For quiz 2

Stock certificate

A paper certificate listing the shareholders name, name of the issuing company, number of shares you hold, and type of stock being issued.

M2

Defined as the money that can be accessed quickly and easily (M1) and money that takes more time to access. Takes more time to access (stocks and bonds)

The vision statement

Describes the companies vision, long-term goal of what the organization wants to become Outlines the world view of the organization and attracts employees, customers, and vendors.

Mutual funds

Diversified investment by pulls up investors, who like the mini choices of funds at an economical price, the Very degrees of risk, and the professional management.

The securities and exchange commission (SEC)

A federal agency that regulates the various U.S. (but not foreign) stock exchanges, among other things.

Preferred stock

A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.

Objective

A specific, short term target design to achieve the organizations goals.

Promissory note

A written contract prepared by the buyer who agrees to pay the seller a certain amount by a certain time.

Financial Accounting

accounting information and analyses prepared for people outside the organization

Secondary securities market

where existing securities are traded by investors

Primary securities market

where issues are first sold to investors

Marquez has been managing the financial analysis team at Safro Company for five years. His staff knows he is there for questions and to help with roadblocks, but he trusts them to manage their own day-to-day work. Marquez most likely believes in the concept of

EMPOWERMENT means employees share management responsibilities, including decision making.

Effectiveness

Means to achieve results, to realize the firms goals by making the right decisions and executing them successfully. -doing things right

Efficiency

Means to use people, money, raw materials, and other resources wisely and cost effectively. -doing the right things.

Accounting

Measures, classifies, analyzes, and communicates financial information to people inside and outside a company

Mutual savings bank

for-profit financial institutions similar to savings and loans, except that they are owned by their depositors rather than by shareholders.

Common stock

-shareholders are able to vote on major company decisions -they get last claim on the company's dividends. -they get lost claim on any remaining assets if the company goes out of business and it's assets are sold. -stockholders have some day in the firms big decisions, such as electing directors to the board or acquisition of another company

Goal

A broad , long range target that an organization wishes to attain.

Which of the following organizations reflect the use of vertical hierarchy of authority?

A complex organization where the president talks principally to the Vice Presidents.

Commercial bank

A federal- or state-chartered profit-seeking financial institution that accepts deposits from individuals and businesses and uses part of them to make personal, residential, and business loans.

The Dow jones industrial average

A general measure of the movement of U.S. sock prices, is an index of the average of prices of the stocks of 30 large corporations.

Crowdfunding

Allows individuals to finance your business by tapping into a large network of individuals online to fund new businesses.

Standard & Poor's 500 (S&P 500)

An index based on the stock prices of 500 of the largest firms by market value. -I like the Dow, the S&P 500 also with stock prices to reflect the total market value of each stock, considered by many investors to be a more accurate way of computing an index

Horizontal specialization

And a two person organization, one is the inside person handling production and research, and the other is the outside person, handling sales, client relations, and finances

Savings and loan associations (S&Ls)

Are financial institutions that accept deposits were originally intended to make loans primarily for home mortgages.

In order to open her second coffee shop, Melinda requires a short term line of credit loan. Which of the following should she approach for the same type of loan?

Banks

Sandeep is in a management role and is responsible for monitoring financial performance and comparing it against goals. He also recommends a plan of action for better aligning to goals when there are issues. Which of the functions of management does this example best represent?

CONTROLLING is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

Exchange- traded funds

Collections of stocks that are traded on an exchange, but investors have more convenience and their training times and the fees are lower than they are for mutual funds.

Bonds

Contracts between the issuer and the buyer in which the purchase price represents the loan by the buyer and for which the issuing firm pays to buyer interest.

Why is control a necessary management function?

Control helps to deal with changes and uncertainties.

Taking control- your step process

Establish standards, monitor performance, compare performance against standards, and take corrective action, if needed.

Venture investment capital

Funds acquired from wealthy individuals and institutions that invest in promising startups or emerging companies in return for their giving up some ownership.

Secured loan

Means that the borrower pledges some sort of asset (collateral) that is forfeited if the loan is not repaid.

Unsecured loan

Means the borrower does not pledge some sort of asset as collateral.

