Review of Business Content Exam 171 Test Objectives

I. Accounting Principles and Practices

II. Economics, Consumer Economics, and Career Development

III. Marketing Principles and Applications

IV. Entrepreneurship, Management, Law, and International Business

V. Business Communications and Computations

VI. Computer Education

TITLES OF RESOURCES USED APPEAR AT END OF THIS DOCUMENT

Updated 2011

SUBAREA I—ACCOUNTING PRINCIPLES AND PRACTICES.

**Examples of different Accounting Statements are found after the References at the end**

0001 Understand the accounting cycle.

Define accounting and explain the steps of the accounting cycle.

Accounting is planning, recording, analyzing, and interpreting financial information. (Gilbertson, Lehman & Ross, P. 6)

Steps in Accounting Cycle:

1. Reviewing source documents and checking for accuracy, and analyzing transactions into debit and credit parts.
2. Journalizing transactions.
3. Posting transactions to general and subsidiary ledgers.
4. Preparing work sheets.
5. Preparing Income Statement and Balance Sheet.

6. Recording adjusting and closing entries.

7. Posting adjusting and closing entries to ledger accounts.

8. Preparing post-closing trial balance.

(Gilbertson, Lehman & Ross, P. 217)

Demonstrate an understanding of the fundamental accounting equation.

Assets = Liabilities + Owner’s Equity

Many transactions affect owner’s equity. Income normally increases it, and expenses normally decrease it. Swapping assets and liabilities does not cause an increase or decrease in owner’s equity.

Recognize the functions of various accounting documents and analyze business transactions using source documents.

Balance Sheet (p216, Glencoe Beginner): report of the balances in all asset, liability, and owner’s equity accounts at the end of the period.

Income Statement (p204, Glencoe Beginner): reports net income or net loss for the period by showing the total revenues and total expenses

Statement of retained earnings (p531, Glencoe Beginner): reports the changes that take place in the retained earnings account during the period; changes are from business operations and/or dividends paid

Statement of stockholders’ equity (p585, Glencoe Beginner): reports the changes in all of the stockholders’ equity accounts (issuance of stock, dividends paid, net income) during the period

Statement of cash flows (p392, Glencoe Advanced): shows how cash is affected by the operating, investing, and financing activities of a business

-Source documents (p123, Glencoe Beginner): evidence of a business transaction (ie, an invoice); important to verify the info on the source document (ie, pieces purchased, pieces delivered, cost, total, date, payment terms, etc)

Describe the purpose of a journal and its relationship to the ledger.

Journal- record of all transactions of a business, kept in chronological order (p124, Glencoe Beginner); lists the specific business transactions (p155, Glencoe Beginner)

Ledger- groups accounts together to make info easier to find when preparing financial statements (p72, Glencoe Beginner); maintains balances in specific accounts such as accounts receivable, accounts payable, cash, etc (p155, Glencoe Beginner)

Explain the purposes of the closing process, journalize and post closing entries, and prepare a post closing trial balance.

The purpose of the closing process is the transfer all of the balances from the revenue and expense accounts to a capital account so as to capture what happened during that particular period. Each period must start with a zero balance in the temporary accounts. (p233, Glencoe Beginner)

To prepare a post closing trial balance (p556, Glencoe Beginner):

1. Collect and verify source documents

2. Analyze each transaction (what is being debited? credited?)

3. Journalize each transaction

4. Post to the ledger

5. Prepare a trial balance

6. Prepare a work sheet

7. Prepare necessary financial statements

8. Journalize and post the adjusting entries

9. Journalize and post the closing entries

10. Prepare a post-closing trial balance

Recognize the uses of accounting software.

When using automated methods for accounting procedures:

-transactions are keyed to the appropriate screen in the accounting system

-posting to the general ledger accounts occurs automatically

-the trial balance is generated by the accounting system

-financial reports are predefined to pull the appropriate accounts and their current

balances from the general ledger computer files. The reports automatically summarize

and can be printed when the user chooses. (p88, Glencoe Beginner)

0002 Apply procedures for determining the value of assets, liabilities, and owner's equity according to generally accepted accounting principles.

Recognize appropriate valuation principles (e.g., depreciation); classify items as assets, liabilities, or owner's equity; and define and identify current and long-term assets and liabilities.

The Declining Balance Method of calculating depreciation uses a constant rate multiplied by the book value of an asset. The declining balance method oftentimes uses a multiple of the straight-line method, making it possible to depreciate or “write off” an asset more quickly which results in a lower reported net income and less income tax to be paid. (Gilbertson, Lehman, & Ross, pp. 551.)

Explain the purposes of notes receivable and apply procedures for maintaining the accounts receivable subsidiary ledger.

Notes receivable—Promissory notes a business receives from customers who cannot pay an account by its due date. The account is then closed and a note is created to receive the amount plus interest. (Gilbertson, Lehman, & Ross, P. 598)

Accounts receivable is called a controlling account because it contains the total for all accounts which are receivable from customers. A separate accounting must be made for each customer’s account, so a subsidiary ledger called the Accounts Receivable ledger is created. The total of all customers’ accounts in the subsidiary ledger must match the balance in the controlling account. When an entry affects the Accounts Receivable account, the amount must be posted to both the Accounts Receivable account in the General Ledger as well as in the customer’s account in the Accounts Receivable Ledger. (Gilbertson, Lehman, & Ross, P. 298; 317 & 318.)

