3862460
| 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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