SOM 122 Final SG

controller

manages a firm's accounting activities by ensuring that the AIS provides the reports and statements needed for planning, decision making, and other management activities

four main purposes of goal setting

provides direction ad guidance, helps allocate resources, defines corporate culture, and helps managers assess performance

four major influences on consumer behavior

psychological, personal, social, cultural

specialty goods and services

purchased infrequently, expensive, consumer decides on a precise product and will not accept substitutions and spends a good deal of time choosing the perfect item; luxury jewelry, wedding gown, healthcare insurance

shopping goods and services

purchased less often, more expensive, consumers may shop around and compare products based on style, performance, color, price, and other criteria; tv, tires, hotel reservation

current dividend yield

rate of return from dividends paid to shareholders (in the case of interest from a loan it is called the current interest yield) - Calculated by dividing the yearly dollar amount of dividend income by the investment's current market value

time value of money

recognized the basic fact that, when it's invested over time, money grows by earning interest or yielding some other form of return

CPA vision project

redefining the role of the accountant for today's world economy Identifies a unique combination of skills, technology, and knowledge, called core competencies for accounting, that will be necessary for the future CPA

conceptual skills

refer to a person's ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present situation

place

refers to where and how customers get access to the products they buy

strategic plans

reflect decisions about resource allocations, company priorities, and the steps needed to meet strategic goals

US SEC

regulation and enforcement agency that oversees the markets' activities, including the ways securities are issued

long term goals

related to extended periods of time, typically five years or more

operating expenses

resources that must flow out of a company if it is to earn revenues

code of professional conduct

responsibilities as a professional, serving the public interest, maintaining integrity, being objective and independent, maintaining technical and ethical standards through due care, professional conduct in providing services

marketing management

responsible for getting products from producers to consumers

top management

responsible for the overall performance and effectiveness of the firm; set general policies, formulate strategies, and approve all significant decisions; represent the company in dealings with other firms and with government bodies (president, VP, CEO, CFO)

Sarbanes Oxley Act of 2001

restricts the kinds of non audit services that CPAs can provide; Imposes new requirements on virtually every financial activity in publicly traded corporations, as well as severe criminal penalties for persons committing or concealing fraud or destroying financial records

income statement's four major categories

revenues, cost of revenues, operating expenses, net income

risk return relationship

safer investments tend to offer lower returns; riskier investments tend to offer higher returns

liquidating

the act of converting something into cash

loan principal

the amount of money that is loaned and must be repaid

owner's equity

the amount of money that owners would theoretically receive if they sold all of a company's assets at their presumed value and paid all of its liabilities

goodwill

the amount paid for an existing business beyond the value of its other assets

unsecured loan

the borrower does not have to put up collateral

secured loan

the borrower guarantees repayment of the loan by pledging the asset as collateral to the lender

management

the process of planning, organizing, leading, and controlling an organization's financial, physical, human, and information resources to achieve its goals

time management skills

the productive use that managers make of their time; to manage time effectively, managers must address four leading causes of wasted time (paperwork, telephone calls, emails, and meetings)

asset allocation

the proportion (the relative amounts) of funds invested (or allocated to) each of the investment alternatives

mass market

undifferentiated

nonprogrammed decisions

unique, novel, unstructured, no previously established decision rules, rely heavily on judgement and focus on the firm's strategic development and survival, taken at higher levels, long time frame

accounts payable (payables)

unpaid bills to suppliers for materials as well as wages and taxes that must be paid in the coming year

intrinsic value

value of a company, stock, currency, or product determined through fundamental analysis without reference to its market value

geo-demographic segmentation

variables are a combination of geographic and demographic traits and are becoming the most common segmentation tools

common elements of successful strategies

vision, external analysis, internal analysis, effective implementation

entrepreneur

voluntary initiator of change

cost leadership

walmart, ryanair, acer, vizio, old navy

loss aversion

we tend to just like winning and dislike losing-- and you almost certainly dislike losing more than you like winning; would you get $900 for sure or 90% chance to get $1000 or lose $900 for sure or 90% chance to lose $1000

