BMGT-255 Final Exam: Review Outline
Students are responsible for all content in the textbook and posted on blackboard for the entire
semester. The list below is to help students focus study effort but may not include all theory/concepts
that could be tested on the exam.
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Know the different sources of money for businesses including personal sources, government
programs, chartered banks (term loans), investors (angels) and other sources such as indirect
financing (ch 5)
Know how to track business finances and how to measure break-even (ch 5)
Know what a balance sheet and income statement is including their components (assets, liabilities,
owner’s equity, revenue, expenses) (ch 5)
Know different product pricing strategies, including penetration pricing, predatory pricing,
competitive pricing, loss leaders, price skimming (ch 3)
Know the business cycle stages including start up, growth, maturity, decline and renewal (ch 9)
Know how to determine how much to pay for a business. Valuation concepts such as key ratio,
liquidity, financial ratios (ch 6)
Know concepts that are important for analyzing a location for a business, including site issues,
complementary business, etc. (ch 2)
Know strategies for informing an persuading customers to buy a product, including advertising
strategies, publicity, selling tactics (ch 3)
Know the first step to creating a business plan
Know financial ratios including current ratio, quick ratio, debit-to-equity ratio, average collection
period ratio (ch 6)
Know what a cash flow statement is and why it is important (ch 5)
Know what the break-even point is, why it is important and how to calculate it
Know what acts security and loss prevention strategies help protect against such as pilfering,
shoplifting, embezzlement, burglary, robbery and fraud. And know what each of the acts are. (ch 2)
Know what intellectual property is and different types including patents, copyrights, trademarks,
industrial designs (ch 2)
Know what home-based businesses are including aspects that entrepreneurs should consider with
home-based businesses (ch 2)