BBI2O0ExamReview

Grade10–IntroductiontoBusiness

DateofExam:Monday,January28,2008
TimeofExam:9:00–10:30
Room:203

ExamReviewCreditedto:
DavidKong
RagavanGaneshathasan
ShehzadSewani
VineelaRudrabhatla
MinuWalia

PartAMultipleChoice
PartBShortAnswer
PartCCookieProgram


GeneralAssumptions
Thiscourseisan“Open”course,whichmeansthattheexamwillensurethatidiotshavetheability
topass.However,inordertoencouragetheselfesteemtheseidiots,theteacherwillnaturallydeduct
marksfromthetopstudentsbasedonarbitraryreasons.Studentswouldjustliketoexpresstheir
discontentthatthisOPENcourseismoredifficulttostudyforthancomparativelymorechallengingIB
coursesandotherUniversityPreparationcourses.
Onafinalnote,Ragavanisfat–andthisassumptionisentirelyfactualasopposedtoarbitrary.

Enjoythereview
Eachchapterhasthreesections:
x Notes
x Questions
x Terminology
 
 January28,2008 [INTRODUCTIONBUSINESSEXAMINATIONREVIEW]

12. Identifythefourconditionsthatcreate
demand.
13. Namefourfactorsthataffectsupply.
14. Whatarethethreefactorsofproduction?
15. Define"cobranding"andgivean
exampleofbusinesseswhoareinvolved.
16.Identifythreeessentialgoodsandthree
essentialservices.
17. Howdoconsumersbenefitfrom
competitionamongbusinesses?
18. Howmightincreasedcompetitionaffect
profit?
 competitorssothatcanmatchorbettertheprice
19.Explainhowsomeonecanbebothaproducer
andaconsumerofthesamegoodorservice.

12.Thefourconditionsthatcreatedemand
areasfollows:
Theconsumerawareorinterestedingoodor
service
Theremustbeanamplysupplyofthegoodof
service–fortheconsumertobuy
Thegoodorservicemustbeofferedata
reasonableprice
Theconsumermustbeabletoaccessthegood
orservice.Ifitisnotconvenientlylocated,
consumerswillusuallynotsearchhardtofindit.

13.Consumerincomes,consumertastes,
futureexpectations,population

14.Naturalresources,humanresources,
capitalresources

15.Cobrandingisthesharingofbusiness
premisesbytwoormorebusinesses.Oneexample
ofcobrandingisHarvey’sandHomeDepot.

16.Threeessentialgoods:food,clothing,
shelter
Threeessentialservices:Utilitiessuchas
heating,lighting,andwater

17.Consumersbenefitfromcompetition
amongbusinessinmanyways.Forexampleyou’re
offeredlowerprices,higherqualitygoodsor
services,andcompetitioncanleadtothe
developmentandintroductionofnewproducts.

18.Increasedcompetitioncanaffectprofitina
positiveway.Businessesconstantlymonitortheir
oftheircompetitorsgoodorservices.Asaresult
pricesarelowered.Thiscreatesagreaterdemand,
thusincreasingprofit.

19.Apersoncanbebothaproduceranda
consumerofthesameproduct.Whenacomputer
storeownercombinescomponentpartstomake
computersystems,heorsheisaproducer.
However,whenthesameownerusesapersonal
computerforaccounting,inventory,pricing,and

GlenforestSecondarySchool|Chapter1:TheRoleofBusiness 4

 January28,2008 [INTRODUCTIONBUSINESSEXAMINATIONREVIEW]


202.Whatiscreditandwhousesit?
203.Name6typesofCredit
204.List5advantagesofbuyingncredit.List
fourdisadvantagesofbuyingoncredit.
206.Listthreevariablesrequiredtocalculate 206.Interest=principalxRevenuexTime
simpleinterst.
214.Whatistheformulaforcalculatingsimple
interest?
207.Namethethreemajorsourcesthat
providecreditbureauswithinformation.
 phone#
208.Name5waystoprotectyourselffrom
fraud.
 x Memorizepininsteadofwritingitdown

202.Everyoneusescredit
203.SixtypesofCredit
x LayawayPlansthestoresetsproduct
asidewhilethecustomermakesequal
paymentforasetnumberofweeksuntil
ithasbeenpaidinfull
x BankissuedCreditCardsVisaand
Mastercard
x TravelandEntertainmentcards
x TermLoansmakefixedmonthly
payments
x DemandLoansshorttermandflexiblein
termsofrepayment
x StudentLoansinterestfreeuntilsix
monthsaftergraduationwhenitis
expectedtobepaid
204.AdvantagesofCredit
x Instantenjoyment
x Convenience
x Emergencies
x Purchaserecordcanhelpyoubudgetyour
moneyandtraceyourspending
Disadvantages
x Creditcosts
x Impulsivepurchasing
x Financialdifficulties
x Overbuying
207.InfoforCreditbureaus
x Consumerinfoconsumergivebirthdate,
x Majorcreditgrantorsfinancialinstitutions
regularlysendhistoriesofpayment
x PublicRecordscourtjudgmentsand
bankruptciesaremattersofpublicrecords
208.5waystoprotectyourselffromfraud
x Don’tleavepinnumberbyitself
x Makesurecreditcardisreturnedafter
makingapurchase
x Checkchargesofmonthlystatements
x Neverleavecardsunattendedatwork#1
GlenforestSecondarySchool|Chapter14 35
 January28,2008 [INTRODUCTIONBUSINESSEXAMINATIONREVIEW]

betweenaservicebusinessandaretailbusiness?

112.Forwhatpurposesdobusinessesuseabalance Seechangesthathavetakenplacewithina
sheet? businessandtoidentifyanyproblemsor
challengesthatthebusinessfaces.

‡ˆ‹‹–‹‘•
FixedexpensesExpensesthatoccurregularlyandforthesameamounteachtime;forexample,
rentormortgagepayments.
VariableexpenseAnexpensethatdifferseachtimeandisdifficulttoestimateinadvancefor
example,food,clothing,entertainment.
BalancesheetAfinancialstatementthatshowsthefinancialpositionofabusinessonaspecific
date.
IncomestatementAfinancialstatementthatshowsabusiness'sprofit(orloss)overastatedperiod
oftime.
RevenueThemoneyabusines:receivesfortheproductsand/orservicesitsellsorfromits
investments.
LiquidityTheabilitytoturnanassetorinvestmentintocash

Chapter9:Marketing

‘–‡•
Productlifecycle:introgrowthmaturitydeclinedecisionpoint
Nontraditionalproductlifecycle:niche,fad,seasonal
Pushstrategy:sellingtoretailers
Pull:sellingtocustomers
Marketingresearch: • Competitive • Pricing
• Consumer • Advertising • Product
• Motivation • Market
Indirectchannelsofdistribution:importers,wholesalers,andretailers
Specialtychannels:donotinvolvearetailstorevendingmachine,telemarketing,catalogue,e
commerce,doortodoor
Typesofads—directtohome,outofhome,radio,TV,newspaper,magazines
Salespromotions:coupons,contests,premiums,samples,specialevents


—‡•–‹‘•
113.Nikeisafad. False

114.Theaverageredemption False(5%)
rateformostcouponsis25%.T
F

115.Publicityiseasiertobelieve True
thanadvertising.

GlenforestSecondarySchool|Chapter9:Marketing 20