MGM 101 REVIEW 7-12

What is the primary objective of Corporate Social Responsibility (CSR)?

Enhancement of society’s welfare through philosophies, policies, procedures, and actions

What does Business Ethics refer to?

Standards of conduct and moral values that lead to our actions and decisions in the business environment

What was the main purpose of the Sarbanes-Oxley Act of 2002 (US)?

Establishing new rules and regulations for securities trading and accounting practices (Applies to Canadian firms trading on US stock exchanges)

What is Bill 198 of 2003 in Canada commonly known as?

C-SOX

Which of the following is an example of traditional corporate philanthropy

Giving to worthy causes

What is the primary purpose of a code of conduct within an organization?

To provide a formal statement defining how employees should resolve ethical questions

Which factor significantly shapes an individuals stage in moral and ethical development?

An individual’s educational background, experiences, company environment

What is a potential consequence of an organization lacking ethical awareness, codes of conduct, ethical education, and ethical action?

The ethical climate in the organization will weaken

What is the primary purpose of ethical training provided by corporations?

To provide employees with opportunities to practice applying ethics to various scenarios

What role do executives play in shaping ethical conduct within an organization?

They must demonstrate ethical behaviour and conduct honest corrective action when necessary

According to the text, what is social responsibility in the context of management?

Management’s acceptance of its obligation to consider profit of equal value to other qualitative indicators

Which of the following is an example of a business’s responsibility to the general public, as described in the text?

Addressing public health issues and protecting the environment

What does ‘green marketing’ refer to?

A marketing strategy promoting environmentally safe products and production methods

Which of the following is NOT typically considered one of the basic rights of customers that businesses have a responsiblity to uphold?

The right to be entertained

Which organization primarily regulates workplace safety at the provincial level in Ontario?

The Workplace Safety & Insurance Board

What is a key aspect of a business’s responsibility to its investors?

Obligation to make profits for shareholders

What does ensuring equal opportunity on the job entail?

Providing equal OPPORTUNITIES to all employees without discrimination

What is unethical behaviour in a workplace?

Behaviour that goes against individual beliefs and social norms about what is wrong and bad

What are the 3 broad categories of Business and Managerial Ethics?

Behaviour toward Employees, the Organization, and toward Customers

What is a common ethical norm related to determining ethical behaviour?

Justice

How can organizations encourage ethical behaviour among employees?

Demonstrating top management commitment, adopting written codes of ethics, providing ethics training

What is the Fair Trade Movement designed to achieve?

Helping workers in developing countries receive fair payments for their work.

What is the Stakeholder Model of Responsibility in organizations?

Groups, individuals, and organizations directly affected by an organization’s practices

What is the significance of controlling pollution in the context of social responsibility?

Preventing harmful effects on air, water, and land, promoting sustainable development

What are some ways individuals can make a difference in ethical expectations and behaviour?

Putting their own interest ahead of the organization, lying to other employees, abusing the internet

What are the 4 steps Organizations use to Shape Ethical Conduct

Ethical Leadership, Action, Education, and Awareness

What is Social Responsibility?

Management’s acceptance of its obligation when evaluating firm performance, to consider profit to be of equal value to other qualitative indicators, such as employee satisfaction, consumer satisfaction and societal well-being

Who does a Business have Social Responsibilities too?

General Public, Customers, Investors, Employees

What is Accounting?

The process of measuring, interpreting, and communicating financial information to help people make business decisions

Who are the main users of accounting information?

Owners, investors, creditors, management, employees, governments, and consumer groups

What decisions do managers use accounting informaton for

Planning, controlling operations, and making investment decisions.

What are the 3 major business activities including accounting?

Financing, investing, and operating activities

What does a public accoutant do?

Auditing, tax services, and management consulting for a fee

What is a managment accountant?

An internal accountant who prepares financial statements for managerial decision-making

What do government and not-for-profit accountants focus on?

Efficiency and meeting organizational objectives

What are GAAP?

Rules and principles that govern accounting practices

What accounting standards must Canadian public companies use?

International Financial Reporting Standards (IFRS)

What is the Corruption of Foreign Public Officials Act?

A law prohibiting Canadian firms from bribing foreign officials

What is the Accounting Cycle?

The process of converting individual transactions into financial statements

What are the main steps of the accounting cycle?

Record transactions, classify them, summarize accounts, and prepare financial statements

What is the accounting equation?

Assets = Liabilities + Owners Equity

What are assets?