programmed decision

well structured, routine, repetitive, occurring on a regular basis, can be solved through mechanical procedures, usually take place at lower levels in the organization, have short term consequences, based on readily available info

core customer value

what is the customer really buying

budgeting challenges

every company has a limited amount of money to spend, revenues and costs are often difficult to predict, it's not always clear how much should be spent

audit

examines a company's AIS to determine whether financial reports reliably represent its operations -Organizations must provide audit reports when applying for loans, selling stock, or when going through a major restructuring

interpersonal roles

figurehead, leader, liaison

working capital

firm's ability to meet expenses; current assets- current liabilities

informational roles

flow naturally from the interpersonal roles just discussed; places the manager at a strategic point to gather and disseminate information; monitor, disseminator, spokesperson

corporate bond

formal pledge (an IOU) obligating the issuer to pay interest periodically and repay the principal at maturity (a present future date) to the lender

spokesperson

formally relays info to people outside the unit or outside the organization; may also represent the org before a chamber of commerce or consumer group

Generally Accepted Accounting Standards (GAAP)

formulated by the Financial Accounting Standards Board (FASB) of the AICPA and govern the content and form of financial reports

CFE Examination

fraud prevention and deterrence, financial transactions, fraud investigation, and legal elements of fraud

geographic variables

geographic units, from countries, to neighborhoods, that researchers consider a strategy of geographic segmentation

par value

(aka face value) nominal or dollar value of a security as stated by the issuer

middle manager

(plant manager, operations manager, division manager, regional sales manager) responsible more implementing the strategies and working toward the goals set by top managers

first-line managers

(supervisor, office manager, project manager, group leader, sales manager) responsible for supervising the work of employees who report to them; ensure employees understand and are properly trained in company policies and procedures

intermediate term bonds

5-10 years

Provisions of Sarbox

- Creates a national Accounting Oversight Board that must establish the ethics and standards used by CPA firms in preparing for audits - Requires that auditors retain working papers for specified periods of time - Requires auditor rotation by prohibiting the same person from being the lead auditor for more than 5 consecutive years - Requires the CEO and CFO certify that the company's financial statements are true, fair, and accurate - Prohibits corporations from extending personal loans to executives and directors - Requires that the audited company disclose whether it has adopted a code of ethics for its senior financial officers - Requires that the SEC regularly review each corporation's financial statements - Prevents employers from retaliating against research analysts who write negative reports - Imposes criminal penalties on auditors and clients for falsifying, destroying, altering, or concealing records (10 years in prison) - Imposes a fine or imprisonment (up to 25 years) on any person who defrauds shareholders - Establishes criminal liability for failure of corporate officers to certify financial reports

concept of developing marketing plan

-Identify the objective or goal to be achieved -Plan for when it will happen and for the paths (or routes) that will be taken to get there -Evaluate resource requirements and availabilities -Adjust plans as needed to become realistic and feasible -Keep notes and data about what happened because learning from this experience increases the chances for greater success on the next

stages of consumer buying process

-problem/need recognition -information seeking -evaluation of alternatives -purchase decision -posturchase evaluation

maslows hierarchy of needs

-self actualization -personal needs -social needs -safety needs -physiological needs

consumer buying process

1. recognition of problem or need 2. seek information 3. analyze product attributes 4. purchase decisions

strategic formulation steps

1. setting strategic goals 2. analyzing organization and environment (SWOT analysis) 3. matching the organization and its environment)

steps in the research method

1. study the current situation 2. select a research method 3. collect data 4. analyze data 5. prepare a report

AIS

Accounting Information System

market index

provide useful summaries of overall price trends, both in specific industries and in the stock market as a whole

B2C marketing

Firms that sell goods to consumers for personal consumption are engaged in consumer marketing

