FInAl exam busn

It provides reliable data for stakeholders to make informed decisions.

Why is reliable accounting information important?

Accounting

What functional area of business does the following:

- Systemically record, analyze, and report financial information

- Communicates the financial health of a business

To make internal decisions

How do managers use financial information?

To ensure the company's financial information is reliable

What is the role of an auditor?

Income Statement

The following components are related to what financial statement:

- Revenue

- Cost of Goods Sold (COGS)

- Gross Profit (GP)

- Other Expenses

- Net Income (Profit)

Dollar amount earned when a company provides a good or service

Define Revenue

What a company paid to buy or produce the goods they sell

Define Cost of Goods Sold (COGS)

Difference between revenue and COGS

Define Gross Profit (GP)

Salaries, utilities, advertising, etc.

Define Other Expenses

Subtract other expenses from gross profit

Define Net Income (Profit)

- Increase revenue

- Decrease COGS

- Decrease other expense

What would a company need to do to increase net income?

Balance Sheet

The following components are related to what financial statement:

- Assets

- Liabilities

- Stockholder's Equity (SHE)

Assets = Liabilities + Owners' Equity

What is the accounting equation?

The company no longer offers/sells stock to the public

What happens when a company moves from public to private?

The process of offering shares of a private corporation to the public in a new stock issuance for the first time. This is when a company moves from private to public and when the company receives cash from investors.

IPO (initial public offering)

- Appreciation in the value of stock

- Dividends

- Partial ownership in the company

- The ability to vote

An investor who buys stock in a company hopes to obtain:

Helps people manage their investment portfolios

What is the role of a financial planner?

A person who is licensed to buy and sell securities on behalf of clients

What is the role of a stockbroker?

5Ps

- Product

- Price

- Place

- Promotion

- People

What are the elements in the Marketing Mix?

goods, services, or ideas

Define Product

Choosing a brand name, packaging, colors, a warranty, accessories, and a service program

What is involved in creating a product strategy?

Something given in exchange for a product

Define Price

The processes/method businesses use to set prices for their products and services; how you determine what that price should be.

Define Pricing Strategy

Place

Which of the 5P's is related to the distribution of the product?

Some method of getting the product from the creator of the product to the customer.

Define distribution

Place

The following tasks are related to which one of the 5P's?

Transportation, location, supply chain management (managing each entity that deals with the product in its route to the buyer), online presence, inventory, and atmospherics (how the office, store, or even the website looks).

Methods for informing and influencing customers to buy the product.

Define Promotion

• traditional advertising,

• sales promotion,

• public relations,

• personal selling,

• social media, and

• e-commerce.

What are the components of the Promotional Mix?

The specific group of consumers toward which a firm could direct its marketing efforts.

Define Target Market

The specific group of consumers toward which a firm could direct its marketing efforts.

Define Market Segmentation

When a salesperson meets a potential buyer or buyers face-to-face with the aim of selling a product or service

Define Personal Selling

- Planning

- Organizing

- Leading

- Controlling

What are the four functions of the Management Process?

Planning

What function within the Management Process is associated with the following definition?

Setting performance objectives and deciding how to achieve them

Organizing

What function within the Management Process is associated with the following definition?

Arranging tasks, people, and other resources to accomplish the work

Leading

What function within the Management Process is associated with the following definition?

Inspiring people to work hard to achieve high performance

Controlling

What function within the Management Process is associated with the following definition?

Measuring performance and taking action to ensure desired results

Efficiency; Effectiveness

The Management Process helps managers increase ________________ & _________________.

Long-range, broad goals

Define Strategic Planning

To implement a strategic plan; shorter term and more specific

Define Tactical Planning

Creating very specific policies and procedures

Define Operational Planning

Alternative actions for unusual or crisis situations

Define Contingency Planning

1. Strategic

2. Tactical

3. Operational

4. Contingency

What are the four types of planning?

Organizing

What function within the Management Process deals with

- Dividing up tasks (division of labor)

- Grouping jobs and employees (departmentalization)

- Assigning authority and responsibilities (delegation)

Power

Ability to influence other to behave in a particular way is called _____________.

1. Legitimate Power

2. Expert Power

3. Referent Power

4. Coercive Power

5. Reward Power

5 Primary sources of Power

Legitimate Power

What is the power the comes from the position in the hierarchy?

Expert Power

What is the power the comes from having expertise in a particular area?

Referent Power

What is the power the comes from interpersonal relationships that is built?

Coercive Power

What is the power that comes from the ability to influence through threats?

Reward Power

What is the power that comes from the ability to offer and influence incentives?

- Decrease revenue

- Increase COGS

- Increase other expenses

What would a company need to do to decrease net income?