The mission statement

Identifies the goods or services the organization provides and the reasons for providing them. Answers the basic question of why an organization was created in the first place and why it still exist today

vertical hierarchy of authority

In a two person organization, the owner might communicate with just an assistant

Ariston has been asked to find a new contract management vendor for his employer. He wants to ensure it is the best option available, but he also needs it to be cost effective or the senior leadership won't approve the change. He rules one of the vendors out after they offered him a kickback in return for selecting them, and he has created list of advantages and disadvantages for the others. Ariston is likely in which of the following stages of the decision-making process?

In this stage, you need to evaluate each alternative not only according to cost and quality but also according to whether it is effective, feasible, and ethical. WEIGHING ALTERNTIVE SOLUTIONS

The savings association insurance fund

Insures up to $250,000 per depositor per bank.

Which of the following strategies focus on getting the highest yield?

Investing for growth

Which of the following best describes one of the reasons control is needed in the workplace?

It enhances error and irregularity detection

MyAppt Scheduling believes it can market its services to health care in the near future. Strong sales in this market would ensure the company stays competitive for years to come. This example best represents which part of the SWOT analysis?

OPPORTUNITIES are favorable external factors, such as new markets, that the company can use to ensure competitive advantage.

Benefits of mutual funds

Offered many choices at an economical price, varying degree of risk, and run by professional managers

Bookkeeping

One function of accounting which includes recording a company's financial transaction

Geronimo holds weekly one-on-one meetings with his staff. He listens carefully as they describe work projects and offers his thoughts when the employees ask for assistance. Most importantly, he asks his employees for their input on upcoming work and delegates responsibilities to them whenever possible. Geronimo is most likely using ________ leadership. PARTICIPATIVE leaders, also called democratic leaders, delegate authority and involve employees in their decisions.

PARTICIPATIVE leaders, also called democratic leaders, delegate authority and involve employees in their decisions.

Adesnaya just received the production figures for the past quarter. He begins entering the figures into a spreadsheet that contains the quarterly goals. He is looking for areas where the team exceeded, met, or failed to meet goals. This example is most likely part of which step in the control process?

Performance that exceeds standards becomes an occasion for handing out bonuses, promotions, and other rewards. When performance is below standards, managers need to ask whether the deviation from performance is significant. The greater the deviation, the greater the need for action. COMPARING PERFORMANCE AGAINST STANDARDS.

Upper management at Flex Solutions meets annually to evaluate company objectives for the next one to five years. Which level of planning does this example best represent? .

STRATEGIC planning occurs when an organization determines its long-term goals for the next one to five years with the resources they anticipate having

The senior Vice Presidents at Terra Firma construction are each responsible for a specific function within the organization. One leads the Human Resources team, one the marketing team, another the finance team, and so on. Which of the following options for viewing organization charts would best assist you in reporting on the areas of specialization within Terra firma construction?

Scanning the chart vertically

Equity financing

Selling ownership in the firm

Trade credit

Short-term financing by which a firm buys a product, then receives a bill (an invoice) from the supplier, and then pays it later, usually in 30 to 90 days.

Juju managed a construction firm. He is able to build homes from top to bottom including all electrical and plumbing needs. Juju can best be described as having strong Blank skills.

Technical skills

open market operations

The Federal Reserve reserve controls the money supply by buying and selling US treasury securities, or government bonds, to the public.

Money supply

The amount of money the federal reserve system makes available for people to buy goods and services

Initial Public Offering (IPO)

The first public offering of a corporation's stock.

Discount rate

The interest rate at which the federal reserve make short term loans to member banks.

M1

The money that can be accessed quickly and easily. Ex: cash and checking accounts

Reserve requirement

The percentage of total checking and savings deposits that a bank must keep as cash and its vault.

What is the role of a top manager in an organization?

To establish objectives, strategies, and policies

NASDAQ Composite Index

Trucks not only domestic but also for in common stocks traded on the NASDAQ exchange. NASDAQ list mini hi tech firms such as Microsoft, google, and Amazon

Managerial Accounting

accounting used to provide information and analyses to managers inside the organization to assist them in decision making

Investment bankers

companies that engage in buying and reselling new securities

Credit unions

depositor-owned, nonprofit financial cooperatives that offer a range of banking services to their members

The federal deposit insurance corporation (FDIC)

insures bank deposits up to $250,000 per account and covers mostly commercial banks.

Five characteristics of money

portability, divisibility, durability, uniqueness, and stability.

Cost of capital

the rate of return a firm must earn in order to cover the cost of generating funds in the marketplace.

Financial leverage

the technique of using borrowed funds to increase a firm's rate of return