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BADM120-B Test 2

Terms in this set (96)

top down
authoritian command and control
Bottom up
free market
socialist such as Venezuela
Top down examples
economies like the U.S.
bottom up examples
Margret Thatcher
problem with socialism is you eventually run out of others peoples money
capitalism promotes
equal opportunity for everyone to do well
goal for socialist country
is for all people to be equal
the U.S. is _________ by other nations
envied
U.S. has a
consumer driven economy
In order to for U.S to still be envied by others
it is important we still have choice in consumer products
Tesla's strategy meets all VRIN analysis by
V- being valuable; R- being rare; I- being perfectly inimitable for now and N; being non-substitutable
valuable, rare, inimitable, non-substitutable
VRIN
the strongest thing you can do as a company is
make sure what you do is a core business
annual shareholders' meeting
the CEO reports how good the company is doing and upcoming plans as well as elections of board of directors
Price vs. Performance
if it doesn't perform well the price would be too high and product won't do good
Tax Credits
are given in some countries as an incentive for being eco friendly with electric cars
every board of directors of publicly traded companies must have
Audit Committee
If a company hires a Big 4 accounting firm they are
hiring and independent auditor
Independent Auditor
Independent CPA who examines financial statements and attests to their fairness
Audit Committee
the outside, independent board of director members responsible for financial reporting, regulatory compliance, internal control, and hiring and overseeing internal and external auditors
Board of Directors
a group of persons elected by the stockholders to manage a corporation
Materiality
whether an item is large enough to likely influence the decision of an investor or creditor
Accounting Rule
rules tight enough to protect investors but not so tight as to stifle rigorous business activity
conflict of interest
A situation in which a person in a position of responsibility or trust has competing professional or personal interests that make it difficult to fulfill his or her duties impartially.
Compensation Committee
subgroup of the board of directors that is composed of directors who are not officers of the firm, also determines CEO and Chief Officer pay packages
CEO compensation package
salary, bonus, stock awards
unemployment claims peaked at
6.8 million in a week
unemployment claims rose
1.9% in September from prior month
Key to economy
is Consumer Spending
GDP
Consumer + investment + government + exports =
30 million business in the U.S with
sole proprietorships being most popular, corporations second and partnerships third
signs of economy recovering
job gains, consumer spending, personal savings rising, booming housing market, auto sales are hot, entrepreneurial activity strong
the main engine of the U.S economy is
Consumer Spending
2/3 of GDP
is attributable to the consumer spending\
pent up demand
is helping drive the largest number of U.S. new businesses in a decade
21 million
sole proprietorships
6 million
corporations
3 million
partnerships
80% of sales
is accounted for from corporations
Stand By Assistance
SBA
Small Business Development Center
SBDC
SBA and SBDC
are for small businesses with 500 or fewer employees
GEVO
stock trades below $5
penny stocks
stocks not listed on exchanges
trading volume
The number of shares traded in a single transaction
trading volume went up
20% this year in stocks that sell below $5
Recession
a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
stimulus package
Money allocated by governments to financial institutions and selected industries to prevent their collapse and reinvigorate economic growth
International Monetary Fund
IMF
Internation Monetary Fund
loans money to countries
South Africa quarterly decline
was 51% compared to U.S. 10%
U.S. per capita GDP
$59,800
South Africa's per capita GDP
$13,600
Major economic sectors of South Africa did poorly in Q2
manufacturing down 74%
mining down 73%
fiscal policy
the use of government spending and revenue collection to influence the economy
Stimulus package
also known as fiscal policy
corporate culture
the set of values, ideas, and attitudes that is learned and shared among the members of an organization
Schark known as
Chainsaw Charlie for being a autocratic boss: taking charge type of leader
Wells Fargo
Is one of the top 4 banks in U.S.
Earnings Per Share
EPS
Special Purpose Acquisition Company
SPAC
publicly traded company created for the purpose of acquiring or merging with an existing company
SPAC
also known as blank check company
SPAC
Profit=
Revenue - Expenses
short seller
makes a profit equal to the difference between the original sell price and the price paid for the stock, after subtracting any dividend payments made.
sustainable competitive advantage
an advantage that cannot be copied by the competition
Chief Marketing Officer
CMO
Chief Financial Officer
CFO
Chief Executive Officer
CEO
Chief Experience Officer
CXO
Chief Information Officer
CIO
Chief Diversity Officer
CDO
CMO on average stay at a job for
41 months
CEO on average stay at a job for
76 months
CMO do not have a high stay average because
if they don't do good they are out
FASB
Financial Accounting Standards Board
Financial accounting standards board
The body that writes the generally accepted accounting principles by which the financial statements of US firms must be prepared.
CSR
corporate social responsibility
Corporate Social Responsibility
a business's concern for society's welfare
budget deficit
a shortfall of tax revenue from government spending
budget surplus
an excess of tax revenue over government spending
budget balance
the difference between tax revenue and government spending
national debt
The sum of government deficits over time.
dividend
The portion of corporate profits paid out to stockholders
growth company
an organization that increases its annual revenue faster than its competitors
Exxon Mobil Corp.
XOM
Walgreens Boots Alliance
WBA
Target
T
pent up spending
in the developed world could be a key to economic recovery
Marginal Prosperity to Save
the fraction of a change in income that saves; the change in income that caused it
manager task role
get the job done
manager relationship goal
keep morale at an acceptable level
focus group
A small group of individuals who are led in discussion by a professional consultant in order to gather opinions on and responses to candidates and issues.
Top Quality Management
TQM
Total Quality Management
managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
big businesses not trusted in
tier 1
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