Explain the purposes of notes payable and apply procedures for maintaining the accounts payable subsidiary ledger.

Notes payable is normally a current liability (one year or less). In a manner similar to the note receivable discussed above, a note payable may be an extension of time for an account payable for which we cannot meet the deadline payment. A note payable may also be a short-term loan from the bank. Many retailers borrow from banks for seasonable merchandise. A landscaping business may borrow in the early spring for merchandise which will be sold over the summer with the note being due at the end of the season. Many retailers also borrow notes from a financial institution for merchandise which will be available for sale during the Christmas holidays. Remember that notes normally have interest added to them. If one borrows $15,000 and pays $1,200 in interest, the payment would include a debit to Interest Expense for $1,200, a Debit to Notes Payable for $15,000, and a credit to Cash for $16,200. (Gilbertson, Lehman, & Ross, P. 595.)

In a manner similar to Accounts receivable, Accounts Payable is called a controlling account because it contains the total for all accounts which are payable to others. A separate accounting must be made for each payable account, so a subsidiary ledger called the Accounts Payable ledger is created. The total of all payable accounts in the subsidiary ledger must match the balance in the controlling account. When an entry affects the Accounts Payable account, the amount must be posted to both the Accounts Payable account in the General Ledger as well as in the individual account in the Accounts Payable Ledger. (Gilbertson, Lehman, & Ross, P. 298; 317 & 318.)

Explain the purpose of the capital and drawing accounts for a sole proprietorship and partnership and apply appropriate accounting techniques to account for investments and withdrawals by owners.

The capital account for a sole proprietorship or a partnership is essentially the Owner’s Equity account. The capital account for a partnership is duplicated as a separate account for each of the partners according to the amount of ownership each partner maintains. (Gilbertson, Lehman, & Ross, P. 682)

A separate Owner’s Equity statement is maintained to account for the equity for each of the owners and the balance for each owner. Changes in Owner’s Equity can result from additional investments, withdrawals, and net income or net loss. This is simple to maintain for a sole proprietorship. However, this computation is more complex in a partnership. If three partners own a business, one may have other sources of income and never withdraw any of this or her share of the profits while the others may withdraw their shares of the profits for living expenses. This difference will result in a proportional difference in the investments among the three, and the Owner’s Equity on future balance sheets will result.

In order to keep track of amounts which the owner of a sole proprietorship or the partners in a partnership withdraw for personal expenses, a temporary account called Drawing is maintained. Each time an owner withdraws from the business, the Drawing account is debited and Cash or another asset is credited (if the owner withdraws something other than cash). The Drawing account is closed at the end of each accounting period. (Gilbertson, Lehman, & Ross, P. 682—684.)

Explain the purpose of the following corporate accounts: common stock, preferred stock, paid-in capital, retained earnings, and dividends.

Common Stock—A share of ownership in a corporation is a share of stock. If a corporation has only one class of stock, that class is called common. Stockholders elect a board of directors, share in the profits of the corporation, and share the assets if the corporation goes out of business. (Guerrieri, Haber, Hoyt, and Turner, p. 575.)

Preferred Stock has certain privileges over common stock. Preferred stockholders are entitled to receive dividends before common stockholders and are given preference over common stockholders if the corporation goes out of business and the assets are divided (preferred get theirs first, common gets what is left). (Guerrieri, Haber, Hoyt, and Turner, p. 575.)

Paid in Capital is an account representing the owners’ investments. Amounts recorded in this account do not represent the profits of the corporation, only amounts paid by the owners. (Guerrieri, Haber, Hoyt, and Turner, p. 576.)

Retained Earnings is an account which is used to identify net income. Portions of the retained earnings may later be transferred to owners (proprietors, partners, or stockholders). (Gilbertson, Lehman, & Ross, P. 405.)

Dividends are the portion of earnings which are distributed to stockholders. After income has been added to the Owner’s Equity account, a portion of that income is normally paid in the form of dividends to stockholders. (Gilbertson, Lehman, & Ross, P. 405.)

0003 Prepare, interpret, and analyze financial statements and apply appropriate accounting principles to various forms of ownership, payroll, income taxation, and managerial systems.

Compare the advantages and disadvantages of different forms of business ownership.

Sole proprietorship.

Advantages

• Ease of formation.
• Total control by the owner
• Profits are not shared.

Disadvantages

• Limited resources.
• Unlimited liability.
• Limited expertise.
• Limited life (dissolves when owner dies).
• Obligation to follow laws of both federal government and state and city in which the business is formed. (Gilbertson, Lehman, & Ross, P. 7.)

Partnership.

Advantages

• Ease of formation like a sole proprietorship. Simply draw up an agreement.
• Brings financial resources and talent from more than one owner.

Disadvantages

• Unlimited liability by each of the partners for business and personal assets (unless special limited partnership is created).
• Limited life will probably end when one of the partners dies unless provision is otherwise made. (Guerrieri, Haber, Hoyt, and Turner, p. 734-735.)

Corporation.

Advantages

• Limited liability (stockholders’ liability limited to their investment).
• Greater supply of capital with more investors.

