Plug-in B1

balance sheet, income statement, statement of owner's equity, statement of cash flows

4 primary financial statements

corporation

an artificially created legal entity that exists separate and apart from those individuals who created it and carry on its operations.

limited liability corporation (LLC)

A hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership.

partnership agreement

A legal agreement between two or more business partners that outlines core business issues.

source document

Describes the basic transaction data such as its date, purpose, and amount and includes cash receipts, canceled checks, invoices, customer refunds, employee time sheet, etc.

human resources (HR)

Includes the policies, plans, and procedures for the effective management of employees.

managerial accounting

Involves analyzing business operations for internal decision making and does not have to follow any rules issued by standard-setting bodies such as GAAP.

accounting department

Provides quantitative information about the finances of the business including recording, measuring, and describing financial information.

solvency

Represents the ability of the business to pay its bills and service its debt.

bookkeeping

The actual recording of the business's transactions, without any analysis of the information.

sales

The function of selling a good or service that focuses on increasing customer sales, which increases company revenues.

statement of owner's equity

Tracks and communicates changes in the shareholder's earnings.

Sole Proprietorship

a business form in which a single person is the sole owner and is personally responsible for all the profits and losses of the business.

dividend

a distribution of earnings to shareholders.

cash flow analysis

a means to conduct a periodic check on the company's financial health

business process

a standardized set of activities that accomplish a specific task, such as processing a customer's order

transaction

an exchange or transfer of goods, services, or funds involving two or more people.

liability

an obligation to make financial payments.

accounting

analyzes the transactional information of the business so the owners and investors can make sound economic decisions.

asset

anything owned that has value or earning power.

market share

calculated by dividing the firm's sales by the total market sales for the entire industry.

finance

deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities.

Profit Corporation

focuses on making money and all profits and losses are shared by the business owners.

balance sheet

gives an accounting picture of property owned by a company and of claims against the property on a specific date.

Product Life Cycle

includes the four phases a product progresses through during its life cycle including introduction, growth, maturity and decline.

Operations Management

includes the methods, tasks, and techniques organizations use to produce goods and services

marketing mix

includes the variables that marketing managers can control in order to best satisfy customers in the target market.

Return on Investment (ROI)

indicates the earning power of a project and is measured by dividing the benefits of a project by the investment

financial accounting

involves preparing financial reports that provide information about the business's performance to external parties such as investors, creditors, and tax authorities

income statement

reports operating results (revenues minus expenses) for a given time period ending at a specified date.

marketing communications

seek to build product or service awareness and to educate potential consumers on the product or service

partnership

similar to sole proprietorship, except that this legal structure allows for more than one owner.

statement of cash flows

summarized sources and uses of cash, indicates whether enough cash is available to carry on routine operations, offers an analysis of all business transactions., reporting whether the firm obtained its cash and how it chose to allocate the cash.

revenue

the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service

Business Process Reengineering (BPR)

the analysis and redesign of workflow within and between enterprises

expense

the costs in operating and maintaining a business

Marketing Segmentation

the division of a market into similar groups of customers.

owner's equity

the portion of a company belonging to the owners

marketing

the process associated with promoting the sale of goods or services.

Internal Rate of Return (IRR)

the rate at which the net present value of an investment equals zero

Nonprofit corporation

usually exists to accomplish some charitable, humanitarian, or educational purpose, and the profits and losses are not share by the business owners.

Financial Statements

written records of the financial status of the business that allow interested parties to evaluate the profitability and solvency of the business.