Business Management, Finance, and Accounting Fundamentals

How would you define leadership

it is about influencing, while management is about organizing and getting stuff done

What is the difference between formal leadership and informal leadership

formal leadership has a position, and everyone can be an informal leader

What is performance management

continuous process that aligns employee performance with organizational goals

What are all of the stages of performance management

planning, monitoring, reviewing, rewarding

What are some of the characteristics of SMART goals

measurable, achievable, specific, timely, and

What does SBI stand for

Situation, Behavior, and Impact

What are you trying to achieve with the SBI feedback

interpreting 2 speakers

Some of the mistakes that the managers make or performance review mistakes

halo effect, bias

What is the difference between daily scheduling and operational planning

Operational planning defines the broader methods, resource allocations, and process flows needed to achieve short-term business goals, whereas daily scheduling assigns specific tasks to exact times, hours, or shifts on the clock.

What does finance study

how money in a business operates and flows

What kind of finance is it when selecting stocks

financial investments

What role do financial markets play

selecting buyers and using capital

How do you define equity

Equities are financial investments that represent partial ownership in a company, most commonly known as stocks or shares.

What does equity represent

ownership value in an asset or business, calculated as total assets minus total liabilities

What is the potential disadvantage of issuing new equity

devalues the share

A large customer cannot pay an invoice

credit risk

Interest rates rise before a company can close its financing

market

A company has valuable assets but does not have the money

liquidity

What information is central to capital budgeting

what is the cost, risk, timing

The opportunity cost of capital

what you give up for a new opportunity

Why is a dollar worth more today than tomorrow

because of inflation and uncertainty

Why can compound interest be a problem for a credit card borrower

compound interest needs time, and it grows exponentially

Why use break-even analysis

You need to know how much to sell your product at so your business doesn't lose money

What is the main purpose of accounting

The primary purpose of accounting is to provide accurate, reliable, and timely financial information to internal and external users so they can make informed economic and business decisions

What is the main difference between financial accounting and managerial accounting

Managerial accounting focuses on internal decision-making and future forecasting, whereas financial accounting focuses on external reporting and historical performance.

What are the 4 financial statements

income statement, balance sheet, statement of cash flows, and statement of owners' equity

You deposit $1,000 into a savings account that earns a 5% annual interest rate, compounded annually. What is the compound interest after 3 years?

Principal (P): $1,000, Interest Rate (r): 5% (0.05 as a decimal), Compounding Frequency (n): 1 time per year (annually), Time (t): 3 years, so A= P(1+r)^t or A = 1000(1+0.05)^3, which is 1,157.63

You deposit $1,000 into a savings account that earns a 5% annual interest rate, but this time it is compounded quarterly (4 times a year) for 3 years

Principal (P): $ 1,000; Annual Interest Rate (r): 5% (0.05)Compounding Frequency (n): 4 times per year (quarterly)Time (t): 3 years. SO, to find the quater you have to 0.05/4 to find the interest rate per quater and then you have to do 4 times 3 = 12 quarters to find your t so the final is A= 1000(1+0.05/4)^12 or $1,160.75