Disadvantages

• Shared decision making. Significant decisions must be approved by a majority of the stockholders—may be time consuming and cumbersome.
• Shared profits—divided among many stockholders.
• Taxation—Earnings of the corporation are subject to federal and state income taxes. Distributions (dividends) received by stockholders are taxed again as personal income. Only once for sole proprietorships and partnerships. (Gilbertson, Lehman, & Ross, P. 271.)

Analyze the income statement and balance sheet of a business and explain the limitations of the historical cost accounting model when interpreting financial statements prepared during periods of inflation.

Income Statement. Amounts on income statements are normally reported in dollars. However, the amounts may also be reported in an additional column as a percentage of sales. Categories which may be compared with sales include Cost of merchandise sold, Gross profit on sales, Total expenses, and Net income before federal income tax. A comparison can be made with prior accounting periods to determine if any of the categories have changed significantly. A comparison may also be made with similar businesses to determine guidelines of acceptable percentages. A historical comparison with previous accounting periods may not create a true picture of the success of a business during periods of high inflation when Costs of merchandise and Expenses are on the rise. During these periods, an increase in sales must be generated if the acceptable percentages are to be maintained.

Balance Sheet. One way to measure the financial strength of a business is to determine if the business has access to assets which can be converted to cash if needed. One measure is to determine the amount of working capital, the excess of current assets (converted to cash in one year) minus current liabilities (paid within one year. Another more valuable way to compare current assets with current liabilities is by determining the current ratio. If the current assets total $1,000,000 and the current liabilities total $250,000, the current ratio is 4:1. A comparison with other businesses in the same category (restaurants, clothing stores, airlines) will help determine if the current ratio is within acceptable limits. (Gilbertson, Lehman, & Ross, pp. 455—460, 652.)

Apply procedures for preparing statements of cash flows using the direct and indirect methods.

Cash flows is covered near the end of the Accounting II course. The concept is to show from where all sources of cash were received and where cash was spent. The Cash Flows Statement shows cash flows (both income and spent) from operations of the business (cash received from sales and cash spent for purchases of merchandise and expenses. Cash flows must also be reported from investing activities such as cash received from the sale of plant assets and from the collection of loans, and cash paid for securities and plant assets. Cash flows must also be reported from financing activities (cash received from issuing notes payable and capital stock and cash paid (paying notes payable, redeeming bonds, and paying cash dividends to stockholders. (Guerrieri, Haber, Hoyt, and Turner, Second Course, p. 392-405.)

Apply appropriate accounting techniques for the formation, allocation of earnings, and liquidation of a business.

Proprietorship—Though the owner is liable for responsibilities of the proprietorship, business records must be kept separate from personal financial records (bank accounts, car, house). The text covers Forming and Dissolving a Proprietorship by listing the advantages and disadvantages which were mentioned earlier. Starting a business is journalized by debiting Cash or other assets and Crediting the Owner’s Equity account. These amounts are then posted to the respective accounts in the general ledger. The owner is not considered an employee, and the owner’s salary is not part of Salaries Expense. The withdrawal of earnings is made through the temporary Drawing account. The Drawing account has a normal balance on the debit side with additions to the account being debits and deductions from the account being credits. When the owner wishes to withdraw money from the business for personal income, the Drawing account is debited, and the Cash account is credited. The Drawing account is closed at the end of the accounting period by Debiting Income and Expense Summary (in effect debiting the Capital Account) and crediting the Drawing account to close it. (Gilbertson, Lehman, & Ross, pp. 7,)

Partnership is formed by a written or oral agreement among the partners. Multiple entries are made to form a partnership. Debiting Cash and Crediting the Owner’s Equity account for each partner is completed when the business is formed. A separate statement (Called Owners’ Equity Statement) is oftentimes kept to maintain the amount of ownership maintained by each partner. The partners are not considered to be employees, and their earnings are not handled in the Salaries Expense account. Multiple Drawing and Owner’s Equity accounts are set up to keep track of income withdrawals and the amount of equity each partner maintains in the business. The mechanics of each Drawing account work like the Drawing account for an owner in a single proprietorship. The amount of Owner’s Equity for each partner is reported on the Owner’s Equity Statement. This shows initial investment, shares of net income added to equity, and amounts withdrawn from the business, resulting in the current equity investment for each partner. Dissolving a partnership is called liquidation of a partnership. Cash received from the sale of assets is called realization. Noncash assets are generally sold to pay creditors, and the remainder is divided among the partners according to the total equity of each partner. (Gilbertson, Lehman, & Ross, pp. 674—690.)

Corporations are oftentimes formed to attract more investors. A corporation is a separate entity from its owners and must be approved by a state or federal agency. Corporations issue shares of stock to represent fractions of ownership. A corporation may own property, incur liabilities, enter contracts, and sell shares of its own stock. A primary difference between proprietorships and partnerships when compared with corporations is in the capital accounts. Unlike the sole proprietorship and partnership form of ownership, a corporation is separate from its owners. The officers are normally employees and are included within Salary Expense category. When a stockholder dies, the corporation does not stop. When stock is sold, one should record the transaction by debiting Cash and crediting the Stock account. After net income is calculated and a dividend is declared, one should record the transaction by debiting the Dividends account and crediting Dividends Payable. When actual payment is made, one should record the transaction by debiting Dividends Payable and crediting Cash. A Statement of Stockholders’ Equity is prepared to show the amount of ownership by stockholders. This statement shows the previous balance, plus any issuance of stock shares and net income, minus any payments in the form of cash dividends. When a corporation is closed, creditors must first be paid, stockholders (preferred first) share in the remainder of proceeds from the sale of assets. (Gilbertson, Lehman, & Ross, pp. 234, 515. AND Guerrieri, Haber, Hoyt, and Turner, Second Course, pp. 575—587.)

