PBF Semester Review

1.01 Economic Systems and Supply and Demand

1. The role of the consumer includes 3 things:

_______________________ to buy

________________________ to buy

________________________ they are willing to pay

2. The role of the producer includes 3 things:

What to _______________________

What ___________________________ to satisfy

What ________________________ they want to receive

3. ___________________ is the quantity of goods or services that businesses are willing and able provide.

4. ___________________ is the quantity of goods or services that consumers are willing and able to pay.

5. ___________________ is the point where supply and demand are equal.

6. Name three categories of economic resources:

___________________________ ____________________________ __________________________

7. Give 3 examples of natural resources:

___________________________ ____________________________ __________________________

8. What are 3 types of human resources:

___________________________ ____________________________ __________________________

9. Name 2 types of capital resources:

_____________________________________ _______________________________________

10. What is another name for economic resources? ___________________________________

11. What is the basic economic problem for all countries? _____________________________________________________________________________________________________________________________

12. Name the 3 types of economic systems:___________________________ ____________________________ __________________________

13. Who owns the resources in a command economy? _____________________

14. Who decides what is produced in a command economy? ________________________

15. Who controls the goods and services in a market economy? ______________________

16. Who controls the goods and services in a traditional economy? _____________________

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PBF Semester Review

17. Name 2 countries with command economies:

_______________________________________ ______________________________________

18. Name 2 countries with market economies:

_______________________________________ ______________________________________

19. Name 2 countries with traditional economies:

______________________________________ _______________________________________

20. Traditional economies are countries that are typically developing or considered: _______________

21. What 2 economies are combined to make a mixed economy?

_____________________________________ _______________________________________

22. Fill in the Chart:

Economic System Decisions made by:

Practice Questions (1.01 Economic Systems and Supply and Demand):

The United States and the United Kingdom have this kind of economic systema. marketb. commandc. traditionald. mixedThe definition of economic resources is: a. the means through which goods and services are producedb. natural, human, and capitalc. resources used to satisfy unlimited needs and wantsd. the process of choosing which needs and wants to satisfyThe role of the consumer a. decides what to buy, when to buy it, and at what price they are willing to payb. decides what to buy, if to buy it, and to pay cash or creditc. decides what to buy, where to buy it, and at what price they are willing to payd. decides what to buy, where to buy it, and determines when sales occurEthiopia, Uganda, and Afghanistan have this kind of economic systema. marketb. commandc. traditionald. mixedThe role of the producera. decides what to produce and what interest rate to chargeb. decides what to produce and what price to sellc. decides what to produce and the government determines price

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Market

Traditional

Command

PBF Semester Review

d. decides what to produce and consumers determine price1.02 Understand Economic Activities and Conditions

23. Name the 4 components of the business cycle?

_______________________________________ ____________________________________

_______________________________________ ____________________________________

24. What is the component of the business cycle during the following conditions:

Businesses are making profits and unemployment is low. ___________________________

Businesses are strategizing how to increase sales and services. _______________________

Businesses are trying to avoid going out of business: ________________________________

Businesses are seeing an increase in sales and need to hire more employees: _________________

25. Name the four things that are considered when calculating GDP:

_______________________________________ ____________________________________

_______________________________________ ____________________________________

26. This rate is reserved for the banks best customers: _________________________

27. This rate is what the Federal Reserve charges to financial institutions: ____________________

28. Match the following words with its definition:

The total dollar value of all final goods and services produced in one year. ______________________

Gross Domestic Product divided by the population. ________________________________

Dollars spent by individuals and businesses on products and services. ______________________

The number of available workers. _________________________________

The money raised by a corporation entitling shareholders to an ownership interest in the company. ___________

A certificate of debt that is issued by the government or business in order to raise money. _____________

The income received by an individual. ______________________________

A charge to borrow money. ______________________________

Projects that improve the infrastructure of a business or government. ____________________________

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GDP Per Capita Consumer Spending Labor Force Gross Domestic ProductPersonal Income Capital Projects Interest Stock Bond

PBF Semester Review

29. Below are the 3 economic indicators. What is considered in each category?

Practice Questions (1.02 Understand Economic Activities and Conditions):

Two economic indicators for labor activities area. employment rate and productivityb. unemployment rate and productivityc. unemployment rate and GDP per capitad. consumer spending rate and stock marketIn which business cycle are retail stores likely to rehire employees?a. prosperityb. recessionc. depressiond. recoveryIn which business cycle are businesses likely to entice buyers to make more purchases?a. prosperityb. recessionc. depressiond. recoveryWhen products and services are plentiful and prices are decreasing because consumers do not have money to make purchases, this is calleda. inflationb. deflationc. depressiond. recessionThe prime rate is a. the interest rate offered by the Federal Reserve to other banks b. the interest rate offered to the BESTbanking customersc. the interest rate paid for a Certificate of depositd. the corporate bond rateGDP Per Capita is the value a. of all economic production in the capital of the countryb. of the economy when you consider only people who workc. of economic production per persond. is calculated only for countries with a market style economyWhich item is considered an economic indicator for consumer spending?a. stock marketb. interest ratec. unemployment rate

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Labor Activities

______________________

______________________

Consumer Spending

______________________

______________________

Investment Activities

______________________

______________________

______________________

PBF Semester Review

d. wages

1.03 Understand the Role of Business in the Global Marketplace

30. What are the 3 factors that impact currency exchange rates:

___________________________ ____________________________ __________________________

31. Where banks buy and sell different currencies: ___________________________________

32. __________________________ The value of currency in one country compared to the value of currency of another country.

33. What are the 4 factors that effect international business environments?

_______________________________________ ____________________________________

_______________________________________ ____________________________________

33. ______________________________ This international organization promotes economic cooperation and maintains an orderly system of world wide trade and exchange rates.

34. _______________________________ This international organization provides economic aid to developing countries to fund building communication systems, transportation networks, and energy plans.

35. _______________________________ This international organization settles trade disputes and enforces free-trade agreements among its members.

36. Match the following definitions to the vocabulary words:

____________________________ The making, buying, and selling of goods and services within a country.

____________________________ Business activities needed for creating, shipping, and selling goods

and services across national borders.

____________________________ A country can produce a good or service at an obvious lower cost than

other countries can produce that good or service.

