6600 BUSINESS ACTUAL FINAL EXAMS 1 AND 2

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6600 BUSINESS ACTUAL FINAL EXAMS 1 AND 2

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Accounting versus other business functions Recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties needed financial information Adam Smith and the Invisible Hand Theory The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically.Benefits and rights in different economic systems Free-Market Economics - the market largely determines what goods and services are produced, who gets them, and how the economy grows Command Economics - the government largely determines what goods and services are produced, who gets them and how the economy will grow Mixed Economy - some allocation of resources is made by the target and some by the government Bond financing

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is a type of long-term borrowing that state and local governments frequently use to raise money, primarily for long- lived infrastructure assets. They obtain this money by selling bonds to investors. In exchange, they promise to repay this money, with interest, according to specified schedules.Branding & brand names brand - name, symbol or design that identified the goods or services and distinguishes them from competitors' offerings trademark - a brand that has exclusive legal protections for both its brand name and design Manufacturers' brands - brand names of manufacturers that distribute products nationally Dealer (private-label) Brands - products that carry a retailer's or distributor's brand name instead of a manufacturer's Generic Goods - non-branded products that sell at a discount compared to manufacturers' or dealers' brands Knockoff Brands - illegal copies or national brands Budget sets forth management's expectations for revenues and allocates the use of specific resources through the firm...depend heavily on the balance sheet, income statement, statement of cash flows and financial forecasts.Business era production era, selling era, marketing concept era, customer relationship era

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Buying stock on margin borrowing some of the stock's purchase cost from the brokerage firm.Margin is the portion of the stock's purchase price that the investor must pay with their own money. If a broker issues a margin call, the investor has to come up with money to cover losses Capitalism, Socialism, Communism, Nationalism Capitalism - all or most of the land, factories and stores are owned by individuals, not the government, and operated for profit Socialism - an economic system based on the premise that some basic businesses, like utilites, should be owned by the government to more evenly distribute profits among the people Communism - an economic and political system in which the government makes almost all economic decisions and owns almost all the major factors on production Cash flow statement reports cash receipts and cash disbursements related to the

three major activists of a firm: operations, investments, and

financing Commercial finance companies is apart of the banking system, but is a nonbank which is a financial institution that accepts no deposits, but offer many of the services provided by regular banks.

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Commercial paper unsecured promissory notes in amounts of $100k+ that come due in 270 days or less.Common stock the most basic form; holders have the right to vote for the board of directors and share in the profits if dividends are approved Company vision more than a goal, its a broad explanation of why the organization exits and where it's trying to go Composition of the retail price of goods target costing - designing a product that satisfies customers and meets the firm's targeted profit margins competition-based pricing - a strategy based on what the competition is charging for its products break-even analysis - the process used to determine profitability at various levels of sales total fixed costs - all costs that remain the same no matter how much is produced or sold Variable costs - costs that change according to the level of production skimming price strategy - pricing new products high to recover costs and make high profits while completion is limited penetration price strategy - pricing products low with the hope of attracting more buyers and discouraging other companies