Apply appropriate accounting techniques for maintaining payroll records and determining personal and corporate income taxes.

Payroll records include timecards for hourly workers and periodic payments for salaried workers. Employee Income Tax, Social Security Tax, Medicare Tax, and other deductions must also be recorded for each employee. Employee Earnings Records are maintained for each employee to ensure accuracy of earnings records. Payroll checks normally include gross pay, itemized deductions, and net pay in the check stub information. Payroll taxes and reports must be filed periodically. When payroll is made at the end of each week, month, etc., entries are recorded for each payment involved for each employee. Salary Expense is debited from the gross payroll, Deductions are placed in various payable accounts by crediting accounts such as Federal Income Tax Payable, Social Security Tax Payable, and Health Insurance Premiums Payable. When payments are actually made for income tax and insurance premiums, the Payable accounts are debited and cash is credited. Businesses must file periodic tax returns including estimates of taxes which the business should will owe the governmental unit for income taxes as well as reports of tax withholdings which have been deducted from employees’ paychecks. When an individual receives an income tax refund, that money was actually deducted from the employee’s paycheck(s) by the employer and placed in an account with the government. (Gilbertson, Lehman, & Ross, pp. 340—390.)

0004 Apply planning and control principles to evaluate the performance of an organization.

Recognize the role of managerial accounting in the management process.

Management Accounting focuses on reporting information to management. Reports are prepared to management involved in making decisions like purchasing, hiring, production, payments, sales, and collections. Managers need accounting information so they can decide what to do, how to do it, when to do it, and if the results match the plans for the future. (Guerrieri, Haber, Hoyt, and Turner, p. 33)

Explain and compare the behavior of fixed, variable, and mixed costs.

Cost Behavior refers to the way a cost changes in relation to a change in business activity (number of units produced or sold). 

Fixed Costs remain constant, no matter what happens. Rent Expense of $2,400 will remain the same regardless of the number of units produced or sold. However, cost accounts might assign a smaller portion of Rent Expense to each item if more items are produced or sold. If 1,000 units are sold, the Rent would be $2.40 per unit, but if 500 units were sold, the Rent would be $4.80 per unit.

Variable Costs vary with volume of production, such as direct materials or labor to create a product. As output increases, total variable costs increase, but the cost per unit remains the same.

Mixed Costs are part variable and part mixed. They can be controlled to an extent (truck rental charges, telephone charges, leases, and repairs). Managers oftentimes prefer that mixed costs be separated as much as possible into fixed and variable costs.

High-Low Method. If one cannot determine which part of mixed costs are fixed and variable, a high-low method can be used. For Repair Expense in the second half of the year, October was the highest with $415 total cost for 86 hours, and July was the lowest with $275 total cost for 30 hours. Subtract the difference for each which will result in $140 ($415-$275) and 56 hours (86 hrs.-30 hrs). Divide $140 by 56 to determine the variable portion of the cost, $2.50 per hour. (Guerrieri, Haber, Hoyt, and Turner, Advanced Course, p. 696—704.)

Apply responsible accounting concepts to analyze cost, profit, and investment centers.

A relationship exists among costs, volume sold, and profit. Cost-volume-profit (CVP analysis shows how a change in sales volume or costs affects profit. This information is needed to prepare meaningful plans. Contribution margin is the portion that a department makes toward the net income of a business. It can also be seen as the contribution a department makes toward paying for fixed costs and adding to the profit of the business. The contribution margin equals total revenues minus total variable costs. An accountant may prepare a contribution income statement for internal use representing all costs. This statement may include Sales minus (variable costs for Manufacturing, Administrative, and Selling) and (fixed costs for Manufacturing, Administrative, and Selling) to compute Net Income. An example of this statement appears on p. 717. The unit contribution margin is the unit selling price minus the unit variable costs. The contribution margin is equal to the unit contribution margin multiplied by the sales volume. For a business to make a profit, the contribution margin must exceed total fixed costs. An illustration of the Contribution Income Statement appears on p. 718. The Contribution Margin Ratio is a valuable tool which consists of dividing the contribution margin by sales (illustrated on p. 718). The break-even point is the point where total revenues equal total costs. (Guerrieri, Haber, Hoyt, and Turner, Advanced Course, pp. 714-728..)

Evaluate company performance by applying standard cost analysis.

As opposed to activity-based costing or another type of costing, standard cost accounting essentially enabled managers to ignore the fixed costs, and look at the results of each period in relation to the "standard cost" for any given product.

For example: if the railway coach company normally produced 40 coaches per month, and the fixed costs were still $1000/month, then each coach could be said to incur an overhead of $25 ($1000 / 40). Adding this to the variable costs of $300 per coach produced a full cost of $325 per coach.

This method tended to slightly distort the resulting unit cost, but in mass-production industries that made one product line, and where the fixed costs were relatively low, the distortion was very minor.