B2B marketing

Firms that sell goods to other companies are engaged in industrial marketing

bookkeeping

Keep records of taxes paid, income received, expenses incurred

controlling

the process of monitoring a firm's performance tome sure it's meeting its goals

municipal bonds

The federal government also issues bonds to finance projects and meet obligations, as do state and local governments for financing the building of schools, roads, and sewage disposal systems

promotion

a set of techniques for communicating information about products

total return

The sum of an investment's current dividend (interest) yield and capital gain - Total return(%) = (current dividend payment + capital gain) / original investment X 100

strategy

a broad concept that describes an organization's intentions; tends to have a wider scope than planning (which focuses on the nuts and bolts, choosing tactics, and establishing schedules)

S&P 500, the standard and poor composite index

a broader report, considered by many to be the best single indicator of the US equities market; Consists of 500 large-cap stocks, including companies from various sectors for a balanced representation of the overall large-cap equities market

exchange traded fund (ETF)

a bundle of stocks (or bonds) that are in an index that tracks the overall movement of a market; Can be traded throughout the day like stock, Have low operating expenses, Do not require high initial investments

accounting

a comprehensive system for collecting, analyzing, and communicating financial information to a firm's owners and employees, to the public, and to various regulatory agencies

liability

a debt that a firm owes to an outside party

viral marketing

a form of marketing that relies on social networking and the internet to spread information like a virus from person to person

bond indeture

a legal document identifying the borrower's obligations and the financial returns to lenders

confirmation bias

a normal habit in life is to develop a quick belief about a situation and then seek out information that bolsters that belief

target market

a particular group of consumers at which a product or service is aimed

dividend

a payment to shareholders, on a per-share basis, from the company's earnings

stock

a portion of the ownership of a corporation

bondholder's claim

a request for court enforcement of the bond's terms of payment

certified fraud examiner (CFE)

a specific area within forensic accounting; focus specifically on fraud-related issues such as fraud detection, evaluating accounting systems for weaknesses and fraud risks, investigating white-collar crime on behalf of law enforcement agencies, evaluating internal organizational controls for fraud prevention, and expert witnessing

stock split

a stock dividend paid in additional shares to shareholders

demographic segmentation

a strategy used to separate consumers by demographic variables; describe populations by identifying traits, such as age, income, gender, ethnic background, marital status, race, religion, and social class

relationship marketing

a type of marketing that emphasizes building lasting (long-term) relationships with customers and suppliers

individual differences

abilities to absorb, analyse and process information varies from person to person; perception is the selection and interpretation of information we receive through our senses and the meaning we give the information

rational decision making process

able to compare all the alternatives and comparisons are consistent, always chooses the time he/she prefers, has prefect information, has the cognitive ability to with choices, is aware of all possible choices

marketing

activities, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

income statement

aka profit and loss statement; profit (or loss) = revenues - expenses

depreciation

allocating the cost of a tangible asset over its useful life

price appreciation

an increase in the dollar value of an investment

international accounting standards board

an independent, nonprofit organization responsible for developing a set of global accounting standards and for gaining the support and cooperation of the world's various accounting organizations to implement those standards

corporate raider

an investor conducting a type of hostile (unwanted) takeover

stock exchange

an organization of individuals coordinated to provide an institutional auction setting in which stocks can be bought and sold

Accounting Information System

an organized procedure for identifying, measuring, recording, and retaining financial information so that it can be used in accounting statements and management reports

aka net worth

another term for owner's equity; difference between what a firm owns minus that it owes

asset

any economic resource that is expected to benefit a firm or an individual who owns it

advertising

any form of paid nonpersonal communication used by an identified sponsor to persuade or inform potential buyers about a product

long-term bonds

anything longer than 10 years

system 2

articulates judgments, makes choices, endorses or rationalizes to either confirm or deny those conclusions, requires conscious effort to engage, can be wrong or right depending on how hard it works, examines those heuristics when so inclined

vision statement

aspirational for a company, look forward 10-20 years, refer to what organization considers success, crucial for orgs to have vision and direction, customer-oriented or product-oriented, should be clear and concise and avoid generic statements

