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CPP > Business Principles & Practices > Flashcards

Business Principles & Practices Flashcards

1
Q

What are the three standard financial reports?

A

Income statement,
Balance sheet,
Statement of cash flows.

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2
Q

What does an income statement show?

A

Revenue,
Expenses,
Net income over a defined period.

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3
Q

What is the underlying equation of the balance sheet?

A

Assets = liabilities + shareholder equity.

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4
Q

What does a balance sheet show?

A

A summary of an organization’s investing and financing.

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5
Q

What does a cash flow statement show?

A

How cash inflows and outflows affect an organization.

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6
Q

What three elements are depicted in a cash flow statement?

A

Net operating cash flow,
Net investing cash flow,
Financing cash flow.

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7
Q

Which two ratios show how an organization has done in making money during a reporting period?

A

Return on assets = net income/total assets,

Return on equity = net income/shareholders equity.

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8
Q

What are the three ways to measure profit margins?

A

Gross profit margin = (revenue - cost of goods sold - general and administrative costs)/revenue,
Operating margin = EBITA(earnings before interest, taxes, and amortization)/revenue,
Net profit margin = net income/revenue.

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9
Q

Which two ratios demonstrate how well the firm has done in making money for a reporting period?

A

Return on assets = net income/total assets,

Return on equity = net income/shareholders equity.

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10
Q

Which two earnings related ratios are commonly examined in financial analysis?

A

Earnings per share = net income/total shares,

Price to earnings = price per share/earnings per share.

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11
Q

What is the current ratio?

A

The current ratio is a measure of a company‘s ability to cover short term obligations.
Current ratio = current assets/current liabilities.

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12
Q

What is the quick ratio?

A

The quick ratio is a measure of an organization’s ability to cover current liabilities with current assets that can be quickly converted to cash.
Quick ratio = (cash + Securities + accounts receivable)/current liabilities.

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13
Q

What is the debt to equity ratio?

A

The debt to equity ratio is a measure of a company‘s long-term financial health.
Debt to equity ratio = total liabilities/shareholders equity.

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14
Q

What are the three main limitations of financial statement analysis?

A

It doesn’t directly consider changes in market conditions,
All organizations operate differently and target different markets,
Financial reports must be accurate for financial ratios to have meaning.

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15
Q

What is a primary benefit of zero based budgeting?

A

Zero based budgeting may force managers to consider alternative ways of getting the job done.

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16
Q

What is generally the most practical approach to budget development?

A

A combination of top down and bottom up processes.

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17
Q

What is an effective way of setting the value of line items in a budget

A

Look at each budget expense as an investment in calculate the expected return on that investment.

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18
Q

Why might lower level managers more readily accept a bottom a budget?

A

Because they had a role in developing it.

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19
Q

Who should be involved in developing a standard?

A

A broad group of stakeholders and interested parties, working collaboratively.

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20
Q

What organization is the worlds largest developer of international standards?

A

ISO, the international organization for standardization.

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21
Q

What are the five pillars of ISO standards?

A 
Equal footing of members,
Market need,
Consensus,
Voluntary participation and application,
Worldwide applicability.
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22
Q

What organization is the administrator and coordinator of the US private sector voluntary standardization system?

A

The American national standards institute (ANSI).

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23
Q

Which stakeholder group drives the ANSI standards development process?

A

Standard users

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24
Q

What is the operating principle of ISO’s management systems standards?

A

The plan-do-check-act cycle.

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25
Q

Who should be involved in developing a job requirements analysis?

A

The hiring manager,
Other team members,
Organizational leaders.

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26
Q

What’s the best way to recruit a good candidate for a job?

A

Internal recommendations.

27
Q

What are the companies top two most valuable resources?

A

Number one is employees,

Number two is corporate knowledge.

28
Q

What are the five basic functions of management?

A 
Planning,
Organizing,
Directing,
Coordinating,
Controlling.
29
Q

According to Peter Drucker, what is the most crucial question in defining business purpose and mission?

A

Who is the customer?

30
Q

What is the rule of thumb for allocating for spare parts purchases in a budget?

A

About 5% of the capital cost of equipment for a location should be allocated each year for spare parts.

31
Q

How long should a strategic plan look out into the future?

A

3 to 5 years.

32
Q

What is the “span of control“ principle?

A

A single person can supervise only a limited number of staff members effectively (Generally, up to 10).

33
Q

What is unity of command?

A

An individual should report to only one supervisor.

34
Q

Where should an organization’s most senior security professional report in the organization?

