This document contains 15 questions about introductory business concepts including marketing, accounting, management, and ethics. The questions cover topics such as the 5 Ps of marketing, profit and loss statements, goals and strategies, organizational structures, and ethical business practices. Sample answers are provided for some questions to illustrate key business concepts.

1. Intro to Business Exercise 1.0
1. Joey and Jason have recently obtained a license to set up business. They are
free to set up any business of their choice. In the end, they have decided to
target a large retiree community and open a music store selling Rap CDs (e.g.
Eminem, Snoop Dog). Comment on their decision.
2. Businesses are good for the society. Discuss how they can contribute. Provide
two (2) specific examples for each type of contribution.
3. Define the term “barrier to entry”. Which type of business (goods-producing or
service) has bigger barriers to entry? Why?
4. List two (2) types of barriers to entry and give one example for each type.
5. In which economic condition should a business lower the price of its product
and services? Why?
6. Explain what a free market or capitalistic economy means? And a planned
economy?

2. Intro to Business Exercise 2.0
1. What is a niche market? Provide TWO (2) examples (other than from the
lecture notes) of a niche market? Why would a business want to target a
niche market? Give ONE (1) reason.
2. What would motivate some people to start their own business? Provide
TWO (2) possible motivations/reasons.
3. What is limited liability? Is this an advantage or a disadvantage to the
business owner? How (i.e. illustrate with an example)?
4. What is a franchise? Explain and provide TWO (2) examples of
franchises. Why would the parent company of a franchise choose to sell
licenses to franchisees instead of expanding their own chain of stores?
5. How can internet help a recently-started small business? Provide TWO (2)
suggestions.
6. If you are a banker and Gabriel wants to apply for a loan from you to start
a business, under which circumstances would you be more likely to lend –
a) he wants to buy an existing business or b) he wants to start a brand
new business? Why?
7. Discuss TWO (2) advantages and TWO (2) disadvantages of a
partnership.
8. What are shares? Where are shares traded in Malaysia? How is the price
of a company’s share determined in a share market?

3. Intro to Business Exercise 3.0
1. Define the term “ethics”. Does everyone view ethics or morality in the same way?
Why or why not? Can you give an example to illustrate this?
2. What is the difference between doing something “illegal” and something
“unethical”? What (example of) behaviour is considered both illegal and
unethical? Legal but unethical? Illegal but ethical?
3. What is global warming? Suggest ONE (1) negative effect that may arise from
global warming. If you are a business owner, what are some of the measures you
can take to counter it? Suggest TWO (2) strategies. (Note: you need to conduct
research for this question)
4. What is greenwashing? Explain and provide ONE (1) example (other than the BP
case).
5. Aman, Christian and Alice are the only sellers of architectural drawing materials
in the market, and they recently agreed to raise the price of their products
together by 25%. Describe the behaviour they are engaging in. Also, why is it
illegal and unethical for them to do so?
6. Explain the term “insider trading”. Also, provide ONE (1) example of your own to
illustrate your explanation.
7. Sabrina has recently written a set of employee code of conduct for her business.
Is the code alone sufficient to ensure ethical behaviours of her employees? Why
or why not? If not, what can she do about it? Suggest TWO (2) solutions.
8. If you are running a business, which social responsibility approach would you
adopt (obstructionist, proactive, etc.)? Why?

4. Intro to Business Exercise 4.0
1. What are the main components of the management process? Identify and
describe them briefly.
2. What are goals, strategy and tactics? Explain and provide one business-
related or one personally-related (e.g. studies, career, relationship, etc.)
example regarding them.
3. You have recently started a business with a group of your best friends.
While in the planning stage, they think that setting goals is simply a waste
of time. Provide TWO (2) reasons to convince them otherwise.
4. Leaders are necessary in various areas of our lives e.g. business, politics,
and family. What would happen if there are no leaders or the leaders are
ineffective? Choose one area above and discuss TWO (2) negative
consequences that may result from lack of effective leadership.
5. Who are managers? Under which form of business (i.e. sole trader,
partnership and company) are managers and owners most likely to be the
same person? And under which they are not? Why? Discuss.
6. What does a public relations manager do on a daily basis? (Note: You
need to conduct research to find the answer.)
7. Identify TWO (2) managerial skills that are important regardless of a
person’s (low or high) managerial status and justify your answers.
8. What is control? What are the steps involved in control? With an
appropriate example, illustrate how you can use control to help you
achieve your goals.

