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 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