Business Chapter 9-13

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Flashcards on Business Chapter 9-13, created by mitchellcierra6 on 23/10/2015.
mitchellcierra6
Flashcards by mitchellcierra6, updated more than 1 year ago
mitchellcierra6
Created by mitchellcierra6 over 8 years ago
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Question Answer
Finance Functional area of business that is concerned with finding the best sources and uses of financial capital
Financial Capital Funds a firm uses to acquire its assets and finance its operations
Ratios Liquidity- obtains cash to pay short-term debt LEVERAGE- extent to relying on debt financing Asset management- if a firm is using assets to generate revenue property Profitability- rate of return on investments
Short-term Financing Trade-credit- no immediate payment after delivering goods to customer Factor- provides finance by purchasing accounts receivables at a discount Line of credit- bank approves credit up to limit (arrangement between firm and bank)
Net present Value NPV Present values minus the cost of investment
Depository institutions Obtains funds by savings and checking deposits and then lends funds to borrowers
Credit unions Owned by its depositors
Savings and loan associations makes money by accepting savings deposits from mortgage loans
Nondepository institutions 1. Securities brokers- agent for buying and selling stock 2. Securities dealers- handles markets and buying and selling stocks 3. investment banks- helps firms raise capital by issuing securities in primary markets 4. Primary securities market- newly issued securities
Public offering offered to anyone
private placement Between corporation and investors
Secondary securities market Previous issues are traded -Stock exchange- venue for trading stocks - OTC- over the counter market- unlisted stocks are traded -Electronic communications network- computerized system that matches buyers and sellers in order to trade stocks
Utility ability of goods and services to satisfy: - Form utility -Time utility -Place utility -Ownership utility- transfers ownership of good from seller to buyer.
Market segmentation- Dividing potential customers into groups of similar people
Target Market Targeted customers
Consumer marketers (B2C) towards people who buy products for personal consumption
Business product marketers towards people who buy products in order to make other products
Consumer market segmentation Demographic Geographic Psychographic Behavioral
Diffusion Rate How well and quickly consumers accept products
Integrated marketing communication broad message to every seller of a product to have a unified impression
Positioning statement How a business will set itself apart
Public relations Positive relationships with firm's public
Direct Chanel links producer to consumer directly
Channel Intermediaries facilitate movement of products from the producer to the consumer
Independent wholesaling businesses buy products from different businesses and sell those products to different customers
Supply Chain All organizations and processes involved in the flow of goods from he raw materials to the final consumer
Odd Pricing ending prices in numbers below even dollars and cents in order to create a perception of greater value
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