Business Foundations Final

Front 1

Marketing

Back 1

Determining the needs and wants of potential customers and then providing the goods and services that meet or exceed their expectations

Front 2

The process of marketing

Back 2

getting the right goods to the right people at the right place, time, and price , using promotion techniques

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Target Market

Back 3

those who are most likely to buy it's product or service

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Competitive Advantage

Back 4

unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

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Examples of Competitive advantage

Back 5

Cost, Product/Service Differentiation, Niche

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Niche

Back 6

effectively serve a single segment of the market within a limited geographic area

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Marketing Mix

Back 7

Four Ps: Product, Price, Place, and Promotion

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Product

Back 8

any good or service, along with its perceived attributes and benefits

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Tangible

Back 9

performance, size, packaging, attachments, quality, and warranties

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Intangible

Back 10

age, image of store, instructions, image of brand

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Product life cycle

Back 11

introduction, growth, maturity, and decline

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Price skimming

Back 12

introducing a product with a high initial price and lowering the price overtime

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Penetration pricing

Back 13

selling new products at low prices in hope to achieve large sales volume

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Leader pricing

Back 14

pricing products below normal markup to attract customers to a store they would not otherwise shop at

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Bundling

Back 15

grouping two or more related products together and pricing them as a single product

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Odd-Even pricing

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Setting a price at an odd number to connote a bargain and at an even number to suggest quality

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Prestige pricing

Back 17

increasing the price of a product so that consumers will perceive it as being of higher quality, status, or value

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Place

Back 18

also known as distribution

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Distribution

Back 19

making products available where customers want it

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Distribution channel

Back 20

marketing intermediaries through which goods and services pass on their way from producers to end users

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Agents

Back 21

sales representatives of manufacturers and wholesalers, or service companies

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Brokers

Back 22

entities that bring buyers and sellers together

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Industrial distributors

Back 23

independent wholesalers that buy related product lines from manufacturers and sell them to industrial users

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Wholesalers

Back 24

firms that sell finished goods to retailers, manufacturers, and institutions

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Retailers

Back 25

firms that sell goods to consumers and to industrial users for their own consumption

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Benefits of marketing intermediaries

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1. reduce the number of transactions
2. ease the flow of goods
3. perform needed functions

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Promotion

Back 27

inform, persuade, or remind consumers and industrial users to engage in the exchange process

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Promotional mix

Back 28

advertising, personal selling, sales promotion, and public relations

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Human resource management

Back 29

process of hiring, developing, motivating, and evaluating employees to achieve organizational goals

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Direct pay

Back 30

monetary wages and salary received by an employee

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Indirect pay

Back 31

employee benefits or services offered in addition to

often called "fringe benefits"

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Production conversion process

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Converts inputs such as raw materials, human resources, natural resources, and capital into outputs like products and services

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Short term debt

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must be paid off within one year

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account form

Back 34

the form of balance sheet that resembles the basic format of the accounting equation

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accounts payable

Back 35

the liability created by a purchase on account

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accounts receivable

Back 36

a claim against the customer created by selling merchandise or service on credit

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accounting

Back 37

information system that provides reports to stakeholders about the economic activities and condition of a business

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accounting equation

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Assets=liabilities+owner's equity

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assets

Back 39

the resources owned by a business

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balance sheet

Back 40

a list of assets, liabilities, and stockholder's equity as of a specific date

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business

Back 41

organization in which basic resources (inputs) are assembled and processed to provide goods or services (outputs) to customers

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business transaction

Back 42

an economic event or condition that directly changes an entity's financial condition or directly affects its results of operations

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capital stock

Back 43

the portion of a corporation's stockholders' equity contributed by investors (owners) in exchange for shares of stock

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Certified Public Accountant

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Public accountants who have met a state's education, experience, and examination requirements

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corporation

Back 45

a business organized under state or federal statutes as separate legal entity

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cost concept

Back 46

determines the amount initially entered into the accounting records for purchases

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dividends

Back 47

distribution of a corporation's earning to stockholders

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ethics

Back 48

moral principles that guide the conduct of individuals

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expenses

Back 49

assets used up or services consumed in the process of generating revenues

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fees earned

Back 50

revenue from providing services

Front 51

financial accounting

Back 51

branch of accounting concerned with recording transactions using GAAP for a business or other economic unit and with a periodic preparation of various statements from such records

