2
BUS 6600 Final Exam 1 with precise detailed solutions
|| || || || || || || ||
Accounting versus other business functions - ✔✔Recording, classifying, summarizing and
|| || || || || || || || || ||
interpreting of financial events and transactions in an organization to provide interested
|| || || || || || || || || || || ||
parties needed financial information
|| || ||
Adam Smith and the Invisible Hand Theory - ✔✔The unobservable market force that helps
|| || || || || || || || || || || || || ||
the demand and supply of goods in a free market to reach equilibrium automatically.
|| || || || || || || || || || || || ||
Benefits and rights in different economic systems - ✔✔Free-Market Economics - the market
|| || || || || || || || || || || || ||
largely determines what goods and services are produced, who gets them, and how the
|| || || || || || || || || || || || || ||
economy grows ||
Command Economics - the government largely determines what goods and services are
|| || || || || || || || || || || ||
produced, who gets them and how the economy will grow
|| || || || || || || || ||
Mixed Economy - some allocation of resources is made by the target and some by the
|| || || || || || || || || || || || || || || ||
government
Bond financing - ✔✔is a type of long-term borrowing that state and local governments
|| || || || || || || || || || || || || ||
frequently use to raise money, primarily for long-lived infrastructure assets. They obtain this
|| || || || || || || || || || || || ||
money by selling bonds to investors. In exchange, they promise to repay this money, with
|| || || || || || || || || || || || || || ||
interest, according to specified schedules.
|| || || ||
Branding & brand names - ✔✔brand - name, symbol or design that identified the goods or
|| || || || || || || || || || || || || || || ||
services and distinguishes them from competitors' offerings
|| || || || || ||
trademark - a brand that has exclusive legal protections for both its brand name and design
|| || || || || || || || || || || || || || ||
Manufacturers' brands - brand names of manufacturers that distribute products nationally
|| || || || || || || || || ||
Dealer (private-label) Brands - products that carry a retailer's or distributor's brand name
|| || || || || || || || || || || || ||
instead of a manufacturer's
|| || || ||
, 2
Generic Goods - non-branded products that sell at a discount compared to manufacturers'
|| || || || || || || || || || || || ||
or dealers' brands
|| ||
Knockoff Brands - illegal copies or national brands
|| || || || || || ||
Budget - ✔✔sets forth management's expectations for revenues and allocates the use of
|| || || || || || || || || || || || ||
specific resources through the firm... depend heavily on the balance sheet, income
|| || || || || || || || || || || ||
statement, statement of cash flows and financial forecasts.
|| || || || || || ||
Business era - ✔✔production era, selling era, marketing concept era, customer relationship
|| || || || || || || || || || || ||
era
Buying stock on margin - ✔✔borrowing some of the stock's purchase cost from the
|| || || || || || || || || || || || || ||
brokerage firm. ||
Margin is the portion of the stock's purchase price that the investor must pay with their
|| || || || || || || || || || || || || || || ||
own money. If a broker issues a margin call, the investor has to come up with money to
|| || || || || || || || || || || || || || || || || ||
cover losses ||
Capitalism, Socialism, Communism, Nationalism - ✔✔Capitalism - all or most of the land,
|| || || || || || || || || || || || ||
factories and stores are owned by individuals, not the government, and operated for profit
|| || || || || || || || || || || || ||
Socialism - an economic system based on the premise that some basic businesses, like
|| || || || || || || || || || || || || ||
utilites, should be owned by the government in order to more evenly distribute profits
|| || || || || || || || || || || || || ||
among the people || ||
Communism - an economic and political system in which the government makes almost all
|| || || || || || || || || || || || || ||
economic decisions and owns almost all the major factors on production
|| || || || || || || || || ||
Cash flow statement - ✔✔reports cash receipts and cash disbursements related to the three
|| || || || || || || || || || || || ||
major activists of a firm: operations, investments, and financing
|| || || || || || || || ||
Commercial finance companies - ✔✔is apart of the banking system, but is a nonbank which
|| || || || || || || || || || || || || || ||
is a financial institution that accepts no deposits, but offer many of the services provided by
|| || || || || || || || || || || || || || ||
regular banks.
