Business Fundamentals: practice problems and exam questions

Marketing, economics and accounting basics, plus break-even analysis: the first-year business courses in one place.

Practise this course for freePractise this courseTake a mock exam5 free problems every day. No card needed.

Cram pack (PDF)Formula sheets, method steps and practice problems with full solutions, ready to print.

Topics in this course

  1. Marketing principleskey terms and facts · applying the concepts · cases and analysismultiple choice
  2. Economics conceptskey terms and facts · applying the concepts · cases and analysismultiple choice
  3. Financial accountingkey terms and facts · applying the concepts · cases and analysismultiple choice
  4. Break-even analysisbreak-even units · target profit · margin of safetycalculations

Exam tips for Business Fundamentals

  • Learn the standard models by name, such as the marketing mix and the four Ps.
  • In accounting, every transaction affects at least two accounts.
  • Show your working in calculations; method marks count.

Worked examples

Marketing principlesEasy

Which of these is a sales promotion?

  1. AA sponsored sports team
  2. BA TV advertising campaign
  3. CA press release about a new factory
  4. DA "buy one, get one free" offer
Show hints
  1. It is a short-term incentive to buy now.
  2. Two wrong answers are now crossed out. One of the remaining two is right.
Show the answer and explanation

Why this is the answer

Sales promotions are short-term incentives such as coupons, discounts, free samples and multi-buy offers, aimed at boosting sales quickly.

Answer

D · A "buy one, get one free" offer
Economics conceptsMedium

The income elasticity of demand for a good is -0.4. The good is:

  1. AA luxury good
  2. BA complement
  3. CA normal necessity
  4. DAn inferior good
Show hints
  1. Look at the sign.
  2. Two wrong answers are now crossed out. One of the remaining two is right.
Show the answer and explanation

Why this is the answer

A negative income elasticity means demand falls as income rises, which defines an inferior good; luxuries have income elasticity above 1.

Answer

D · An inferior good

How practising works

  • “Practise this course” mixes problems from all its topics, like a real exam.
  • Every problem has new values, so you learn the method instead of an answer.
  • Stuck? Open a small hint first, and the full explanation only when you need it.
  • Mock exams are timed and have no hints, and you get your score and a full review at the end.

Calculators for this course

Break-even point calculator

Related courses

Management AccountingCorporate FinanceMicroeconomicsFinancial AccountingInvestments and ValuationCFA Level I quantitative methods and fixed income practice
Practise this course for freePractise this courseTake a mock exam5 free problems every day. No card needed.