Notesale: Turn your study into money

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Accounting:
Accounting: The system to collect, analyze and communicate financial information
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- Statement structured according to GAAP requirement
Managerial accounting: - directed at internal parties (managers)
- provides information to facilate planning, forecasting and decision making
Accounting equation: ASSETS = LIABILITIES + OWNERS’ EQUITY
Key financial statements:
1) Balance sheet: provide detailed information about the accounting equation factors
2) Income statement: ie profit-and-loss statement, show annual profit or loss
3) Statement of cashflow: ensure cash is available when it is needed
Ratio analysis:
1) Solvency ratios: - short-term: ability to pay short-term debt
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4) Hybrid financing: preferred stock: form of ownership, no voting rights, fixed payments
(dividends), no maturity date
5) Risk-return relationship
Stock markets: Bear: falling ; Bull: rising
Stock options: Call: buy ; Pull: sell
Risk management: - risk avoidance, risk control, risk transfer, risk retention

Money and Banking
Characteristics of Money: portable, divisible, durable, stable
M-1 money supply: the most liquid forms of money
- Currency: paper money and coins issued by the Canadian government
- Demand deposits: money in chequing accounts, can be transferred to others by cheque
- cheque: order instructing the bank to pay a given sum to a person or firm
M-2 money supply: everything in M-1 plus:
- time deposits: deposit requiring prior notice before withdrawal of funds
- money market mutual funds: pooled assets from many investors invested in short-term,
low risk financial securities
- savings deposits: savings account holdings
Canadian Financial system:
1) charter banks
2) trust companies, credit unions
3) life insurance, financial corps, factoring co
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Utility: - form, time, place, and possession (ownership)
The firm’s marketing plan: political and legal, economic, competitive, social and cultural,
technological environment
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Push strategy: promotes aggressively to intermediaries
Pull strategy: promotes directly to consumers, who demand the product from intermediaries
Promotional mix: advertising, personal selling, sales promotions, publicity, public relations
Place (distribution mix)
Distribution mix: Getting the product or service from source to the customer
Producer -> agent or broker -> wholesaler -> retailer -> end users
Direct distribution: producer to end users
Retail distribution: producer to retailer to end users
Wholesale distribution: producer to wholesaler to retailer to end user
Agents of brokers: producer to agent or broker to end user

Operations management and quality
Operations management: a set of methods and technologies used in the production of a
good or a service
Service operations: production activities that yield tangible and intangible service products
Good production: production activities that yield tangible products
Types of transformation technology: chemical, fabrication, Assembly, Transport, clerical
Analytic process: resources are broken down in the production process
Synthetic process: resources are combined in the production process
Business strategy as driver: low cost, differentiation, integration of low cost/ differentiation
Operations planning: needs to forecast future demand for new and existing products
1) business plan and forecasts
2) long-range operations plan: capacity, location, layout quality, methods planning
3) operations schedules: master production, detailed, staff, project schedule
4) operations control: quality control, materials management
5) output to customers
Capacity planning: how much
Location planning: by raw materials, customers, suppliers
Layout planning:
1) process layout: equipment and people are grouped by function
2) cellular layout: used when families of products can flow similar glow paths
3) product layout: organizing equipment and people to produce one type of product
Scheduling: Gantt charts: diagram of steps in the project and time required for each
Global context for business
Globalization: the world economy is becoming a single interdependent system
Major market places: NA, Europe, pacific asia
Emerging markets: BRICS: Brazil, Russia, India, China, South Africa
Forms of competitive advantage:
1) absolute advantage: a country can produce sth more efficiently than other country
2) comparative advantage: a country can produce certain items more efficiently (cheaper) than it
can other items
3) national competitive advantage: factorand demand conditions, related and supporting
industries, strategies, structure and rivalries
Balance of trade: difference in value btw total exports and total imports: surplus=export more;
deficit=import more
Balance of payments: flow of money into or out of a country
Go international:
1) export/import
2) licensing: franchising
3) strategic alliances: get knowledge and expertise of the foreign partner
4) branch office: direct control, increased sales due to local presence
5) direct investment: buy or establish tangible assets in a foreign country
Barriers to international trade: social and cultural, economic, legal and political differences
World trade organization (WTO): negotiate trade agreements and resolve trade disputes
Free trade agreements:
1) EU (European union): largest free marketplace
2) NAFTA (North American Free trade agreement): remove tariffs and other trade barriers btw
Canada, US and mexico
3) TPP



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