HR Competencies: Business Acumen Flashcards
Business management software, usually a suite of integrated applications, that a company can use to collect, store, manage, and interpret data from many business activities.
Enterprise resource planning (ERP)
Money an organization’s customers owe the organization.
Accounts receivable
Statement of an organization’s 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
The benefit created when an organization meets its strategic goals; measure of usefulness, worth, or importance.
Value
Money an organization owes its vendors and suppliers.
Accounts payable
The process by which an organization creates the product or service it offers to the customer.
Value chain
Statement that reports revenues, expenses, and profits for a specified period of time, for example, quarterly or annually.
Income statement
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 organization’s financial position at a specific point in time, showing assets, liabilities, and shareholder equity.
Balance sheet
Processing applications that store data in a multidimensional “cube,” which enables users to analyze data quickly in a variety of different ways.
Online analytical processing (OLAP)
Ratio of gross profit to net sales.
Gross profit margin
Organization’s debts and other financial obligations.
Liabilities
Financial, physical, and sometimes intangible properties an organization owns.
Assets
Amount of owners’ or shareholders’ portion of a business.
Equity