____________________________ Goods or services brought in from a foreign country.

____________________________ The difference between the amount of money that comes into and goesout of a country.

____________________________ Good or services shipped outside the country.

____________________________ The amount of money a country owes to other countries.

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Domestic Business International Business Absolute AdvantageComparative Advantage Balance of Payments Balance of TradeForeign Debt Import Export

PBF Semester Review

____________________________ The difference between a country’s total exports and total imports.

____________________________ A country makes a good or service at which it is relatively moreefficient at producing than other countries.

37. Identify which countries have an absolute or comparative advantage for making the following products:

Saudi Arabia Oil Absolute Comparative

Columbia Coffee Absolute Comparative

Japan Electronics Absolute Comparative

United States Agriculture Absolute Comparative

China Clothing Absolute Comparative

Virgin Islands Sand Absolute Comparative

38. Categorize each example based upon its business environment.

A. A country that is nestled in the mountains and has no seaports.

Geography Cultural Economic Political

B. The government has been overthrown 3 times in the last 5 years.

Geography Cultural Economic Political

C. This country has a very strict set of social customs.

Geography Cultural Economic Political

D. This country excels in producing high tech equipment.

Geography Cultural Economic Political

E. This country has a strong educational system and most of its citizens are literate.

Geography Cultural Economic Political

F. This country is situated in a warm climate, has good weather, blue oceans, and sandy beaches.

Geography Cultural Economic Political

G. Because of political unrest this county does not have a stable monetary system

Geography Cultural Economic Political

H. This country has the largest supply of the world’s diamond mines.

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PBF Semester Review

Geography Cultural Economic Political

1. ______________________________

Example: _________________________________________________________________________________

2. ______________________________

Example: ___________________________________________________________________________________

3. ______________________________

Example: ___________________________________________________________________________________

Practice Questions (1.03 Understand the Role of Business in the Global Marketplace):International business is also known as a. domestic tradeb. absolute tradec. foreign traded. comparative tradeJapan exports a large quantity of electronic products to the Unites States. TheUnited States exports a very small quantity of agricultural products to Japan. The balance oftrade isa. favorable to the United Statesb. favorable to Japanc. unfavorable to Japand. favorable to both countriesWhen a country is relatively efficient at producing a particular product over anothercountries, that is called:a. exportingb. comparative advantagec. absolute advantaged. equilibriumTrade surplus occurs when a a. country exports more than it importsb. country exports less than it importsc. country’s exports and imports are equald. country does not trade with other countriesIf France received more money for its goods and services than it paid out, this is an example of which factor that influences international currency exchange? a. balance of paymentsb. balance of tradec. economic conditionsd. political stabilityThe purpose of the foreign exchange market isa. to establish international interest ratesb. where banks buy and sell different currenciesc. to exchange goods produced by foreign countriesd. to provide a stable market place for small countriesWhich of the following are considered factors that influence international business?a. geography, cultural, politicalb. geography, cultural, weatherc. geography, economic, population

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PBF Semester Review

d. cultural, political, shipping

A company wants to build a new production plant. This plant will assemble many pieces to make their final product. These pieces are being shipped from ALL OVER THE WORLD to the production plant. Which international trade condition should be considered?a. common marketb. free-trade agreementc. free-trade zoned. market economyIf members of the European Union have disputes over their trade agreement, which international organization will try to settle their disagreement?a. International Monetary Fundb. World Bankc. World Trade Organizationd. Free-Trade Zone An international organization that maintains an orderly system of exchange rates is thea. IMFb. World Bankc. WTOd. NAFTACountry A is an impoverished nation; there are very few paved roads in the country. Most roads are dirt or gravel and cannot handle large heavy trucks. This is an example of which environmental factor that influences international business?a. culturalb. politicalc. economicd. geographicThe NC Port Authority has permission to allow foreign goods into the country duty-free to encourage trade with other countries. This is anexample of which international trade condition?a. common marketb. free-trade agreementc. Free-Trade Zoned. market economyCountry A only collects half of the taxes levied on its citizens. The government is seen as weak and lacking power. This is an example of which environmental factor that influences international business?a. culturalb. politicalc. economicd. geographic A disadvantage of exporting could be: a. a company can increase their market shareb. a company can sell excess productionc. a company can create additional jobsd. jobs may depend on global businessOne of the following is NOT an influencing factor on the exchange rate:a. balance of paymentsb. economic conditionsc. foreign exchange marketd. political stability

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PBF Semester Review

2.01 Types of Business

40. List 2 advantages and disadvantages for owning each type of business:

41. Identify the options to raise investment money by each type of business:

42. The following are types of partnerships. Match the partnership with its description.

Sam and Jack are partners and each work together to make the business successful. _______________

Alice gave Danny some startup money for restaurant. She doesn’t help him with the business but it is not a secret that she hopes he is successful and will make a good return on her investment. ________________

Alberto has invested in Bobby’s auto repair shop. He doesn’t know anything about auto repair, so he is not active in the business and does not give Bobby any advice. ___________________________

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Sole Proprietorship: Advantages Disadvantages_____________________________________ _____________________________________

_____________________________________ ______________________________________

Partnership: Advantages Disadvantages_____________________________________ _____________________________________

_____________________________________ ______________________________________

Corporation: Advantages Disadvantages_____________________________________ _____________________________________

_____________________________________ ______________________________________

Sole Proprietorship______________________

______________________

Partnership______________________

______________________

Corporation______________________

______________________

Dormant General Limited Secret Silent

PBF Semester Review

Jill is an accomplished photographer with her own studio in a very exclusive shopping area. She is also part owner of a photography studio in a strip mall that caters to inexpensive photography sessions. No one is aware of her involvement with the strip mall photo studio. _____________________

Merrill is an investor in a skating rink. The business is up and running successfully and Merrill no longer participates in managing of the business but he still receives profits from the business. _______________

43. Match the following types of corporations with their meanings:

You cannot purchase this company’s on the stock exchange. ______________________________

This company is in business to provide a public service or good. _____________________________

This company allows a group people the power to bargain. ________________________________

This company allows you the right to use another company’s name or process. ___________________

44. Match the three types of businesses with their definition:

U.S. corporation doing business outside the state it was charted. __________________________

A business charted in another nation and doing business in the U.S. ______________________

A U.S. corporation doing business in the state it was charted. _____________________________

Practice Questions (2.01 Types of Business):

Jennifer is uneasy about being partners with Shelly in a business. Shelly doesn’t always manage her money very well. Jennifer is right to be concerned because of which reason?a. more credit will be available as partnersb. the workload will be more evenly sharedc. each owner has unlimited liabilityd. they must file Partnership of AgreementPablo actively participates with his partners in running the business, but it is not publicknowledge that he has an interest in the business. This is an example of what type of partner?a. dormantb. shareholderc. silentd. secret A foreign corporation is a U.S. corporation doing business

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Domestic Foreign Alien

Public Private Cooperative Franchise

PBF Semester Review

a. in all the states in the U.S.b. in the state it was charteredc. outside the U.S.d. outside the state it was chartered.