Resources with future economic benefits owned or controlled by a business

What are liabilities?

Obligations owned to creditors

What is Owners’ equity?

Owner investment plus retained profits

What is double-entry bookkeeping?

Every transaction affects at least two accounts and stays balanced

What does the Balance sheet show?

A firms financial position at a specific date

What does the income statement show?

Revenues, expenses, and profit over a period of time

What is net income?

Sales minus total expenses (profit after tax)

What is the statement of changes in equity?

Shows how owners’ equity changes from one period to the next

What does the statement of cash flows show?

Cash inflows and outflows from operating, investing, and financing activities

What is accrual accounting?

Recording revenues and expenses when they occur, not when cash moves

What is ratio analysis used for?

Measuring liquidity, profitability, efficiency, and debt usage

What does the current ratio measure?

Ability to meet short-term obligations (current assets divided by current liabilities)

What does the acid-test (quick) ratio measure?

Ability to pay short-term debt quickly without selling inventory

What do activity ratios measure?

How efficiently a firm uses it assets

What do profitability ratios measure?

A firms ability to generate profits from sales and assets

What do leverage ratios measure?

How much a firm relies on debt financing.

What is a budget?

A short-term financial plan outlining expected revenues and expenses

What is the role of the financial manager?

Planning, obtaining, and managing funds to maximize firm value

What is the risk-return trade-off?

Balancing higher returns against higher risk when making financial decisions

What is a financial plan?

A document that specifies the funds needed by a firm for a period of time and the most appropriate sources and uses of funds

What three questions do financial plans answer about funds?

What, When, Where

What is a capital investment analysis?

An analysis of what investments need to be made and what sources of funds will pay for these investments.

What is debt capital?

Consists of funds obtained through borrowing

What is equity capital?

Funds provided by the firm’s owners when they reinvest their earnings.

What is the capital structure?

The mix of a firm’s debt and equity capital

What are three short term funding options?

Trade credit, short-term loans, commercial paper (IOU)

What is a Tender offer

A proposal made by a firm to the target firms shareholders

What is a leverage buyout?

Raise significant amount of debt to fund the purchase of the target firm

What is a Divestiture?

A reverse merger

What is disruptive innovation?

Simpler, cheaper products or services that target new customers and replace industry leaders

What is Industry 4.0?

The 4th industrial revolution driven by digitization, data, automation, robotics, and Ai

What is Data?

Raw facts and figures that may or may not be meaningful to a business decision

What is information?

Knowledge gained by processing and organizing data

What is an information system?

An organized method for collecting, storing, and communicating information

What is a Chief Information Officer (CIO)?

The executive responsible for managing a firms information systems

What is Big Data?

Large or complex data sets that traditional systems cannot easily analyze

What are the 4 main components of a computer-based information system?

Hardware, software, networks, and databases

What is a database?

A centralized collection of data that can be stores and retrieved quickly

What are operational support systems?

Systems that support day-to-day business operations

What are the 2 types of operational support systems

Transaction processing system and Process control system

What is a transaction processing system (TPS)?

A system that records and processes business transactions

What is a process control system?

Monitor and control physical processes

What is a management information system (MIS)

A ssystem that produced routine reports for managers

What is a decision support system (DSS)?

A system that helps managers analyze data and make decisions

What is an executive support system (ESS)?

A system that gives senior executives access to key organizational data

What is an expert system?

A system that mimics human decision-making using “if-then” rules

Where was the first commercial computer sold and how much?

In the USA and for 1 million

What is computer hardware?

The physical component of a computer

What is computer software?

Programs and instructions that tell a computer how to operate

What is an operating system?

Software the controls a computers basic functions

What is application software?

Software designed to perform specific user tasks (Word, Excel)

What is a Local Area Network (LAN)

A network connecting computers in a limited area like a building

What are input devices?

Components that store and process data and perform calculations (Keyboard, mouse)

What are output devices?

The hardware elements that transmit and display documents (Monitors, printers)

What are some types of computers?

Mainframes, Midrange systems, Personal computers, Hand-held devices

What is a Wide Area Network (WAN)?

A network that covers large geographic areas

What is a Virtual Private Network(VPN)?

A secure internet connection that protects data during transmission

What is a Wireless Local Network?

Allows devices to be connected without putting cables together (Wi-Fi)

What is the internet?

Consists of a global system of interconnected mainframe, personal, and

wireless computer networks, including government, commercial, and

education