Upgrade to remove ads
Only $2.99/month

BADM 120 Test 1 Study Guide

Terms in this set (77)

What's an employee? A contract worker? The differences?
An employee is a person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business. a company is not responsible for providing a variety of traditional employer benefits: sick days, taxes, health benefits, retirement, etc.
Ernst & Young
-Made up of four regional companies, each with its own structure. The company's complex structuring combined with varying global accounting regulations are the main factors for the firm's choice to stay private.
-Famous accounting company -auditors -accountants
Accounting
the process of recording financial transactions pertaining to a business. Includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. The financial statements used are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position and cash flows.
Business Roundtable
An association of chief executive officers of America's leading companies working to promote a thriving U.S. economy and expanded opportunity for all Americans through sound public policy.
Maximize owner wealth
A wealth of a shareholder maximizes when the net worth of a company maximizes. (a shareholder holds share in the company/business and his wealth will improve if the share price in the market increases which in turn is a function of net worth.)
Economics
A social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources. (Use what you have to make a profit)
mortgage
a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments.
Entrepreneurship
This is one of the resources economists categorize as integral to production, the other three being land/natural resources, labor and capital. is high risk but, an important driver of economic growth and innovation.
Finance
a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments. represents money management and the process of acquiring needed funds.
IPO
Refers to the process of offering shares of a private corporation to the public in a new stock issuance.
Global business
a company that operates facilities (such as factories and distribution centres) in many countries around the world. This is different from an international business, which sells products worldwide but has facilities only in its home country.
Cultural differences
often pose major difficulties in international negotiations and marketing management. the differences among business people of different nations, backgrounds. and ethnicities, and the importance of bridging them.
Birth rate 2.1
average rate for Japanese women to maintain the population.
births per 1000 population
in Japan
World Factbook
provides information on the history, people and society, government, economy, energy, geography, communications, transportation, military, and transnational issues for 267 world entities
Developing (poorer) countries
countries having a moderate standard of living, low per capita income level with the slow rate of industrialization.
Developed countries
are the countries which have a higher standard of living, higher per capita income level and stability in their economic condition.
Human resoures (HR)
Hire and keep good employees- create prequsites = keep employees loyal
Perquisites
Personal benefits, including direct benefits, such as the use of a firm car or expense account for personal business, and indirect benefits, such as up-to-date office decoration.
Only rich countries with very profitable businesses
offer perquisites
Chief Experience officer
An individual primarily responsible for maintaining good interactions between a brand and its customer base. This is a role that has been created within many large companies in order to more effectively manage the ways that customers experience a company and its products or services.
Marketing
Refers to activities a company undertakes to promote the buying or selling of a product or service.
4 P's of Marketing
Product, Price, Place, Promotion
Experience the crowd noise in sports during a pandemic through
canned laughter and noise ball
Efficiency-streamlining
higher quality, continuous improvement number crunching (measuring everything you do in precise measures to improve)
business model
How you'll make money/ sustain a profit give the competitive environment.
strategy
business plan
Merger and acquistion
Occurs when two separate entities combine forces to create a new, joint organization.
Acquisition
Refers to the takeover of one entity by another
auditing, consulting, tax preparation.
Job of accountants
PWC, KMPG, Deloitte, EY (Ernst & Young). the four largest accounting firms in the United States, as measured by revenue.
The Big Four
PWC
PricewaterhouseCoopers
KMPG
Klynveld Peat Marwick Goerdeler
Consulting business of The Big Four has become largest source of revenue- interfering with Auditing and creating a conflict of interest.
What's the potential conflict of interest issue?
sustainability is a business approach to creating long-term value by taking into consideration how a given organization operates in the ecological, social and economic environment. (Business ethic/Corporate social responsibility)
What is sustainability with regard to business activities?
PMI (indicator of economic activity)
Purchasing Managers Index. (indicator of economic activity)is an index of the prevailing direction of economic trends in the manufacturing and service sectors. ESTIMATE: 75% service and 25% manufacturing industries in the U.S.
Yes, reality is that tackling sustainability on an individual level is an act of privilege for many. Poor countries don't tend to worry as much about long-range environmental issues when they have more immediate needs, like health care or jobs or trying to affordable food. (Though climate change isn't entirely separate from all of these issues). Saving the planet is on hold.Is sustainability a luxury? Are Poor countries worried about it? Is saving the planet on hold?
Is sustainability a luxury? Are Poor countries worried about it? Is saving the planet on hold?
Service component of economy
Manufacturing, as the name implies, pertains to production of goods that are used and consumed by the people.
Service component of economy
refer to industries that do not produce goods but provide invaluable services to the people such as health services, hospitality, aviation, banking, and so on.
Independent Entrepreneurship
form of entrepreneurship in which a person or group own their own for-profit business (do it their own way)
Diversified Portfolio
a risk management strategy that mixes a wide variety of investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt at limiting exposure to any single asset or risk.
Market Cap
the total dollar value of all outstanding shares of a company plus the price of shares.
Stock Indexes
A basket of Stocks selected to represent part of the economy. measure the value of a section of a country's stock market via a weighted average of selected stocks. These indexes help investors and analysts describe the market and compare different investments.