John and Kelly’s partnership needs additional investment capital to expand their business. Which of the following would NOT be a method to obtain additional cash?a. draw upon their personal savings for cashb. seek gifts from relativesc. borrow money from the bankd. sell stock in the companySherry owns a preschool. She would like to invest in her neighbor’s child-care business. She is concerned her preschool parents might feel the child-care children would have preferential treatment when enrolling in the preschool. She will invest in the child-care business only if her identity can remain private. What kind of partnership should she enter?a. dormantb. shareholderc. silentd. secretJulie’s sole proprietorship is very profitable and has grown. She is now ready to incorporate her business. Julie is concerned about which disadvantage of incorporation?a. government regulationsb. sharing profitsc. unlimited liabilityd. unlimited business lifetimeWhich best describes a cooperative? a. are non-profits b. belong to a franchisec. are exempt from taxesd. gain bargaining power against bigger businesses

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PBF Semester Review

2.02 Understand Leadership and Management

44. Explain the three management styles below:

Tactical: _______________________________________________________________________________

Strategic: ______________________________________________________________________________

Mixed: ________________________________________________________________________________

45. Name the three levels of management and give an example using a job title.

Management Level: Example:

____________________________________ ____________________________________________

____________________________________ ____________________________________________

____________________________________ ____________________________________________

46. Name the 5 functions of Management and their characteristic:

Function: Example:

____________________________________ ____________________________________________

____________________________________ ____________________________________________

____________________________________ ____________________________________________

____________________________________ ____________________________________________

____________________________________ _____________________________________________

47. Identify the following management styles using Autocratic, Democratic, Laissez-Fare.

______________ Janice was training the new employees. She gave them a checklist for the procedure to cash-out the check register.

______________ Mike runs an advertising agency. To help the creative process he allows theemployees as much freedom as possible.

______________ Albert has a staff of trusted and experienced employees. He asks for theirinput frequently before he makes management decisions.

48. Explain the purpose of each classification of employee:

Permanent: ________________________________________________________________________

Temporary: ________________________________________________________________________

Full-Time: _________________________________________________________________________

Part-Time: _________________________________________________________________________Page 12 of 40

PBF Semester Review

49. Categorize the following activities of a human resource manager using the terms in the box.They can be used more than once.

_________________________ Determines that all new employees need training in word processing.

_________________________ Determined 20 employees were seasonal workers.

_________________________ Announced that all employees would receive a bonus.

_________________________ Processed forms completed regarding employee performance.

_________________________ Placed an ad in the newspaper to hire more employees for the holiday.

_________________________ Analyzed the job duties for the new secretary.

_________________________ Presented the new cafeteria insurance plan to employees.

_________________________ Determined which employees would be layed-off.

_________________________ Conducted an employee evaluation

Practice questions (2.02 Understand Leadership and Management):

Pat is one of Anne’s employees. Ann requires Pat to follow a checklist for setting the security system properly. This is an example of which style of management?a. mixedb. tacticalc. strategicd. variedAnn Taylor clothing store experienced its sales change from a $31 million dollar profit in year one to a $12 million dollar loss in year two. The change in sales caused the manager to implement a new plan. This is an example of which level of management?a. management by othersb. mid-managementc. supervisord. top managementRandy is not the supervisor at his workplace. However, other employees seek him out for advice on projects and workplace matters. This is an example of which level of management?a. tacticalb. management by othersc. mixedd. strategic

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Classifying Employees Determine Job Requirements Recruiting & Hiring

Compensation & Benefits Performance

PBF Semester Review

The Department Manager has been given a new project by top management. She presents the project to her employees and lets them determine how to approach the project. Sally naturally leads the group but is not officially in charge. Sally demonstrates what kind of management?a. top managementb. supervisorsc. management by othersd. mid-managementBob needed to develop a new lunch policy for his employees. He asked for everyone’s input. This is an example of which style of leadership?a. autocraticb. democraticc. laissez-fared. objectiveJanice was reviewing the outcome of a fundraising drive for the local community food bank. Her goal was to raise $10,000. She actually raised $9,500. This is an example of which function of management?a. controllingb. implementingc. organizingd. planningGeorge stated precisely the content required for the upcoming marketing campaign to his employees. This is an example of which style of leadership?a. autocraticb. democraticc. laissez-fared. objectiveWilson has a very experienced staff. His employees need little direction to get their work done. They have a meeting once per week to keep Wilson updated on their progress. This is an example of which style of leadership?a. autocraticb. democraticc. laissez-fared. objectiveJared has been working all summer as a lifeguard at his neighborhood pool. He has been averaging 20 hours per week. At the end of summer the pool will close. What kind of employee is Jared?a. permanent, full-time employeeb. permanent, part-time employeec. temporary, full-time employeed. temporary, part-time employee

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PBF Semester Review

2.03 Understand Production and Operations

50. Explain applied research: ______________________________________________________________

______________________________________________________________________________________

Give an example: _________________________________________________________________

51. Explain pure research: ______________________________________________________________

______________________________________________________________________________________

Give an example: _________________________________________________________________

