Competencies: Business Acumen Flashcards
Organization’s debts and other financial obligations
Liabilities
Document that defines the output customers can expect.
Service level agreement
Ratio of net income (gross sales minus expenses and taxes) to net sales.
Net profit margin
Ratio of gross profit to net sales.
Gross profit margin
The process by which an organization creates the product or service it offers to the customer.
Value chain
The benefit created when an organization meets its strategic goals; measure of usefulness, work, or importance.
Value
Money an organization’s customers owe the organization.
Accounts receivable
Money an organization owes its vendors and suppliers.
Accounts payable
Performance management tool that depicts an organization’s overall performance, as measured against goals, lagging indicators, and leading indicators.
Balanced scorecard
Statement of an organization’s financial position at a specific point in time, showing assets, liabilities, and shareholder equity.
Balance sheet
Financial, physical, and sometimes intangible properties an organization owns.
Assets
Applications that can analyze data faster and in more ways than traditional relational databases, offering a multidimensional analysis of business data.
Analytical processing
Ability to use information to gain a deeper understanding of an organization and make sound business decisions.
Business intelligence
Presentation to management that establishes that a specific problem exists and argues for a proposed solution.
Business case
Statement of an organizations ability to meet its current and short-term obligations, showing incoming and outgoing cash and cash reserves in operations, investments, and financing.
Cash flow statement
