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