52. What is CPI: ________________________________________________________________________

53. What three things does CPI strive to reduce:

_____________________________ ____________________________ ___________________________

54. What are the 6 steps to CPI:

1. __________________________________ 2. _____________________________________

3. __________________________________ 4. _____________________________________

5. __________________________________ 6. _____________________________________

55. Identify the types of production below as Extraction/Cultivation, Processing, or Manufacturing:

_____________________ Diamond mining

_____________________ Canning fruit

_____________________ Creating pressed lumber

_____________________ Drilling for oil

_____________________ Planting crops

_____________________ Making nails and screws

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PBF Semester Review

56. Identify which type of business operation matches the below activity:

Facilities management Logistics Scheduling Safety and Security

_____________________ John purchased 20 new bar stools for his restaurant.

_____________________ April lost her lease on the warehouse and cannot store her inventory.

_____________________ The parking lot needs to be plowed after the snow storm.

_____________________ The plant will be creating a second shift from 3 pm – 11 pm.

_____________________ Employees must have an ID to enter the building.

Practice Questions (2.03 Understand Production and Operations):

The AquaFine water company has a well that taps into a deep water aquifer. The company harvests the water and sells it to several bottling companies. This is an example of which type of production?a. extractionb. processingc. manufacturingd. mass productionAcme Medical Company is trying to improve their medication to help people with asthmabreathe easier. Their current medication has many side effects. What kind of research is this?a. pure researchb. applied researchc. medical researchd. design researchKitchen Gadgets, Inc. manufactures a garbage can that limits odors. After receiving feedback from a customer survey, it was determined that the lid is poorly designed. This is an example of what kind of research?a. pure researchb. design researchc. disposal researchd. applied researchJohn purchased twenty new bar stools for his restaurant. This is an example of which type of business operation?a. facilities managementb. logisticsc. safety and securityd. schedulingIn the manufacturing environment, CPI is an acronym fora. Continuous Practical Improvementb. Continuing Procedure Improvementc. Continuous Process Improvementd. Consumer Price IndexA typical grocery store stocks 45,000 different items. Managing the receipt and storage of so many different things is a good example of which business operation?a. facilities managementb. logistics

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PBF Semester Review

c. safety and securityd. scheduling

2.04 Technology Application and Issues

57. What is artificial intelligence? _______________________________________________________

__________________________________________________________________________________

58. What is computer-aided design? _____________________________________________________

__________________________________________________________________________________

59. What is e-commerce? _____________________________________________________________

__________________________________________________________________________________

60. What is an expert systems? _________________________________________________________

__________________________________________________________________________________

61. Match the activity to the best word choice below:

Computer Network Artificial Intelligence Computer-Aided Design Expert Systems E-Commerce

___________________________ Selling products on line

___________________________ Creating a floor plan to a new house

___________________________ Accessing the Internet

___________________________ Sharing a printer among many computers

___________________________ Tracking shipments

___________________________ Autonomous vehicles

___________________________ Researching the best medical procedure for a sick patient

___________________________ Computers that can make choices

___________________________ Accessing the World Wide Web

___________________________ Creating a new landscaping design for a building

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PBF Semester Review

62. Match the term with appropriate activity:

Environmental Protection Workplace Diversity Job Safety Employee Wellness

___________________________ A company is using runoff rainwater to water their landscaping.

___________________________ Workers must wear hard hats when entering the construction area.

___________________________ The company pays for gym memberships for their employees.

___________________________ The company has employees with many kinds of backgrounds.

__________________________ Eye protection goggles are required when using a saw.

__________________________ Employees are encouraged to quit smoking.

__________________________ The packaging used at the production facility is made fromrecycled materials.

Practice Questions (2.04 Technology Application and Issues):

Alice needed to purchase a new muffler for her car but she did not know what model she needed. Alice used a computerized system to determine the correct part to purchase. This is an example of which type of technology application?a. expert systemsb. artificial intelligencec. computer-aided designd. e-commerceThe purpose of artificial intelligence is to a. use software to help create new productsb. share files and datac. use computer systems to help you learnd. enable computers to reason and thinkAmy had her computer station adjusted so that she would be comfortable while completing challenging tasks for long periods of time. This is an example of what type of concern for using technology?a. employment trendsb. computer crimec. healthd. privacy In order to protect employee social security numbers, employment records are now kept in a password protected area of the computer system. This is an example of what type of concern for technology?a. employment trendsb. computer crimec. healthd. privacyJason did not have a computer at home so he used his company’s email system for personal emails too. This is an example of what type of concern for using technology?a. employment trends

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PBF Semester Review

b. computer crimec. healthd. privacy

2.05 Social Responsibility, Percentages, Contracts, Copyright, and Consumer Bill of Rights

63. What is the purpose of the following laws:

The American with Disabilities Act: _________________________________________________

______________________________________________________________________________

The Age Discrimination In Employment Act: _________________________________________

_____________________________________________________________________________

The Occupational Safety and Health Administration: ___________________________________

______________________________________________________________________________

64. What are the 4 elements required in order to have a valid contract?

______________________________________ ________________________________________

______________________________________ ________________________________________

65. What two things make an agreement:

______________________________ _______________________________

66. What is consideration? ______________________________________________________________

67. What is legality? ___________________________________________________________________

68. There are 3 types of protection for intellectual property:

___________________________ ________________________ ________________________

70. How long is a copyright: ___________________________________________

71. How long is a patent: _______________________________________________

72. Give 3 examples of items that would be protected under copyright law:

_____________________________ _________________________ _______________________

73. Give 3 examples of items that would be protected under patent law:

___________________________ _________________________ _______________________

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PBF Semester Review

74. Give 3 examples of items that would be protected under trademark law:

__________________________ _________________________ _______________________

Practice Questions (2.05 Social Responsibility, Percentages, Contracts, Copyright, and Consumer Bill of Rights):

Worksite safety inspections are completed by which organization to ensure the safe and hazard-free work environment?a. The Environmental Protection agencyb. The Age Discrimination Actc. OSHAd. EEOCSusan who is 17 agrees to babysit for her neighbor over the summer. She enters into a contract to babysit 4 hours a day for $8.00 an hour. This contract is not legally enforceable because of which contract element?a. agreementb. competent partiesc. considerationd. legalityHow long does a patent protection last? a. a lifetimeb. lifetime plus 70 yearsc. foreverd. only 17 yearsJenny signs a contract to receive 3 music CD’s for free. When the music company doesn’t ship her music on time, she is angry and threatens to sue. This contract is not legally enforceable because of which contract element?a. agreementb. competent partiesc. considerationd. legalityAlbert is 20 years old and starting up a new restaurant by a college campus. He signs a contract with Acme Beverage Inc. to buy 5 cases of beer per week. Albert only buys 2 cases per week. Acme Beverage Inc. would like to sue for the amount of unpurchased beverages but cannot. This contract is not legally enforceable because of which contract element?a. agreementb. competent partiesc. considerationd. legality