For example: if the railway coach company made 100 coaches one month, then the unit cost would become $310 per coach ($300 + ($1000 / 100)). If the next month the company made 50 coaches, then the unit cost = $320 per coach ($300 + ($1000 / 50)), a relatively minor difference.

An important part of standard cost accounting is a variance analysis, which breaks down the variation between actual cost and standard costs into various components (volume variation, material cost variation, labor cost variation, etc.) so managers can understand why costs were different from what was planned and take appropriate action to correct the situation. (http://en.wikipedia.org/wiki/Standard_costing#Standard_cost_accounting)

Apply differential analysis and present value concepts to make decisions with regard to manufacturing or buying a product, leasing or buying an asset, replacing or repairing equipment, discontinuing a product, offering discounted prices on special orders, or taking advantage of capital investment opportunities.

http://www.principlesofaccounting.com/chapter%2024.htm ßgood example on purchasing vs repairing a truck

SUBAREA II—ECONOMICS, CONSUMER ECONOMICS, AND CAREER DEVELOPMENT

0005 Understand basic economic concepts and the operation of the U.S. economy.

Define and apply basic economic concepts (e.g., scarcity, opportunity cost, supply and demand).

--Business A Changing World: Page 12

--Business A Changing World: Pages 8-9, Table 1.1,

--Intro to Business: (Supply/Demand p. 32-33)

--Business Today: (Supply/Demand p. 11-12), (Opp. Costs p. 458-459)

Recognize major features of the U.S. economy (e.g., freedom of exchange, private property, economic incentives).

--Intro to Business: Pages 21-24

--Business Today: Pages 8-18

--Business A Changing World: Page 9, Table 1.1

Recognize the role of consumers, business, labor, and financial institutions in the U.S. economy.

--Intro to Business: Chapter #3

--Business A Changing World: Page 9, Table 1.1

--Business Today: Pages 54-57

Explain the role of government in the U.S. economy (e.g., fiscal policy, monetary policy, deregulation).

--Intro to Business: Chapter #11

--Business A Changing World: Page 9, Table 1.1

--Business Today: Pages 14-16

Demonstrate an understanding of the business cycle and identify methods for measuring domestic output, unemployment, and inflation.

--Intro to Business: Pages 45-46

--Business A Changing World: Page 9, Table 1.1

Describe factors related to the economics of the firm (e.g., law of diminishing returns, production costs, economies of scale).

--Business A Changing World: Page 9, Table 1.1

0006 Understand different types of economic systems and the operation of the international economy.

Explain why societies develop economic systems and recognize and compare basic features of different economic systems (e.g., market, traditional, command).

Describe and compare different types of market structures (e.g., oligopoly, monopolistic competition, monopoly) and examine the role of competitive markets in the U.S. and other economies.

--Business A Changing World: (Oligopoly p. 14-16), (Other Economies P. 9-11)

Recognize the role of major international economic institutions in the global economy (e.g., World Bank, International Monetary Fund, World Trade Organization).

--Business A Changing World: Pages 87-91

--Business Today: Pages 80-81

Demonstrate an understanding of the laws of comparative and absolute advantage and describe the effect of global interdependence.

--Business Today: Pages 76-77

Explain economic relationships among nations and examine the role of international trade, investment, and monetary relations in the global economy.

--Business Today: Chapter #3

0007 Understand basic principles of consumer economics.

Apply consumer skills in various situations (e.g., purchasing autos, health and life insurance, food, clothing, housing).

--Intro to Business: Unit #11

--Personal Finance Planning & Outlines: (Auto p.172-184), (Health Insurance p.358-387), (Life p.318-348), (House p.188-216)

--Consumer Action Handbook: (Auto p.9-12), (Insurance p.24-27), (Home p.22) (Food p.20)

Recognize checking and savings options offered by banks, credit unions, and other financial institutions and demonstrate an understanding of the uses and misuses of credit.

--Intro to Business: Unit #8

--www.creditunion.com

--Personal Finance Planning & Outlines: (Credit p. 228-268), (Checking p.156-163), (Saving p.146-155)

--Consumer Action Handbook: (Brokers p.27), (Banking p13-16)

--PowerPoint Outline for Government Agencies (quiz w/answers)

Demonstrate an understanding of financial decision making in areas of budgeting, taxes, and investing (e.g., stock market, precious metals, collectibles).

-- Personal Finance Planning & Outlines: (Basic concepts p.430-584), (Stocks/Bonds p.494-538), (Mutual Funds p548-584), (Taxes p.90-122)

Examine legal and practical issues related to consumerism and identify the appropriate consumer agency to address a specific issue or concern.

--Consumer Action Handbook: Pages 36-50,  (Federal Agencies p.111-127)

--Legal & E-Commerce Environment: Chapter #19

0008 Demonstrate the ability to plan, deliver, and evaluate instruction based upon knowledge of subject matter in the content area of business, marketing, and computer education.

Demonstrate an understanding of the history, organization, and future of work and recognize how work relates to the needs and functions of the economy and society.

--Intro to Business: Pages 33-34

--Entering the World of Work: Pages 15-22

Apply career development concepts, examine the relationship between work and learning, and demonstrate an understanding of the career development process.

--Intro to Business: Pages 259-260

--Entering the World of Work: Pages 80-95

Use information about patterns of business development, changing labor and career opportunities, postsecondary admission standards, and relevant Illinois Occupational Skill Standards to design curriculum and assessment.

