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Terms in this set (88)
Agenda
a list of items for discussion at a formal meeting, in the order in which they are to be discussed
Delegation
the passing of authority to someone who is lower down the hierarchy
Centralised organisation
an organisation where the decisions are made by one manager at the top of the organisation
Decentralised organisation
an organisation where decisions are delegated to people lower down the management structure
Minutes
the record of what happens at a meeting, taken by the meeting secretary
Routine
a regular or fixed way of doing things
Recruitment
The whole process of obtaining a new employee for a business. It includes identifying the need for the employee through to the selection of the most suitable applicant.
Job descriptions
A detailed statement of the tasks and responsibilities of a job.
Person specification
A statement listing the characteristics, qualifications and experience required of a person to do a job satisfactorily.
Human resource manager
A manager responsible for the people within a business, including their recruitment and training.
Curriculum vitae
A detailed account of a person's education and work background.
Application form
A form with questions to answer and boxes to complete to apply for a job.
Long list
Applicants who have been selected for further consideration.
Short list
A small number of applicants (usually about 5) who are selected from the long list to attend an interview.
On-the-job training
A method of training whereby employees learn how to do they job as they are doing it. They are usually supervised closely while they learn 'the ropes'.
Off-the-job training
Training that takes place away from the workplace so that the trainee can learn and make mistakes without impacting on the customer.
Induction
Training for new staff that serves as an introduction to the company and its objectives, as well as the premises and where their job fits in.
stakeholder
a person or group who have an interest in how a business performs
creditors
people or organisations that are owed money by business
customers
people who purchase goods or services from the business
customer service
this covers all aspects of how the customer is dealt with by the business. There may be a special department that deals with customer queries or problems
profit
the money left over from the sales of goods (revenue) or services after the business has paid all of its costs
PROFIT (Formula)
PROFIT= REVENUE - COSTS
revenue
money coming into business from sales
suppliers
people who supply goods or stock to the business
shareholders
people who invest by buying shares and become joint owners of a business. They receive a percentage of the profit the business makes in return for buying the shares
sponsorship
a way of publicising a business by giving money for a sporting or social event in exchange for publicity of some sort
Internet
a huge network of computers, worldwide, which are connected together and exchange information using common software
E-commerce
a system that allows customers to access a business's website to obtain goods or services
Modem
a piece of hardware that converts data from a computer into a form that can be sent down a telephone line to connect it to the internet
Internet service provider (IBS)
a company that allows you to connect to its network to gain access to the internet
Web browser
a program which allows people to use the World Wide Web (www.)
Email
messages and documents that are sent and read electronically, without the need for a printed copy
Blog
a diary style website where individuals or businesses can add comments about a particular topic
Social-networking site
a site which allows people to communicate with each other via messages
Chatroom
a website which allows real time messaging between individuals or groups of people
Spam
unwanted emails
URL (Unique Resource Locator)
a special file name which is different for every page of the internet
Data Controller
a person who collects or keeps information about people
Data Subject
a person who has data stored about themselves by other people or organisations
The Data Protection Act
a law designed to protect people who have personal data stored about them
Encryption
coding sensitive data or files, using specially designed software, before they are sent over a network
Firewalls
software designed to allow or deny access to people who are attempting to access a system, based on a set of rules
Virus
software that has been created to damage a computer system
Virus
A program that can be transferred from one computer to another, damaging the computer system.
Recipient
The person who is receiving the email that has been sent.
Distribution List
A list of email addresses and names of people that can be emailed as a group.
Encryption
When data is put into a secret code so that is can only be read by the sender and someone authorised to receive the email.
Attachment
A document which is stored as a file on a computer and sent alongside an email, such as a photograph, image or report.
Vertical Communication
the passing of information up and down the hierarchy of management, for example from office manager to clerk
Horizontal Communication
the passing of information between people in the same hierarchy of management
Recipient
the person receiving the message
Teleconference
a 'meeting' that takes place using telecommunication technology to enable people in more than one location to speak to each other
Video Conference
a 'meeting' that takes place simultaneously at more than one location using ICT to enable people to see and speak to each other
Recycling
the sorting of items into groups according to the material they are made of so that they can be reused. This reduces the amount of raw materials used and pollution caused.
Sustainability
a measure of whether something can continue into the long-term future.
Ethics
moral principles that determine decisions that are made.
Hourly pay
a fixed wage rate per hour for a set number of hours.
Piece rate
when workers are paid for each finished item they make.