accounting equation

assets = liabilities + owner's equity

rational choice theory

assumes human behavior is guided by instrumental reason; allows for an easier understanding of complex social phenomena

focus differentiation

aston martin, beats, von zipper sunglasses, fleet fleet, banana republic, whole foods, thomas pink

data mining

automates the massive analysis of data by using computers to sift, sort, and search for previously undiscovered clues about what customers look at and react to and how they might be influenced

non certified public accountants

businesses may rely on them for income-tax preparation, payroll accounting, and financial planning services

diversification

buying several different kinds of investments rather than just one

solvency ratios

estimating short-term and long-term risk

financial statements

balance sheets, income statements, and statements of cash flows; indicate the firm's financial health and what affected it

financial management fundamental concepts

balancing short-term and long-term demands, balancing potential risks and potential rewards, balancing leverage and flexibility

value

benefits / costs

actual product

brand name, quality level, packaging, design, features

positive owner's equity

company's assets exceed liabilities

P/E ratio

company's share price divided by the amount of profits it makes for each share in a 12 month period

operating income

compares the gross profit from operations against operating expenses

experimentation

compares the responses of the same or similar people under different circumstances

earning's cycle

completed sale, delivered product, sale price collected/collectible, revenue recognition

niche market

concentrated

financial accounting

concerned with external information users: consumer groups, unions, stockholders, suppliers, creditors, and government agencies - Prepares reports such as income statements and balance sheets that focus on the activities of the company as a whole rather than on individual departments or divisions

NASDAQ composite index

considers more stocks (regarded by some Wall Street observers), and is one of the most useful of all market indexes

reseller market

consisting of intermediaries, including wholesalers and retailers, that buy and resell finished goods

institutional market

consists of nongovernmental organizations, such as hospitals, churches, museums, charities, that also use supplies and equipment as well as legal, accounting, and transportation services

convenience goods and services

consumed regularly and rapidly, inexpensive, purchased often and with little input of time and effort; milk, newspaper, fast food

brand loyalty

consumers regularly purchase products because they are satisfied with their performance

mutual funds

created by companies that pool cash investments from individuals and organizations to purchase bundles of stocks, bonds, and other securities; investors expect to receive financial gains

strategy as coordinating device

creates consistency and unity

sources of short term debt financing

credit cards, trade credit, secured loans, unsecured loans, commercial paper, factoring

marketing analysis (5 c's)

customers, company, competitors, collaborators, context (PEST)

long term liabilities

debts that are not due for at least a year

current liabilities

debts that must be paid within a year

augmented product

delivery and credit, product support, warranty, after sales service

statement of cash flows

describes yearly cash receipts and cash payments; shows the effects of cash on three aspects of business: - Cash flow from operations-- concerns cash transactions involved in buying and selling goods and services - Cash flows from investing-- reports net cash used in or provided by investing - Cash flows from financing-- reports net cash from all financing activities

information managers

design and implement systems to gather, organize, and distribute info

product

designed to fill a customer's need or want

book value

determined by the firm's owners' equity (from the balance sheet) divided by the number of common shares owned by all shareholders; used as a comparison indicator

corporate strategy

determines what business or businesses a company will own and operate

planning

determining what the organization needs to do and how best it needs to get it done

channels of distribution

direct distribution, retail distribution, wholesale distribution, distribution by agents of brokers

effectiveness

doing the right thing

efficiency

doing things right

electronic communications networks (ECNs)

electronic trading systems that bring buyers and sellers together outside traditional stock exchanges by automatically matching buy and sell orders at specified prices

service companies market

encompasses the many firms that provide services to the purchasing public

activity ratios

evaluating management's use of assets; fixed assets turnover = revenue / fixed assets

anchor bias

giving disproportionate weight to the first information you hear

disturbance handler

handling such problems as strikes, copyright infringements, or problems in PR or corporate image, resolving conflict between two subordinates