--Entering the World of Work: pages 54-62

Apply techniques for integrating student organizations' activities into the curriculum and demonstrate how to develop collaborative partnerships with students, colleagues, community, business/industry, and parents to maximize resources.

--Power Points for BTE 260

Identify and use educational research findings to create learning environments and classroom activities that develop life/workplace skills and design appropriate assessment plans for students.

--Power Points for 362

SUBAREA III—MARKETING PRINCIPLES AND APPLICATIONS

0009 Understand the principles of marketing and factors affecting business marketing decisions.

Demonstrate an understanding of the role of marketing in business and its impact on individuals, businesses, and society.

--Marketing Concepts and Strategies: Page 4-8

--Business Functions: Marketing Packet: Pages 2-5

Explain the impact of external factors on marketing decisions (e.g., market demographics, government regulation, economic environment, technological advances).

--Marketing Concepts and Strategies: (Gov. Reg. p. 69-75), (Mkt Dem. p. 79-82), (Econ. Env. p.65-68), (Tech. Adv. p. 76-78)

--Business Functions: Marketing Packet: Pages 13-15

Examine the role of pricing in the marketing process and apply various pricing strategies.

--Marketing Concepts and Strategies: (Pricing Strat. p. 594-602), (Mkt Process p. 560-561)

 --Contemporary Marketing: Pages 373-429

Recognize the stages of product development and their role in the marketing process.

--Marketing Concepts and Strategies: Pages 313-320

--Contemporary Marketing: Pages 359-367

Demonstrate an understanding of distribution processes and methods to develop distribution plans.

--Marketing Concepts and Strategies: Pages 392-405

--Contemporary Marketing: Pages 435-460

Identify the four general forms of promotion and examine how each contributes to successful marketing.

--Marketing Concepts and Strategies: (Promotion p. 484-487), (Public Relations & Ad Chapter #19)

--Contemporary Marketing: Chapters #18 & #19

0010 Apply procedures for making marketing decisions.

Apply procedures for collecting and interpreting market data.

--Marketing Concepts and Strategies:(Colleting p. 177-185), (Interpreting p. 186-187)

--Contemporary Marketing: Chapter 7

Apply procedures for developing and implementing a marketing plan.

--Marketing Concepts and Strategies: (Implementation p. 16-17), (Sample Mkt Plans A27-A36)

--Contemporary Marketing: Pages 41-45

Use data to make marketing decisions in given situations.

--Contemporary Marketing: Chapter 7

Apply forecasting principles to marketing data.

--Marketing Concepts and Strategies: Pages 223-226

--Contemporary Marketing: Pages 213-215

0011 Understand marketing principles and procedures related to personal selling and customer service.

Recognize the importance of customer satisfaction and analyze factors that influence customer satisfaction.

--Marketing Concepts and Strategies: Pages 376-378

--Business Functions: Marketing Packet: Pages 10-11

--Contemporary Marketing: Pages 173-174

Demonstrate an understanding of steps involved in the selling process.

--Contemporary Marketing: Pages 580-585

Apply and evaluate various sales techniques.

--Contemporary Marketing: Pages 570-574

Apply procedures and policies related to customer relations.

Apply procedures for dealing with the public, handling customer complaints, and evaluating customer service.

--www.ecomhelp.com

--Marketing Concepts and Strategies: (Cust. Service p. 374-375)

SUBAREA IV—ENTREPRENEURSHIP, MANAGEMENT, LAW, AND INTERNATIONAL BUSINESS

0012 Understand principles and procedures related to entrepreneurship.

Recognize the characteristics and functions of entrepreneurs and assess the advantages and disadvantages of business ownership.

--Business A Changing World: Pages 137-152

Apply economic concepts and financial competencies used to make entrepreneurial decisions.

-what book would this be in?

Identify, establish, maintain, and analyze appropriate records to make business decisions.

-what kind of business decisions? Buy or make? Merge or stay independent? Find a new CEO? Launch a new product? Retract an old product?

Apply procedures for developing business plans for entrepreneurial ventures.

--Small Business Management: Chapter #5

Recognize issues and procedures involved in buying and operating a franchise.

--Business A Changing World: Page 177-178

0013 Understand fundamental theories, functions, and procedures of business management.

Identify the functions of management and recognize their importance in business.

--Enterprise Business 100: Pages 77-78

--A Primer for Management: Pages 6-8

Recognize basic tenets of management theories (i.e., strategic management, operations management) and their importance in the successful operation of an organization.

--Enterprise Business 100: Page 93

--A Primer for Management: Pages 64, A9-A10

Recognize and apply principles and procedures related to planning, organizing, staffing, directing, and controlling, including general management skills such as time management, technology, networking, and entrepreneurial thinking.

--Enterprise Business 100: Pages 81-88

--A Primer for Management: (Planning Chapter #4), (Organizing Chapter #6), (Control Chapter #13)

Analyze financial data to make long- and short-term financial decisions and apply management principles and procedures to meet specific organizational goals and solve business problems related to innovation and change.

--A Primer for Management: Chapter #15

Apply procedures for using generally accepted operations management principles to develop an operations plan.

--A Primer for Management: Pages A8-A9

Apply the concepts of quality management to improve organizational effectiveness.

