Final Exam - Unit 3 and 4 Flashcards
What does a business letter do?
A business letter provides information to make a deal, conversation, or negotiation.
List the required parts on a business letter and where each required part is located.
1) Letterhead in the top left corner.
2) Date 2 spaces below.
3) Inside address 3 spaces below.
4) Salutation and subject line.
5) Main paragraph.
6) Closing, space for signature.
7) Name and title.
How many spaces are required for a signature on a business letter?
4 - 6
What is a salutation and subject line?
1) Salutation - A greeting used to address an individual.
2) Subject line - A brief preview or headline for the contents of the email.
What is a complimentary closing?
Words such as “sincerely” that comes before the signature, to express the senders regard for the receiver.
What is information technology?
Information technology is the study or use of systems for storing, sending, and retrieving information.
What is software and hardware?
1) Software - Anything that you can’t physically touch within a computer. (Apps, codes, and programs)
2) Hardware - Anything that you can physically touch within a computer. (Mouse, keyboard, and screen.)
What are operating systems?
Manages the computers processes along with its software and hardware. Allows us to communicate with the computer without knowing it’s language.
What is business directory?
Business directory is an online list of businesses within a specific niche, location, or category.
What is Internet Service Provider and URL?
1) Internet Service Prover - A company that providers internet access to anyone. (Telus and Freedom)
2) URL - The address of a World Wide Web page. (https://www…)
What is the difference between coins and banknotes?
1) Banknotes - Are issued by the government of Canada as paper money.
2) Coins - Are minted at the Royal Canadian Mint in Ottawa or Winnipeg.
List 3 different ways you can tell a banknote is counterfeit.
1) Feel the smooth polymer texture.
2) Look for transparency through the large window of a metallic portrait and building.
3) Feel the raised ink on the “Bank of Canada” and shoulders.
What are the 4 functions of money?
1) Medium of exchange - When people exchange money for goods and services.
2) Standard of value - To determine how much goods and services are worth.
3) Store of value - Can be stored or saved for future use.
4) Standard of future payment - Allows customers to determine the future value of a transaction.
What is the difference between gross, disposable, and discretionary income?
1) Gross Income - The total amount of money earned before any deductions.
2) Disposable Income - The amount of money left after deductions of income tax, CPP, and El.
3) Discretionary Income - The amount of money left after deductions of income tax, and essential expenses.
What are the 5 key factors that influence consumers to buy and explain them?
1) Income and Price - Family obligations like children and income affect what we buy.
2) Status - Some people feel that having certain products makes them better than others.
3) Current trends - Some people heavily rely on trends when purchasing an item.
4) Customs and habits - Customs like family, religon, and community affect what we buy.
5) Promotion - Advertising and promotion increases consumers’s desires.
What are 3 types of business incomes?
1) Revenue - The total amount of money a business makes from selling goods and services.
2) Gross Income - The total amount of money received by the business minus the cost of goods sold.
3) Net Income - Is the gross income minus the business expenses.
What are the 3 steps to calculate a personal budget?
1) Step 1 - Calculate and add up the amount of incomes you expect to earn or receive.
2) Step 2 - Determine and calculate the 2 types of expenses.
3) Step 3 - Calculate the amount of money left over.
What is the difference between fixed and variable expenses?
1) Fixed Expenses - Occur on regular basis and usually cannot be adjusted. Like phone bills or savings.
2) Variable Expenses - Expenses that differ from month to month, like food and clothing.
What are banks and how do they make money?
Banks and businesses that sell services to earn a profit. They make a revenue by gaining interest on loaned money and investments.
Who runs The Bank of Canada and what is its purpose?
The Bank of Canada is operated by the federal government and they help to keep the economy stable by regulating the money supply.
What are credit cards?
Credit cards is a loaned concept of money that you have to pay off or 20 - 25% of interest will be charged.
What are investments?
Investments are a way to use money with the hopes to make more money.
What are savings accounts, term deposits, and GIC?
1) Savings accounts - Earn interest but a very small amount.
2) Term deposit - Locks away money for a certain time period but has guaranteed interest.
3) Guaranteed Investment Certificate - Same as term deposit but time is longer.
What are bonds and mutual funds?
1) Bonds - Issued by the government and corporations for when they want to raise more money.
2) Mutual funds - When money is collected from various investors to invest in different assets.
