Engineering Management & Law Flashcards
What is systemic deliberation?
Am approach to decision-making that helps avoid bias
What organisation pushed the UK-SPEC?
The engineering council
Who may accredit a degree program?
Professional bodies
What is mono-tasking?
Working on 1 activity at a time
What is the Eisenhower Principle?
A 2x2 time management matrix for prioritising taks
Important, urgent: do immediately
Important, not urgent: schedule later
Not important, urgent: delegate
Not important, not urgent: Eliminate
What are the 4 components of Ikigai?
What you love
What you’re good at
What you can be paid for
What the world needs
What are the 6 steps in Gibbs’ Reflective Cycle?
Description -> Feelings -> Evaluation -> Analysis -> Conclusion -> Action Plan -> [back to beginning]
What are the SMART goals?
Specific
Measurable
Time-bounded
Achievable
Realistic
What 2 ways of starting a company?
Entrepreneurship (starting own company): more control, higher reward
Intrapreneurship (business within a company): less risk, more talent, less control, lower reward
What is Gilbrat’s Law?
A theory about company growth & decline
“The growth of a business occurs in random shocks”
Random process - independent of firm size and time
How does Gilbrat’s Law apply to different-sized firms?
Holds up better for larger firms
Smaller firms are more volatile
Size & growth are inversely proportional
What are the 5 stages of business decline and their countermeasures?
1) Blinded - good information
2) Inaction - prompt action
3) Faulty action - corrective action
4) Crisis - effective reorganisation
5) Dissolution
What are assets?
The money you owe (liabilities) + the ownership interest of shareholders (equity)
How are assets maintained?
Double entry bookkeeping
Each transaction is entered twice as a credit and debit - these balance
What are the 3 accounting equations for double entry bookkeeping?
Assets: debits increase, credits decrease
Liabilities: debits decrease, credits increase
Equity: debits decrease, credits increase
What are the 2 branches of accounting?
Financial accounting - annual reports of company’s situation to shareholders & public
Management accounting - additional, more up to data info (includes company confidential data); used to monitor performance to support management decision-making
What do balance sheets show?
Assets, liability, equity
What 3 financial reports are there and what do they entail?
Profit & loss reports - shows income & expenses
Equity statement - shows retained earnings
Cash flow statement - shows operating costs, investing & finances
What is insolvency?
The state where a company is unable to pay its debts when they are due because liabilities exceed assets
What is liquidation?
The process of selling company assets to pay debts, usually leading to closure
What are the 2 fundamental qualitative characteristics of financial information?
As per IFRS:
* Relevance
* Faithful Representation
What are the 4 fundamental enhancing characteristics of financial information?
As per IFRS:
* Comparability
* Understandability
* Timeliness
* Verifiability
What are the 3 key financial metrics?
Market Cap(italisation): share price x no. shares
Earnings per Share (EPS): profit / no. shares
Beta: measure of volatility of market
What are the 3 approaches to budgeting?
Top-down: senior managers leave lower levels to work out details
Bottom-up: lower levels tell senior managers resources they need
Participatory: budget negotiated between different levels