Business Chapter 10-14

Front 1

Promotion Mix
Chapter 10

Back 1

The configuration of advertising, sales promotion, personal selling, and publicity used to market products and services

Front 2

Advertising
Chapter 10

Back 2

Nonpersonal communications through media for which payment is made

Front 3

Sales Promotion
Chapter 10

Back 3

A nonpersonal form of promotion that does not involve measured media

Front 4

Coupons
Chapter 10

Back 4

Certificates that allow consumers to receive a cash refund or a free product at the time of purchase

Front 5

Incentives
Chapter 10

Back 5

Rewards offered to retail salespeople or consumers for specified performance

Front 6

In-Pack
Chapter 10

Back 6

A premium enclosed with a product

Front 7

Mail-Ins
Chapter 10

Back 7

Premiums provided to consumers once the consumer has requested them by mail

Front 8

P-O-P
Chapter 10

Back 8

Point-of-purchase materials provided to retailers to help them promote sales

Front 9

Purchase With Purchase
Chapter 10

Back 9

An incentive that allows consumers to buy a product if they first purchase anothe product

Front 10

Samples
Chapter 10

Back 10

Free merchandise that is provided to retailers or consumers

Front 11

Trade Shows
Chapter 10

Back 11

Shows where companies have the opportunity to display their products

Front 12

Personal Selling
Chapter 10

Back 12

Using a sales force to sell products and services

Front 13

Prospecting
Chapter 10

Back 13

Ranking of possible customers according to their potential sales volume and the likelihood of their purchasing the product

Front 14

Closing
Chapter 10

Back 14

Efforts by a salesperson designed to get a prospect to purchase a product or service

Front 15

Distribution mix
Chapter 10

Back 15

The channels of distribution and logistics operations a company uses to move its products to its customers

Front 16

Selling Agents
Chapter 10

Back 16

Wholesalers that represent a client and sell all the client's specific line or entire output and are given control over the terms of sale and pricing

Front 17

Manufacturers' Agents
Chapter 10

Back 17

Wholesalers that aer not given control over the terms of sale and pricing because they sell only part of a client's output or product line

Front 18

Department Stores
Chapter 10

Back 18

Large stores that sell a wide variety of merchandise organized into separate departments

Front 19

Discount Stores
Chapter 10

Back 19

Stores that emphasize the sale of hard goods at low prices with low levels of service at inexpensive locations

Front 20

Wheel of Retailing
Chapter 10

Back 20

The process by which low-cost retailers begin offering services that increase their prices, making them vulnerable to new, low-cost retailers

Front 21

Specialty Stores
Chapter 10

Back 21

Stores that carry a broad assortment in a single merchandise line

Front 22

Category Killer
Chapter 10

Back 22

A store that dominates its segment of the retailing industry

Front 23

Logistics
Chapter 10

Back 23

The materials management and physical distribution activities of a firm

Front 24

Materials Management
Chapter 10

Back 24

The movemnt of raw materials, in-process materials, and semifinished goods to a manufacturer from a supplier

Front 25

Accounting
Chapter 11

Back 25

The recording, summarizing, and reporting of the economic activities and events of an organization

Front 26

Generally Accepted Accounting Principles(GAAP)
Chapter 11

Back 26

The principles by which financial statements are prepared

Front 27

Management Information System(MIS)
Chapter 11

Back 27

A business system that provides all the information, financial and nonfinancial, needed by management for decision making

Front 28

East India Company
Chapter 11

Back 28

The first joint-stock company, which was given its charter by Queen Elizabeth in 1600 and achieved fame for engaging in international trade in the early days of the British Empire

Front 29

International Accounting Standards Board(IASB)
Chapter 11

Back 29

A london-baed organization that issues International Accounting Standards

Front 30

International Financial Reporting Standards(IFRS)
Chapter 11

Back 30

Accounting standards issued by the International Accounting Standards Board that have three goals:
-Increasing harmonization of accounting standards and disclosures to meet the needs of the global market
-providing an accounting basis for underdeveloped or newly industrailized countries to follow as the accounting profession emerges in those countries
-increasing the compatibility of domestic and international accounting requirements

Front 31

Internal Controls
Chapter 11

Back 31

A system of rules and procedures designed to ensure the accuracy and reliability of financial and accounting information

Front 32

Internal Control Structure
Chapter 11

Back 32

A set of devices and procedures designed to prevent unintentional errors and intentional irregularities from occurring and to identify errors and irregularities after they occur so that corrective action may be taken

Front 33

Preventive Controls
Chapter 11

Back 33

A type of internal control whose purpose it is to prevent mistakes or intentional misrepresentations from occuring in the accounting data

