1. List and describe three users of a firm's accounting information.
The managers who want to know how the firm is doing. The stakeholders who want to know the financial status of the firm. The citizens who need to compare the performances of different firms (biz/ed).
2. Describe the purpose of an income statement. Give the equation that illustrates the logic that explains the way the income statement is organized, and define each one of the equations terms.
The purpose of the income statement is to show the income and expenses of the company.
The equation is: Assets = Liabilities + Shareholder's equity
- Assets are what the firm owns
- Liabilities is what the firm owes to others
- Equity is the difference between assets and liabilities
3. Define capital budgeting, and explain how it is used to evaluate business proposals. What kinds and types of assets is this process concerned with
Capital budgeting is a process of determining whether the specific projects are worth to be pursued. Capital budgeting is important in making decisions. Usually, capital budgeting is concerned with Capital assets such as plant and property (capital budgeting).
4. Define two primary sources of equity funding.
The sources of equity funding include the entrepreneur's friends and family and private investors who are the wealthy entrepreneurs (USLEGAL).
5. List and describe the basic rights of common stockholders.
i. The right to transfer ownership. The stockholders are allowed to freely exchange their stock.
ii. Right to ownership in a portion of the company whereby the stockholder owns part of the company.
iii. An entitlement to dividends whereby the stockholder claims any profits that are made by the company in form of dividends.
iv. Right of opportunity to inspect the corporate books and records. This is normally done through the company's public filing (INVESTOPEDIA).
6. List and describe some of the features which make mutual funds enticing for investors.
They are professionally managed. They are easier to diversify the investments hence less risky than investing in individual stocks (Parker, P)
1. Utility, and describe how each type (4) impacts the marketing process.
Utility is the condition of being useful.
Form - through this utility, the usable forms are introduced in the market.
Time - making sure the products are available in the market when people need them.
Place - making sure the goods and services are accessible to the customers in the market.
Possession - allowing the customers to have the products.
2. Define the marketing mix and provide detail on each component of the mix.
Market mix is the combination of elements that are necessary in the sale of products. The elements are product, place, price and promotion. Product is the intangible service or tangible object that is produced. Price is the amount paid by the customer. Place represents location where the products are purchased. Promotion is the marketer's communication that is used in the market (Marketing mix).
2. List and describe the four categories of consumer products, and provide at least one example to illustrate each category.
i. Convenience products which are the products that appeals to a wide market segment. An example is cleaning products.
ii. Shopping products which are frequently purchased and used by customers. An example is clothes.
iii. Emergency products which are needed during times of emergency. An example is medical products.
iv. Specialty products which have high prices than other categories' products. An example is a luxury car (Categories of consumer products).
3. Define and describe the six steps in the new product development process.
The first step is identification where one tries to understand the needs of the customers. The second step is concept development whereby one develops the concept executions and analyzes them to find the best one. The third is product quantification which involves the volumetric, concept fulfillment and cannibalization estimates. The fourth step is advertising development where one tries to sell the insight. The fifty step is the packaging development whereby the brands are packaged. The last step is introductory marketing which involves informing the consumers that it is in their power to buy the insight (National Mail Order Association).
4. Describe the difference between penetration pricing and skimming pricing. Give an example of each to illustrate your answer.
Penetration pricing is the one designed to get more customers to buy the products and an example is a low cost retailer who enters a new geographic market. On the other hand, skimming pricing is the one that targets the segment of customers who are willing to pay more for products. An example is the new technology electronics such as iPhone.
6. What is the goal of a distribution strategy? List and describe the 2 key elements in the distribution strategy.
The main goal of distribution strategy is maximizing the sales and profits. The first element is the customer considerations whereby the strategy is affected by the customers' knowledge of product and their needs. The second element is the channel considerations which involve the ability to create a good product demand, physical distribution systems and ability to make use of technology.
1. Describe the three basic leadership styles and explain when each might be appropriate.
i. Autocratic style whereby the manager has much power and decision making authority. It is applied in situations characterized by little time for group decision making or where the manager has the best knowledge.
ii. Democratic style which allows the employees to participate in decision making.
iii. Laissez Faire style where the manager provides little directions and the employees are given much freedom. It is applicable where the group members are experts in their area (Cherry, K).
What does SWOT stand for? Explain the purpose of a SWOT analysis.
SWOT stands for Strengths, Opportunities, Weaknesses, and Threats. It is used to help a business entity in the identification of effective strategies.
3. List and discuss four pieces of important federal legislation that impact the human resources process.
In regards to the human resource process in the United States of America, there was an Employee Free Choice Act which was to be legislated in 2007. Its pieces are the streamlining of the employees union certification, facilitating bargaining agreements and strengthening the enforcement
4. Define efficiency and effectiveness as operations managers use these terms. Which of these goals is more important. Why?
Efficiency is the extent to which an organization maintains a certain level of production when there are few resources. Effectiveness is the extent to which an organization produces a certain output or outcomes. Efficiency is more important as it ensures more production without incurring additional costs.
5. Compare and contrast intranets and extranets.
An intranet is a private sector in the field of internet that only authorized people are able to use. On the other end an extranet is a private network which prolongs its service to companies or other partners apart from the employees.
6. Define management. List and define the four functional responsibilities of management.?
Management is the act, practice or manner of supervising, handling and controlling. The responsibilities include planning which involves the decision on what is to be done, organizing which involves making a proper use of resources to facilitate success, leading which involves the exhibition of skills and controlling which involves the checking of the general progress against the set plans (Explain the four functions of management?).