Introduction to Business Study Guides Ch. 1-22

Study Guide - Chapter 1

  1. What is a business?
  2. Define profit, loss, revenue, and expense.
  3. How do businesses affect people's standard of living and quality of life?
  4. What is an entrepreneur and why is this field growing so fast?
  5. What is risk and why do people (or businesses) take risk?
  6. Define stakeholders.
  7. Explain the five factors of production.

Study Guide #2
  1. What is economics?
  2. List the pros/cons of capitalism, communism and socialism.
  3. What is a mixed economy?
  4. Explain how the Free Market System works and list the four basic rights.
  5. Define productivity.
  6. Explain suppy, demand and equilibrium price.
  7. Explain what happens to supply and demand as price changes.
  8. Describe the Key Economic Indicators and explain why they are important.
  9. Define Gross Domestic Product, unemployment rate, CPI, and PPI.
  10. What is the difference between a recession and a depression?
  11. How does a recession affect the economy?
  12. Explain fiscal policy and the national debt.
  13. Explain monetary policy.

Study Guide #3
  1. Why trade with other nations?
  2. What is free trade?
  3. Define importing and exporting.
  4. Explain the comparative advantage theory.
  5. What is balance of trade? Trade deficit? Dumping?
  6. Describe each of the strategies for reaching global markets.
  7. Define bartering and countertrading.
  8. Define exchange rate.
  9. Explain the hurdles of trading in global markets.
  10. Explain the purpose of trade protectionism - import quotas, embargo, tariffs.
  11. Explain the Foreign Corrupt practices Act of 1978.
  12. Describe Free Trade Agreements.
  13. Explain the role of the World Trade Organization?
  14. Compare the European Union common market and NAFTA.

Study Guide #4
  1. What is social responsibility? Who decides how socially responsible a firm will be?
  2. What is Ethics?
  3. Does legal=ethical?
  4. What 3 questions should you ask yourself to help decide if something is ethical?
  5. What is management's role in setting ethical standards?
  6. How do corporations set ethical standards?
  7. Compare Compliance-based ethics codes and Integrity-based ethics codes.
  8. How are managers responsible for corporate ethics?
  9. Explain the different types of corporate social responsibility.

Study Guide #5
  1. List the adv/ disadv of sole proprietorships.
  2. List the adv/ disadv of partnerships.
  3. What is the difference between general and limited partners/partnerships.
  4. List the adv/ disadv of corporations.
  5. Define Limited Liability Company (LLC).
  6. List the adv/ disadv of franchises.
  7. Explain franchise agreement, franchisor, franchisee.

Study Guide #6
  1. Define entrepreneur.
  2. Explain whe people become entrepreneurs.
  3. Which attributes are important for entrepreneurs?
  4. Define small business.
  5. Explain the importance of small business.
  6. List reasons for success or failure of small business.
  7. What is the typical failure rate for small businesses?
  8. What is a business plan?

Study Guide #7
  1. Define the four functions of management and list examples of each area.
  2. Compare strategic, tactical, operational, and contingency planning.
  3. What is leadership?
  4. Describe the three different styles of leadership.

Study Guide #8
  1. Explain hierarchy, chain of command, and bureaucracy.
  2. Explain downsizing, tall vs. flat organizations, span of control.
  3. Explain the difference between centralized vs. decentralized authority.
  4. Explain organizational culture and how it affects a business.
  5. What are informal organizations? Why are they useful?

Study Guide #9
  1. What is production management?
  2. What is Just-in-time inventory control?
  3. What is mass customization?

Study Guide #10
  1. Explain the difference between intrinsic and extrinsic rewards.
  2. Describe the importance of the early management studies.
  3. Explain Frederick Taylor's time-motion studies.
  4. Explain Elton Mayo's Hawthorne studies.
  5. Explain Maslow's hierarchy of needs.
  6. Explain Herzberg's motivating factors.
  7. Compare Theory x , y and z management styles.

Study Guide #11
  1. Define Human Resource Management.
  2. List the human resource challenges of the next decade.
  3. Explain the steps in determining human resource needs.
  4. Explain the difference between job descriptions and job specifications.
  5. Describe the different types of compensation.

Study Guide #12
  1. What are labor unions?
  2. What is the main goal of labor unions?
  3. Know the history of labor unions - Knight of Labor, AFL-CIO.
  4. Explain the Wagner Act of 1935.
  5. Define collective bargaining.
  6. Resolving labor-management disputes
    1. grievance
    2. stewards
    3. mediators
    4. arbitrators
  7. Union tactics
    1. strikes
    2. primary boycott
  8. Management tactics
    1. lockouts
    2. yellow-dog contracts
    3. injunctions
    4. strikebreakers
    5. backruptcy

Study Guide #13
  1. What is marketing?
  2. Explain the evolution of marketing.
  3. Define the marketing mix.
  4. What is a product?
  5. What is a brand name and why is it important?
  6. Compare primary and secondary market research..
  7. Compare consumer and business markets
  8. Define market segmentation.
  9. Define niche, one-to-one, mass, and relationship marketing.


Study Guide #14
  1. What is the difference between a product and a value package?
  2. What is product differeniation?
  3. Explain the types of consumer goods and services.
  4. Explain the importance of packaging.
  5. Define brand name, trademanrk, brand equity, brand loyalty, brand awareness.
  6. Explain the product life cycle.
  7. Compare cost-based, deman-based, competition based, and EDLP pricing strategies.

Study Guide #15
  1. Define marketing intermediaries.
  2. What are channels of distribution?
  3. Compare the utilities created by intermediaries.
  4. Compare how retailers compete.
  5. Compare modes of transportation.

Study Guide #16
  1. Define promotion and IMC.
  2. Compare the six promotional tools that make up the promotion mix.
    1. advertising
    2. personal selling
    3. public relations/publicity
    4. sales promotion
    5. word-of-mouth.

Study Guide #17
  1. Explain the role of information technology in business.

Study Guide #18
  1. What is accounting?
  2. List the five key areas of accounting.
  3. Compare accounting vs. bookkeeping.
  4. Describe the following financial statements:
    1. balance sheet
    2. income statement
    3. statement of cash flows

Study Guide #19
  1. What is finance?
  2. List the three most common ways for a company to fail financially.
  3. Compare short-term vs. long-term financial planning needs.
  4. Explain the need for budgeting and financial controls.
  5. Describe the need for operating funds.
  6. Compare sources of short-term vs. long-term financing.

Study Guide #20
  1. Describe primary vs. secondary markets.
  2. List the adv/disadv of debt financing.
  3. Define bond, interest, principal, maturity date.
  4. Define bond sinking fund, bond call provision.
  5. List the adv/disadv of equity financing.
  6. Define stocks, stock certificate, par value, dividend.
  7. Compare perferred vs. common stock.
  8. Define stock exchange, insider trading, stock broker, stock splits, mutual funds, diversification.

Study Guide #21
  1. What is money? Define Barter.
  2. Define the money supply. Compare M-1 vs. M-2.
  3. How does the money supply affect the economy?
  4. Why does it need to be controlled?
  5. Who controls the money supply?
  6. Describe three tools the Federal Reserve uses to control the money supply.
  7. Why was the Federal Reserve System created?

Study Guide #22
  1. What is your education worth?
  2. Define social security.
  3. Compare Traditional and Roth individual retirement accounts (IRA).
  4. Define 401K and keogh plans.
  5. When should you start saving for retirement?
  6. Six steps in learning how to control your assets.

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revised 2/1/05
by lori bennett