Front 34

Feedback Controls
Chapter 11

Back 34

A type of internal contrl that reports the occurrence of mistakes or intentional misrepresentations after they have occurred, so that corrective action can be taken

Front 35

Foreign Corrupt Practices Act(FCPA)
Chapter 11

Back 35

The law prohibits any U.S. firms from using "the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment,etc

Front 36

Five Basic Threats To Security
Chapter 11

Back 36

-Natural disaster
-Dishonest employees
-Disgruntled employees
-Persons external to the organzation
-Unintentional erros and omissions

Front 37

Computer Contingency Plan
Chapter 11

Back 37

A comprehensive plan of action designed to safeguard critical accounting information from loss, destruction, theft, and other threats

Front 38

Computer Contingency Plan Components
Chapter 11

Back 38

-Emergency
-Backup
-Recovery
-Test
-Maintenance

Front 39

Financial Statement
Chapter 12

Back 39

The income statement, statements of retained earnings, balance sheet, and statement of cash flows, which together represent a business firm in financial terms

Front 40

Income Statement
Chapter 12

Back 40

The accounting report that shows the firm's revenues, expenses, and net income or net loss for a period

Front 41

Statement Of Retained Earnings
Chapter 12

Back 41

The financial statement that shows the change in retained earnings from the beginning of the period to the end of the period

Front 42

Balance Sheet
Chapter 12

Back 42

The financial statement that provides a "snapshot" of a firm's financial postion at a designated point in time

Front 43

Assets
Chapter 12

Back 43

The economic Resources owned by the firm

Front 44

Owners' Equity
Chapter 12

Back 44

The residual interest in the assets of the fimr after subtracting the liabilities; also called stockholders' equity

Front 45

Accounting Equation
Chapter 12

Back 45

Assets=liabilities+owner's equity

Front 46

Statement Of Cashflow
Chapter 12

Back 46

The financial statement that presents cash inflows(receipts) and outflows(payments) under three categories of business activities:operating,investing,and financing

Front 47

Internal Auditing
Chapter 12

Back 47

Chiefly concerned with evaluating the economy and efficiency with which scarce resources are utilized, but may include other objectives such as evaluating the effectiveness of internal controls

Front 48

External Auditing
Chapter 12

Back 48

Auditing of a firm's financial statement by an independent external auditor who is a certified public accountant

Front 49

Management or Operational Audit
Chapter 12

Back 49

The audit done to evaluate the economy and efficiency with which scarce resources are utilized

Front 50

Compliance Audit
Chapter 12

Back 50

The audit done to ensure that the organization is in compliance with laws, rules, regulations, and contractual agreements

Front 51

Audit Trail
Chapter 12

Back 51

The connection between a source document used to support an accounting transaction and the financial statements

Front 52

Treasurer
Chapter 13

Back 52

The financial manager responsible for managing cash, raising funds, and maintaining contacts with the financial maerketplace

Front 53

Controller
Chapter 13

Back 53

The financial manager responsible for accounting, financial statements, and tax payments

Front 54

Two Basic Functions Of Financial Managers In A Business Firm
Chapter 13

Back 54

-adminsitration of assets
-acquistion of funds

Front 55

Capital Budgeting
Chapter 13

Back 55

The process of comparing or ranking the profitability of alternative investment projects within a firm

Front 56

Financing Decisions
Chapter 13

Back 56

The choice made between internal and external funding and between debt and equity funds to finance the firm's investment projects

Front 57

Time Preference For Consumption
Chapter 13

Back 57

The desire by people to consume goods and services now reather than in the future

Front 58

Interest
Chapter 13

Back 58

The amount that a borrower must pay a lender in addition to the principal value, as compensation for the declining time value of money

Front 59

Real Rate Of Interest
Chapter 13

Back 59

The interest rate charged by lenders on loans to borrowers for forgoing present comsumption for future consumption

Front 60

Nominal Interest Rate
Chapter 13

Back 60

The rate of interest quoted in the financial news comprising the real rate of interest plus the expected inflation rate

Front 61

Discount Rate
Chapter 13

Back 61

Any rate used in present value calculations to convert money from its future value to its present value

Front 62

Compound Interest
Chapter 13

Back 62

Interest that is earned on previous interest, also known as the force of interest

Front 63

Commercial Paper
Chapter 13

Back 63

Short-term,unsecured debts securities normally issued by large, financially sound firms to raise funds

Front 64

Bonds
Chapter 13

Back 64

Long-term debt securities issued by firms to raise funds to finance long-term capital budgeting projects, such as land, buildings, and equipment