-(NASDAQ, S&P 500, Russell 2000, DJIA)
Top heavy and Top Tech
NASDAQ= ? and S&P 500= ?
DPI (disposable personal income),
The amount of money that households have available for spending and saving after income taxes have been accounted for
PCGDP (per capita gross domestic product).
A metric that breaks down a country's economic output per person and is calculated by dividing the GDP of a country by its population.

-U.S. GDP = 59,800. China GDP = 18,200
Pop clock figures
Population clock - largest populations

1. China 2. India 3. U.S.
Employee
A person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.
Contract worker
A contract worker is an individual retained by a company for a predetermined time, for a predetermined price.
Difference between employee and contract worker
a company is not responsible for providing a variety of traditional employer benefits: sick days, taxes, health benefits, retirement, etc.
At-will-employment
In the U.S., employment contracts are "at will," meaning that either the employer or employee can legally terminate the agreement at any time for almost any reason.
ballot initiative
an election in which citizens vote directly on a proposition raised by a group of fellow citizens
The customer is king; Marketers know to give us what we want
Is the customer KING or PAWN?
4 P's of marketing
Product, Price, Place, Promotion
Can you describe a super pick up truck using the 4 Ps?
Product: GMC (brand) Pick up truck, towing package, oil changing service.
Price: 6,000 , special discount - 0% interest.
Place: Dealerships to us. Promotion: TV commercials, ads on social media.
just-in-time inventory systems and their role in paper towel shortages during pandemic?
management strategy that aligns raw-material orders from suppliers directly with production schedules. The system was not effective during a panic from the pandemic.
also known as the Toyota Production System (TPS) because the car manufacturer Toyota adopted the system in the 1970s. Companies employ this inventory strategy to increase efficiency and decrease waste by receiving goods only as they need them for the production process "just in time". which reduces inventory costs.
Who invented JIT?

What's the meaning?
supply chain
starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the end consumer.
DG & DLTR
Dollar General Corporation and Dollar Tree, Inc.
Business strategy/Competitive strategy
long term plan of a particular company in order to gain competitive advantage over its competitors in the industry
factors that allow a company to produce goods or services better or more cheaply than its rivals: Closer walking distance, cheaper prices
What's our competitive advantage? How's it working? DG, DLTR factors that allow a company to produce goods or services better or more cheaply than its rivals: Closer walking distance, cheaper prices
Businesses like flexibility/rules and regulations can become too much
Degrees to where businesses can have too many regulations or too much flexibility. Business cannot regulate without incurring costs and other factors.
Who's SEC and their job regarding shareholders?
Securities and Exchange Commission (SEC) is a U.S. government oversight agency responsible for regulating the securities markets and protecting investors to not taken advantage of. (balance the investor need for information with the cost of companies providing that information
"materiality" in considering what to report to investors and other users of financial reports)
Carbon credits
a permit that allows the company that holds it to emit a certain amount of carbon dioxide or other greenhouse gases. Attempts made to incentivize environmentally friendly behaviors instead of merely hoping they would occur.
Environmental protection is key social responsibility issue
Carbon emissions, trees, credits
What is a "carbon offset credit"?
Climate change currency that companies can purchase and apply toward a portion of their tab
Is it a possibility that a company would boast of having zero carbon footprint when it really doesn't?
Yes, they're buying carbon credits to offset carbon emissions or to sell
Price of credits owned by a company...
Can go up and down just like stocks
Carbon credits try to price on polluting and
Reward for cleaning up environment
Supply and demand is rare in
the plant market
4 factors of production
land, labor, capital, entrepreneurship
large govt (public) role or large individual (private) role
Capitalism -large individual role- is a type of economic system in which trade and industry are driven by private owners and the individual rather than the large government role - socialism or communism-
S&D (supply and demand) also work in..
employment role. (when you graduate you hope to be valuable and rare)
Could your idea become a market success?
Yes, with a good amount of money and investment. (small business development center)
A solution to a problem of yours cold become...
A business idea that would solve problem for many
100 shares of TSLA at $1500 a share becomes...
500 shares of TSLA at $300 per share
AAPL
Apple Inc.
OTHER SETS BY THIS CREATOR