Name
1
Intro to Business Review
Unit 1 The Economy and You
Ch 1 A Look at Needs and Wants
Can be physically weighed and measured
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Tasks people or machines do for payment
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Individually owned
Satisfied by businesses
Skates, bikes, houses…
Business: Provides
and
Answer Bank
 Goods
 goods
 Private Wants and
Needs
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Shared by many people
Satisfied by governments
Roads, parks, education, shelter
to make a
.
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profit
Public Wants and
Needs
Services
services
Ch 2 Economic Resources
Factors of Production (means to produce goods and services)
Raw materials in nature
Become factors of
production when used
to produce goods.
Knowledge, efforts, and
skills people bring to
work.
Trucks, equipment,
buildings, materials…
Initiative to create new
or improved goods and
services.
Economies of many
countries are based on
natural resources.
Limited = non
renewable
Limited resources are also called
Answer Bank
 Capital Resources
 Entrepreneurial
Resources
resources.
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Human Resources
Natural Resources

nonrenewable
Name
2
Ch3 Economic Activity in a Changing World
Economic Indicators:
Reduces
purchasing power
of money
Increase in prices
Sometimes increased Country’s goods
by downsizing
and services
(consumer,
business,
government,
exports)
Total amount gov
owes
Gov income
(taxes) – gov
expenses
Negative: Budget
deficit
Positive: Budget
surplus
Business Cycle
Peak of economic
activity
Slow down of economic
activity
Answer Bank
 Budget Deficit (or surplus)
 Depression
 GDP
 Gross Domestic Product
 Inflation Rate
Deep recession
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Rise in business activity
National Debt
Prosperity
Recession
Recovery
Unemployment Rate
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3
Ch4 Business Ethics and Social Responsibility
Laws
Violation: business manager/owner could be
Equal pay for equal
work
Protects consumers
from dangerous or
falsely advertised
products
Work related health
and safety issues.
Sweatshops
Triangle Shirtwaist Co.
146 workers killed in
fire in 1911
1970
Limit damage to
environment (recycle,
don’t pollute…)
Men and women paid
the same for equal
work. (1964)
: Strict guidelines developed by businesses to police themselves.
Three questions to ask to determine if something is unethical::
1) Is it
2) How would I feel if
3) Am I sacrificing
Employee theft is not only
all.
Answer Bank
 against the law
 Code of Ethics
 Environmental Protection Agency
 EPA
 Equal Pay Act
 FDA
 fined or go to jail
 Food and Drug Administration
 increased
?
?
for
?
, it causes
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prices for
long term benefits
Occupational Safety and Health
Administration
OSHA
short term gain
someone did this to me
wrong
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4
Unit 2 Owning and Operating a Business
Ch 6 Business Ownership and Operations
Ownership
Owned by one person
Owned by two or more people
Controlled by Board of Directors
Bear complete risk.
Share risks and responsibilities
Owned by stock holders
Limited liability
Need corporate charter to run
Other ways to do businesses
Agreement to use the name and
sell goods and services of an
existing company.
Main purpose is to provide a
service instead of make a profit.
McDonald’s
Red Cross
Private hospitals, museums,
schools
Don’t pay taxes
Owned and operated by
members for purpose of savings
money on purchases or goods
and services
Ocean Spray
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5
Types of Businesses
Gathers raw
materials
Agriculture,
mining, fishing,
forestry
Change raw goods
into more finished
products.
Make finished
products out of
processed goods.
Wheat to flour,
iron into steel
Bakery uses flour
to bake bread,
auto plant uses
steel to make
cars…
Moves goods from
one business to
another.
Buys, stores, then
resells goods to
wholesaler or
retailer
Answer Bank:
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Cooperative
Corporation
Franchise
Intermediary
Manufacturer
Non Profit
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Partnership
Processor
Producer
Service Business
Sole Proprietorship
Provides service
instead of good.
Hair styling, car
repair…
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6
money
and in
&
the
economy.
Uses
money for
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Functions of Marketing
Moving goods/services from one place to another (trucks,
trains, planes, ships, online
Business loans and credit to consumers
Research people to market a product
What to charge to make a profit. Distribution impacts pricing
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8
Research opportunities to develop and maintain a product
Make people aware of the product
Retailers, business to business, relationship marketing
Marketing Mix
Is there a demand for
this?
Where to sell. (north,
south…)
Packaging to appeal to
market.
Kind of location. (fast
food, sporting goods
store…)
Brand name, color, size.
How much are
customers willing to
pay?
Making customers
aware of the product.
Advertising.
Is the price
competitive?
Discounts
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6
Promote and sell product
7
Research—who are best customers? How were
sales?
Channels of Distribution
Producer directly to consumer
One or more intermediary
Channel Members:
Represents a single
manufacturer
Coca Cola Bottling Co.
Receives large shipments from
many different producers.
Break shipments into smaller
Sell directly to consumer
Name
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10
sides of buses
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reaches people on the move
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live internet show
Cost:
Newspaper/Magazines

