Exam #1 Parks

Financial Management Definition

Involves the acquisition & use of financial resources/protection of equity from different risks

Four Stages of Business Cycle

#1) Establishment of business

#2) Growth in income

#3) Consolidation & Maturation

#4) Transfer to new ownership

Identify a financial and business risks then compare & contrast them.

N/A

What are the six steps in the strategic management process?

#1: Defining and developing a firm’s mission

#2: Formulating objectives

#3: Assessing the firm & evaluating the environment

#4: Building strategy

#5: Implementing Strategy

#6: Evaluating performance & implementing any corrective actions

What is the first step in the strategic management process?

Defining and developing a firm’s mission

What is the second step in the strategic management process?

Formulating objectives .

What is the third step in the strategic planning process?

Assessing the firm & evaluating the environment.

What is the fourth step in the strategic management process?

Building strategy.

What is the fifth step in the strategic management process?

Implementing strategy.

What is the sixth step of the strategic management process?

Evaluating performance and implementing any corrective actions.

What is the first stage of the life cycle?

Establishment

What is the second stage of the life cycle?

Growth in income

What is the third stage of the life cycle?

Consolidation & maturation

What’s the fourth state of the life cycle in a business firm?

Transfer to new ownership

Give examples of sources for information flow. How does this help a business?

Financial accounting system & Internet. Access to external information helps the business performance.

List the four main sources of loan funds in the US Agriculture

Commercial banks, Farm Credit System, life insurance companies, & government agencies.