Business Finance and Marketing-Pre Quiz

a fundamental belief or practice about what is desirable, worthwhile, and important to an individual

• Value

• Trade-off

• Needs

A detailed financial plan for a person’s expenses

• Envelope system

• Wants

• Budget

Income that is not consistent or is not the same amount each pay period

• Budget

• Irregular Income

• Want

something thought to be a necessity or essential items required for life

• Needs

• Impulse Buying

• Budget

Also called “emotional buying”; Making an unplanned purchase.

• Impulsive Buying

• Trade-off

• Value

something unnecessary but desired or items which increase quality of living

• Opportunity Cost

• Want

Take some envelopes, write the budget categories on the envelopes, and use only that money to purchase those items

• Irregular Income

• The envelope system

• Trade-off

Also called “rational buying”; Careful consideration of the product, features, price, etc. is made.

• Opportunity Cost

• Budget

• The envelope system

giving up one thing for another

• Impulse Buying

• Trade-off

• Needs

the value of the next best alternative that must be forgone when making a decision

• Comparison shopping

• The envelope system

• Alternate approach