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Introduction to Business

Introduction to Business. Final Exam Study Guide 2010. 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.

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Introduction to Business

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  1. Introduction to Business Final Exam Study Guide 2010

  2. 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

  3. Chapter 1 • The Rational Decision Making Process • Specify • Search • Sift • Select • Study

  4. Chapter 1 • Opportunity Cost • The value of the next best alternative • Impulse Purchase • Buying on a whim

  5. 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

  6. 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)

  7. 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

  8. Chapter 15 • Types of advertising • Persuasive (appeals to emotions) • Informative (educates you) • Puffery (legal exaggeration)

  9. Chapter 15 • Right to be informed • Businesses must provide accurate information • Read labels • Right to Safety • Products cannot harm • Follow directions

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. Chapter 15 • Brand • Name given to a product to distinguish it from other products

  16. Chapter 16 • Budget • Plan for dividing income among saving and spending • Advantages of a financial plan • Reduces uncertainties

  17. 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?

  18. Chapter 16 • Fixed Expenses • Savings • Rent • Cell phone bill • Variable Expenses • Going out to eat • Going to the movies • shopping

  19. 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

  20. Chapter 16 • Most uncertain aspect of budgeting is • Estimating variable expenses • Most common source of retirement is • Social security

  21. 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

  22. Chapter 9 • Ways to prepare for an interview • Dress appropriately • Be on time • Practice questions • Go alone

  23. 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

  24. 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

  25. Chapter 9 • Civil Rights Act of 1964 prohibits job discrimination for these five areas • Race • Color • National origin • Religion • gender

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