Chapter 9
A specialized area in management that converts or transforms resources (including human resources) into goods and services
What is operations management?
The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions
What is Accounting?
The function in a business that acquires funds for the firm and manages those funds within the firm
What is Finance?
The first public offering of a corporation’s stock
What is an Initial Public Offering (IPO)?
The direct trading of goods or services for other goods or services.
What is barter?
A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.
What is the Just-In-Time Inventory Control (JIT)?
Assets = ? + Owners Equity
What is liabilities?
This type of budget highlights a firm’s spending plans for major asset purchases that often require large sums of money
What is capital budget?
Federal agency that has responsibility for regulating the various exchanges
What is the Securities and Exchange Commission?
The interest rate that the Fed charges for loans to member banks
What is the discount rate?
The production process that is short and the machines are changed frequently to make different products
What is an intermittent process?
The financial statement that shows a firm’s profit after costs, expenses, and taxes; it summarizes all of the resources that have come into the firm (revenue), all the resources that have left the firm, expenses, and the resulting net income or net loss.
What is an income statement?
Money that is invested in new or emerging companies that are perceived as having great profit potential
What is a venture capital?
Part of a firm’s profits that the firm may distribute to stockholders as either cash payments or additional shares of stock.
What is a dividend?
Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members
What is a credit union?
The common name given to quality management and assurance standards
What is ISO 9001?
The systematic write-off of the cost of a tangible asset over its estimated useful life.
What is depreciation?
This type of short-termed loan is backed by collateral
Purchasing stocks by borrowing some of the purchase cost from the brokerage firm
What is buying stocks on margin?
Coins, paper money, traveler’s checks, savings accounts, mutual funds
What is M2 definition of money?
The sequence of tasks that takes the longest time to complete.
What is the critical path?
Total Liabilities / Total Owners' Equity
1.Forecasting the firm’s short-term and long-term financial needs
2.Developing budgets to meet those needs
3.Establishing financial controls to see if the company is achieving its goals
What is financial planning?
Type of bond that is issued by a foreign government or company that is payable in US Dollars
What is a yankee bond?
Financial organizations that accept no deposits but offer many of the services provided by regular banks
What is a nonbank?