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PBF Semester Review

3.01 Understand the Principles of Marketing

75. Describe each of the functions of marketing:

Product/Service Management: _________________________________________________________

Distribution: _______________________________________________________________________

Selling: ___________________________________________________________________________

Marketing-Information Management: ___________________________________________________

Financing: ________________________________________________________________________

Pricing: ___________________________________________________________________________

Promotion: ________________________________________________________________________

76. Match the function of marketing with the activity.

Product/Service Mgmnt Distribution Selling Marketing-Info Mgmnt FinancingPricing Promotion

____________________________ A fast food restaurant is located at a busy intersection.

____________________________ A customer survey is completed to find if customers are satisfied.

____________________________ A car dealership offers financing on-site.

____________________________ A garbage disposal is redesigned to operate quietly.

____________________________ An electronics company shows off its product line at a trade show.

____________________________ A restaurant offers a kids eat free plan with a paying adult.

____________________________ The hairstylists asks you what kind of hair cut you would like.

77. Identify whether the following scenarios involve personalized promotion (PP) or mass promotion (MP).

_________ Alice test drives a car before she buys it.Page 21 of 40

PBF Semester Review

_________ A radio message advertises a sale on Sunday.

_________ Jack reads about a fundraising dinner in the local newspaper.

_________ Julie receives a private consultation from her hair dresser on a new hair style.

_________ The local hardware puts a sign in the window advertising a contest.

Practice Questions (3.01 Understand the Principles of Marketing):

When you go to a car dealership, the salesman may ask you what kind of car you would like, what is your price range, and when do you plan to make the purchase. This is an example of which marketing function?a. financingb. pricingc. sellingd. promotionAmazon does not have a physical location but has a system in place that allows them to ship from many locations. This is an example of which marketing function?a. financingb. pricingc. sellingd. distributionAlvis Rent-A-Car wants to use a Superbowl advertisement to promote their holiday specialpricing. They have budgeted $4 million for the ad campaign. This is an example of whichmarketing function?a. distributionb. promotionc. financingd. sellingWhich is an EXAMPLE of personalized promotion?a. Beck presented a seminar to 3000 people to promote hand-held computers.b. Jade’s company posted flyers for guests to see about her pet sitting program.c. Mary test drove several SUV’s at the Infiniti dealershipd. Whole Foods Company sponsored a health fair.

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PBF Semester Review

3.02 Understand Buying Behaviors

78. Define each type of retailer:

Department store: ________________________________________________________________

Discount store: __________________________________________________________________

Specialty store: __________________________________________________________________

Supermarket: ____________________________________________________________________

Convenience store: _______________________________________________________________

Specialty Superstore: _____________________________________________________________

Superstore: _____________________________________________________________________

Warehouse Club: ________________________________________________________________

Factory Outlet: __________________________________________________________________

79. Match the store type with its example:

Department Discount Specialty Supermarket ConvenienceSuperstore Factory Outlet Warehouse Club Specialty Superstore

___________________________ Sears

___________________________ Target

___________________________ Abercrombie & Fitch

___________________________ Nike Outlet

___________________________ Costco

___________________________ 7-11

__________________________ K-Mart

___________________________ Circuit City

___________________________ Sam Ash Music Warehouse

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PBF Semester Review

___________________________ Super Wal-Mart

___________________________ Sam’s Club

___________________________ Harris Teeter Grocery

___________________________ David’s Bridal Shop

80. What is a marketing mix? _________________________________________________________

___________________________________________________________________________________

81. Match the product testing organization with the activity:UL AHAM Consumers Union

__________________ Publishes a magazine with tested and rated products

__________________ Is part of the Energy Star program

__________________ Certifies items for safety from electric shock

__________________ Assists consumers when comparing appliances.

__________________ Does not receive outside advertising or free samples.

__________________ Verifies products are not a fire hazard

82. Match the government agency with the activity:

FTC FDA USDA

_____________Overseas medical devices

_____________Overseas our food supply

_____________Protects against unfair loan practices

_____________Inspects imported fruits and vegetables

_____________Works to prevent identify theft

_____________Enforces truth and advertising laws

_____________Overseas OTC and prescription drugs

_____________Controls the National School Lunch Program

83. What does BBB stand for? _________________________________________________________

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Practice Questions (3.02 Understand Buying Behaviors):When companies create a marketing mix they area. focused on a promotional campaignb. combining product, price, distribution, and promotion to get the best possible sales outcomec. controlling price by limiting distributiond. combining target markets to create larger marketsWhile shopping for a new refrigerator, Susan compared many models. Which testing organization created appliance efficiency data so Susan could accurately compare models?a. EPAb. FDAc. ULd. AHAM Alex was considering renting an apartment. He checked to see if there had been any complaints registered against the apartment complex by checking which source of information?a. USDAb. Customer Service Departmentc. Better Business Bureaud. Consumers UnionWhich of the following is a government agency that provides consumer information?a. ULb. AHAMc. BBBd. USDAJohnny wanted to purchase a new car. Which source of consumer information could Johnny use as a resource to gather information on new cars before he makes his purchase?a. Consumer Reports Magazineb. FTCc. Better Business Bureaud. Underwriters LaboratoryAlbert moved into his first apartment and purchased many items for his new home all at one store. What kind of store did he most likely shop?a. specialty superstoreb. warehouse clubc. specialty stored. factory outletThe Food and Drug administration tests new drugs to make sure they are safe. This is an example of which type of consumer information resource?a. product testing organizationsb. mediac. government agenciesd. business sources

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Which of the following is a government agency that provides consumer information?a. FTCb. AHAMc. ULd. BBBEarl needs to buy a pair of tennis shoes. He is willing to purchase last year’s style in order to save money. Where might he shop to make his purchase?a. factory outletb. department storec. specialty stored. vending machine