human resource managers

hire and train employees, evaluate performance, and determine compensation

private accountants

hired to perform day to day activities

leader

hiring, training, and motivating employees

NYSE

hybrid market that uses both floor and electronic trading; largest

integrated cost leadership/differentiation

hyundai, southwest, h&m, gap, trader joe's

full disclosure principle

idea of requiring input from the manager; Helps investors make informed risk associated with investing in or doing business with a company

operating budget

identifies cash requirements and spending for current time period

start up budget

identifies funds and spending needed to launch the company

marketing strategy

identifies the planned marketing programs, all the marketing activities that a business will use to achieve its marketing goals, and when those activities will occur

sunk costs

if you buy a movie ticket and realize the movie is terrible, you can: stay and get your money's worth (sunk cost fallacy), leave the cinema and use that time to do something you enjoy

focus cost leadership

ikea, forever 21, sams club, audi

strategy as target

improves performance by setting high aspirations

strategy as decision support

improves the quality of decision making

psychological influences

include an individual's motivations, perceptions, ability to learn, attitudes

current assets

include cash and assets that can be converted into cash within a year

cultural influences

include culture (the way of living that distinguishes one large group from another), subculture (smaller groups with shared values), and social class (the cultural ranking of groups according to such criteria as background, occupation, and income)

social influences

include family, opinion leaders (people whose opinions are sought by others), and such reference groups as friends, coworkers, and professional associates

personal influences

include lifestyle, personality, and economic status

decision-making skills

include the ability to effectively define a problem and to select the best course of action

public relations

includes all communication efforts directed at building goodwill

industrial market

includes businesses that buy goods to be converted into other products or that are used up during production

behavioral segmentation

includes such areas as heavy users (buy in bulk); situation buyers (holiday spending); or specific purpose

availability bias

individuals have a tendency to make decisions based on whatever information is easily retrievable to them and overestimate the importance of this information

emotional motives

involve non objective factors and include sociability, imitation of others, and aesthetics

rational motives

involve the logical evaluation of product attributes: cost, quality, usefulness

crisis management

involves an organization's methods for dealing with emergencies; many firms do not have comprehensive crisis management strategies

liaison

involves serving as a coordinator or link among people, groups, or organizations

observation

involves watching and recording consumer behavior

fixed assets

land, buildings, equipment

negative owner's equity

liabilities outweigh assets

certified public accountant (CPA)

licensed by a state after passing an exam prepared by the American Institute of Certified public accountants (AICPA)

psychographic segmentation

lifestyles, interests, personalities, and attitudes

micro market

local or individual

sources of long term debt financing

long term loans, leases, corporate bond

equity financing

looking inside the company for long-term funding; sometimes preferable over debt financing; includes either issuing common stock or retaining the firm's earnings

resource allocator

manager decides how resources are distributed and with whom he/she will work most closely; reviewing and revising budget requests

negotiator

manager enters into negotiations with other groups or organizations as a rep of the company; may also be internal to the org; reaching an agreement with a key supplier or labor union

leading

manager works to guide and motivate employees to meet the firm's objectives

decisional roles

manager's informational roles typically lead to these; the info acquired by the manager as a result of performing the info roles has a major bearing on important decisions that they make; entrepreneur, disturbance handler, resource allocator, negotiator

functional (operational) strategy

managers in specific areas such as marketing, finance, and operations decide how best to achieve corporate goals by performing their functional activities most effectively

competitive market

marketers must convince buyers that they should purchase one company's products rather than another's

marketing process

marketing analysis (5 c's), STP (segmentation, target, product positioning), marketing mix (4 Ps), pricing, customer acquisition, customer retention, profits

place utility

marketing creates a place utility by making products easily accessible by making products available where customers will want them

possession utility

marketing creates a possession utility by transferring product ownership to customers by setting selling prices, setting terms for customer credit payments, if needed, and providing ownership documents

time utility

marketing creates a time utility by providing products when customers will want them

