Exam Review - Business

Question 1

Leadership

Answer 1

The manner by which individuals determine objectives, provide guidance, motivate others, measure performance and establish an environment that brings excellence, they facilitate the achievement of common goals

Question 2

Democratic

Answer 2

Value input from team-members

Question 3

Autocratic

Answer 3

Leaders that make all the decisions

Question 4

Lassiez-Faire

Answer 4

Non-Intrusive/hands off leadership

Question 5

Transactional

Answer 5

Uses rewards and punishments to motivate people

Question 6

Transformational

Answer 6

All about vision and unite over a shared sense of purpose

Question 7

Supply

Answer 7

The quantity of a good or service that producers are willing and able to sell at various prices during a given period of time

Question 8

Demand

Answer 8

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time

Question 9

Market Equilibrium

Answer 9

The point where the supply and demand curves intersect, indicating the equilibrium price and quantity

Question 10

Surplus

Answer 10

an amount of something left over when requirements have been met; an excess of production or supply over demand

Question 11

Competition

Answer 11

refers to a contest or rivalry between two or more competitors. In business and marketing, competition is a situation in which one company is trying to be more successful than another

Question 12

Market Force

Answer 12

The economic factors that influence the behaviour of consumers and producers in a market

Question 13

Needs

Answer 13

Things that people require to survive, a human body would not function without these things

Question 14

Wants

Answer 14

Things that a person would like to have but are not needed for survival

Question 14

Non-Profit

Answer 14

Operate strictly to help people in the community

Question 14

Sole Proprietorship

Answer 14

Owned by one person

Question 15

For-Profit

Answer 15

A business that produces or sells goods/services to satisfy the needs, wants and demands of consumers for the purpose of making profit

Question 15

Partnership

Answer 15

Owned by two or more people

Question 15

Co-Operative

Answer 15

Owned by it’s workers or members who buy from the business

Question 15

Corporation

Answer 15

An “Artificial Person” established for the purpose of doing business

Question 15

Franchise

Answer 15

When a business licenses another to use it’s name, operating procedure, etc. under the above form of ownership

Question 16

Promotional Strategies

Answer 16

Promotion involves communication strategies used to inform potential customers about products
Traditional: TV Commercials, Radio, Print
Digital: Social media, email, influencer marketing
Sales: Discounts coupons and limited time offers
Public Relations (PR): Managing the company’s public image

Question 16

4 Ps Of Marketing

Answer 16

Product, Place, Price and Promotion

Question 16

Product Development Process

Answer 16

All steps needed to take a product from concept to market availability

Question 16

Production Process

Answer 16

The entire sequence of steps involved in producing a product or service from beginning to end The goal is to ensure final product is high quality, delivered in a reasonable amount of time that suits the customer and it makes money for the company

Question 17

Lean Manufacturing

Answer 17

Focuses on minimizing waste and maximizing productivity

Question 18

Supply Chain Management

Answer 18

the process of planning, implementing, and controlling the flow of materials and finished goods from supplier to consumer

Question 19

3Cs of Marketing

Answer 19

Company, Customer, Competitor

Question 20

Accounting

Answer 20

Involves methodically recording the countless financial transactions that occur in a business every day, allocating them to the correct amount, and then interpreting the overall results

Question 21

Balance Sheet

Answer 21

Shows the financial position of the business on a specific date, how well the company is using its resources (assets) and how competently it is managing the financial affairs of the business (liabilities and owner's equity) Called a balance sheet because Assets must equal or balance Liabilities and Owner's Equity

Question 22

Ethical Responsibilities

Answer 22

ensuring a business engages in fair business practices across the board. Companies should treat all employees, stakeholders, and customers ethically with fairness and respect

Question 22

Celebrity Marketing

Answer 22

Uses prominent individuals who have substantial influence over a group of people in the hope of sending message to a group

Question 22

Income Statement

Answer 22

Shows a company’s revenue and expenses and net profit (or net loss) over a certain period of time

Question 22

Database Marketing

Answer 22

Uses massive databases and sophisticated analytics to target specific consumers, some of whom may not have been asked to be solicited

Question 23

Ethical Dilemma

Answer 23

a type of ethical issue that arises when the available choices and obligations in a specific situation do not allow for an ethical outcome

Question 23

Viral Marketing

Answer 23

Based on encouraging people to pass along favourable marketing messages to friends, colleagues and contacts. Viral marketing is the principle that underlies much of social media and internet advertising

Question 23

Green Marketing

Answer 23

Or environmental marketing, involves promoting products, highlighting features of products, that respond to the growing ecological concerns in our society today, particular among younger consumers

