Financial leverage

CAD

Computer aided design

A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line

Just in time inventory

commission created by Congress to regulate the securities markets and protect investors. In addition to regulation and protection, it also monitors the corporate takeovers in the U.S.

SEC

financing a company, no shares

bond

CAM

computer aided manufacturing

CIM

computer integrated manufacturing

does not dilute owners ownership, tax deductible,

debt

budget-actual=

difference from budget

percent change calculation

difference/budget

part of a firm's profits that the firm may (but is not required to) distribute to stockholders as either cash payments or additional shares of stock.

dividends

fixed cost, don't have to pay it back,

equity

customers are given numerous options when selecting their goods, allowing them to create customized versions of products to meet their specifications

flexible manufacturing

is using knowledge or information that individuals gain through their position that allows them to benefit unfairly from fluctuations in security prices

insider trading

companies offer one or two versions of a product but largely do not allow for customization

lean manufacturing

portfolio of many stocks and bonds

mutual fund

Return on Equity

net income/equity

bull market

optimism, prices going up

bear market

pessimism, prices going down

physically or chemically changes materials ex: food beverage paint chemical cosmetics

process manufacturing

quality control where you are only allowed to have 3.4 defects per million

six sigma

ownership of a company, shares

stock

the sequence of processes involved in the production and distribution of a commodity

supply chain

reasons why debt is better than equity and retained earnings

tax deductible, your ownership

the practice of buying goods or services now and paying for them later.

trade credit

Financial leverage

using debt in the firm's capital structure or financing decisions and is calculated as total liabilities/total equity