WOB Final PowerPoints Flashcards
Accounts Receivable Turnover Ratio Definition
Amount of time to make accounts receivable into cash
What is an example of Intensive Distribution Strategy?
Coca Cola
Exclusive Distribution Strategy
One or very few outlets in geographic area
Public Corporation
Company where stock is sold to anyone who could buy it
1 Advantage of Corporation
Limited Liability
Sales Promotion
Short term loss to trigger action
Corporate Social Responsibility
When a business cares about society more than money
Dividends must be payed in ——- or —–.
Cash or stock
Which 2 letters of SWOT are internal?
Strength and Weakness
Selective Distribution Strategy
Limited number of outlets
Advertising
Paid form of non personal communication
Penetration Pricing
New products at low price to achieve high sale volume
Which 2 letters of SWOT are external?
Opportunity
Threat
Fixed Order Interval Model
When inventory falls below certain level an order is placed to replenish it
Skimming Pricing
New product at a high price, lower price over time
Balance Sheet equation
Assets = Liabilities + owners equity
Liquidity Ratio definition
Measures firms ability to pay short term obligations
Inventory Turnover Ratio
How long it takes company to change inventory into sales
What 4 things does Equity Financing include?
- voting rights
- dividends
- dividends are non tax deductible
- permanent capital
Name 5 reasons why people start their own company
More control over future Tired of working for someone else New product idea Business goals important on a personal level Unable to find employement
What is an example of Sales Promotion?
Coupon samples and contests
What is the fundamental accounting equation
Assets = Liabilities + owners equity
What is an example of corporate social responsibility?
Donating to charity
What is not reported on a income statement?
Balance Sheet
Sole Proprietorship
Unlimited financial liability owned by one person
Competition based Pricing
Price based on competitors
Wholesaler
Person who sells product to others for resale
Transparency
Degree to which information flows freely within an organization
Ethics
Rules that govern conduct of a person
Retailers
Sells goods to others for personal use
Product mix
All the products the company offers
Which 2 letters of SWOT are negative ?
Weakness
Threat
Working Capital equation
Current assets - current liabilities
What 4 things does Debt Financing include?
No voting rights
Coupon interest
Fixed life / maturity
Interest is tax deductible
What is an example of odd even Pricing?
$19.95
Dividends
Payments to stockholders from after tax profits
Odd even Pricing
Price at odd number, consumers think price is lower
Statement of Cashflow
Summary of money coming in and going out
Current Ratio
Current Liabilities
What are the 2 criterias for choosing a brand name?
Unique
Relates to business
Debt to assets Ratio definition
Firms ability to carry long term debt
Personal Selling
Face to face communication with customer
Income Statement Equation
Revenues- Expenses = Net Income
What is an example of Selective Distribution Strategy?
iPhone
Which 2 letters of SWOT are positive?
Strength and Opportunity
What is an example of Exclusive Distribution Strategy?
Rolex watch
Debt to equity Ratio
Amount of debt to amount of equity
Corporation
A Legal entity
Intensive Distribution Strategy
As many retail outlets as possible
Lost horse forecast method
Starts with last known value and assess positive and negative impact
2 Disadvantages of Partnership
Unlimited Liabilities
Potential for Conflict
Demand oriented Pricing
Price based on consumer demand
Quick Ratio Definition
Measure of firms short term equity
Public Relations aka publicity
Information in news not directly paid for by company
4 key concepts of Common stock
- No obligation to provide return
- Highest Risk and Highest Return
- non tax deductible
- last to claim assets in bankruptcy
