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 October, 2008

 

SUBAREA I—ACCOUNTING PRINCIPLES AND PRACTICES.

0001 Understand the accounting cycle.

Objective

Where Learned—Course No, Unit, Activity

Evidence—notes, textbook, materials

Define accounting and explain the steps of the accounting cycle.

--Enterprise Business 100: Page 3, Chapter #13

--Financial Accounting: Pages 4, 17, 191

--Century 21 Accounting: Pages 4, 214

--Business A Changing World: Page 441

Demonstrate an understanding of the fundamental accounting equation.

--Enterprise Business 100: Page 6, Chapter #13

--Financial Accounting: Pages 15, 177

--Century 21 Accounting: Page 7

--Business A Changing World: Pages 441-453

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

 

--Financial Accounting: Pages 11, 17-28, 116, 195 (Accounting Docs p. 33), (Source Docs p. 100&182)

--Century 21 Accounting: Pages 66-68, Chapter #26

--Business A Changing World: Pages 442-453

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

--Enterprise Business 100: Page 5, Chapter #13

--Financial Accounting: Pages 125-127, 110-113

--Century 21 Accounting: Pages 64, 96-99

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

 

--Financial Accounting: Pages 184-192, 197-205

Recognize the uses of accounting software.

 

--Financial Accounting: Pages 179-182

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.

--Enterprise Business 100: Page 7

--Financial Accounting: (classify p.93-96), (current/long-term assets p. 460), (depreciation p. 468-472)

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

 

--Financial Accounting: Pages 345-352

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

--Enterprise Business 100: Page 8

--Financial Accounting: Pages 345-352

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.

 

--Financial Accounting: Appendix C

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

 

--Financial Accounting: Pages 560-572, (dividends p. 607)

 

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.

--Enterprise Business 100: Pages 37-39

--Financial Accounting: Page 14

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.

 

--Financial Accounting: Chapter #5

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

 

--Financial Accounting (indirect p. 643-654),

(direct p. 658-662)

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

 

--Managerial Accounting: Problems 13-18 and 17-18

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

 

--Financial Accounting: (Payroll&Taxes p. 422-425)

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

Recognize the role of managerial accounting in the management process.

 

--Managerial Accounting: Pages 4-9

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

 

--Managerial Accounting (variable p. 190-194), (fixed p. 194-199), (mixed p. 200-203)

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

 

--Managerial Accounting: Pages 553-559

Evaluate company performance by applying standard cost analysis.

 

--Managerial Accounting: Chapter #10

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.

 

--Managerial Accounting: (Present Value p. 621-623), (Add/Drop Prod. p. 624-627), (Make/Buy p. 628-632), (Special Orders p. 631-632)

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.

 

 

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

 

 

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. (11th 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. (4th ed.). Cincinnati: South-Western Educational Publishing, 2000.

 

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

 

Gitman, Lawrence J. and Michael D. Joehnk. Personal Financial Planning. (10th 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. (10th ed.). New Jersey: Prentice Hall, 2002.

 

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

 

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

 

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

 

Ober, Scot. Contemporary Business Communication. (5th 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. (7th 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.