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38 Cards in this Set
- Front
- Back
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Issues with Management |
New Technology Human Resources Controlling Assets Producing to meet demand Contracting Environmental Concerns Globalization |
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Types of Business Decisions |
How organized? What produced? How much produced? What/how much inputs? How much money borrowed? Marketing? |
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Functions of Management |
Planning Implementation Control Adjustment Repeat |
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Types of Decisions |
Strategic and Tactical |
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Strategic Decisions |
Longer term What to do |
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Tactical Decisions |
Shorter Term How to do it |
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SWOT |
Strength Weakness (Internal) Opportunities Threats (External) |
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Strategic Management |
Define mission Formulate and Prioritize Goals Assess resources (Internal Analysis SW) Survey environment (External Analysis OT) Identify and select strategies Implement and refine strategy |
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SMART Goals |
Specific Measurable Achievable Realistic Time Frame |
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Physical Resources |
land, machinery, equipment, livestock |
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Human Resources |
labor, consulting, how much, skills, management ability |
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Financial Resources |
how much do/will have how much need can i get more ability to borrow |
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Tactical Decision Making |
Identify problem/opportunity identify possible solutions collect data and info analyze the data and make decision implement decision monitor and evaluate results accept responsibility |
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Purpose and Use of Records |
measure profit and assess financial condition provide data for business analysis assist in obtaining loans measure profitability of indv. enterprises assist in analysis of investments prepare income tax documents |
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Farm Business Activities |
Production, Investing, Financing Record Keeping System
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Cash Accounting |
Farms only, cash on hand WHEN things happen |
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Accrual Accounting |
not cash, not on hand, total |
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Depreciation |
expense depreciable assets must have life more than 1 yr must have determinable useful life (no unlim) must be used to generate revenue buildings, machinery, breeding livestock NOT LAND |
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Straight Line Depreciation |
Cost-Salvage Value / Useful Life |
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Straight Line Percentage Rate |
1 / Useful life |
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Declining Balance |
Annually, book value @ start of year x deprec rate (straight line %) |
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Double Declining Balance |
2x straight line % rate |
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Tax Depreciation |
MACRS given |
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BASIC ACCOUNTING EQUATION |
Assets = Liabilities + Owner Equity
Owner Equity = Assets - Liabilities |
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Liquidity definition |
ability of business to meet financial obligations as they come |
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Solvency definition |
measures liability of business relative to owner equity invested |
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Current |
within one year |
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Intermediate/noncurrent |
more than 1 less than 10 years |
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Liquidity analysis |
Current Ratio, Working Capital, Working Capital to Gross Income |
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Current Ratio |
current assets/current liabilities |
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Working Capital |
current assets-current liabilties |
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Working Capital to Gross Income |
working capital (current assets-current liabilties)/gross income |
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Solvency analysis |
Debt to Asset, Equity to Asset, Leverage (Debt to Equity) |
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Debt to Asset Ratio |
total farm liabilities/total farm assets |
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Equity to Asset Ratio |
total farm equity/total farm assets
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Leverage Ratio |
total farm liabilties/total farm equity |
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Debt Structure |
what is due the next year Current liabilties/total liabilties |
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Equity |
total asset-total liabilty |