A

Directly to senior or executive management.

35
Q

What is McGregor’s theory X?

A

McGregor’s theory ex says that an average worker is lazy and lacks ambition. Workers must be pushed by a hard driving, authoritarian manager.

36
Q

What is McGregor’s theory Y?

A

McGregor’s theory Y says that workers will seek greater responsibility in the right environment. They can exercise self direction, motivation, ingenuity, and creativity.

37
Q

What is Herzberg’s behavioral theory?

A

Herzberg’s behavioral theory says that good job performance is a function of hygiene or maintenance factors, such as job security and working conditions, as well as satisfiers or motivators, such as recognition and advancement.

38
Q

What is the Argyris behavioral theory?

A

The Argyris behavioral theory says that traditional organizational principles and structures are incompatible with the mental health of employees. They cause workers to become apathetic, self protective, or combative.

39
Q

What is warren Bennis’s behavioral theory?

A

Warren Bennis’s behavioral theory says organizations can be adaptive, problem-solving, and innovative. Future organizations will be based on free and full communication, consensus, influence based on competence, and a climate that allows for expression of emotions.

40
Q

What are the components of the big five model of personality?

A 
Surgency (leadership and extroversion),
Agreeableness,
Adjustment,
Conscientiousness,
Openness to experience.
41
Q

What term describes expectation of competent performance by security officer?

A

Vigilant performance.

42
Q

At what hours do officer accidents caused by fatigue peak?

A

Officer accidents caused by fatigue peak at 0300 and 1500 (3 AM and 3 PM).

43
Q

What is the most effective way to maintain officer vigilance?

A

Systematically rotate duties, at 2 to 4 hour intervals, between fixed post and roving patrol assignments.

44
Q

What are the three types of learning for officer training?

A

Cognitive (mental),
Affective (emotional),
Psychomotor (physical).

45
Q

What are the three elements of an officer’s personal development?

A

Education,
Training,
Guided experience.

46
Q

What are the six major benefits of officer training?

A 
Improved job performance,
Ease of supervision,
Procedure review,
Staff motivation,
Reduced turnover,
Legal protection.
47
Q

If officer training is needed immediately, what are the best options?

A

Off-the-shelf programs,

Contracted trainers.

48
Q

What are Knowles’s principles of andragogy?

A

A theory of adult learning that assumes adults are self-directed and will take responsibility for their own learning needs.

49
Q

Why aren’t participant evaluations good as training evaluation tools?

A

Participant evaluations do not measure actual learning; instead, they validate what learners think they learned.

50
Q

When is the case study method of training most effective?

A

When students work together in groups and actively have discussions.

51
Q

In most security environments, what type of training methodology works best?

A

Mentoring.

52
Q

What are six ways to overcome limiting training and budgets?

A

Use off-the-shelf programs,
Outsource training to a community college or technical institution,
Look for grant funding,
Join professional organizations such as ASIS,
Share instructional materials,
Use distance learning.

53
Q

What is the “frog syndrome”?

A

A scenario in which managers believe that they can train all their subordinates personally.They jump into the project and then jump out when they are overwhelmed by the workload.

54
Q

What five rolls can security officers play?

A 
Management representative,
Intelligence agent,
Enforcement/compliance agent,
Legal consultant,
Physical security/crime prevention specialist.
55
Q

What is the best way to get many different types of particularized training for small groups of officers?

A

Outsourcing.

56
Q

What is generally the largest item in the operating budget of a security department?

A

Personnel costs.

57
Q

In a security services contract, what should the scope of work specify?

A

Security tasks,
days and hours of performance,
Total number of hours to be worked.

58
Q

Who should set the compensation policy for contract security officers?

A

Security managers in the contracting company, not it’s purchasing staff, should set compensation policy.

59
Q

What is the first criterion in evaluating bids for security services?

A

Complying with the submission deadline.

60
Q

A contracting organization should hire its own supervisor for contract personnel when those personnel work more than how many hours per week?

A

400.

61
Q

What are the three alternative approaches to calculating loss event criticality other than the cost of loss formula?

A

Known frequency rate,
Nominal numerical probability,
Scatter plots.

62
Q

What is a fidelity bond?

A

A fidelity bond is insurance that covers losses created by dishonest employees.

63
Q

Assuming officers work 40 hours/week, and each post is staffed 24/7, what is the minimum number of officers required for each post?

A

4.2 officers, or 4.5 officers when holidays, vacation, and sick time are included in the calculation.

CPP (7 decks)

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