Buisnesz exam cram
All the key content from Chapters 4, 5, and 6 (condensed, “must-know” style).
A study timeframe for tonight and tomorrow morning.
A strict method for how to study each part.
📘 Business Exam Cram Plan (Ch. 4, 5, 6)
Chapter 4: Business Ownership & Organization
Key Content to Know:
Franchisor vs Franchisee → Franchisor = owner/headquarters; Franchisee = buyer of rights.
Sole Proprietorship → least regulated, one person, unlimited liability, hard to raise capital.
Partnerships:
General → co-own assets, unlimited liability.
Limited → liability limited to investment.
Corporations:
Limited liability (owners not personally responsible).
Double taxation (earnings + dividends).
S corporation → avoids double taxation.
Cooperative → collectively owned org (farmers, businesses).
Mergers & Acquisitions:
Merger = two combine to form one.
Acquisition = one buys another.
Vertical merger = different stages of production.
Joint venture = temporary, single project.
How to Study:
Drill the differences (franchise vs franchisee, merger vs acquisition, partnership types).
Practice with situational questions (“Tom invests but doesn’t run the business, what type is this?” → Limited partnership).
Make quick comparison flashcards.
Chapter 5: Entrepreneurship & Financing
Key Content to Know:
Entrepreneur = takes risk, starts business.
Intrapreneur = innovates inside a corporation.
Micropreneur = wants to stay small.
Multipreneur = starts multiple companies.
Business Plan → required for banks/investors, includes market, management, finances.
Financing:
Debt financing = borrowed, must repay with interest.
Equity financing = selling ownership (stock).
Venture capital = firms investing in high-growth, take ownership/management role.
Angel investors = wealthy individuals funding startups.
Outsourcing = hiring another company to handle tasks.
SBA (Small Business Administration) = gov agency supporting small businesses.
How to Study:
Focus on matching definitions to terms (intrapreneur vs entrepreneur vs multipreneur).
Drill financing methods (debt vs equity vs venture vs angel).
Be ready for bank-loan situations (Emily needs to open B&B → Business Plan).
Chapter 6: Management & Leadership
Key Content to Know:
Management Functions:
Planning → set goals, strategies.
Organizing → structure, positions, resources.
Leading → guiding, motivating.
Controlling → setting standards, measuring, correcting.
Levels of Management:
Top → overall goals.
Middle → carry out plans, supervise managers.
Supervisory → lowest level, daily operations.
Planning Types:
Strategic (long-range).
Operational (short-term, supervisors).
Contingency (backup).
Skills:
Technical (specialized, e.g. programming).
Conceptual (big-picture).
Leadership Styles:
Participative = consensual, democratic, consultative.
Empowerment = giving employees decision-making power.
Mission = org’s purpose.
How to Study:
Drill functions of management (Planning, Organizing, Leading, Controlling).
Memorize levels of management + examples (plant manager = middle).
Situational questions: “Lowest level carrying daily ops?” → Supervisory.