2021 FALL BUSINESS ESSENTIALS FINAL STUDY

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The study guide is laid out by units we covered throughout the semester. You should have
saved all notes, assessments, & assignments to help you study.

YOU WILL BE TURNING THIS IN THE DAY OF YOUR FINAL!

ALL VOCABULARY
 Sole Proprietorship- stand alone business owned by one individual, making it the simplest form of
business to start and operate
 Partnership-a business structure in which the owners share with each other profits and losses
 Corporation- declares the business as a separate entity guided by a group of officers known as the
board of directors
 Limited Liability Company (LLC)- organized daily activities like a partnership but with limited
liability for owners like a corporation
 Contracts- agreement between two or more parties that create obligations enforceable by law
 Tort-private or civil wrongdoing, offense against an individual
 Economics-the science that deals with the production, distribution, and consumption of goods and
services
 Free Market- an economic system where prices are determined by competition between
businesses, no interference with the government.
 Voluntary Exchange- the act of buyers and sellers freely and willingly engage in market
transactions
 Market (ECONOMICS definition)-any place where buyers and sellers meet to exchange goods
and services
 Market (Marketing definition)- A group of customers who share commons wants and needs and
who have the ability to buy a particular product
 Economic Resources- goods or services available to individuals and businesses used to make
consumer products.
 Opportunity Cost- the value of the next best alternative when one option is chosen over the other
 Command Economy- the government decides what, how, and for whom the goods and services
are produced.
2021 FALL BUSINESS ESSENTIALS FINAL STUDY
GUIDE
The study guide is laid out by units we covered throughout the semester. You should have
saved all notes, assessments, & assignments to help you study.

 Market Economy- individuals and businesses decide what, how much, and for whom goods and
services are produced
 Traditional Economy- goods and services are produced in a natural way or the way they have
always been produced. What is left over is traded with people
 Mixed Economy- individuals, businesses, and government are involved in decisions in the
marketplace.
 Economic Freedom- the fundamental right of every human to control his or her own labor and
property.
 Demand- how much of the goods or services consumers are willing and able to buy
 Supply- the amount of goods or services that producers are willing to provide
 Equilibrium- the point at which consumers buy all the products producers have supplied
 Shortage- something is needed but cannot be obtained in sufficient amounts; scarcity
 Surplus- an amount of something left over when requirements have been met; excess
 Accounting- the action or process of keeping financial accounts
 Proprietorship- stand alone business owned by one person-simplest to start and run
 Asset- anything of value that is owned by a company
 Equities- financial rights to the assets of a business
 Liability- amount owed by a business
 Owner’s Equity- amount remaining after the values of all liabilities is subtracted from the value of
all assets.
 Accounting Equation- equation showing the relationship between assets, liabilities, and owners
equity
 Ethics- principles of right and wrong that guide and individual in making decisions
 Transaction- business activity that changes assets, liabilities, or owners equity.
 Account- a record summarizing all the info pertaining to a single item in the accounting equation
 2021 FALL BUSINESS ESSENTIALS FINAL STUDY
GUIDE
The study guide is laid out by units we covered throughout the semester. You should have
saved all notes, assessments, & assignments to help you study.

 Marketing- The action of business of promoting and selling products of services, including
market research and advertising
 Product- item offered for sale
 Place- the route through which goods move from the source to final unit
 Price- the amount o money expected for the product
 Promotion- the set of activities which raise customer awareness that generates sales and creating
brand loyalty
 Entrepreneur- an individual who creates a new business.

UNIT: CAREERS
 List one of the Career Clusters you scored high in or were highly interested in. What are
2 jobs that fall under that cluster?
Health sciences- nurse practitioner and dermatologist

 When you’re filling out a resume and come to the references section, who would be good
options for you to list as refences?

teachers and or coaches

 Explain the options you have when filling out the Social Security number option on a job
application.
will give upon hire

 Which is the correct option you should write/type in for high school on a job application?

Olathe North West High School Olathe Northwest High School ONW

UNIT: ENTREPRENEURSHIP
2021 FALL BUSINESS ESSENTIALS FINAL STUDY
GUIDE
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saved all notes, assessments, & assignments to help you study.

 What are some foundation skills that all entrepreneurs should have?
problem solving and time management

 What are some characteristics of an Entrepreneur?

hardworking, skilled, able to communicate with others.

UNIT: MARKETING
 The action of business of promoting and selling products of services, including market
research and advertising is what?
marketing

 A group of customers who share commons wants and needs and who have the ability to
buy a particular product is called what?
market

 List 2 ways we group people by demographics.

age and gender

 List 2 ways we group people by psychographics.

life styles and values

 List 2 ways we group people by geographics.

Political and physical boundaries

 Describe the Market for this product: Muffin Baking Tins

More bakers, people who love to cook, people who like muffins, people who are able
to afford it too.

 What are the 3 main ways we segment the market?

Where to sell a product, what kind of location to sell, and the placement of the product.

 What are the 4 P’s of Marketing?

 2021 FALL BUSINESS ESSENTIALS FINAL STUDY
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place, product, promotion, price

 A car is an example of a good / service whereas a haircut is an example of a good

/ service

 Goods are physical that you can touch and hold whereas services are something done for

another. TRUE FALSE

 Considering questions like, “What kind of location will we sell this in”, “What placement
is best in the store for this product?” are questions that fall under which P of the
Marketing Mix?

promotion

 The identification symbol for a business is called a logo.

