capstone exam
statement of cash flows, balance sheet, Income statement
3 financial statements
current debt, stock issues, profits, long term debt
4 different ways to acquire capital
marketing, finance, product, research and development
4 functional areas
acquire capital, dividend policy, AP/AR policy, debt to equity structure, performance measures
5 decisions that come with financing
performance, low end, high end, size, traditional
5 different markets
R and D cycle time factors
- automation level of production line - number of projects underway - distance moved
New product development
- takes at least one year - max is 2x listed capacity - additional capacity takes at least one year -create 25% awareness at no cost require capacity and automation
traditional
age - price - position - quality
customer survey score
calculated 12x/year -age and positioning taken into account -100 - ideal spot, bottom priced, ideal age, MTBF top
overall cost leader, differentiation
competition strategies
high end
position - age - quality - price
size
position - age - quality - price
low end
price - age - position - quality
performance
quality - position - price - age
poor investing and financing decisions, negative cash flows result in emergency loan
reasons for having bad cash flows
match product to market, rank best product
two step purchase decision
raising automation risks
1) expensive - $4 per unit 2) as you raise, increasingly difficult for R and D to reposition products short distances
awareness
1/3 forget from year to year -built over time by products promotion budget -fund advertising and public relations campaign
over forecasting, failed to raise funds needed for expenditures
Emergency loan factors
marketing
Prices are established by the: Finance Department Marketing Department Production Department R&D Department
Research and development
Products are invented and revised by which department? Marketing Production Research and Development Finance
true
The Proformas are dynamic financial statements that recalculate based on your decisions. True False
a b and c
What are your company's options for raising money? Borrowing Long-term debt Borrowing Short-term debt Issuing Stock A and C only A, B and C
capstone courier
What is the industry newsletter called? Capstone Courier Capstone Quarterly Capstone Messenger
wage increases
Which of these investments is not a function of the Production department? Increasing Automation Wage Increases Creating new production lines
accessibility
built over time by products sales budget -fund salespeople and distribution systems to service customers