(number
of readers)
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TV
 Audience size (national
network vs local; time of
day, event)
 Length (10-60 seconds)
 Frequency
Internet
 “Per click”
 Size and format
Size (inches)
Location (cover, middle..)
Answer Bank
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Banner
Broadcast Media (Mass
Media)
circulation
Cyber Ads (Internet)
Direct Mail
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Directory
effective
expensive
motion
Outdoor
Popup
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Print
Radio
Transit
Webcasting
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o
o
—price lower than cost, get you into the store.
—Illegal: advertise low price of an item that the store doesn’t
really have, with the intention to persuade you to buy a more expensive item.
Where to buy:
Macys (Marshall Field’s)
Higher prices but better
service
WalMart
Lower Prices because of
quantity discounts, but
fewer services
TJ Max
Minor flaws, over stock
What to pay—Smart Consumer
Different stores charge different prices for same item.
FootLocker, Ace
Large assortment of
one product
Name
Read
Read online
12
: Some are limited.
: Are there complaints? Also, check the
vs Name Brand: Is
just as good?
.
Name
13
Ch 23 Consumer Rights and Responsibilities
Consumer Bill of Rights, 1962, by
Right to compare prices
with competitors.
illegal (antitrust laws)
Right to report unsafe
products or fraud such as
“bait and switch” to FTC
and other organizations.
Businesses have
Right to be informed of
finance charges
Right to be informed via
labels:
 Food and Drugs list
Ingredients in order of
departments to handle
consumer complaints
Many businesses have
comment cards for
customer input.

Labels list information
such as Amount of fat,
protein, calories,
carbs…
Right to have products
to assure safety.
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14
Three more rights added by the Consumer Movement:
: Movement to pass laws to protect consumers from
unfair and unsafe business practices.
Return a product. If store
refuses, write to
manufacturer
magazine
in Pueblo, CO (now accessible online at
http://publications.usa.gov/USAPubs.p
hp
Expect quality and respect
claimed by the business
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Ch 24 Protecting Consumers
(p387) $25 - $5,000. Varies from state to state.
Consumer Organizations: p.388-389
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Nonprofit
organization
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Collects information
on local businesses. 
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Oldest nonprofit
consumer group
1899
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Publishes Consumer
Reports magazine
National fraud info
center
Doesn’t
recommend one
company over
another, but does
publish complaints.
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Request Consumer
Information Catalog
of publications at
their new website:

http://publications.
usa.gov/USAPubs.p
hp
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or write to them at:
Consumer
Information Catalog
Pueblo, CO 81009
Government Agencies p391
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Enforces laws
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Inspects food
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Tests and approves
food and drugs
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Tests cars for
safety
Name
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Enforce Antitrust
laws to keep
competition
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Grades meat
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Orders recalls
when necessary
State Agencies p 391
: States issue these to prove qualifications: Doctors, teachers, roofers, hair
stylists, architects and other professionals must pass a test to obtain one and practice in that state.
Answer Bank:
 Better Business Bureau
 Consumer Information
Center
 Consumers Union
 FDA
 Federal Trade
Commission
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Food and Drug
Administration
FTC
Licenses
National Consumers
League
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Natl. Hwy. Traffic Safety
Administration
NHTSA
Small Claims Court
US Dept of Agriculture
USDA
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Unit 9 Credit
Ch 25 What is Credit?
: Agreement to get money, goods, or services now in exchange for a promise
to pay later.
: Credit used by people for personal reasons
: Credit use by businesses
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: Short-term and medium-term credit offered by dealers or stores.
: could be used for cash loans, but interest rate is high.
: 15-30 year loan, usually for a house
Answer Bank:
 Bank credit cards (Visa…)
 Charge Card
 Commercial Credit
 Consumer Credit
 Credit
 Mortgage
Name
19
Don’t pay only the
to avoid
Answer Bank:
 capacity to pay
 credit limit
 finance charges
 finance charges
 minimum payment
on a credit card bill. Instead, pay the entire amount due
.
Name
20
: Law that restricts amount of interest that can be charged
: Person who has the job of collecting overdue bills.
: Enforces laws on credit
: Helps consumers with credit problems
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Unit 10 Money Management
Ch 28 Planning a Budget
Most people want
Take home pay
(gross pay minus all
deductions such as
income and social
security taxes)
goods and services than they can buy with their money.
Paycheck before taxes
and other withdrawals
Difference between
budgeted amount and
actual amount spent
Part of budget to reach
long term goals such as
buying a car
FICA
Federal Insurance
Contributions Act
(social security tax)
When estimating your income, don’t count on unusual income such as
Instead, count only your regular income.
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Name
When estimating your expenses, plan for
Answer Bank:
 Budget Variance
 gifts or tips
 Gross Pay
 increased prices
 more
 Net Pay
 Plan for savings
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such as gas.
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23
Ch 31 Investing in Stocks

Share
ownership of a
corporation
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Preferred
shareholders
paid before
Common
shareholders.
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Common is
more
“common”
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Bought and
sold at stock
exchange
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Amount of
money an
investment
earns.

One year’s
dividends
divided by the
cost.
Answer Bank:
 Day Trading
 Mutual Fund
 Stock
 Stock Exchange
 Yield
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Where stocks
are bought
and sold
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Way to invest
in stocks
without
buying stocks
in a specific
corporation

Trade stocks
based on
minute-byminute
changes in
price.