Download EXAM_REVIEW_BOM - Bonar Law Memorial

EXAM REVIEW
BOM 120
I’ve prepared this exam review for you in the hopes that you will
prepare yourself for the exam and do well. Whatever is not on this
review you do not have to know! Good luck 
Remember that hard work pays off and tuna is brain food!
The following vocabulary will be on your exam in some form (maybe matching/fill
in the blank). Use the words to prepare a study sheet/quiz or whatever helps you to
study best.
consumers
demand
entrepreneur
goods
needs
producer
investment
wants
competition
consumer goods
free enterprise
private property
simple interest
liquidity
labour union
impulse buy
securities
interest
standard of living
service
yield
maturity date
industry
investment
collectible
corporate bond
principal
collateral
compound Interest
seniority
repossess
cost of credit
producer goods
economic system
factors of production mixed economy
centrally planned economy
primary industries
efficient use of resources
secondary industries tertiary industries
innovation
credit
You need to know the following concepts for your exam.
1. The three basic types of economic systems, and the three basic decisions that must
be made by any economic system.
2. What are the basic ideas that make a free enterprise system work
3. What “private property” means in a free enterprise economic system
4. Producer Goods
5. Why does a business operate?
6. Describe competition and when it exists.
7. What increases profit in a free enterprise system?
8. Explain why our economy is referred to as a mixed economy.
9. Explain a centrally planned economy and what it promotes.
10. Goods and services, needs and wants ( be able to explain and give examples)
11. Business survival tactics
12. The formula for calculating profit in a business
13. Unlimited liability - is it good or bad, etc.
14. Co-operative, corporation, proprietorship, partnership, small business, franchise
and the advantages and disadvantages of each.
15. The factors of production
16. Explain supply and demand
17. Identify the main factors that can cause a business to declare bankruptcy.
18. How does competition help a customer
19. What are the benefits of free enterprise for consumers and producers?
20. Competition in a centrally planned economy – why is it a good thing?
21. What is in a partnership agreement?
22. Advantages/disadvantages of a Franchise
23. What is credit – is it good/bad?
24. Know the 4 different kinds of investment plans
25. Know the 4 different kinds of savings plans
26. The good and bad of labour unions.