cram words 1- 105

Question 1

focus group

Answer 1

a controlled group interview of a target audience demographic, often led by a facilitator. A set series of questions or topics are covered and the results are used to guide marketing efforts

Question 2

Down payment

Answer 2

A good faith deposit made by a buyer to underline his or her commitment to complete the deal.

Question 3

Buying on margin

Answer 3

Purchasing an asset by making a down payment (called the margin) and financing the balance amount through a loan by using the asset as the collateral.

Question 4

downsizing

Answer 4

intentional reduction in the size of a workforce at all staffing levels, to survive a downturn, improve efficiencies.

Question 5

marginal cost

Answer 5

Cost to produce an extra unit.

Question 6

Marginal Benefit

Answer 6

Benefit to produce an extra unit

Question 7

Rationalization

Answer 7

Selling off or closing down some plants or units to reorganize a firm’s operations to be more in line with its core competencies, in the interest of efficiency or as a cost cutting measure. Often used as a euphemism for firing employees.

Question 8

footprint rationalization

Answer 8

removal of redundant and inefficient operation

Question 9

asset rationalization

Answer 9

matching a firm’s investment in various types of assets to its projected requirements, for achieving optimum returns on the sums invested.

Question 10

core product

Answer 10

Dominant intangible benefit or satisfaction a customer expects from a good or service he or she buys.

Question 11

absorption

Answer 11

integration of an account (called absorption account) into related accounts in preparation of a financial statement. INtegration of change and innovation into an organization’s culture and operations.

Question 12

general ledger

Answer 12

Central repository of the accounting information of an organization in which the summaries of all financial transactions (culled from subsidiary ledgers) during an accounting period are recorded. Also called the book of final entry, it provides the entire data for preparing financial statements for the organization.

Question 13

Financial statement

Answer 13

summary report that shows how a firm has used the funds entrusted to it by its stockholders and lenders and what is its current financial position. (Balance sheet, income statement, and cash flow statement)

Question 14

Augmented product

Answer 14

core product to which additional products and services may be added to generate multiple revenue streams.

Question 15

Platform product

Answer 15

Appliance or equipment whose basic design and some components are used in several products of a product family.

Question 16

Balance Sheet

Answer 16

Condensed statement that shows the financial position of an entity on a specified date. (It states what assets the entity owns, how it paid for them, what it owes, and what is the amount left after satisfying the liabilities.

Question 17

Asset

Answer 17

Something valuable that an entity owns, benefits from, or has use of, in generating income.

Question 18

Intangible assets

Answer 18

They derive their value from intellectual or legal rights, and from the value they add to the other assets. (Limited-life intangible assets, such as patents, copyrights, and goodwill. /Unlimited-life intangible assets, such as trademarks.)

Question 19

Tangible assets

Answer 19

Cash, equipment, machinery, plant, property– anything that has long-term physical existence or is acquired for use in the operations of the business and not for sale to customers.

Question 20

corporeal ownership

Answer 20

ownership of tangible assets such as land, buildings, and money

Question 21

Cashout

Answer 21

paying-off an existing loan on a property by taking another (usually larger) loan against it.

Question 22

Amortization

Answer 22

Gradual repayment of a loan in equal (or nearly equal) installments which include portions of interest and principal amounts.

Question 23

Drag on return

Answer 23

Reduction in returns from an investment (such as in a mutual fund) due to management expenses, charges or fees, and capital gains tax.

Question 24

Cash flow statement

Answer 24

Summary of the actual or anticipated incomings and outgoings of cash in a firm over an accounting period. It answers the questions Where the money came from? Where it went (will go)?

Question 25

Indirect cash flow statement

Answer 25

Begins with the net income figure taken from the income statement and then makes several adjustments which fall under three main headings (expenses not involving cash outflows, cash outflows not recorded as expenses, revenues not involving cash inflows.)

Question 26

Direct cash flow statement

Answer 26

Begins with cash provided by the sales from which cash paid for operating expenses is deducted to arrive at the net cash flow from operating activities.

Question 27

S corporation

Answer 27

Type of the US corporate structure in which the firm’s income is passed through its stockholders (shareholders) in proportion of their investment, and taxed at personal income tax rates. S corporations (s stands for small) can have only one type of stock and only a limited number of stockholders. Also called subchapter S corporation.

Question 28

C corporation

Answer 28

US business organization structure that provides several non-tax benefits (such as limited liability for the owners) and is popular as a staging base for raising large amount of investment capital by going public. Unlike in a S corporation, however, the entity’s income is taxed twice– first as a corporate income, then as a shareholder income.

Question 29

Memorandum

Answer 29

Document used generally in syndicate financing of projects to define the work and to detail its financing arrangements.

Question 30

Proprietorship

Answer 30

Type of business organization where one person or a family owns the firm.

Question 31

Sole proprietorship

Answer 31

Simplest, oldest and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise. Most popular, least record keeping, minimal regulatory controls, and avoidance of double taxation.

Question 32

Limited liability

Answer 32

Relatively recent type of US business structure that combines the limited personal liability feature of a corporation with the single taxation feature of a partnership or sole-proprietor firm. Its profits and tax benefits are split any way the stockholders/shareholders choose.

Question 33

“A” round

Answer 33

a financing event whereby venture capitalists become involved in a fast-growth company that was previously financed by founders and/or angels.

Question 34

Accredited investor

Answer 34

A person or legal entity such as a company or trust fund, that meets certain net worth and income qualifications and is considered to be sufficiently sophisticated to make investment decisions in complex situations. Regulation D of the Securities Act of 1933 exempts accredited investors from protection under the Securities Act.

Question 35

After-tax operating income

Answer 35

A company’s total operating income after taxes. This non-GAAP measure excludes any after-tax benefits or charges such as effects from accounting changes.