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Business & Marketing Review
Name:________________________ Per:_____
Budget
1. What is the difference between:
Fixed expenses
Expenses amount that remains constant from
payment to payment over a period of time.
Variable Expenses
Expense amount that changes from payment
to payment.
2. A Budget is a saving and spending plan.
3. List the five budgeting steps.
1. Set financial goals (Set Goals)
2. Estimate Income (Gross Pay-Deduction=Net Pay)
3. Estimate Expenses (Fixed and Variable)
4. Plan for Savings
5. Balance Budget (As life and goals change you will need to adjust your plan)
4. George makes $12.00 and hour and works 35 hours a week. $420 is George’s Gross pay.
5. Gross Pay – Deductions = Net Pay.
6. What are three examples of deductions?
1) Social Security
2) Taxes
3) Medicare
7. Two (2) reasons to have a budget is to help track your Income & Expenses
8. Net Pay is also called Take home pay
Stock Market
What are the following types of businesses?
Corporation
Which type sells stock?
Partnership
___Corporation_____________
Sole Proprietor
What are the differences between shares and stocks?
Stock = Overall ownership in a company
Shares = How many shares (or how much) of ownership you have have.
Who charges commissions and what for? Stock Broker, charges a commission fee to complete trades
or transactions in your behalf.
A Stock Broker buys and sells stock for his/her clients on the stock market.
Business & Marketing Review
Name:________________________ Per:_____
What are Dividends?
Money dispersed from the company profits back to the shareholders (company owners)
The stock market is a place where securities (securities = stocks, bonds, mutual funds, currency, etc…)
are traded.
List 2 examples of stock markets: 1) NYSE 2) NASDAQ
What is the difference between:
BULL MARKET
Reflects when the stock market as a whole is
trending upward
BEAR MARKET
Reflects when the stock market as a whole is
trending downward
Identify the parts of a stock quote:
Ticker Symbol: 1 – 5 Letters
Current Price: The amount of the last trade
Stock Market: Where it’s traded
Prev Close: Yesterday’s ending price
52 wk Range: The high and low price of the stock in past 52 weeks
Open: Today’s starting price
1y Target Est: Estimate of where the stock price is projected to be in 1 year
Beta: Volatility / Riskiness indicator of a stock
P/E: Price to Earnings ratio
Day’s Range: The high and low price of the stock price for today
Volume: The amount of shares being traded
Calculations of stock price, how man purchased = overall value and total shares
(600 shares bought at $3.00 in June, you decided to sell
at $6.00 per share in October. What is the loss or gain?)
June: 600 x $3.00 = $1800
October: 600 x $6.00 = $3600
Loss or Gain: $3600 - $1800 = $1800 gain
What is Compound Interest? Money earned from the principal amount and the interest earned
previously.
Business & Marketing Review
Name:________________________ Per:_____
Compound Interest Example:
Year
Principal
Interest
Amount at the end of
a time period
0 (Now)
$1,000.00
($1,000.00 × 10% = ) $100.00
$1,100.00
1
$1,100.00
($1,100.00 × 10% = ) $110.00
$1,210.00
2
$1,210.00
($1,210.00 × 10% = ) $121.00
$1,331.00
3
$1,331.00
($1,331.00 × 10% = ) $133.10
$1,464.10
4
$1,464.10
($1,464.10 × 10% = ) $146.41
$1,610.51
Mutual Funds is when you invest into a variety of industries/different businesses subjects, rather
than into one area.
What’s the advantage of diversification? Reducing the potential risk of only investing into one or two
different industries. “Don’t put all of your eggs into one basket”
Why would want to invest into a Mutual Fund? Diversification
Economics
1. What is the difference between law of supply and law of demand?
Supply
The higher the price, the more producers will supply.
Demand
The lower the price, the more people will buy. - OR The higher the price, the less people will buy.
2. List the 3 types of economic resources.
Capital
Human
Natural
3. The method of distributing resources is called an Economic System.
4. What is the USA’s economic system? Capitalism / Free Enterprise
5. What are some examples of Goods and Services?
Goods
Services
1) Computer
1) Plumber
2) Food
2) Waiter
3) Shoes
3) Insurance
Business & Marketing Review
Name:________________________ Per:_____
6. Scarcity = Wants > Resources
7. Fill in the blanks:
Demand is the amount of product consumers are willing to buy.
Supply is the amount of product suppliers are willing to produce.
Services are satisfied through the Wants of people or machines.
What is Opportunity cost & give an example... What you give up when you make one choice instead
of another. Choosing between alternatives involves knowing what you give up and what you gain.
Ex: Not hang out with friends and go to the an event you all like, instead you chose to go to dinner
and movie with your family.
What does Scarcity mean? and give an example… When there is a lack of something that can be used
to satisfy the wants of a group of people.
Ex:
Entrepreneurship
Entrepreneurship
List common characteristics of an Entrepreneur:
Entrepreneur—Someone who takes a risk in starting a business to earn a profit.
•
Work with people
•
Self-starter
•
Leader
•
Take Responsibility (Follow through)
•
Organizer
•
Hard Worker
What are the 3 categories or types of business you can establish?
Types of
Businesses
Advantages
1) Sole Proprietorship
2) Partnership
3) Corporation
Lower Taxes
Easier to raise financial
Unlimited life
Sole Responsibility
capital
Control over profits
Partners may combine
managerial skills
Lower Taxes
Ease of starting a
business
More than one owner
Specialized Management
Greater financial capital
No personal liability for
owners
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Disadvantages
Unlimited liability
Increased Taxation
Difficulty in raising
financial capital
Shared profits
Difficulty in starting
Possible conflicts between
partners
Generally Larger and more
bureaucratic
Possible instability after
death of a partner
Increased government
control
Responsible for all
losses
Management
Knowledge may be
limited.
-
Name:________________________ Per:_____
Unlimited liability
Non-profit
vs.
When an organization’s goals are to serve
the general public and not to make a profit.
The organization does not pay taxes.
For Profit businesses……
- Companies are in business to make a profit by
Providing a product or service
The technical definition of an entrepreneur is…. Someone who takes a risk in starting a business to
earn a profit
What would be 2 disadvantages of being an entrepreneur?
What would be 2 disadvantages of being an entrepreneur? Time Demanding | Full Responsibility of
business success or failure
What would be 2 advantages of being an entrepreneur? Decision Making | Flexibility.
What does the term unethical mean? ____________________________________________________
__________________________________________________________________________________
What does copyright & trademark do for a business or persons items or ideas?
Marketing
1. What is a Target Market?
A specific group of people that a business identifies as their main desired customers
2. List three types of target markets:
Gender
Race
Age
Culture
Income level
3. What is market research?
Market research is simply research into a specific market. Marketing research is the
function that links the consumer, customer, and public to the marketer through information.
Why? To know your target market wants and needs.
Business & Marketing Review
4. List the 4 P’s (Market MIX)
Product
Place
5.
Rational Motive
Emotional Motive
Patronage Motive
Name:________________________ Per:_____
Price
Promotion
- Buying decisions based on facts and logic
- Buying decisions based on feeling and attitude “impulse buying”
- Buying decisions based on loyalty and commitment to a brand.
Accounting
Revenue is the AMOUNT of money a BUSINIESS receives in exchange for their PRODUCTS & SERVICES
An ASSET is a something of value (thing, person, quality) that someone or a business controls that
will provide future benefit.
Liability is a company’s or persons LEGAL DEBT or obligations. Liabilities include loans, accounts
payable, mortgages, and accrued expenses.