4.01 Understand Financial Planning

84. Name 4 reasons that a business does financial planning:

1. _________________________________________________________________________

2. _________________________________________________________________________

3. _________________________________________________________________________

4. _________________________________________________________________________

85. Name 3 types of budgets:

1. ______________________________ 2. _________________________ 3. _______________________

86. Match the activity with the step in the budget preparation process.

Prepare a list Gather information Create budget Communicate budget

_________________________ Albert researches cost data from prior financial data.

_________________________ Susan makes a list of all the places she has spent money.

_________________________ Ron talks with employees and explains they are using too much electricity.

_________________________ Julie speaks with her spouse about saving money for vacation.

_________________________ Jill decides how much she can spend on groceries each month.

87. List the three items that appear on the Balance Sheet.

______________________________ ________________________ _______________________

88. List the three items that appear on an Income statement.

______________________________ ________________________ _______________________

89. What is the equation to calculate the profit of a business? __________________________________

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90. What is the purpose of the current ratio? ____________________________________________

___________________________________________________________________________________

91. What is the purpose of the debt to equity ratio? __________________________________________

___________________________________________________________________________________

92. What is the purpose of the return on equity ratio? _______________________________________

___________________________________________________________________________________

93. What is the purpose of the net income ratio? ______________________________________________

_______________________________________________________________________________________

94. Calculate the ratios for the companies below: (use 3 decimal precision)

Company Name AmountCurrent

RatioDebt to

Equity RatioReturn on

Equity RatioNet

Income RatioCupcake BakeryAssets $11,500Liabilities $6,000Owner’s Equity $5,500Total Sales $49,000Net Income/Profit $18,000

Al’s Rootbeer StandAssets $116,450Liabilities $52,300Owner’s Equity $64,150Total Sales $69,302Net Income/Profit $22,493

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Practice Questions (4.01 Understand Financial Planning):

Tami projected from where funds would come to operate her business until a profit is made. This is an example of what kind of financial planning?a. expansionb. personalc. operationd. start-upAllison wants to grow her business and prepares a budget to determine if there is enough money to cover growth. This is an example of what kind of financial planning?a. expansionb. personalc. operationd. start-upSally compiled all of the sales data and expense data for the last year she was in business. This is an example of which step in the budget preparation process?a. prepare a list of income and expensesb. gather accurate informationc. create the budgetd. communicate the budget to employeesJanice can find the value of the assets for her company on which type of financial statement?a. a balance sheetb. a budgetc. an income statementd. a statement of owner’s equityMike can find the total expenses for his company on which type of financial statement?a. a balance sheetb. a budgetc. an income statementd. a statement of owner’s equityAlbert can find the value of the liabilities for his company on which type of financial statement?a. a balance sheetb. a budgetc. an income statementd. a statement of owner’s equityJanice has $2,000 in net profit and has invested $6000 in her company. Which ratio will help her determine her return on her investment in the business?a. currentb. debt to equityc. net income

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d. return on equitySusan has $3000 in sales and $500 in profit. Which financial ratio will determine the ratio of sales to profit?a. currentb. debt to equityc. net incomed. return on equityWhich financial ratio will Jack use if he wants to determine his ability to repay his debts?a. currentb. debt to equityc. net incomed. return on equity4.02 Understand the Banking System

95. Classify the following financial institutions.

Depository Non-Depository

_________________________ Consumer finance company

_________________________ Pawnshop

_________________________ Credit Union

_________________________ Mortgage company

_________________________ Commercial Bank

96. Match the following vocabulary with its definition.

Bank Statement Check Register Debit Card Deposit Slip Drawee

Joint Account Signature Card Payee Stop Payment Order Drawer

____________________________ The bank who is expected to pay a check when it is presented for payment.

____________________________ An instruction to a bank by a depositor that it refuse payment on a check.

____________________________ A booklet used to record account transactions.

____________________________ A small written form that is used to deposit funds into your account.

____________________________ A person to whom money is to be paid.

____________________________ A Card that a customer signs when opening an account.

____________________________ A bank account shared by two or more individuals.

____________________________ The person writing the check.

____________________________ A record summarizing all transactions.

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_________________________ Savings and Loan

_________________________ Investment company

_________________________ Check-cashing outlet

_________________________ Mutual Savings

_________________________ Life Insurance company

PBF Semester Review

____________________________ A plastic card that enables the holder to withdraw money or to have thecost of purchases taken directly from the card holder's bank account.

97. What is the purpose of a bank reconciliation? ________________________________________________

_________________________________________________________________________________________

98. What is the purpose of the Federal Reserve? _________________________________________________

_________________________________________________________________________________________

99. How many districts make up the Federal Reserve? __________________________

100. List 7 services of the Federal Reserve:

_______________________________________ ____________________________________

_______________________________________ ____________________________________

_______________________________________ ____________________________________

_______________________________________

101. Match the type of payment with its description.

Checking Account Electronic Payment Certified Check Cashier’s CheckTraveler’s Check Money Orders

____________________________ The bank guarantees this check. It is written by the depositor.

____________________________ Funds are prepaid; it can be purchased at the U.S. Post Office.

____________________________ An account for which the holder can write checks.

____________________________ Check drawn by a bank from its own funds and signed by a cashier.

____________________________ Check that functions like cash; can be used safely while traveling.

____________________________ Term used for any kind of payment processed without using paper checks.

Practice Questions (4.02 Understand the Banking System):

Susan has purchased $50,000 of life insurance from Fidelity Life Insurance Company. What kind of company is this?a. commercial bankb. depositoryc. credit uniond. non-depositoryWho is the drawee? a. the bank who will pay the check b. the person the check is payable toc. the person who wrote the checkd. the person who endorses the back of the checkWhat is the purpose of a bank reconciliation?