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Financial Accounting Standards Board (FASB)

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authoritative body that has the primary responsibility for developing accounting principles

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financial statements

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financial reports that summarize the effects of events on a business

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general-purpose financial statements

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accounting report that is distributed to external users

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Generally Accepted Accounting Principles (GAAP)

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guidelines for the preparation of financial statements

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income statement

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summary of the revenue and expenses for a specific period of time

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interest revenue

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money received for interest

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International Accounting Standards Board (IASB)

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an organization that issues International Financial Reporting Standards for many countries outside the United States

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liabilities

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the rights of creditors that represent debts of the business

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limited liability company (LLC)

Back 60

a business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes

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management accounting

Back 61

the branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies

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manufacturing business

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a type of business that changes basic inputs into products that are sold to individual customers

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matching concept (or matching principle)

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concept of accounting in which expenses are matched with the revenue generated during a period by those expenses

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merchandising business

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a type of business that purchases products from other businesses and sells them to customers

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net income or net profit

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the amount by which revenues exceed expenses

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net loss

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amount by which expenses exceed revenues

Front 67

objectivity concept

Back 67

requires accounting records and the data reported in financial statements to be based on objective evidence

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owner's equity

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owner's right to the assets of the business

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partnership

Back 69

unincorporated business form consisting of two or more persons conducting business as co-workers for profit

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prepaid expenses

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items such as supplies that will be used in the business in the future

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private accounting

Back 71

the field of accounting whereby accountants are employed by a business firm or not for profit organization

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profit

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the difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services

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proprietorship

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business owned by one individual

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public accounting

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accountants and their staff provide services on a fee basis

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rent revenue

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money received for rent

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retained earnings

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net income retained in a corporation

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retained earnings statement

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summary of the changes in the retained earnings in a corporation for a specific period of time

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revenue

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increase in owner's equity as a result of selling services or products to customers

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sales

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total amount charged customers for merchandise sold, including sales and sales on account

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Securities and Exchange Commission (SEC)

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an agency of the U.S. government that has authority over the accounting and financial disclosures for companies whose shares of stock are traded and sold to public

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service business

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a business providing services rather than products to customers

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statement of cash flows

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summary of the cash receipts and cash payments for a specific period of time

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unit measure of concept

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requires economic data to be recorded in dollars

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account

Back 84

used to record the increases and decreases in each financial statement item

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accounts receivable

Back 85

claim against the customer created by selling merchandise or services on credit

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assets

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the resources owned by a business

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balance of the account

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the amount of difference between the debits and credits that have been entered into an account

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chart of accounts

Back 88

a list of the accounts in the ledger

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correcting journal entry

Back 89

prepared when an error has already been journalized and posted

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credit

Back 90

amount entered on the right side of an account

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debit

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amount entered on the left side of an account

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dividends

Back 92

distribution of a corporation's earning to stockholder's

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double-entry accounting system

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recording transactions, based on recording increases and decreases in accounts so that debits equal credits

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expenses

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assets used up or services consumed in the process of generating revenues

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horizontal analysis

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financial analysis that compares an item in a current statement with the same item in prior statements

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journal

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initial record in which the effects of a transaction are recorded

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journal entry

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form of recording a transaction in a journal

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journalizing

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process of recording a transaction in the journal

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ledger

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a group of accounts for a business

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liabilities

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rights of creditors that represent debts of the business

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normal balance of an account

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can be either debit or a credit depending on whether increases in the account are recorded as debits or credits

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posting

Back 102

process of transferring the debits and credits from the journal entries to the accounts

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revenue

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increase in owner's equity as a result of selling services or products to customers

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rules of debit and credit

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in the double-entry accounting system, specific rules for recording debits and credits based on the type of account

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slide

Back 105

an error in which the entire number is moved one or more spaces to the right or left, such as writing $542.00 as $54.20 or $5,420.00

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T account

Back 106

simplest form of an account

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transposition

Back 107

an error in which the order of the digits is changed such as writing $542 or $452 or $524

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trial balance

Back 108

summary listing of the titles and balances of accounts in the ledger

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unadjusted trial balance

Back 109

summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries