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97 Cards in this Set

  • Front
  • Back
Promotion Mix
Chapter 10
The configuration of advertising, sales promotion, personal selling, and publicity used to market products and services
Advertising
Chapter 10
Nonpersonal communications through media for which payment is made
Sales Promotion
Chapter 10
A nonpersonal form of promotion that does not involve measured media
Coupons
Chapter 10
Certificates that allow consumers to receive a cash refund or a free product at the time of purchase
Incentives
Chapter 10
Rewards offered to retail salespeople or consumers for specified performance
In-Pack
Chapter 10
A premium enclosed with a product
Mail-Ins
Chapter 10
Premiums provided to consumers once the consumer has requested them by mail
P-O-P
Chapter 10
Point-of-purchase materials provided to retailers to help them promote sales
Purchase With Purchase
Chapter 10
An incentive that allows consumers to buy a product if they first purchase anothe product
Samples
Chapter 10
Free merchandise that is provided to retailers or consumers
Trade Shows
Chapter 10
Shows where companies have the opportunity to display their products
Personal Selling
Chapter 10
Using a sales force to sell products and services
Prospecting
Chapter 10
Ranking of possible customers according to their potential sales volume and the likelihood of their purchasing the product
Closing
Chapter 10
Efforts by a salesperson designed to get a prospect to purchase a product or service
Distribution mix
Chapter 10
The channels of distribution and logistics operations a company uses to move its products to its customers
Selling Agents
Chapter 10
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
Manufacturers' Agents
Chapter 10
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
Department Stores
Chapter 10
Large stores that sell a wide variety of merchandise organized into separate departments
Discount Stores
Chapter 10
Stores that emphasize the sale of hard goods at low prices with low levels of service at inexpensive locations
Wheel of Retailing
Chapter 10
The process by which low-cost retailers begin offering services that increase their prices, making them vulnerable to new, low-cost retailers
Specialty Stores
Chapter 10
Stores that carry a broad assortment in a single merchandise line
Category Killer
Chapter 10
A store that dominates its segment of the retailing industry
Logistics
Chapter 10
The materials management and physical distribution activities of a firm
Materials Management
Chapter 10
The movemnt of raw materials, in-process materials, and semifinished goods to a manufacturer from a supplier
Accounting
Chapter 11
The recording, summarizing, and reporting of the economic activities and events of an organization
Generally Accepted Accounting Principles(GAAP)
Chapter 11
The principles by which financial statements are prepared
Management Information System(MIS)
Chapter 11
A business system that provides all the information, financial and nonfinancial, needed by management for decision making
East India Company
Chapter 11
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
International Accounting Standards Board(IASB)
Chapter 11
A london-baed organization that issues International Accounting Standards
International Financial Reporting Standards(IFRS)
Chapter 11
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
Internal Controls
Chapter 11
A system of rules and procedures designed to ensure the accuracy and reliability of financial and accounting information
Internal Control Structure
Chapter 11
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
Preventive Controls
Chapter 11
A type of internal control whose purpose it is to prevent mistakes or intentional misrepresentations from occuring in the accounting data
Feedback Controls
Chapter 11
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
Foreign Corrupt Practices Act(FCPA)
Chapter 11
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
Five Basic Threats To Security
Chapter 11
-Natural disaster
-Dishonest employees
-Disgruntled employees
-Persons external to the organzation
-Unintentional erros and omissions
Computer Contingency Plan
Chapter 11
A comprehensive plan of action designed to safeguard critical accounting information from loss, destruction, theft, and other threats
Computer Contingency Plan Components
Chapter 11
-Emergency
-Backup
-Recovery
-Test
-Maintenance
Financial Statement
Chapter 12
The income statement, statements of retained earnings, balance sheet, and statement of cash flows, which together represent a business firm in financial terms
Income Statement
Chapter 12
The accounting report that shows the firm's revenues, expenses, and net income or net loss for a period
Statement Of Retained Earnings
Chapter 12
The financial statement that shows the change in retained earnings from the beginning of the period to the end of the period
Balance Sheet
Chapter 12
The financial statement that provides a "snapshot" of a firm's financial postion at a designated point in time
Assets
Chapter 12
The economic Resources owned by the firm
Owners' Equity
Chapter 12
The residual interest in the assets of the fimr after subtracting the liabilities; also called stockholders' equity
Accounting Equation
Chapter 12
Assets=liabilities+owner's equity
Statement Of Cashflow
Chapter 12
The financial statement that presents cash inflows(receipts) and outflows(payments) under three categories of business activities:operating,investing,and financing
Internal Auditing
Chapter 12
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
External Auditing
Chapter 12
Auditing of a firm's financial statement by an independent external auditor who is a certified public accountant
Management or Operational Audit
Chapter 12
The audit done to evaluate the economy and efficiency with which scarce resources are utilized
Compliance Audit
Chapter 12