form utility

marketing has a voice in designing products with features that customers want

international competition

matches the products of domestic marketers against those of foreign competitors

short term bonds

mature in fewer than 5 years after they're issued

substitute products

may not look alike or they may seem different from one another, but they can fulfill the same need

short term (liquidity) solvency ratios

measure a company's liquidity and its ability to pay immediate debts

profitability ratios

measure how effectively a firms managers are using the firms various resources to achieve its profits; return on sales= net income after taxes / net sale

long term (leverage) solvency

measure the degree to which a firm relies on borrowed funds in its operations; calculated by dividing debt (total liabilities) by owners' equity

differentiation

mercedes, apple, SU, nike, avis

non liquid assets

merchandise inventory

surveys

method of collecting data in which the researcher interacts with people to gather facts, attitudes, or opinions

narrow framing

misdefining the problem may be the biggest barrier to making good decisions

paid in capital

money invested by owners

budget

most important financial statement; detailed report on estimated receipts and expenditures for a future period of time

secondary securities market

much larger; Existing stocks and bonds are sold

earnings per share

net income divided by the number of shares of common stock outstanding - Determines the size of the dividend that a firm can pay shareholders - Indicator of a company's wealth potential; used by investors to determine whether or not to buy or sell the firm's stock

retained earnings

net profits are kept instead fo the company's use

primary securities markets

new stocks and bonds are bought and sold by firms and governments

brand competition

occurs between similar products and is based on buyers' perceptions of the benefits of products offered by particular companies

public accountants

offer accounting services to the public and are distinguished by their independence from the clients they serve

monitor

on who actively seeks information that may be of value; questions subordinates, is receptive to unsolicited information, ad attempts to be as well informed as possible

focus groups

participants are gathered in one place, presented with an issue, and asked to discuss it

intangible assets

patents trademarks, copyrights, franchises

heuristics

people take short cuts by applying rules of thumb; rules of thumb work well because they are often systematic and predictable but problems arise when people habitually rely on this method decision making, excluding or ignoring additional information

promotional mix

personal selling, public relations, direct and digital marketing, sales promotion, advertising; consistent, clear and compelling company and brand messages

industrial goods

physical items used by companies to produce other products

financial manager

plan and oversee its accounting functions and financial resources (nearly every company has one)

project budgets

plan funding and spending for specific projects

capital budgets

plan funding for major capital investments

four basic managerial functions

planning, organizing, leading, and controlling

gross profit

preliminary, quick-to-calculate profit figure that considers just two pieces of data (revenues and cost of revenues) from the income statement - To calculate, subtract cost of revenues from revenues obtained by selling the firm's products

Marketing Mix

product, pricing, place, and promotion

services

products with intangible (non physical) features, such as professional advice, timely information for decisions, or arrangements for a vacation

bottom line

profit or loss

capital gain

profit realized from the increased market value of an investment

management accountants

provide services to support managers in various activities

contingency planning

seeks to identify in advance important aspects of a business or its market that might change

differentiated market

segmented

pricing

selecting the best price at which to sell it, is often a balancing act; cost driven or value driven

managerial accounting

serves internal users -Managers at all levels need information to make departmental decisions, monitor projects, and plan future activities

intermediate goals

set for a period of one to five years; usually set in several areas

short term goals

set for perhaps one year and are developed for several different areas

operational plans

set short-term targets for daily, weekly, or monthly performance

preferred stock

shares of ownership without voting rights but with defined dividends

tactical plans

shorter-term plans for implementing specific aspects of the company's strategic plans

cost of revenues

shows the costs of obtaining the revenues from other companies during the year

human relations skills

skills that enable them to understand and get along with other people

russells 2000 index

specialty index that measures the performance of the smallest US companies based on market capitalization

most common objectives of funds

stability and safety, conservative capital growth, and aggressive growth

goals

starting point; objectives that a business hopes and plans to achieve; performance targets, the means by which organizations and their managers measure success or failure at every level

mission statements

statements of how they will achieve their purposes in the environments in which they conduct their businesses; flow from vision to vision but are more concrete

