Business 1301 Chapters 7, 8, 15, 16 – Flashcards
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The process of working with people and resources to accomplish the goals of an organization
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Management
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These are short-term targets a company implements that are designed to help realize the plans that have been made
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Objectives
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A successful manager must use these skills to be able to think abstractly in order to picture the organization as a whole and to understand its relationship to the rest of the business community
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Conceptual Skills
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An emerging business structure in which a group of companies collaborate
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Network Organizations
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A quality initiative that is statistically based, proactive, and long-term and that is designed to look at the overall business process to prevent problems
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Six Sigma Initiatives
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According to Maslow, which need are people striving to satisfy when they seek stable places to live and work?
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Safety
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Ross's work team is made up of various members of the art department who have all worked together for many years. They like that they work in synch and rarely have to explain things to each other because they are so much alike. A threat to Ross' work team is narrow-mindedness caused by ________.
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Groupthink
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According to this theory workers will be more productive when they know they are being studied
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Hawthorne Effect
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This shows what the company owns and what it has borrowed (owes) at a fixed point in time and shows the net worth of the business
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Balance Sheet
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This measures a company's short-term financial health and financial efficiency
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Cash Flow
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The money a company makes just from its products
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Gross Profit
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This is the process of selling accounts receivable for cash
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Factoring
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Checking and savings accounts are these types of accounts
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Demand Accounts
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The federal agency that oversees and regulates the buying and selling of stocks and bonds.
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Securities and Exchange Commission
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A corporate bond that is backed by collateral
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Secured Bond
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The strategy of having a variety of investments in your portfolio, such as different types of companies in different industries
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Diversification
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This is characterized by a declining stock market and decreasing investor confidence.
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A bear market
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The name for stock that will likely suffer the least amount of depreciation in a major recession.
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Defensive stocks
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Obligations a company is responsible for paying within a year
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Short-term Liabilities
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The term for strategic planning and budgeting of short- and long-term funds for current and future needs
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Financial Management
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These act as the intermediary between companies issuing stock and investors who purchase the stock?
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Financial Advisory Firm or Brokerage
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A formal legal document that provides details about an investment
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Prospectus
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This index does not include financial institutions but does include companies incorporated outside of the United States
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NASDAQ 100
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Self Actualization, Self-esteem, Love and Belonging, Safety and Security, Physiological Needs
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Maslow's Hierarchy of Needs
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Achievement, Affiliation, and Power
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McClellands "three needs" Theory
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Pay, Promotion, Verbal Praise
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Extrinsic Motivator
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Sense of purpose or value from completed work
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Intrinsic Motivator
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Financial Accounting Standard Board
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FASB
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Stocks issued by companies that have a long history of consistent growth and stability
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Blue Chip Stocks
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This role is responsible for raising capital for future growth and expansion
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Financial Manager
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Funding provided in exchange for an ownership stake, an active role in management of the funded company, and an opportunity for a large return on its investment.
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Venture Capital
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Assets = Liabilities + Owners' Equity
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The fundamental accounting equation
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Shows how much money came into the company and how much money the company spent last period
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Income Statement or Profit & Loss Statement
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The speed at which assets can be turned into cash
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Liquidity
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Numbers used to compare current data to data from previous years, competitors' data, or industry averages.
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Ratio Analysis
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Determiner of Net Income (or Loss)
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Revenues - Liabilities
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Considered the safest type of bond
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Treasury Bonds
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Bonds issued by state and local governments
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Municipal Bonds
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A bond to finance the construction of a toll bridge paid for by tolls
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Revenue Bond
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The Standard & Poor's bond rating categories denotes the highest risk.
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CCC rating
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The Standard & Poor's bond rating categories denotes the lowest risk.
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AAA rating
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Net Asset Value
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NAV
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The market used when a company first issues stock
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Primary Market
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The role in the company responsible for strategic planning and budgeting of short- and long-term funds for current and future needs
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CFO
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Long-term financing generated by the owners of a company
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Debt Financing
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What you are seeking when you borrow funds to make payroll and your company will pay it back within 9 months
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Short term financing
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Current Assets - Current Liabilities
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Working Capital
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Funds that a manager can access at any time up to an amount agreed upon between the bank and the company
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Lines of Credit
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What you are utilizing when your large corporation needs short-term financing and decides to issue an unsecured debt instrument of $200,000 to be paid back in 150 days.
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Commercial Paper
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Assets that do not have physical characteristics but have value nonetheless
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Intangible Assets
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Tracking a business's income and expenses through a process of recording financial transactions
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Accounting
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Description of stocks issued by companies that produce goods or services that are affected by economic trends
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Cyclical Stocks
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Stocks that pay a large dividend and are unlikely to experience major appreciations
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Income or Value Stocks
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Stocks issued by a young and expanding company that usually doesn't pay a dividend
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Growth Stocks
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The cheapest way for you to buy a stock
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Discount Broker
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An increasing stock market and increasing investor confidence
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Bull Market
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When a stock owner sells the stock for a higher price than he paid for it.
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Capital Gains
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A corporate bond backed only by a company's promise to pay.
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Debenture or Unsecured Bond
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A corporate bond that can be exchanged for stock.
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Convertible Bond
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TF- In MOST companies, accounting is the only responsibility of the finance department.
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False, also financial management
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TF- Financial management involves setting up and monitoring controls to make certain the plans and budgets are monitored sufficiently so that the business can reach its financial goals.
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True
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TF- Financial statements serve as a basis for management to develop expectations of where the company will be in future periods.
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True
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TF- Factoring is the process of selling accounts receivable for cash instead of using them as collateral for a loan.
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True