The audit done to ensure that the organization is in compliance with laws, rules, regulations, and contractual agreements
Audit Trail
Chapter 12
The connection between a source document used to support an accounting transaction and the financial statements
Treasurer
Chapter 13
The financial manager responsible for managing cash, raising funds, and maintaining contacts with the financial maerketplace
Controller
Chapter 13
The financial manager responsible for accounting, financial statements, and tax payments
Two Basic Functions Of Financial Managers In A Business Firm
Chapter 13
-adminsitration of assets
-acquistion of funds
Capital Budgeting
Chapter 13
The process of comparing or ranking the profitability of alternative investment projects within a firm
Financing Decisions
Chapter 13
The choice made between internal and external funding and between debt and equity funds to finance the firm's investment projects
Time Preference For Consumption
Chapter 13
The desire by people to consume goods and services now reather than in the future
Interest
Chapter 13
The amount that a borrower must pay a lender in addition to the principal value, as compensation for the declining time value of money
Real Rate Of Interest
Chapter 13
The interest rate charged by lenders on loans to borrowers for forgoing present comsumption for future consumption
Nominal Interest Rate
Chapter 13
The rate of interest quoted in the financial news comprising the real rate of interest plus the expected inflation rate
Discount Rate
Chapter 13
Any rate used in present value calculations to convert money from its future value to its present value
Compound Interest
Chapter 13
Interest that is earned on previous interest, also known as the force of interest
Commercial Paper
Chapter 13
Short-term,unsecured debts securities normally issued by large, financially sound firms to raise funds
Bonds
Chapter 13
Long-term debt securities issued by firms to raise funds to finance long-term capital budgeting projects, such as land, buildings, and equipment
Preemptive Right
Chapter 13
The right of shareholders to maintain their proportionate ownership of a firm's outstanding stock if new shares are issued by the firm
Closely Held Firms
Chapter 13
Firms that are owned by a relatively small number of shareholders who do not openly trade their shares
Publicly Held Firms
Chapter 13
Firms in which there are many shareholders who openly trade their shares in the financial marketplace
Limit Order
Chapter 13
A securities transaction that sets a specific buy-or-sell price to execute a buy-or-sell order for a security
Municipal Securities
Chapter 13
Debt securities issued by state and local governments to raise funds, with coupon payments that are exempt from federal income taxes
Primary Market
Chapter 14
The initial sale of a security in the financial marketplace
Secondary Market
Chapter 14
The trading of outstanding securities in the financial marketplace
Financial Intermediation
Chapter 14
The process of pooling individuals' savings in financial institutions that channel them to business firms
Financial Services Modernization Act
Chapter 14
Legislation passed in 1999 that allows banks, securties firms, and insurance companies to freely compete with one another
Store Of Value
Chapter 14
The function of money to reatin its value over time
Numeraire Currency
Chapter 14
A currency that serves as a benchmark for all other currencies in the world
Open Market Operations
Chapter 14
The purchase and sale of government securities from banks by the central bank to control bank reserves and federal funds rates
Bank Reserves
Chapter 14
The amount of cash held by commerical banks
Federal Funds Rate
Chapter 14
The interest rates that banks charge one another for borrowing money
Monetary Goals
Chapter 14
-Long-term interest rates
-Bank credit
-Money supply
Economic Goals
Chapter 14
-Productivity(GDP)
-Full employment
-Stable prices
-International trade and finance
Intermediate Targets
Chapter 14
The primary monetary targets in the financial marketplace, which are money supply, long-term interest rates, and bank credit
Commercial Banks
Chapter 14
The most dominant type of depository institution that takes public deposits of funds and channels these savings to loans and investments
Thrift Institutions
Chapter 14
Depository institutions that are primarily home lenders
Credit Unions
Chapter 14
Not-for-profit thrift institutions that have members with a common bond, such as employer, religious group, and educational institution
Insurance Companies
Chapter 14
Financial institutions that offer various kinds of protection from financial losses to individuals and business firms
Term Insurance
Chapter 14
An insurance policy that offers a lump sum death benefit to policyholders
Whole Life Insurance
Chapter 14
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
Annuity
Chapter 14
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
Pension Funds
Chapter 14
Financial institutions that offer various kinds of retirement savings plans to individuals
Defined Contribution Plan
Chapter 14
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
Defined Benefit Plan
Chapter 14
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
Public Pension Plans
Chapter 14
Pension plans offered by federal, state, and local government that are backed by the taxing power of the government
Private Pension Plans
Chapter 14
Pension plans offered by private firms to employees
Unfunded Pension Plans
Chapter 14
A pension plan that pays retirees from cash flows or taxes instead of from funds set aside over time in a savings plan
Funded Pension Plans
Chapter 14
A pension plan that pays retirees from their funds set aside ina savings plan during their working years
Mutual Funds or Investment Companies
Chapter 14
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
Circuit Breakers
Chapter 14
Temporarily stopping or slowing down the trading of stocks and bonds by a securities exchange