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a. to compare balances at the end of the month and check accuracyb. to make sure the bank hasn’t made any errorsc. isn’t necessary to complete because of electronic transactionsd. is old fashioned and not needed any moreThe Federal Reserve System aids in the transferring of funds between banks in South Carolina and California. This is an example of which service of the Federal Reserve System?a. clearinghouseb. participation in open market operationsc. supervision of banksd. managing the discount rateMicky’s Appliance Store accepts checks that banks draw on its own funds. This is an example of which type of payment service?a. cashier’s checkb. credit cardc. electronic paymentd. money order4.03 Understand Saving and Investing Options

102. What are the four evaluation factors considered when saving or investing?_____________________________________ ______________________________________________________________________ _________________________________103. What is saving? _________________________________________________________104. What is investing? _______________________________________________________105. What are the two main goals of savers and investors? a. ________________________________________________

b. ________________________________________________106. Name 4 characteristics of a savings account:_____________________________________ _______________________________________________________________________ __________________________________107. Name 3 characteristics of a certificate of deposit:_____________________________________ __________________________________

_________________________________________108. What is the common abbreviation for certificate of deposit? ______________________109. Name 4 characteristics of money market account:_____________________________________ _______________________________________________________________________ __________________________________110. What is a bond? ___________________________________________________________111. Who issues bonds? _________________________________________________________112. The Series EE Bond is commonly known as a ___________________________ bond.113. When is money paid to a Series EE bond holder? _______________________________114. When is money paid to a Series HH bond holder? _______________________________

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115. How is the I bond interest rate determined? ____________________________________116. When does a Treasury bill mature? ___________________________________________117. When does a Treasury note mature? __________________________________________118. Is a Treasury Bill considered a long-term or short-term investment? __________________119. Is a Treasury Note considered a long-term or short-term investment? _________________120. What is the meaning of a bond rating? _____________________________________________________________________________________________________________________121. In general, bonds are considered low risk moderate risk high risk122. What is a stock? ___________________________________________________________123. What are the two types of stocks you can purchase?___________________________________ ______________________________________124. What is a dividend? _______________________________________________________125. Explain the investment strategy for the following types of funds:

Aggressive-Growth: ______________________________________________________Income: ________________________________________________________________International: ____________________________________________________________Sector: _________________________________________________________________Bond: __________________________________________________________________Balanced: _______________________________________________________________

126. What is a commodity? _____________________________________________________127. Name 3 things that are considered commodities?__________________________________ _______________________________________

_____________________________________

Practice Questions (4.03 Understand Saving and Investing Options):

Bert is young and wants to invest his money for long-term growth. Which evaluation factor will he most likely consider when choosing an investment option?a. safetyb. potential yieldc. liquidityd. taxesWinston is setting money aside for his retirement and has chosen an account with a

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high rate of growth. What is Winston doing?a. being responsibleb. savingc. investingd. buying real estateLisa has $10,000. She will use this money to pay for her son’s tuition every month. She would like to earn interest on her account as well have easy access by writing checks. Which savings plan should she consider?a. money market accountb. certificate of depositc. savings accountd. stock investmentHow much interest is earned on a balance of $900 that is compounded semi-annually at 8% interest rate for an account maintained for one year?a. 72.00b. $73.44c. $973.44d. $972.00How much interest is earned on a balance of $6000 that is compounded semi-annually at 4% interest rate for an account maintained for one year?a. 6240.00b. 6242.40c. 242.40d. 240.00Ray purchased stock at $52 per share. He sold it at $45 per share. What is the yield on Ray’s investment?a. 45%b. 16%c. -13.5%d. 87%Alice would like a reliable income when she retires. She is concerned about investment risk. Which investment option would be a likely candidate for Alice?a. Treasury billb. stocksc. savings accountd. Series HH bondGinger, a high school senior, wants a high return in a mutual fund investment for a period of one to four years. She plans to use the money to buy a car after she graduates from college. She is willing to risk her entire savings of $3,000. Which investment option should Ginger consider?a. Bond Fundsb. Sector Fundsc. International Fundsd. Aggressive-Growth Funds

Rachel feels like finance and banking companies are in a position to make a lot of profit in the near future. She is interested in being heavily invested in these stocks. Which investment option should Rachel consider?a. Income Fundsb. Aggressive-Growth Fundsc. Sector Fundsd. Bond Funds

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Tim would like to invest in stocks that follow the DOW. He would like the ease of using the stock market to make his investment. Which type of investment should he consider?a. balanced mutual fundb. an exchange-traded fundc. no-load mutual fundd. index mutual fundWhich of the following are commodities? a. oil, perfume, furnitureb. copper, jewelry, beansc. gold, milk, oild. corn, clothing, perfume

5.01 Credit

129. Match the term with its definition.

Sales Credit Vendor Finance Charge Down PaymentPromissory Note Collateral Co-Signer Trade Credit

___________________________ A portion of the purchase price that is not financed.

___________________________ Short-term financing granted by a vendor.

___________________________ A written promise to repay an amount borrowed.

___________________________ A person or company that sells goods or services.

___________________________ Property that is used as security.

___________________________ A person responsible for repaying the debt.

___________________________ The cost of credit including interest and fees.

___________________________ Value owed to a customer after they have returnedan original purchase.

130. What are the 3 C’s of credit?

______________________________ ___________________________________

__________________________________

131. Name 4 things that are typically on an account statement.

_________________________________ _______________________________

_________________________________ ________________________________

132. Name the 3 credit reporting agencies:

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______________________________________ _________________________________

______________________________________

133. What is the main purpose of the Truth in Lending Law? ________________________

_________________________________________________________________________

134. What three areas of financial responsibility may credit applicants be judged?

_________________________________ ___________________________________

________________________________________

135. What is the purpose of the Fair Credit Billing Act? ____________________________

_________________________________________________________________________

136. What is the purpose of the Fair Credit Reporting act? ____________________________

__________________________________________________________________________

137. What is the purpose of the Fair Debt Collections Act? ___________________________

__________________________________________________________________________

138. What is a debt repayment plan? _______________________________________

_____________________________________________________________________

139. What is credit counseling? ___________________________________________

______________________________________________________________________

140. What is bankruptcy? __________________________________________________

______________________________________________________________________

141. Do you personally have a credit card? Yes No

142. If you are under the age of 21, what are the circumstances that would allow you to be issued a credit card?

A. __________________________________________________________________

B. __________________________________________________________________

143. How often may you get a free copy of your credit report? _____________________

____________________________________________________________________________

Practice Questions (5.01 Credit):

Agnes is going to purchase a new car. What most likely will be used as the collateral for borrowing money for the car?

