Introduction to Percentages and Percentage Changes in Business

This video tutorial covers the importance of percentages in business, explaining their use in expressing metrics, market share, and customer feedback. It provides a detailed guide on calculating percentage changes using a structured five-step process, emphasizing the need for accuracy and understanding in exams and business applications.

What is the basic definition of a percentage?

• A number expressed as a fraction of 10

• A number expressed as a fraction of 100

• A number expressed as a fraction of 50

• A number expressed as a fraction of 1000

How do businesses commonly use percentages?

• To express the number of employees

• To highlight discounts and sales

• To calculate the number of products

• To determine the number of stores

What does a 25% market share indicate?

• The firm has the entire market

• The firm has a quarter of the market

• The firm has half of the market

• The firm has three-quarters of the market

What is the first step in calculating a percentage change?

• Add the new value to the old value

• Divide the new value by the old value

• Multiply the old value by 100

• Subtract the old value from the new value

Why is it important to add a percentage sign at the end of your calculation?

• To avoid confusion with other units

• To make the answer look more professional

• To receive full credit for your answer

• To ensure the answer is in decimal form

What is the rounding rule if the third decimal place is less than 5?

• Add 0.5

• Leave as is

• Round down

• Round up

Why is it crucial to memorize the five-step process for percentage changes?

• To save time during lectures

• To avoid using calculators

• To calculate changes effectively in exams

• To impress your teacher