Critical Thinking Exercises

$7-1.$ Give an example of a business that you have observed lowering the price of a product. How do you think the business was able to reduce the price?

$7-2.$ Describe the record keeping system you intend to set up for your business. Why did you choose that particular system?

$7-3.$ What bank accounts do you intend to open for your business? Which bank will you use? Why $($provide at least three reasons for your choices$)?$

$7-4.$ Imagine that you have invented a guitar strap that goes over both shoulders, thereby reducing shoulder strain for the guitarist. This item could be a big seller, but before you can apply for a patent or convince investors to back your production plans, you will need a prototype. Find at least three manufacturers that could create such a prototype for you. Could you create the prototype yourself?

$7-5.$ For a business you would like to start, estimate the fixed and variable costs.