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a. savingsb. down paymentc. the car itselfd. a paycheck Mary has a large balance in her savings account to invest in a new business. From this information, which “C” of credit is she most likely to meet?a. capacityb. capitalc. characterd. collateral Which item is not typically listed on a statement of account sent by a creditor?a. minimum amount dueb. current balancec. new purchasesd. FICO score Darian checks his credit report each year to protect himself from identity theft and fraud. Which company might he contact to get a copy of his report?a. Experianb. Equifoxc. FICO d. TransAtlanticBob is applying for a credit card. The application does not state the interest rate Bob will be charged when using this credit card. Which law or regulation has been violated?a. Truth in Lending Lawb. Equal Credit Opportunity Actc. Fair Credit Reporting Actd. Credit Card Accountability, Responsibility, and Disclosure ActThis act requires that credit card companies properly reflect payments and credits on your account.a. Fair Credit Reporting Actb. Fair Credit Billing Actc. Fair Debt Collections Actd. Credit Card Accountability, Responsibility, and Disclosure Act General Electric Credit Card Company assists customers with implementing strategies that will minimize their debt with its company. Which type of credit assistance is the company providing?a. bankruptcyb. credit counselingc. credit repaird. debt repayment plan Janice was completing an application for trade credit for the business she owns. Which information is most likely NOT on the application?a. addressb. bank account informationc. employerd. other creditors The Equal Credit Opportunity Act allows credit applicants to be judged on three areas of financial responsibility. These three areas are:a. income, debt, home equityb. income, payment record, debtc. payment record minimum payments APRd. debt, income, employment

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Which act requires a credit card company to notify you if your interest rate will be increased?a. Fair Credit Reporting Actb. Fair Credit Billing Actc. Fair Debt Collections Act d. Credit Card Accountability, Responsibility, and Disclosure ActRandy is 17 and a high school senior. Which credit card scenario applies to Randy?a. he is under 21 and cannot be issued a credit cardb. he is under 18 and cannot be issued a credit cardc. he can be issued a credit card without a having a jobd. he can be issued a card now with a co-signerJulian wants to purchase a house. He has a good job but he has a poor history of paying his rent on time. Which issue may prevent him from receiving a loan?a. his collateralb. his characterc. his capacityd. his capital Which item is not typically listed on a statement of account sent by a creditor?a. toll free credit counseling phone numberb. employerc. minimum payment requiredd. APR

5.02 Insurance

144. List 4 types of uninsurable conditions:___________________________________ ______________________________________________________________________ ___________________________________145. Match the type of risk with its description:

Economic Non-Economic

______________________ Julie insured her house from property damage.______________________ Mary approached a company and asked if they were hiring workers.______________________ Jack took a walk even though it looked like a storm was coming.______________________ Bill’s car was damaged in an auto accident.

Controllable Uncontrollable

______________________ The grocery store installed bar code scanners to improve the accuracy of checking out groceries.

______________________ Surveillance cameras were installed in a parking lot.______________________ June took an airplane to reach her vacation destination.

Pure Speculative______________________ Randy opened his own store.

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______________________ A tornado took the roof off of Albert’s house.______________________ Andy bought a lottery ticket.______________________ Melody advertised a Memorial Day sale for her store in the newspaper.

Insurable Uninsurable______________________ Susan has a medical condition.______________________ Ron’s business has suffered because of a high unemployment rate.______________________ Burger King built a new restaurant next to Bob’s Burgers.______________________ Tessa has very expensive jewelry.146. What does HMO stand for?_________________________________________________147. What does PPO stand for?__________________________________________________148. What is the difference between a HMO and PPO? ________________________________________________________________________________________________________

149. Match the word with its definition:

Cash Value Surrender Death Benefit PremiumBeneficiary Term Insured Insurable Interest

______________________ The person covered by the insurance purchased.______________________ The person who receives the insurance benefits.______________________ The amount of money the insurance company will pay if the policy is surrendered.______________________ Amount of coverage purchased.______________________ Life insurance purchased for a specific amount of time.______________________ The cost of the insurance.______________________ You must financially benefit from the person’s continued life.______________________ When a whole life policy is voluntarily terminated before the death

of the insured occurs.

150. Match the type of insurance with its description

Term Renewable Term Ordinary Life Limited-Payment LifeVariable Life Universal Life Group Life Decreasing Term

______________________ Premiums do not change over the life of the policy and a cash value is accumulated.

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______________________ The amount of the premium does not change but the amount of insurance is

reduced as the policy becomes older.______________________ This life insurance is purchased through an employer.______________________ This insurance is very inexpensive and is purchased with a specific amount

of time to be covered.______________________ Premiums are higher, but once the policy has been paid

premiums are no longer required to keep the policy in force.______________________ Purchased for a specific period of time which can be

extended without a physical examination.______________________ An unlimited amount of money can be paid toward the policy building up a cash

value quickly while being invested in interest earning investments.______________________ The death benefit and cash value can fluctuate while being

invested in stocks, bonds, and mutual funds.

Practice Questions (5.02 Insurance):

Which situation is an EXAMPLE of uninsurable risks?a. Ford Motor Company claimed damages to several cars due to a hail storm.b. Kroger offered dental insurance to all new employees.c. Robert was injured on the job and can no longer work.d. Walmart outpaced its competitors by continuously lowering its prices.Which of the following is an example of an uncontrollable risk?a. Lisa took an airplane on a business tripb. Signs were posted in the store that shop lifting will be prosecutedc. Alex installed a home security system for added protection against robberyd. Jack took a motorcycle safety class.Who pays Workers Compensation premiums?a. the employeeb. the governmentc. the employerd. an individualJulian is a member of a medical clinic. She can go to the clinic and receive free medical care for many basic medical procedures but she cannot choose her doctors. She pays for her medical insurance through her employer. What kind of medical plan does Julian have?a. Worker’s Compensation

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b. Health Maintenance Organization (HMO)c. Preferred Provider Organization (PPO)d. MedicaidBill Gates is the founder of Microsoft Corporation and one of the richest men in the world. You cannot purchase a life insurance policy for Bill Gates becausea. he is a famous personb. he is not related to youc. you receive no financial benefit from himd. he already has his own policyHarry is 35 and has a small family. He is not interested in life insurance as an investment. He wants his life insurance benefit to decrease as he ages and as his insurance needs decline. This will allow his premiums to remain steady. What kind of insurance would most likely benefit Harry? a. level termb. limited payment lifec. decreasing termd. ordinary life

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