Busn 101 Final

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Advertising

Back 1

paid announcements through various forms of media designed to bring attention to a company’s product or service

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IMC

Back 2

a concept designed to make all aspects of marketing work together
Integrated Marketing Communication

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Promotion Mix

Back 3

the combination of communication methods used for one or a group of related products

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Public Relations

Back 4

the practice of creating and maintaining goodwill through non-paid forms of communication such as charity events, contributing articles to newspapers or trade magazines, etc.

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Qualifying

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determining if a potential customer has the ability, authority and desire to purchase a product

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Personal selling

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face to face interaction where a prospective customer is persuaded to make a purchase

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publicity

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type of non-paid promotion that involves disseminating information to various media to gain public interest

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word-of-mouth promotion

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a tool that involves people passing information about products they have used

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trial close

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a question or statement that moves the selling process to the end

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sales promotion

Back 10

activities such as contests, demonstrations or special offers used to stimulate sales

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blog

Back 11

online entries made by individuals with an area provided for users to discuss posts

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product placement

Back 12

a non-traditional form of promotion where products appear in film, on television or in other media

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promotion

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communicating with the public to influence them to buy products or services

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prospect

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a possible customer judged on his/her authority, ability and willingness to buy

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viral marketing

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encouraging the spread of product information from person to person

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Cash flow

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a measure of a company’s financial health found by calculating the difference between cash receipts and cash payments

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current assets

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a balance sheet account combining assets that are expected to be converted to cash within a year

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double-entry

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an accounting technique that records financial information as both a debit and a credit

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fixed assets

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tangible property that a firm owns and does not convert quickly into cash

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independent audit

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an examination of a firm’s financial statements done by a certified public accountant (CPA) who is not an employee of the firm

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liquidity

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the ability of an asset to be converted into cash quickly without any impact on the price of the asset

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managerial accounting

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the branch of accounting that measures, analyzes and communicates information about a company’s operations to internal managers to aid their decision making

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trial balance

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an informal accounting schedule that lists general ledger account balances at a point in time.

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accounting cycle

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a sequence of procedures repeated in the same order from the point of the transaction to its appearance in the financial statements

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accounts payable

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money owed by a company to its suppliers and/or vendors for products or services purchased on credit

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balance sheet

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financial statement that shows the financial position of a company on a specific date

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cost of goods

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the costs of obtaining raw materials and all parts involved in producing the finished goods sold to consumers

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gross profit

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the difference between revenue from the sale of goods and the costs related to producing those goods

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ledger

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the accounting book in which transactions are listed in separate accounts

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liabilities

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a company’s debts or obligations that come about during the course of business operations

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revenue

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the income a company receives from its main business activities during a specific period of time

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annual report

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an audited document required by the SEC containing financial information and provided to shareholders at the end of the year

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bonds payable

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long-term debt owed by a company to investors who have purchased bonds

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depreciation

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noncash expense that reduces the value of an asset over a prescribed period of time due to wear and tear, age, or obsolescence

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income statement

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a financial statement that summarizes a firm’s performance and indicated the profitability (or loss) over a period of time

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intangible assets

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Non-monetary assets that cannot be seen, touches or physically measured

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notes payable

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short- or long-term obligations to banks or other creditors based on formal written agreements

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operating expenses

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expenses incurred as a result of normal business activities in an organization, but not directly associated with production

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retained earnings

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earnings reinvested in the business or used to pay off debt

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cost of capital

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the expected rates of return for the different types of capital used to finance the business

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debt financing

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a method of financing in which a company receives a long, issues bonds and receives trade credit and promises to repay it

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line of credit

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unsecured credit extended to a borrower by a bank or vender for a specific time period

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revolving credit

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line of credit where, for a fee, a customer can borrow up to a preapproved amount and use funds as needed

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equity financing

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a method of financing in which a company issues shares of its stock reinvests company earnings, or obtains funds from venture capitalists

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promissory note

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a document signed by a borrower promising to repay a loan at a specific fate or predetermined terms

