Business Acumen

Question 1

Income statement

Answer 1

a statement that reports revenues, expenses, and profits for a specific period of time, for example, quarterly or annually. The statement indicates the company’s net income, which is referred to as their bottom line. “Provides information about their performance.
AKA profit and loss statement
Different from a balance sheet.

Question 2

Value

Answer 2

The benefit created when a company meets its strategic goals, a measure of usefulness, worth, or importance. It is influenced by mission and culture.

Question 3

Gross profit margin

Answer 3

Compares gross profit with sales . Gross profit / net sales= gross profit margin
It is a metric from the income statement.
Ratio of gross profit to net sales.

Question 4

Equity

Answer 4

amount of owners’ or shareholders’ portion of a business. It is what is left of a company’s assets after its liabilities have been discharged. It is combined with liabilities on a balance sheet.

Question 5

Liabilities

Answer 5

Company’s debt and other financial obligations. Examples: rent, loans, wages, benefits, unpaid fines, tax debt.

Question 6

Business Intelligence

Answer 6

Ability to use information to gain a deeper understanding of a company and make sound business decisions.
There are 3 basic components:
Data gathering
Data warehousing
Query and reporting capabilities

Question 7

Enterprise resource planning

Answer 7

Business management software is usually a suite of integrated applications that a company can use to collect, store, manage, and interpret data from many business activities.

Allows everyone in the company to access the same current data and improve communication and coordination.

Question 8

Value chain

Answer 8

The process by which a company creates the product or service it offers to the customer. AKA business model.

HR helps the value chain through the quality and availability of pivotal talent pools.

Question 9

Balance sheet

Answer 9

Statement of a company’s financial position at a specific point in time, showing assets, liabilities, and shareholder equity. It indicates the company’s financial health. They change as new transactions are recorded.

Only things that are measurable by money are recorded.

Assets= liabilities + equity

Any money entered as an asset should is balanced by offsetting liabilities.

Question 10

Account payable

Answer 10

Money a company owes its vendors and suppliers.

Question 11

Balanced Scorecard

Answer 11

A tool to gather business intelligence. Provides a concise impression of a company’s overall performance. It can be used to focus the company and its function on key strategies. Supports a clear line of sight from strategic goals to strategic performance.

Must include accountability and measurable results

A performance management tool that depicts a company’s overall performance as measured against goals, lagging indicators, and leading indicators

Question 12

Ways a balanced scorecard can be used in strategic management

Answer 12

Translating the vision
Communicating and linking objectives to strategic goals
Business planning
Feedback and learning

Question 13

Assets

Answer 13

Financial, physical, and sometimes intangible properties a company owns

Question 14

Account receivables

Answer 14

the money a company’s customer owes the company

Question 15

Analytical processing

Answer 15

Applications that can analyze data faster and in more ways than traditional relational databases, offering a multidimensional analysis of business data

Question 16

Cash flow statement

Answer 16

Shows how money is flowing into and out of the company

Illustrates the effect of all the company’s activities that both consume value(production) and produce value (sales) on how much cash or cash equivalents the company has on hand

statement of a company’s ability to meet its current and short-term obligations, showing incoming and outgoing cash and cash reserves in operations, investments, and financing

Question 17

Net profit margin

Answer 17

Ratio of net incomes (gross sales minus expenses and taxes) to net sales

Question 18

Business case

Answer 18

Presentation to management that establishes that a specific problem exists and argues for a proposed solution

Question 19

Service level agreement

Answer 19

Document that defines the output customers can expect

Question 20

Buisness plan

Answer 20

the founding document. it establishes the company’s purpose for existing. Inclues company structure, marketing plan, and financial projections

Question 21

Strategic Plan

Answer 21

Document that outlines how the company intends to fulfill its purpose. Inclues the mission and vision, goals, and budget

Question 22

Organizational Chart

Answer 22

diagram that shows the hierachry within the company

Question 23

Standard operating preocedure (SOPs)

Answer 23

formal guides that outlines how a work process or activity should be completed.. common for activities and processes that are repetitive

Question 24

Business continuty plans

Answer 24

a document that outlines how a company will maintain operations during unplanned disruption