business unit 2 study

flashcards

conceptual skills

skills that involve the ability to picture the organization as a whole and the relationship among its various parts

participative leadership

leadership style that consists of managers and employees working together to make decisions

free-reign leadership

leadership style that invovles managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

knowledge management

finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm

external customers

dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use

internal customers

individuals and units within the firm that receive services from other individuals or units

profit

the difference between revenue and expenses

ledgers

books in which financial records are written

trial balance

a summary of all the financial data in the account ledgers that ensures the figures are correct and balanced

annual report

a yearly statement of the financial condition, progress, and expectations of an organization.

profit and loss acocunt

a financial statement showing revenue, expenditure and profit during a given period

operating expenses

salaries of sales and office staff, marketing costs, rent etc.= overheads

EBITDA

Earnings before Interest, Taxes, Depreciation and Amortization

depreciation

the loss in value of a tangable asset (e.g. a vehicle)

amortization

the loss in value of an intangible asset (e.g. the purchase of a licence or trademark)

balance sheet

a financial statement that reports assets, liabilities, and owner's equity on a specific date

liability

any amount owed to a creditor

shareholders equity

the shareolder's claims on a company's assets after all of its creditors have been paid

current assets or short-term assets

items that can or will be converted into cash within one year; may also include marketable securities

staffing

a management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives

autocratic leadership

leadership style that involves making managerial decisions without consulting others

funds

amounts of money

non-operating income

profits from investments in other companies

the basic equation that has to balance is:

Assets = Liabilities + Shareholders´ equity

asset

anything of