1. Exam 1 - Review Thursday 9/22/11 Tuesday 9/27/11 Classes 8 & 9

2. Study Material  Class Notes & Power Point Slides On Website  Collins Chapters  1 Foundations of Business  2 Business Ethics & CSR  3 Business in a Global Environment  12 Accounting in Business  13 Managing Financial Reources

3. Exam Layout Total Possible Points: 70 True / False Questions: 20 worth 1 point each Multiple Choice Questions: 25 worth 2 points each

4. Exam Questions Overview Basics of a Corporation Structure Federal Reserve Accounting Finance Ethics Global Business Environment

5. Income Statement Questions

6. Balance Sheet Questions ($ooo) Assets Liabilities  Cash + Liquid Securities  Account Receivables  Inventory  Total Current Assets 1,000 2,000 1,000  Wages Payable  Taxes Payable  Interest Payable $(000) 500 100  Total Current Liabilities4,0002,000  Notes Receivable 1,000  Property & Equipment 6,000  Intangible Assets [GW & TM] 1,000  Total Long Term Assets 8,000  Total Assets 12,000  Long Term Debt 2,000  Common Stock 4,000  Retained Earnings 4,000 Total Shareholder Equity 8,000  Total Liabilities & Stockholder Equity 12,000

7. Breakeven Analysis

8. Questions Relating to Your understanding of Financial Statements Income Statements Balance Sheets Breakeven Analysis

9. Questions Relating to Your Understanding of Measuring Financial Performance Profit Margin Ratios – how much of each sales $ is left after certain costs are covered Management Efficiency – how efficiently your assets are being managed [Asset Utilization] Management Effectiveness – how effective management is at running the business. Financial Condition – helps assess the company financial strength