Bonus
a special amount given as an additional reward over and above a salary or wage.
Overtime
a higher rate of pay given for extra hours over those agreed as a normal week.
Commission
a system of paying employees a percentage of the value of the goods they sell. Usually paid alongside an hourly rate, but some staff can be paid commission only.
Fringe benefit
a form of remuneration used to motivate staff. The perks or fringe benefits may have a monetary value but they are not added to the financial package to be spent as the employee wishes.
Primary Research
Obtaining first-hand data that is needed by the business
Secondary research
Information obtained from sources that already exist, which has been collected for a different purpose
Input device
A means of putting data in to a computer
Output device
A means of getting data out of a computer
Storage device
A means of keeping data until it is needed
Equal Opportunities
Equal treatment and respect for all, regardless of gender, race, age or physical characteristics
Discrimination
Is the prejudicial treatment of people, based on certain characteristics
Contract of employment
An agreement between the employee and employer concerning the employee's terms and conditions of employment
Break even
A business breaks even when the total costs of its product equal its revenue from its sales.
Efficiency
The best use of resources
Market share
The amount of a market a business has, expressed as a percentage of the total market
Maximisation
Achieving the most of something that is possible
Mission statement
A short phrase that sums up what a company believes in and what it want to achieve
Marketing
Providing a product or service that a customer wants at the right time and in the right place, at a profit.
Human resource management
Employing and keeping the organisations' employees in the most efficient way.
Hierarchical pyramid
An organisational structure where there are few people at the top level and many more at the bottom level. Each person has clear responsibilities and roles.
Operatives
People at the lowest level in the hierarchical pyramid who are responsible for either making the product or delivering the service for the public.
Open Plan Office
A large room where several staff work at individual desks. The area my be subdivided with movable screens.
Cellular Office
Here each individual has their own private room in which to work.
Teleconferencing
The use of telephone technology to conduct a meeting between groups of people in different location. This can be a sound link or a video link.
Video Conferencing
The use of a computer technology to create a video link between groups of people in different locations.
Teleworking
The use of computer and email facilities to enable workers to work from home.
Ergonomics
the science concerned with designing comfortable and safe machines and furniture to avoid injury to the user
Repetitive strain injury or RSI
this is damage to parts of the body, in case of computer users often the hands or arms, caused by repeating the same movements many times
VDU
the initials stand for 'visual display unit', but the term is used now for any display screen which is usually part of a computer and is used to show text, numbers or graphics
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Verified questions
QUESTION
The Corrigan Corporation’s 2015 and 2016 financial statements follow, along with some industry average ratios. a. Assess Corrigan’s liquidity position, and determine how it compares with peers and how the liquidity position has changed over time. b. Assess Corrigan’s asset management position, and determine how it compares with peers and how its asset management efficiency has changed over time. c. Assess Corrigan’s debt management position, and determine how it compares with peers and how its debt management has changed over time. d. Assess Corrigan’s profitability ratios, and determine how they compare with peers and how its profitability position has changed over time. e. Assess Corrigan’s market value ratios, and determine how its valuation compares with peers and how it has changed over time. f. Calculate Corrigan’s ROE as well as the industry average ROE, using the DuPont equation. From this analysis, how does Corrigan’s financial position compare with the industry average numbers? g. What do you think would happen to its ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decreased the cost of goods sold? No calculations are necessary. Think about which ratios would be affected by changes in these two accounts. $$ \begin{matrix} \text{Corrigan Corporation: Balance Sheets as of December 31}\\ \text{ } & \text{2016} & \text{2015}\\ \text{Cash } & \text{\$72.000} & \text{\$ 