securities

stocks, bonds, and mutual funds; represent secured, or financially valuable claims on the part of investors

system 1

subconscious values, drives, beliefs that influence our gut reaction, jumps to conclusions regarding causality, operating effortlessly, can be wrong but is more often right, influenced by heuristics

balance sheets

supply detailed information about the accounting equation items: assets, liabilities, and owners' equity - Sometimes called statements of financial position - Barometer for its financial condition at one point in time

business (competitive) strategy

takes place at the level of the business unit or product line and focuses on improving the company's competitive position (used when a corporation owns and operates multiple businesses)

figurehead

taking visitors to dinner, attending ribbon cutting ceremonies

consumer goods

tangible goods that the consumer may buy for personal use

utility

the ability of a product to satisfy a human want or need

skills in strategic thinking and critical problem solving

the accountant can combine data with reasoning and professional knowledge to recognize and help solve critical problems for better strategic action

communications, interpersonal skills, and effective leadership

the accountant can communicate effectively in various business situations using meaningful communications skills that provide interpersonal effectiveness and leadership

portfolio

the combined holdings of all the financial investments-- stocks, bonds, mutual funds, real estate-- of any company or individual

data warehousing

the compiling and storage of customers' data

product differentiation

the creation of a feature or image that makes a product differ enough from existing products to attract customers

compound growth

the cumulative growth from interest paid to the investor over given time periods

market value

the current price of a share in the stock market; reflects amount buyers are willing to pay

consumer behavior

the decision process by which people buy and consume products; effect on actual purchases is sometimes weak or negligible

initial public offering

the first sale of a company's stock to the general public

revenue recognition

the formal recording and reporting of revenues at the appropriate time

revenues

the funds that flow into a business from the sale of goods or services

marketing objectives

the goals the marketing plan intends to accomplish

securities and exchange commission (SEC)

the government agency that regulates US securities markets

securities markets

the markets in which stocks and bonds are sold; Provide the capital that companies rely on for survival

common stock

the most basic form of ownership in a company

dow jones industrial average (DJIA)

the oldest and most widely cited US market index; measures the performance of the industrial sector of the US stock markets by focusing on just 30 blue-chip, large-cap companies as reflectors of the economic health of many similar US firms (an average)

marketing managers

the people responsible for planning, organizing, leading, and controlling the organization's overall mission

decision making

the process of developing and analyzing alternatives and making a choice

product positioning

the process of fixing, adapting, and communicating the nature of the product itself

strategic management

the process of helping an organization maintain an effective alignment with its environment

corporate culture

the shared experiences, stories, beliefs, and norms that characterize an organization; helps define the work and business climate that exists in an organization

technical skills

the skills needed to perform specialized tasks

global management skills

the special tools, techniques, and skills needed to compete int he global environment

marketing research

the study of what customers need and want and how best to meet those needs and wants Powerful tool for gaining decision-making information

market capitalization

the total dollar value of all the company's outstanding shares, calculated as the current stock price multiplied by the number of shares outstanding

forensic accounting

the use of accounting for legal purposes; must be good detectives

insider trading

the use of special knowledge about a firm for profit or gain

social networking media

the websites or access channels to which millions of consumers go for information and discussions before making their purchase decisions

The National Association of Securities Dealers Automated Quotation (NASDAQ) System

the world's oldest electronic stock market; established in 1971; Orders are gathered and executed on a computer network connecting 500,000 terminals worldwide

blue chip stock

those issued by the strongest,well-established, financially sound and respected firms

blue-chip stocks

those issued by the strongest,well-established, financially sound and respected firms

value proposition

to (target segment and need) our (brand) is (concept) that (point of difference)

3 basic levels of management

top, middle, first-line

disseminator

transmits relevant information back to others in the workplace

rule of 72

you can find the number of years needed to double your money by dividing the annual interest rate (in percent) into 72 (72/%) - Can also calculate how much interest you must get if you want to double your money in a given number of years-- divide 72 by the desired number of years (72/#)