Accounting
The financial statement that shows a company’s assets, liabilities, and equity at a specific point in time.
What is the balance sheet?
The value of money today, compared to its value in the future, due to interest or inflation.
What is time value of money?
This function of management involves setting goals and determining the best course of action to achieve them.
What is planning?
The economic term for the total market value of all final goods and services produced within a country’s borders in a given time period.
What is GDP (Gross Domestic Product)?
The process of identifying and meeting customer needs and wants through product creation and promotion.
What is marketing?
This accounting method recognizes revenue when it is earned and expenses when they are incurred, not necessarily when cash is exchanged.
What is accrual accounting?
A financial product that gives investors a share of ownership in a company.
What is a stock?
The theory that suggests employees are motivated by factors such as achievement, recognition, and personal growth.
What is Maslow’s Hierarchy of Needs?
This type of economy relies on government decisions to allocate resources and control production.
What is a command economy?
A pricing strategy where a product is priced high to attract customers who are willing to pay a premium, often used for new or innovative products.
What is skimming pricing?
The accounting principle that states expenses should be matched with the revenue they generate in the same period.
What is the matching principle?
The ratio that measures a company’s ability to cover its short-term liabilities with its short-term assets.
What is the current ratio?
The type of leadership where the manager makes decisions unilaterally, without input from employees.
What is autocratic leadership?
The law stating that as the price of a good or service increases, the quantity demanded decreases, and vice versa.
What is the law of demand?
The term for dividing a market into smaller groups based on characteristics such as age, income, and buying behavior.
What is market segmentation?
This document summarizes a company’s revenues and expenses over a period of time, usually a quarter or a year.
What is the income statement?
The formula used to calculate the required rate of return for an investment, taking into account the risk-free rate, the investment’s risk, and the market’s expected return.
What is the Capital Asset Pricing Model (CAPM)?
This strategy involves analyzing the company’s strengths, weaknesses, opportunities, and threats to plan for its future.
What is a SWOT analysis?
The economic model that shows the relationship between a country’s production of two goods and the opportunity cost of producing one over the other.
What is the Production Possibility Frontier (PPF)?
The promotional tool that involves communicating directly with potential customers through advertising, sales, and personal interactions.
What is promotion?
The term for the process of allocating the cost of a long-term asset over its useful life.
What is depreciation?
The process of estimating the future value of an investment based on a series of periodic cash flows and a given discount rate.
What is net present value (NPV)?
The approach that involves making decisions based on detailed, systematic analysis of data and facts, often used in managerial decision-making.
What is quantitative decision-making?
The term for a market structure in which only a few firms dominate, and each firm’s actions affect the market price.
What is an oligopoly?
The model that explains the steps a consumer goes through before making a purchase: awareness, interest, desire, and action.
What is the AIDA model?