|| ||
BUS 6600 Final Exam 1 with precise detailed solutions
|| || || || || || || ||
Accounting versus other business functions - ✔✔Recording, classifying, summarizing and
|| || || || || || || || || ||
interpreting of financial events and transactions in an organization to provide interested
|| || || || || || || || || || || ||
parties needed financial information
|| || ||
Adam Smith and the Invisible Hand Theory - ✔✔The unobservable market force that helps
|| || || || || || || || || || || || || ||
the demand and supply of goods in a free market to reach equilibrium automatically.
|| || || || || || || || || || || || ||
Benefits and rights in different economic systems - ✔✔Free-Market Economics - the market
|| || || || || || || || || || || || ||
largely determines what goods and services are produced, who gets them, and how the
|| || || || || || || || || || || || || ||
economy grows ||
Command Economics - the government largely determines what goods and services are
|| || || || || || || || || || || ||
produced, who gets them and how the economy will grow
|| || || || || || || || ||
Mixed Economy - some allocation of resources is made by the target and some by the
|| || || || || || || || || || || || || || || ||
government
Bond financing - ✔✔is a type of long-term borrowing that state and local governments
|| || || || || || || || || || || || || ||
frequently use to raise money, primarily for long-lived infrastructure assets. They obtain this
|| || || || || || || || || || || || ||
money by selling bonds to investors. In exchange, they promise to repay this money, with
|| || || || || || || || || || || || || || ||
interest, according to specified schedules.
|| || || ||
Branding & brand names - ✔✔brand - name, symbol or design that identified the goods or
|| || || || || || || || || || || || || || || ||
services and distinguishes them from competitors' offerings
|| || || || || ||
trademark - a brand that has exclusive legal protections for both its brand name and design
|| || || || || || || || || || || || || || ||
Manufacturers' brands - brand names of manufacturers that distribute products nationally
|| || || || || || || || || ||
Dealer (private-label) Brands - products that carry a retailer's or distributor's brand name
|| || || || || || || || || || || || ||
instead of a manufacturer's
|| || || ||
, 2
Generic Goods - non-branded products that sell at a discount compared to manufacturers'
|| || || || || || || || || || || || ||
or dealers' brands
|| ||
Knockoff Brands - illegal copies or national brands
|| || || || || || ||
Budget - ✔✔sets forth management's expectations for revenues and allocates the use of
|| || || || || || || || || || || || ||
specific resources through the firm... depend heavily on the balance sheet, income
|| || || || || || || || || || || ||
statement, statement of cash flows and financial forecasts.
|| || || || || || ||
Business era - ✔✔production era, selling era, marketing concept era, customer relationship
|| || || || || || || || || || || ||
era
Buying stock on margin - ✔✔borrowing some of the stock's purchase cost from the
|| || || || || || || || || || || || || ||
brokerage firm. ||
Margin is the portion of the stock's purchase price that the investor must pay with their
|| || || || || || || || || || || || || || || ||
own money. If a broker issues a margin call, the investor has to come up with money to
|| || || || || || || || || || || || || || || || || ||
cover losses ||
Capitalism, Socialism, Communism, Nationalism - ✔✔Capitalism - all or most of the land,
|| || || || || || || || || || || || ||
factories and stores are owned by individuals, not the government, and operated for profit
|| || || || || || || || || || || || ||
Socialism - an economic system based on the premise that some basic businesses, like
|| || || || || || || || || || || || || ||
utilites, should be owned by the government in order to more evenly distribute profits
|| || || || || || || || || || || || || ||
among the people || ||
Communism - an economic and political system in which the government makes almost all
|| || || || || || || || || || || || || ||
economic decisions and owns almost all the major factors on production
|| || || || || || || || || ||
Cash flow statement - ✔✔reports cash receipts and cash disbursements related to the three
|| || || || || || || || || || || || ||
major activists of a firm: operations, investments, and financing
|| || || || || || || || ||
Commercial finance companies - ✔✔is apart of the banking system, but is a nonbank which
|| || || || || || || || || || || || || || ||
is a financial institution that accepts no deposits, but offer many of the services provided by
|| || || || || || || || || || || || || || ||
regular banks.
|| ||