Front 65

Preemptive Right
Chapter 13

Back 65

The right of shareholders to maintain their proportionate ownership of a firm's outstanding stock if new shares are issued by the firm

Front 66

Closely Held Firms
Chapter 13

Back 66

Firms that are owned by a relatively small number of shareholders who do not openly trade their shares

Front 67

Publicly Held Firms
Chapter 13

Back 67

Firms in which there are many shareholders who openly trade their shares in the financial marketplace

Front 68

Limit Order
Chapter 13

Back 68

A securities transaction that sets a specific buy-or-sell price to execute a buy-or-sell order for a security

Front 69

Municipal Securities
Chapter 13

Back 69

Debt securities issued by state and local governments to raise funds, with coupon payments that are exempt from federal income taxes

Front 70

Primary Market
Chapter 14

Back 70

The initial sale of a security in the financial marketplace

Front 71

Secondary Market
Chapter 14

Back 71

The trading of outstanding securities in the financial marketplace

Front 72

Financial Intermediation
Chapter 14

Back 72

The process of pooling individuals' savings in financial institutions that channel them to business firms

Front 73

Financial Services Modernization Act
Chapter 14

Back 73

Legislation passed in 1999 that allows banks, securties firms, and insurance companies to freely compete with one another

Front 74

Store Of Value
Chapter 14

Back 74

The function of money to reatin its value over time

Front 75

Numeraire Currency
Chapter 14

Back 75

A currency that serves as a benchmark for all other currencies in the world

Front 76

Open Market Operations
Chapter 14

Back 76

The purchase and sale of government securities from banks by the central bank to control bank reserves and federal funds rates

Front 77

Bank Reserves
Chapter 14

Back 77

The amount of cash held by commerical banks

Front 78

Federal Funds Rate
Chapter 14

Back 78

The interest rates that banks charge one another for borrowing money

Front 79

Monetary Goals
Chapter 14

Back 79

-Long-term interest rates
-Bank credit
-Money supply

Front 80

Economic Goals
Chapter 14

Back 80

-Productivity(GDP)
-Full employment
-Stable prices
-International trade and finance

Front 81

Intermediate Targets
Chapter 14

Back 81

The primary monetary targets in the financial marketplace, which are money supply, long-term interest rates, and bank credit

Front 82

Commercial Banks
Chapter 14

Back 82

The most dominant type of depository institution that takes public deposits of funds and channels these savings to loans and investments

Front 83

Thrift Institutions
Chapter 14

Back 83

Depository institutions that are primarily home lenders

Front 84

Credit Unions
Chapter 14

Back 84

Not-for-profit thrift institutions that have members with a common bond, such as employer, religious group, and educational institution

Front 85

Insurance Companies
Chapter 14

Back 85

Financial institutions that offer various kinds of protection from financial losses to individuals and business firms

Front 86

Term Insurance
Chapter 14

Back 86

An insurance policy that offers a lump sum death benefit to policyholders

Front 87

Whole Life Insurance
Chapter 14

Back 87

An insurance policy that offers both a term policy plus a type of savings account that increases in cash value over time as premiums are paid

Front 88

Annuity
Chapter 14

Back 88

A type of savings plan offered by insurance companies that ofers either a lump sum death benefit or a steady stream of cash payments to beneficiaries over time

Front 89

Pension Funds
Chapter 14

Back 89

Financial institutions that offer various kinds of retirement savings plans to individuals

Front 90

Defined Contribution Plan
Chapter 14

Back 90

A type of pension plan in which the employee sets aside a portion of her or his paycheck in savings plan and the employer provides matching funds in many cases

Front 91

Defined Benefit Plan
Chapter 14

Back 91

A type of pension plan in which the employer promises to pay out a specified amount of monthly pay to an employee upon his or her retirement

Front 92

Public Pension Plans
Chapter 14

Back 92

Pension plans offered by federal, state, and local government that are backed by the taxing power of the government

Front 93

Private Pension Plans
Chapter 14

Back 93

Pension plans offered by private firms to employees

Front 94

Unfunded Pension Plans
Chapter 14

Back 94

A pension plan that pays retirees from cash flows or taxes instead of from funds set aside over time in a savings plan

Front 95

Funded Pension Plans
Chapter 14

Back 95

A pension plan that pays retirees from their funds set aside ina savings plan during their working years

Front 96

Mutual Funds or Investment Companies
Chapter 14

Back 96

Financial institutions that pool ht esavings of thousands of customers, issue unit shares of ownership to their customers, and invest the savings in securities portfolios

Front 97

Circuit Breakers
Chapter 14

Back 97

Temporarily stopping or slowing down the trading of stocks and bonds by a securities exchange