Exam 2 study guide.txt

  1. MG 354 Exam II Study Guide
  2. Market analysis
    The process of locating and describing potential customers
  3. Marketing mix
    The combination of product, pricing promotion, and distribution activities.
  4. Customer profile
    A collection of information about a customer, including demographic data, attitudes, preferences, and other behavioral characteristics, as defined by CRM goals. (Customer relationship management)
  5. Market segmentation
    The division of a market into several smaller groups with similar needs.
  6. Demographic variables
    Specific characteristics that describe customers and their purchasing power.
  7. Social network
    An interconnected system comprising relationships with other people.
  8. Sole proprietorship
    A business owned by one person, who bears unlimited liability for the enterprise.
  9. Partnership (limited & general)
    A legal entity formed by tho or more co-workers to carry on a business for profit.
  10. Corporation (C & S)
    A business organization that exists as a legal entity and provides limited liability to its owners.
  11. LLC
    A form of organization in which owners have limited liability but pay personal income taxes on business profits.
  12. Strategic alliance
    An organizational relationship that links two or more independent business entities in a common endeavor.
  13. Enterprise zones
    State-designated areas that are established to bring jobs to economically deprived regions through regulatory and tax incentives.
  14. Home-based business
    A business that maintains its primary facility in the residence of its owner.
  15. E-commerce
    The paperless exchange of business information via the Internet.
  16. Income statement
    A financial report showing the profit or loss from a firm?s operations over a given period of time.
  17. Balance sheet
    A financial report showing a firm?s assets, liabilities, and ownership equity at a specific point in time.
  18. Cash flow statement
    A financial report showing a firm?s sources of cash as well as its uses of cash.
  19. Cash accounting
    An accounting method of recording profits when cash is received and recoding expenses as they are paid.
  20. Accrual accounting
    An accounting method or recording profits when they are earned, whether or not the profits have been received in cash; additional expenses are recorded when they are incurred even if payment has not been made.
  21. Fixed assets
    Relatively permanent assets intended for use in the business, such as plant and equipment.
  22. Return on assets
    A measure of a firm�s profitability relative to the amount of assets invested in the company, determined by dividing operating profits by total assets. Return on assets = Operating profits/Total assets
  23. Return on equity
    A measure of the rate of return owners of a firm receive on their equity investment, calculated by dividing net profits by common equity. Return on equity = Net profits/Owners� equity
  24. Balloon payment
    A very large payment that the borrower may be required to make at a specific point about halfway through the term over which the payments were calculated, repaying the rest of the loan in full.
  25. Loan covenants
    Bank-imposed restrictions on a borrower that enhance the chances of timely repayment.
  26. Factoring
    Obtaining cash by selling accounts receivable to another firm.
  27. Amortized loans
    Fixed payment, fixed interest payments, and fixed time period.
  28. Line of credit
    An informal agreement between a borrower and a bank as to the maximum amount of funds the bank will provide at any one time.
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Exam 2 study guide.txt
SBM Exam 2