65.000}\\ \text{Accounts receivable} & \text{439.000} & \text{328.000}\\ \text{Inventories} & \text{894.000} & \text{813.000}\\ \text{Total current assets} & \text{\$ 1.405.000} & \text{\$ 1.206.000}\\ \text{Land and Building } & \text{238.000} & \text{271.000}\\ \text{Machinery} & \text{132.000} & \text{133.000}\\ \text{Other fixed assets} & \text{61.000} & \text{57.000}\\ \text{Total assets} & \text{\$ 1.836.000} & \text{\$ 1.667.000}\\ \text{Accounts payable} & \text{\$80.000} & \text{\$ 72.708}\\ \text{Accrued liabilities} & \text{45.010} & \text{40.880}\\ \text{Notes payable} & \text{476.990} & \text{547.912}\\ \text{Total current liabilities} & \text{\$ 602.000} & \text{\$ 571.500}\\ \text{Long-term debt} & \text{404.290} & \text{258.898}\\ \text{Common stock} & \text{575.00} & \text{575.000}\\ \text{Retained earnings} & \text{254.710} & \text{261.602}\\ \text{Total liabilities and equity} & \text{\$ 1.836.000} & \text{\$ 1.667.000}\\ \end{matrix} $$ $$ \begin{matrix} \text{Corrigan Corporation: Income Statements for Years Ending December 31}\\ \text{ } & \text{2016} & \text{2015}\\ \text{Sales} & \text{\$ 4.240.000} & \text{\$ 3.635.000}\\ \text{Cost of goods sold} & \text{3.680.000} & \text{2.980.000}\\ \text{Gross operating profit} & \text{\$ 560.000} & \text{\$ 655.000}\\ \text{General administrative and selling expenses} & \text{303.320} & \text{297.550}\\ \text{Depreciation} & \text{159.000} & \text{154.500}\\ \text{EBIT} & \text{\$ 97.680} & \text{\$ 202.950}\\ \text{Interest} & \text{67.000} & \text{43.000}\\ \text{Earnings before taxes (EBT)} & \text{\$30.680} & \text{\$ 159.950}\\ \text{Taxes (40\\%)} & \text{12.272} & \text{63.980}\\ \text{Net income} & \text{\$ 18.408} & \text{\$ 95.970}\\ \end{matrix} $$ $$ \begin{matrix} \text{Per-Share Data}\\ \text{ } & \text{2016} & \text{2015}\\ \text{EPS} & \text{\$ 0.80} & \text{\$ 4.17}\\ \text{Cash dividends} & \text{\$ 1.10} & \text{\$ 0.95}\\ \text{Market price (average)} & \text{\$ 12.34} & \text{\$ 23.57}\\ \text{P/E ratio} & \text{15.42 }{\times} & \text{5.65 }{\times}\\ \text{Number of shares outstanding} & \text{23.000} & \text{23.000}\\ \end{matrix} $$ $$ \begin{matrix} \text{Industry Financial Ratios} & \text{ }\\ \text{Current ratio} & \text{2.7 }{\times}\\ \text{Inventory turnover} & \text{7.0 }{\times}\\ \text{Days sales outstanding} & \text{32.0 days}\\ \text{Fixed assets turnover} & \text{13.0 }{\times}\\ \text{Total assets turnover} & \text{2.6 }{\times}\\ \text{Return on assets} & \text{9.1\\%}\\ \text{Return on equity} & \text{18.2\\%}\\ \text{Return on invested capital} & \text{14.5\\%}\\ \text{Profit margin} & \text{3.5\\%}\\ \text{Debt-to-capital ratio} & \text{50.0\\%}\\ \text{P/E ratio} & \text{6.0 }{\times}\\ \end{matrix} $$
QUESTION
Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Apple iPhone 6 for $372.71. The minimum payment on the card is only$10 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Round to the nearest month. b. If Simon makes monthly payments of $35, how many months will it be before he pays off the debt? Round to the nearest month. c. How much more in total payments will Simon make under the$10-a-month plan than under the $35-a-month plan? Make sure you use three decimal places for N.
QUESTION
Coastal Carolina Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 45% with a $20 million investment in plant and machinery. The firm wants to maintain a 35% debt level in its capital structure. It also wants to maintain its past dividend policy of distributing 55% of last year’s net income. In 2016, net income was$5 million. How much external equity must Coastal Carolina seek at the beginning of 2017 to expand capacity as desired? Assume that the firm uses only debt and common equity in its capital structure.
QUESTION
Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per year in recent years. This same growth rate is expected to last for another 2 years, then decline to $g_{n}=6 \%$. a. If $\mathrm{D}_{0}=\$ 1.6$and$$\mathrm{r}$_${\mathrm{s}}$=10 \%$, what is TTC’s stock worth today? What are its expected dividend, and capital gains yields at this time, that is, during Year 1? b. Now assume that TTC’s period of supernormal growth is to last for 5 years rather than 2 years. How would this affect the price, dividend yield, and capital gains yield? Answer in words only. c. What will TTC’s dividend and capital gains yields be once its period of supernormal growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 or 5 years of supernormal growth; the calculations are very easy.) d. Explain why investors are interested in the changing relationship between dividend and capital gains yields over time.
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