--A Primer for Management: Pages 73-77

0014 Understand organizational, group, and individual behaviors and their relationship to business management.

Identify various organizational structures and evaluate their advantages and limitations.

--Enterprise Business 100: Pages 75-80

--Business A Changing World: Pages 232-242

--A Primer for Management: Chapter #6

Demonstrate an understanding of social and behavioral theories related to the functioning of business organizations (e.g., corporate culture, change theory, formal and informal organization, project-based management).

--Business A Changing World: Pages 246-248

--A Primer for Management: Chapter #9

Apply procedures for using social and behavioral theories and principles to analyze group structures (e.g., team skills, group dynamics, motivation and leadership styles).

--Business A Changing World: Pages 213-216, Chapter #7

--Enterprise Business 100: Pages 175-181, Chapter #12

--A Primer for Management: (Team Skills p. 171), (Group Dynamics p.164-165), (Motivation p. 190-194), (Leadership Chapter #11)

Analyze issues related to organizational, group, and individual behaviors in management situations (e.g., conflict resolution strategies, factors influencing worker morale).

--A Primer for Management: (Conflict Res. p. 302), (Morale p. 134-135)

0016 Understand issues related to business ethics and the basic principles of business law.

Recognize procedures for developing a code of ethics and apply the code to various issues confronted by business.

--Business A Changing World: Pages 43, Table 2.5

--The Legal & E-Commerce Environment Today: Pages 41-42

Analyze factors influencing ethical decisions in business and apply ethical principles in specific business situations.

--Legal & E-Commerce Environment: Cases in Chapter #2

Demonstrate knowledge of the sources of law, the structure of the court system, and the different classifications of procedural and substantive law.

--Legal & E-Commerce Environment: (Sources p.6-9), (Systems p.113-117)

Analyze relationships among contract law, consumer law, and the law of sales.

--Enterprise Business 100: Page 40

--Legal & E-Commerce Environment: Page 325

Identify and analyze the legal rules that apply to personal and real property and examine the role of agency law and employment law in specific business situations.

--Enterprise Business 100: Page 44

--Legal & E-Commerce Environment: Pages 661-669

0017 Understand international business operations.

Recognize major trends and developments in international business.

--Enterprise Business 100: Pages 163-171

Analyze social, cultural, political, legal, ethical, and economic factors affecting the international business environment.

--Enterprise Business 100: Pages 163-171

--Legal & E-Commerce Environment: (Legal Chapter #24)

Demonstrate knowledge of import/export trade concepts.

--Enterprise Business 100: Pages 163-171

--Legal & E-Commerce Environment: (Export p. 760-761), (Laws for both p. 768-770)

Examine the effect of international business developments and considerations on organizational structures and the management of human resources.

--Enterprise Business 100: Pages 167-168

Analyze factors that influence marketing decisions in international business situations.

--Enterprise Business 100: Page 167

SUBAREA V—BUSINESS COMMUNICATIONS AND COMPUTATIONS

0018 Understand business communications.

Demonstrate an understanding of the principles of appropriate oral, written, and electronic communication.

--Contemporary Business Communication: Pages 12-13, 13-14, 102

--Intro to Business: Pages 143, 393

Recognize the effects of various forms of nonverbal communication.

--Contemporary Business Communication: Pages 46-50

--Intro to Business: Page 67

Demonstrate the ability to communicate in a clear, courteous, concise, and correct manner on personal and professional levels and apply basic social communication skills in personal and professional situations.

--Contemporary Business Communication: (Memo p.  203-207), (Reports p. 333-360), (Letter p. 607-611), (Definitions of Types Chapter #13)

Demonstrate proficiency in written and oral communication using manual and electronic methods and apply appropriate formats for preparing various types of business communications (e.g., interoffice memo, report, business letter).

--Contemporary Business Communication: Pages 10-11

--Intro to Business: (Interoffice Memo p. 569), (Business Letter p. 421)

Apply procedures for using technology to enhance the effectiveness of communications (e.g., voice mail, e-mail, faxes).

--Intro to Business: (Email p. 209)

0019 Apply reading and research skills in business contexts and demonstrate instructional abilities to teach reading in the content area of business, marketing, and computer education.

Identify business and economic reference materials and other sources of business information and answer specific questions through the application of business research procedures and techniques.

Demonstrate literal and inferential comprehension of written materials related to business and economics and use critical reasoning skills to evaluate written material in business or economic contexts.

Apply techniques for planning and teaching units that require students to integrate the four language arts (i.e., reading, writing, listening, speaking) and carry out research or inquiry using multiple texts, including electronic resources.

Analyze and evaluate the appropriateness of instructional materials in terms of readability, content, length, format, illustrations, and other pertinent factors.

Recognize the role of subject-area vocabulary in developing reading comprehension and demonstrate how to provide opportunities for students to develop content-area vocabulary through instructional practices that develop connections and relationships among words, use of context clues, and understanding of connotative and denotative meaning of words.

Apply techniques for planning and teaching lessons to help students develop study strategies that include previewing and preparing to read text effectively, recognizing organizational patterns unique to informational text, and using graphic organizers as an aid for recalling information.

0020 Apply basic techniques of quantitative analysis in business situations.

Apply procedures for creating and interpreting charts and graphs containing economic and/or business information.

Interpret consumer and business data using computational and algebraic operations and statistical analysis.

Apply procedures for reporting and interpreting quantitative aspects of case studies.

