to build homes and office buildings. What is the channel of distribution for the wood products?A. Agent to industrial user to retailer to consumerB. Producer to industrial user to consumerC. Agent to wholesaler to consumerD. Producer to industrial distributor A: D

22. Q: How does the warehousing function affect the distribution process?A. It reduces intermediariesB. It increases form utilityC. It decreases transportation needsD. It creates time utility A: D