Finance
What is the primary goal of financial management for a company?
maximize shareholder wealth
This is the study of how people allocate their limited resources to their unlimited wants
Economics
What is the ultimate purpose of Marketing?
To create and keep a customer
What side of the standard "T accounts" do debits go?
left
What is the current ratio?
current assets/current liabilities
What is the definition of quantity demand
amount of a good buyers are willing and able to purchase at the current price
What are the 4 stages of the life cycle of a product?
Introduction, Growth, Maturity, Decline
What are the main sections on a balance sheet?
assets, liabilities, and equity
What is the Gordon growth model?
V0 = d1 / (r-g)
GDP is made up of 4 components, what are they?
(C + I + G + NX)
What are the 4 P's of Marketing? Otherwise known as the Marketing Mix
Product, Place, Price, & Promotion
What is the acid test ratio?
quick assets/current liabilities
What is the security market line?
ri = rRF + (rm -rRF)bi
required rate of return = risk free rate + (market risk premium - risk free rate)*beta
An effective price ceiling is set _______ the market equilibrium
below
What are Porter's 5 forces?
suppliers, buyers, substitutes, new entrants, competitive rivals
What is the definition of Goodwill?
amount by which a company's value exceeds the value of its assets and liabilities
What is the DuPont equation?
(in two parts)
(net income/sales) * (sales/total assets)=ROA
ROA * (total assets/total equity)
What was the title of the book that Adam Smith wrote in 1776 that heavily influenced the American Economy
Wealth of Nations
What are the 4 I's of services
intangibility, inconsistency, inseparability, inventory
Sarbanes Oxley requires what?
auditors to evaluate internal controls, the company to have effective internal controls, and makes directors and officers personally liable for the accuracy of financial statements