Ethics & Corporate Governance
This ethical framework focuses on providing the most good to the most people.
What is the utilitarian perspective?
Revenue - COGs =?
What is gross profit?
This system combines aspects of capitalism and socialism.
What is a mixed economy?
Marketing, strong brand differentiation, and social proof are all ways to increase this.
What is willingness to pay?
This strategic framework evaluates the attractiveness of an overall industry.
What are Porter's Five Forces?
This approach involves "overly optimistic" ideas of combining profits and social/environmental good.
What is a win-win strategy?
Direct materials, direct labor, and overhead are all components of this line item.
What is the cost of goods sold?
Collusion or the merging of rival firms may result in this market failure.
What is market power?
Human resource management and procurement are both examples of this element of the value chain.
What are support activities?
A firm that is neither a cost leader or differentiated and doesn't have a clear target market is defined as this.
What is stuck in the middle?
This perspective believes that businesses should contribute to society by focusing solely on generating profits for investors rather than investing resources for societal benefit.
What is Milton Friedman's shareholder theory?
This financial statement tells the story of what happened over a period of time.
What is the income statement?
If you purchased a gallon of milk in Boston for $5 and later sold the same gallon of milk in Cambridge for $6 this would be an example of...
What is arbitrage?
WTP-Price is known as this.
What is the consumer surplus?
This analysis is used to evaluate an individual firm's internal strategy as well as external market factors.
What is a SWOT analysis?
The system through which firm authority is defined, information is shared and oversight is exercised
to ensure decision-making in owners’ interests
What is corporate governance?
Cash (and equivalents), accounts receivable, and PP&E are examples of this.
What are assets?
According to Adam Smith, the amount of productive goods produced for the people determines this.
What is national wealth?
This term refers to the perceived usefulness of a product/service to its potential buyers.
What is utility?
High start-up costs, heavy regulations/laws, and well-established incumbents increase this force.
What are barriers to entry?
This issue arises when management is incentivized to act in their own best interest rather than the interests of investors/owners.
What is the Principal-Agent Problem?
If a project has an IRR=10% and a discount rate of 10%, the project's value added will be.
What is nothing/breaking even?
Adam Smith believes that capitalist systems function best when producers and consumers can negotiate this.
What is a mutual advantage?
If a firm sells books for $10, consumers have a WTP of $13, and it costs $6 to produce each unit, how much value is captured by the firm?
What is $4?
Failing to make decisions regarding trade-offs may result in this.
What is losing a competitive advantage?