Apply mathematical procedures for analyzing and solving business problems in such areas as taxation, savings and investment, cash management, sales, inventory records, and depreciation.

SUBAREA VI—COMPUTER EDUCATION

0021 Understand basic computer technology principles, terminology, and keyboarding applications.

Demonstrate an understanding of terminology related to computer technology.

-- Computers Are Your Future: Chapter #1, p.7-12, 16-18

Identify basic keyboarding skills used to access, generate, and manipulate text and data and identify procedures for formatting business documents according to industry standards.

--Contemporary Business Communication: Section B

Use technology in communicating, collaborating, conducting research, and solving problems.

--Discovering Computers: Pages 26-36

Recognize characteristics and functions of computer input devices, output devices, processing units, network systems, and storage units.

--Computers Are Your Future: (Spotlight p.289), (Software p.80-88), (Mobo p.129-137), (I/O’s p148-160), (Storage p.162-171)

Apply procedures for selecting, operating, and maintaining computer hardware, software, and peripherals.

--Computers Are Your Future: Spotlight 4

0022 Understand principles and procedures related to information management, information systems, and electronic communications.

Demonstrate an understanding of software applications (e.g., word processing, database management, simulations, spreadsheets, presentation software) and their uses in various business contexts.

--Discovering Computers: Pages 138-150

Apply procedures for accessing and manipulating data from databases.

--Discovering Computers: Page 145

--Computers Are Your Future: Page 106

Recognize characteristics and uses of multimedia systems and desktop publishing applications.

--Discovering Computers: (Desktop Publishing p. 152, 158)

Apply knowledge of terms related to electronic communications (e.g., wide area network, Internet, uplink).

--Computers Are Your Future: (types of networks p205), (Internet p220-245)

Analyze business situations and problems to determine appropriate electronic communication solutions (e.g., teleconferencing, online services, telecommuting).

--Computers Are Your Future: p. 276-280

0023 Understand principles and procedures related to maintenance, security, ethics, and data integrity of technology systems.

Apply basic troubleshooting strategies (e.g., virus checking) and evaluate the performance of hardware and software components of computer systems.

--Computers Are Your Future: p.56-60

Apply procedures for implementing security plans for information systems (e.g., passwords, voice imprinting, user rights).

--Computers Are Your Future: p.327-335

Recognize issues related to electronic privacy, the gathering and sharing of information, and generating, maintaining, and selling data files.

--Computers Are Your Future: p.312-317

Apply procedures for recovering data and ensuring the accuracy and integrity of electronic data.

--Computers Are Your Future: p. 166-167

Recognize issues related to ownership of software and ideas (e.g., copyrights, software piracy).

--Computers Are Your Future: p.78-79

RESOURCES USED

Boone, Louis E. and David L. Kurtz. Contemporary Marketing. (11^th ed.). Mason: Thomas South-Western, 2004.

Daley, Bill. Computers Are Your Future 2005. New Jersey: Pearson Custom Publishing, 2005.

Dumler, Michael P. and Steven J. Skinner. A Primer for Management. Mason: Thomas South-Western, 2005.

Eggland, Steven A. et al. Intro to Business. (4^th ed.). Cincinnati: South-Western Educational Publishing, 2000.

Garrison, Ray H. and Eric W. Noreen. Managerial Accounting. (9^th ed.).  Boston: Irwin McGraw-Hill, 2000.

Gitman, Lawrence J. and Michael D. Joehnk. Personal Financial Planning. (10^th ed.). Mason: Thomas South-Western, 2005.

GSA Federal Citizen Information Center. 2005 Consumer Action Handbook. 2005.

Kimbrell, Grady and Ben S. Vineyard. Entering the World of Work. Woodland Hills: Glencoe/McGraw-Hill, 2006.

Mescon, Michael H., Courtland L. Bovee and John V. Thill. Business Today. (10^th ed.). New Jersey: Prentice Hall, 2002.

Miller, Roger LeRoy and Frank B. Cross. The Legal and E-Commerce Environment Today. (4^th ed.). Mason: Thomas South-Western, 2005.

Needles Jr., Belverd E. and Marian Powers. Financial Accounting. (8^th ed.). Boston: Houghton Mifflin Company, 2004.

Newgren, Kenneth E., eds. Enterprise Business 100. (Pilot ed.). Lisle: Pacific Crest, 2004.

Ober, Scot. Contemporary Business Communication. (5^th ed.). Boston: Houghton Mifflin Company, 2003.

Pride, William M. and O.C. Ferrell. Marketing Concepts and Strategies. (Library ed.). Boston: Houghton Mifflin Company, 2006.

Ross, Kenton E. et al. Century 21 Accounting. (7^th ed.). Cincinnati: South-Western Educational Publishing, 2000.

Shelly, Gary B. et al. Discovering Computers 2006: A Gateway to Information. Boston: Thomson Course Technology, 2005.

Taylor, Steven. Business Functions: Marketing. Handout (CD and Printed Paper Packet)

Power Point Outlines are documented by title of presentation.

From: http://highered.mcgraw-hill.com/sites/0072881372/student_view0/ebook14/chapter1/chbody0/study_how_financial_results_are_reported_in_financial_statements.html

From http://www.principlesofaccounting.com/ART/C14art/statementofstockholdersequity.PNG :