Tawjihi Business Field cheat sheet

The accounting equation: Assets = Liabilities + Owner's Equity; every transaction keeps it balanced.

Debit/credit rules: assets and expenses increase with debits; liabilities, equity, and revenue increase with credits.

Double-entry rule: each transaction is recorded with equal total debits and total credits.

Accrual basis records revenue when earned and expenses when incurred, regardless of cash movement; cash basis records on cash flow only.

Adjusting entries at period end cover accruals (earned but unrecorded) and deferrals (prepaid/uneared items) plus depreciation.

Closing entries zero out temporary accounts (revenues, expenses, drawings) and transfer net result to capital.

Inventory: under periodic FIFO, ending inventory is valued at the most recent purchase costs; under weighted average, one unit cost applies to all units.

Trial balance lists all ledger balances; unequal debit and credit totals signal a recording error, but equal totals do not prove correctness.

Law of demand: price and quantity demanded move in opposite directions, ceteris paribus; supply curves slope upward.

Equilibrium price occurs where quantity demanded equals quantity supplied; a price ceiling below equilibrium creates shortage, a floor above creates surplus.

Price elasticity of demand = % change in quantity ÷ % change in price; demand is elastic when the absolute value exceeds 1.

Total revenue test: if price rises and revenue falls, demand is elastic; if revenue rises, demand is inelastic.

A firm maximizes profit where marginal revenue equals marginal cost (MR = MC).

GDP = C + I + G + (X − M); nominal GDP uses current prices, real GDP uses base-year prices.

Inflation measured by CPI = (cost of basket in current year ÷ cost of base-year basket) × 100.

Unemployment rate = (unemployed ÷ labor force) × 100; labor force excludes those not seeking work.

Management functions: planning, organizing, leading (directing), and controlling, in that logical cycle.

Span of control is the number of subordinates one manager supervises; a narrow span creates a taller hierarchy.

Centralization keeps decision authority at the top; decentralization pushes it to lower levels and speeds local response.

Maslow's hierarchy orders needs: physiological, safety, social, esteem, self-actualization; lower needs are satisfied first.

Herzberg separates hygiene factors (pay, conditions) that prevent dissatisfaction from motivators (achievement, growth) that drive satisfaction.

SWOT analysis classifies internal strengths and weaknesses against external opportunities and threats.

SMART objectives are specific, measurable, achievable, relevant, and time-bound.

Controlling compares actual performance with standards and corrects deviations; it closes the management cycle begun by planning.

The marketing mix is the 4 Ps: product, price, place, and promotion; services add people, process, and physical evidence.

Market segmentation divides buyers by demographic, geographic, psychographic, or behavioral variables; targeting selects segments to serve.

Product life cycle stages: introduction, growth, maturity, decline; pricing and promotion tactics shift at each stage.

Pricing methods include cost-plus (cost plus markup), penetration (low launch price), skimming (high launch price), and competitive pricing.

AIDA describes buyer response: Attention, Interest, Desire, Action.

The promotional mix comprises advertising, personal selling, sales promotion, public relations, and direct marketing.

Distribution channels may be direct (producer to consumer) or indirect through wholesalers and retailers; each intermediary adds cost and reach.

A brand is a name, sign, or symbol distinguishing a seller's goods; brand equity is the added value it commands.

Simple interest: I = P × r × t; amount A = P(1 + rt).

Compound amount: A = P(1 + r)^n, where n is the number of compounding periods; interest = A − P.

Markup on cost = (selling price − cost) ÷ cost; margin on selling price = (selling price − cost) ÷ selling price.

Trade discount is deducted from list price; net price = list price × (1 − discount rate).

Break-even quantity = fixed costs ÷ (unit price − unit variable cost).

Mean = sum of values ÷ number of values; median is the middle value of ordered data; mode is the most frequent value.

Standard deviation measures dispersion around the mean; a larger value indicates more spread.

Index number = (current value ÷ base value) × 100.

A valid contract requires offer, acceptance, consideration, capacity, and lawful purpose.

An offer becomes binding when accepted; a counter-offer rejects the original offer.

A minor generally lacks contractual capacity; contracts for necessaries are an exception.

Void contracts create no legal effect; voidable contracts can be rescinded by the affected party.

Agency arises by express appointment, implied authority, or necessity; the agent binds the principal within authority.

Negotiable instruments include cheques, bills of exchange, and promissory notes; a cheque is drawn on a bank and payable on demand.

Ethical business conduct covers honesty in disclosure, fair dealing, conflict-of-interest avoidance, and compliance with law.

Corporate social responsibility balances profit with obligations to employees, customers, community, and environment.

Commercial banks accept deposits, lend, and transfer funds; central banks issue currency and set monetary policy.

Credit creation: a deposit can support new loans up to the deposit multiplied by 1 ÷ reserve ratio.

A current account pays little or no interest but allows cheques; a savings account earns interest with withdrawal limits.

Loan interest may be simple or compound; annual percentage rate (APR) expresses the true yearly cost including fees.

Collateral is an asset pledged to secure a loan; default allows the lender to seize it.

Islamic banking prohibits interest (riba) and uses profit-and-loss sharing such as murabaha and musharaka.

Letters of credit and bank guarantees reduce risk in trade by substituting bank credit for buyer credit.

Deposit insurance protects depositors up to a stated limit if a bank fails.

Spreadsheet formulas begin with =; relative references (A1) shift when copied, absolute references ($A$1) do not.

Common spreadsheet functions: SUM, AVERAGE, IF, VLOOKUP, COUNT, MAX, MIN.

A database table stores records (rows) and fields (columns); a primary key uniquely identifies each record.

Word processing features: styles for consistent formatting, mail merge for personalized letters, and track changes for review.

Presentation software organizes content into slides; slide master controls consistent layout and theme.

Networks: LAN covers a limited area, WAN spans wide distances; the internet is a global network of networks.

Data security relies on strong passwords, encryption, backups, and access permissions; phishing is a social-engineering attack.

E-commerce models include B2B, B2C, C2C, and B2G, classified by the parties transacting.

A business plan covers the idea, market analysis, marketing plan, operations, management team, and financial projections.

Start-up capital sources include owner savings, family loans, bank loans, grants, and equity investors.

Fixed costs do not vary with output; variable costs change with units produced.

Cash flow statement tracks inflows and outflows; a profitable firm can still fail from poor cash flow.

A feasibility study tests market demand, technical capability, and financial viability before launch.

Small firms compete through niche focus, flexibility, and personal service rather than scale.

Risk management identifies, assesses, and mitigates risks through avoidance, reduction, transfer (insurance), or acceptance.

Franchising lets an entrepreneur use an established brand and system in exchange for fees and royalties.

Business letters follow fixed structure: المرسل، التاريخ، التحية، الموضوع، النص، الخاتمة، التوقيع.

Formal Arabic uses the definite article and case endings; the nominative (المرفوع) marks subjects, the accusative (المنصوب) objects.

Active voice (المبني للمعلوم) is preferred in clear business writing over passive (المبني للمجهول).

Numeric agreement: numbers 3–10 take the plural genitive; 11–99 take the singular accusative (e.g., ثلاثة كتبٍ، أحد عشر كتابًا).

Common business terms: عقد (contract), فاتورة (invoice), ميزانية (budget), أرباح (profits), خسارة (loss).

Punctuation: الفاصلة (،) for separation, النقطة (.) to end a sentence, علامة الاستفهام (؟) for questions.

Avoid colloquialisms and ambiguity; use precise verbs and parallel structure in reports and correspondence.

The hamza rules: همزة القطع is pronounced and written (أ، إ), while همزة الوصل drops in connected speech (ال).