General Business Knowledge
What is the formula for profit?
Revenue-Expenses
What are assets?
Things of value owned by a firm
What does IPO stand for?
What is Marketing?
creating, communicating, and delivering value
What is efficiency
using the least amount of resources to accomplish the organization's goals
Traditional purpose of a business
To maximize shareholder's wealth
Remember: They should do this by increasing profits
What does CPA stand for?
Certified Public Accountant
What are dividends?
payments to stockholders from a corporation's profits
What is a target market?
the specific group of consumers toward which a firm could direct its marketing efforts
*often divided into segments so that marketing strategies can be directed toward a more specific target
contingency plans
plans that identify alternative courses of action for very unusual or crisis situations
What is a value proposition?
the unique benefit that a company provides customers who buy their goods or services
What is the balance sheet formula and what requirement does it have to meet?
will ALWAYS balance as shown with the accounting equation (Assets = Liabilities + Shareholder's Equity)
What is a ticker symbol?
a unique abbreviation used to identify the shares of a publicly traded company
What are the 4 P's of Marketing?
1) product
2) price
3) promotion
4) place (distribution)
values (AKA core values)
*the guiding principles for how people in the organization show up and treat each other, and how the company will ultimately succeed
What is an ERP (enterprise resource planning) system?
a computerized resource-planning system that incorporates information about the firm's suppliers and customers with its internally generated data
What does COGS stand for and what is it?
Cost of Goods sold: expenses directly related to the buying or producing of a firm's goods or services
Explain a private vs public company
Private:
a company without publicly traded stock
Public:
a company with shares of stock traded in the public, typically on a stock exchange
Give me 2 examples of things that could be in a promotional mix
- traditional advertising
- sales promotion
- public relations
- personal selling
- social media
- e-commerce
Vision vs Mission statement
Vision: a short description of an organization's aspirations and the wider impact it aims to create *prominent focus on the "why?" or the meaning behind a company's actions
Mission: used by a company to explain, in simple and concise terms, its purpose(s) for being (existing)
*prominent focus on the "what?" and the "how?" a company is going to accomplish their vision
Explain Stakeholders vs Shareholders
Stakeholders are anyone involved with or impacted by an organization
Shareholders own a share of a company's stock
What is audit vs tax?
Audit: the process of reviewing the records used to prepare financial statements and issuing a formal auditor's opinion indicating whether the statements have been prepared in accordance with GAAP (the generally accepted accounting principles)
Tax: strategizing reductions in tax obligations aligned with IRS regulations and preparing required documentation
Explain debt vs equity
Debt: a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period
Equity: funds raised through the sale of ownership
(stock) in the business
*a form of business financing
Explain Market Segmentation
the process of separating, identifying, and evaluating the layers of a market in order to determine a target market for your firm to operate within
What are the 4 primary functions of managers?
1) planning
2) organizing
3) leading
4) controlling