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operating budget

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a forecast of estimated income, expenses and revenue for a given period of time

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secured bond

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a debt instrument backed by collateral

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capital expenditure

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funds used to acquire or upgrade assets such as land, buildings, and machinery and equipment

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commercial paper

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unsecured promissory note issued by a corporation or bank with a short maturity date

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factoring

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a financing method in which a business sells accounts receivable at a discount to raise funds

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indenture terms

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an agreement between a lender and borrower that details specific terms of a bond such as maturity date and interest rate

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leverage

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the degree to which a business uses borrowed money to finance production and growth

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venture capital

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money provided by private investors to startup firms that are believed to have growth potential

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financial management

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planning, organizing, directing and controlling the financial resources of a firm

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revenue

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an estimation of revenue and expenses over a specified future time period

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secured loan

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a loan agreement where assets are pledged by the borrower to decrease the risk for the lender

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finance

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the business function that involved raising and managing funds

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capital budget

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a plan to finance long-term assets such as plant, machinery, and equipment

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short-term finance

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a form of financing with payment due in one year or less

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unsecured loan

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a loan agreement that is not backed by assets of the borrower

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cash budget

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a financial plan that summarized estimated cash receipts and disbursements for a period of time.

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stock exchange

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a market in which securities are bought and sold

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sinking fund

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a fund in which a company sets aside money to enable it to repay bonds on the bond’s maturity date

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commons tock

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securities that represent equity ownership in a corporation

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investment banker

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a banker who deals primarily in underwriting new securities

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debenture bond

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(unsecured) a debt instrument not secured by collateral

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maturity date

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the date on which an obligation, such as a bond, must be repaid in full

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bonds

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a debt investment in which an investor loans money to a corporation or government entity for a specific period of time at a fixed interest rate.

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stock split

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a corporate decision to divide a company’s existing shares into multiple shares

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stock

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securities that represent ownership in a corporation with owners having a claim on the corporation’s assests and earnings

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capital gains

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the amount by which the selling price of an asset exceeds the purchase price

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prospectus

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a formal written document filed with the SEC to sell securities that describes the plan for a business

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mutual fund

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a professionally managed, diversified investment vehicle funded by many investors for the purpose of investing in stocks, bonds, and other assets.

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diversification

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an investment technique that mixes a variety of stocks, bonds, and other securities to minimize risk

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IPO

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the initial sale of a stock to the public by a private company

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Dividends

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the distribution of a portion of a company’s profits to common and preferred shareholders

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OTC market

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a market maintained by securities dealers for the purpose of selling securities not listen on a stock exchange.

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nonbanks

Back 78

institutions without lending and deposit services as part of their financial activities

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smartcard

Back 79

a card with digital coding that stores information and can be used for many things

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CD

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a savings certificate entitling the owner to receive interest

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Debit card

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a bank card that allows customers to have immediate access to their funds via electronic means

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Reserve requirement

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the amount of case that a financial institution must hold on deposit with the Federal Reserve

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discount rate

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the rate of interest determined by the Federal Reserve as the minimum rate for eligible banks to borrow short term funds

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credit unions

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a non-profit financial institution that is owned and operated by its members

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demand deposit

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an account such as a checking account, from which previous deposits can be withdrawn at any time without notice.

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time deposit

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a deposit at a savings institution that earns interest and can require prior notice before the owner withdraws money

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SEC

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the federal agency charged with regulating the securities markets in order to protect private investors

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World Bank

Back 88

global organization whose focus is on financing economic development and improving standards of living and quality of life

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Letter of credit

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a bank document that guarantees a payment for goods will be made

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IMF

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global organization charged with lowering trade barriers and helping to stabilize currencies of member countries

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Commercial bank

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an institution that accepts deposits, makes business loans, and offers related services

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Open-market

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the buying and selling of government securities and commercial paper to regulate the money supply

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FDIC

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the federal agency that insures deposits in national banks and other member institutions