UNIT: LEGAL CONCEPTS IN BUSINESS

 Explain the Interference with contractual relations tort.
Intentionally damages someone’s relationship with others causing
economic harm.

 Explain the tort of confidentiality agreement disputes.

Spreading information and ideas where it shouldn’t belong

 Explain the tort of defamation.

False statement ruining someone’s good name/reputation
 Explain the tort of embezzlement.
 2021 FALL BUSINESS ESSENTIALS FINAL STUDY
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Theft of funds/property belonging to others

 Explain the tort of Fraud.

Intentionally making misrepresentation of an important fact intending
to force someone into a contract

 Explain the tort of stolen trade secrets.

Theft of info that a company protects because it has economic value
by not being shared

 List 3 examples of administrative agencies.

FDA-food and drug administration, FTC- federal trade commissions,
CPSC-consumer product safety commission

 List out the 6 requirements of a legally binding contract and describe each.
1. Offer and acceptance- give offer and agreed upon from both parties.
2. genuine agreement- no tricks to get them to sign
3. legality- must be legal
4. consideration- things of value promised in exchange for something(binds)
5. capacity- must have legal ability to enter
6. proper form- must e placed in writing to be enforced by law

 What are the 4 types of business ownership?

Sole proprietor ship, partnership, corporation, and limited liability
company

 What is a contract?
Agreement created between two parties enforceable by law

 What is a tort?
 2021 FALL BUSINESS ESSENTIALS FINAL STUDY
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Private or civil wrongdoing

 What is an administrative agency?

Government bodies created to carry out particular laws

 What is the purpose of a contract?

to set rules that don’t ever change

UNIT: ECONOMICS
 What is happening to supply and demand when there is a shortage?
Supply goes down but demand goes up

 What is happening to supply and demand when there is a surplus?

supply goes up, demand goes down

 Describe a command economy.

government determines everything

 Describe a market economy.

individuals and businesses decide things

 Sarah has a box of strawberries and Maggie has $10. Sarah takes the $10 from Maggie
and gives her the box of strawberries. What would this be an example of?
Opportunity cost

 List the Economics Resources

Natural-gas, oil, minerals, wind, human-labor, manmade materials, metals, and capital-buildings
and cash
2021 FALL BUSINESS ESSENTIALS FINAL STUDY
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 Explain to the graph shown here 

supply curve- as the production goes up, so
does the price needed to cover the cost of it.
Eyes of the producers

 Explain the graph shown here 

demand curve- the price of a product goes

down as the quantity of the product increases.
Eyes of the consumer

 The 3 questions all economies need to be able to answer are…

o WHAT products and services should an economy produce?

o HOW should products ad services be produced?

o WHO should the product and service be produced for?

2021 FALL BUSINESS ESSENTIALS FINAL STUDY
GUIDE
The study guide is laid out by units we covered throughout the semester. You should have
saved all notes, assessments, & assignments to help you study.

 Who is involved in the decisions in a Market Economy?

individuals and businesses

 Describe a traditional economy.
Goods and services are produced in a natural way or the way that they have always been
produced. Wat is left is traded with people.
 What is Economics the study of?
people

 What are the 4 things that can happen in a market with supply and demand?
Supply can increase, supply can decrease, demand can decrease, demand
can increase.

 What is the economic problem?

to match the limited resources to unlimited and needs.

 What type of science is Economics?

social science

 Who is the father of economics?

adam smith

When looking at the supply curve, we are looking through the eyes of the producer. When
looking at the demand curve we are looking through the eyes of the consumer.

 Explain what is happening at the point of equilibrium

Consumers buy all the products that producers have supplied.

UNIT: ACCOUNTING
What is the Accounting Equation?
2021 FALL BUSINESS ESSENTIALS FINAL STUDY
GUIDE
The study guide is laid out by units we covered throughout the semester. You should have
saved all notes, assessments, & assignments to help you study.

 The accounting equation must always stay in _balance_.

 Anything of value that is owned is called a(n) _asset_.

 Paid cash on account to Dan’s Doughnuts, $400. Explain what’s happening in this
transaction.
cash going down, accounts payable goes down

 Bought supplies on account from Dunder Mifflin, $750. Explain what’s happening in
this transaction.
Supplies goes up, accounts payable goes up
If a transaction affects the same side of the accounting equation, what must happen to the 2
accounts?

One must be a credit and one must be a debit, equal the same, one positive and one negative,
equal each other out

 If Assets are increased, Liabilities and Owner’s Equity must decrease.

TRUE FALSE

 Accounting is the _langugae_ of business.

 Every transaction must affect accounts on the same side of the accounting equation.

TRUE FALSE
2021 FALL BUSINESS ESSENTIALS FINAL STUDY
GUIDE
The study guide is laid out by units we covered throughout the semester. You should have
saved all notes, assessments, & assignments to help you study.

 The amount remaining after the value of all liabilities is subtracted from the value of all

assets is _owners equity_.

 A business activity that changes assets, liabilities, or owner’s equity is called a(n)

_transaction_.

 When a business pays cash for supplies, what accounts are being affected and how?

Cash is being decreased and supplies is being increased

 Accounts Receivable is a(n) asset account.

YOU WILL TURN IN THIS STUDY GUIDE ON FINALS

DAY
😊HAPPY STUDYING😊
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