5. Intro to Business Exercise 4.1
1. What is an organizational chart? What is its purpose? Explain.
2. Kristoph and Joseph have both started their own architectural firms.
However, they both came up with very different organizational charts. How
is this possible? Provide TWO (2) possible reasons.
3. Ruth works for the marketing department of a multinational company. Due
to a poorly-designed organizational chart, she now has 2 superiors of
equal rank to whom she reports to. Explain TWO (2) problems that she
may experience in this reporting structure.
4. The company that you have founded 5 years ago is currently suffering
from poor performance due to intense rivalry and politicking from the
various departments. What can you do to make them work together again
as a team? Suggest TWO (2) strategies.
5. What is a functional structure? What type of business would adopt this
organizational structure? Also, explain ONE (1) advantage and
disadvantage of this structure.
6. What is a divisional structure? What type of business would adopt this
organizational structure? Why is this organizational structure more costly
to operate?
7. What are committees? What are some of the reasons for setting up a
committee? Provide THREE (3).
8. Many committees are set up for different purposes. For example, some
students for the Introduction to Business module are members of the
calendar project team/committee in the previous semester. What type of
committee is this? Why do you say so? Discuss.

6. Intro to Business Exercise 5.0
1. What is the difference between performance behavior and corporate citizenship
behavior? Explain with suitable examples.
2. Samuel, the manager of your department, is mentally disturbed. He enjoys
bullying his male subordinates and is known to have sexually harassed all the
female workers under his supervision. Discuss TWO (2) negative consequences
on the department and company if action is not taken against him.
3. What are the Big 5 personalities? Are these personality traits trainable? Why or
why not? How can a business ensure its employees have the big 5 personalities?
4. What are attitudes? Are job attitudes changeable? If yes, how can businesses
play a part in fostering good work-related attitudes?
5. After having been fired from his job, Joe currently lives in the store room of his
parents’ home. He is quite depressed with his situation for he has been
unemployed for the past 6 months. To spend his time, he goes out with his
drinking buddies every night. Referring to Maslow’s theory, what unmet needs
does Joe have right now? Why do you say so?
6. Scarlett recently started a law firm and hired several lawyers to help run her
business. The firm specializes in complex cases involving patents and
copyrights. However, no one (including Scarlett) possesses the full technical
knowledge and expertise necessary to take on a legal case alone. Under this
situation, which leadership style is appropriate? And why do you say so?
7. What do you think are the top THREE (3) qualities of an effective leader? And
why do think each of them is important? Discuss.

7. Intro to Business Exercise 6.0
1. What is marketing? Define. Also identify the 5 Ps of marketing.
2. What are features and benefits? Explain and provide one feature and
benefit for a product you are familiar with.
3. Explain the consumer buying processes by using a product you have
personally purchased as an example.
4. In which life cycle stage is the iPhone ver. 1.0 currently under? Why do
you say so? And what about the iPad Air?
5. Harris is a highly-trained Om Beatles Yoga instructor (this form of yoga
involves the trainee adopting a yoga pose while singing the Beatles song
“Yesterday’ backwards) and he plans to open a yoga school in Malaysia.
What pricing strategy should he adopt for her class? Why?
6. What is the advantage of selling products through a non-direct distribution
channel? Disadvantage? Provide ONE (1) example.
7. What is product placement? Provide TWO (2) examples (other than the
ones already provided in the lecture notes) to illustrate.
8. You are the marketing manager in charge of selling women’s lingerie
products to various international markets. What concerns would you have
regarding the packaging for such a product? Provide THREE (3).

8. Intro to Business Exercise 7.0
9. What is accounting? Explain.
10.One of the purposes of accounting is to evaluate business performance.
Explain what this means and provide a suitable example to illustrate your
answer.
11.Janice is the owner of an architectural firm but she has no rudimentary
knowledge in accounting (she has an accountant who looks after
everything for him). Is this acceptable? Why or why not?
12.Sean needs to borrow $50,000 from the bank to renovate his house.
Discuss briefly what information the bank would need from Sean before
deciding whether to grant him the loan.
13.What information can you obtain from a Profit and Loss Statement? How
can you use this report to assist you in making business decisions (use an
example to illustrate)? What is the other name of P&L statement?
14.For the year 2014, Company A has provided you with the following
information:
- Sales $146,000
- General Expense $17,300
- Salary Expenses $32,000
- Cost of Goods Sold $55,130
- Rental Revenues $7,200
- Interest Expense $2,800
Based on the data given above, prepare a 2014 income statement for the
company.
15.Besides writing and keeping every receipt dutifully, what else can you do
to keep a close eye on the funds (so they don’t go missing) during the
charity drive? Suggest TWO (2) solutions.