Business Strategy and Accounting Concepts

These flashcards cover key concepts of business strategy, competitive advantage, and accounting fundamentals based on the lecture notes.

What are the two primary choices in business strategy?

Choose where to compete and choose how to compete.

What does the term 'Strategy' refer to in a business context?

An integrated set of choices that positions a firm in its industry to generate superior financial returns by creating, capturing, and sustaining competitive advantage.

What are Total Fixed Costs (TFC)?

Costs that stay the same regardless of the quantity produced, such as rent and salaries.

What is the formula for Profit?

Profit = Total Revenue - Total Costs.

What is Breakeven Point?

The point where total revenue equals total costs, resulting in no profit or loss.

What does PESTEL stand for?

Political, Economic, Sociocultural, Technological, Environmental, Legal & Regulatory factors affecting the macroenvironment.

What are 'Buyer Power' and 'Supplier Power'?

Buyer Power refers to how much control customers have over a firm, while Supplier Power relates to the influence suppliers have over companies.

What is Competitive Business Strategy primarily focused on?

Doing things differently to provide unique value to customers.

What is the definition of Opportunity Cost?

The value of the next best alternative foregone when a decision is made.

What role does Intra-Industry Rivalry play?

It refers to the competition between companies in the same industry, impacting profits as firms battle for the same customer base.