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25 Cards in this Set
- Front
- Back
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What are the 5 steps in the Risk Management Process? |
1. Identify risks and potential losses
2. Measure the frequency and severity of losses and their impact 3. Evaluate alternatives and choose the techniques that will best handle the losses 4. Implement the risk-management program 5. Monitor results |
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Define Finance |
the business function involving decisions about a firm's long-term investments and obtaining the funds to pay for those investments |
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Define debt financing |
raising money to meet long-term expenditures by borrowing from outside the company; usually in the form of long-term loans or the sale of corporate bonds |
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Define equity financing |
raising money to meet long-term expenditures by issuing common stock or by retaining earnings |
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Define risk |
uncertainty about future events |
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define Risk Management |
conserving a firm's financial power by minimizing the financial effect of accidental losses |
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What are the three functions of money? |
Medium of Exchange Store of value Unit of account |
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What are the four characteristics of money? |
Portable Divisible Durable Stable |
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Define Money |
an object generally accepted by people as payment for goods and services |
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Define Accounting |
a comprehensive system for collecting, analyzing, and communicating financial information |
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Define Bookkeeping |
recording account transactions |
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Define Budget |
detailed statement of estimated receipts and expenditures for a future period of time |
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Define Globalization |
process by which the world economy is becoming a single interdependent system |
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Define Ethics |
individual standards or moral values regarding what's right and wrong or good and bad |
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Define Business Ethics |
ethical or unethical behaviours by a manager or employee of an organization |
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Define Managerial Ethics |
Standards of behaviour that guide individual managers in their work |
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Define Corporate Social Responsibility |
the idea that a business should balance its commitments to individuals and groups that are directly affected by the organization's activities |
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Define External Environment |
everything outside an organization's boundaries that might affect it |
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define Economic Environment |
conditions of the economic system in which an organization operates |
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The technological environment includes what? |
human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems that're used to perform business activities |
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What're the 4 business environments? |
economic environment technological environment political-legal environment socio-cultural environment |
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define Political-Legal Environment |
conditions reflecting the relationship between business and government, usually in the form of government regulations |
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define Socio-Cultural Environment
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conditions including customs, values, attitudes, and demographic characteristics of the society in which an organization functions |
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Define Porter's Five-Forces Model |
helps managers analyze five important sources of competitive pressure and decide what their competitive strategy should be |
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What are the five forces in Porter's Five Forces Model? |
Industry Rivalry Threat of New Entrants Bargaining Power of Suppliers Threat of Substitution Bargaining Power of Consumers |