Question 24

Jingle Marketing

Answer 24

Involves coming up with a catchy word or jingle that instantly strikes a chord with the right people at the right time

Question 25

Guerrilla Marketing

Answer 25

Describes unconventional marketing techniques that are intended to make a splash

Question 26

Social Media Marketing

Answer 26

Way of promoting products by creating and sharing content on the internet

Question 27

Decision-Making Using Balance Sheets

Answer 27

We can use the Balance sheet to gain an in-depth understanding of how well a company is performing using the following ratios Profitability Ratios: How much money a company makes Liquidity Ratios: How quickly a firm can pay the money it owes in the short term like it’s accounts payable Solvency Ratios: Assess whether a company can pay its long-term debts Quick Ratios: measures liquidity, It measures whether the business can use its current assets to pay its current liabilities If a business has a quick ratio greater than 1.0 it has the resources to pay all its current liabilities Quick Ratio = Current Assets ÷ current liabilities

Question 28

Decision Making Using Income Statement

Answer 28

Using the income statement you can calculate the Net Profit Margin which measures the relationship of Net Income to Total Revenue The Net Profit Margin shows you that for every dollar of sales the business brings in, what the owner’s final share would be Net Profit Margin = Net Income ÷ Total Revenue

Question 29

13 Characteristics of Entrepreneurs

Answer 29

Able to Get Along with Others Creative Flexible Goal-Oriented Hardworking Independent Intuitive/Perceptive Motivated Optimistic Resourceful Risk Management Self-Confidence Visionary

Question 30

Marketing (Product)

Answer 30

What are you selling? What are the features/benefits? Looking at specifications, materials and safety - A successful product must satisfy the wants and needs of customers and do so better than their competitors - It has to be useful - Design must consider materials, size/varieties, warranties, packaging, return policies, safety, durability, ingredients and environmental friendliness Premium: High quality Competitive: Moderate quality Value: Low quality - Packing must also protect and promote the goods inside and also make the product more convenient to use

Question 31

Marketing (Place)

Answer 31

Where will you sell it? Direct Distribution Channels: When a business sells a good, service or event directly to the customer Indirect Distribution: Involve second-party sellers that are supplied by outside firms, but in some cases, businesses offer their own products call "private" or "house" brands Retail: The product is sold but not by the manufacturer (Best Buy Electronics) Wholesale: The product is sold in larger amounts but not by the manufacturer (Costco) Specialty: Product is sold in a specialized way without contact with a company (Vending Machine)

Question 32

Marketing (Price)

Answer 32

What is the value of the product? How much will customers pay? What pricing strategies are used? The product will generally fall into premium, competitive or value and this will influence pricing

Question 33

Pricing Stragtegies

Answer 33

Penetration Pricing: Enters market at a low price that will be raised later should the product become popular Competitive Pricing: The average "benchmark" price for the product or service, companies will have to stand out in other ways Price Skimming: Starts high to be lowered later once competing brands make the same product Psychological Pricing: Ending in 99 cents to give the illusion you are receiving a deal

Question 34

Marketing (Promotion)

Answer 34

How will you let people know about your product? How is it being advertised?

Question 35

Marketing (Customer)

Answer 35

Who are your target customers? What do they want? Includes understanding target demographics, needs, and purchasing behaviours

Question 36

Markting (Company)

Answer 36

Understand your strengths and weaknesses. Includes internal factors such as mission statement, strengths, and brand identity

Question 37

Marketing (Competitor)

Answer 37

Who are your competitors, and how are they succeeding? Includes competitor analysis, market position and differentiation strategies Direct Competition: Businesses compete to sell what is essentially the same product Indirect Competition: Businesses offer different products to the same target market

Question 38

Perks and Drawbacks of Autocratic Leaders

Answer 38

- Tasks are completed - People work better under pressure - Less Stress - Organization - Lack of Communication - Feared - Misunderstandings

Question 39

Perks and Drawbacks of Democratic Leaders

Answer 39

- Positive work environment - Everyone is heard - Less mistakes/bad decisions - Positive team relationships - Long process - Distraction

Question 40

Perks and Drawbacks of Laissez-Faire Leaders

Answer 40

- High levels of employee satisfaction - Flexible - Lack of accountability - Stress - Missed due dates - Disorganization

Question 41

Perks and Drawbacks of Transactional Leaders

Answer 41

- Produces consistent and reliable results - Reduced confusion about expectations - It leaves little room for creativity - Eliminates individuality and creates more followers than leaders