Exam 2 study guide.txt

The process of locating and describing potential customers

The combination of product, pricing promotion, and distribution activities.

A collection of information about a customer, including demographic data, attitudes, preferences, and other behavioral characteristics, as defined by CRM goals. (Customer relationship management)

The division of a market into several smaller groups with similar needs.

Specific characteristics that describe customers and their purchasing power.

An interconnected system comprising relationships with other people.

A business owned by one person, who bears unlimited liability for the enterprise.

A legal entity formed by tho or more co-workers to carry on a business for profit.

A business organization that exists as a legal entity and provides limited liability to its owners.

A form of organization in which owners have limited liability but pay personal income taxes on business profits.

An organizational relationship that links two or more independent business entities in a common endeavor.

State-designated areas that are established to bring jobs to economically deprived regions through regulatory and tax incentives.

A business that maintains its primary facility in the residence of its owner.

The paperless exchange of business information via the Internet.

A financial report showing the profit or loss from a firm?s operations over a given period of time.

A financial report showing a firm?s assets, liabilities, and ownership equity at a specific point in time.

A financial report showing a firm?s sources of cash as well as its uses of cash.

An accounting method of recording profits when cash is received and recoding expenses as they are paid.

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.

Relatively permanent assets intended for use in the business, such as plant and equipment.

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

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

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.

Bank-imposed restrictions on a borrower that enhance the chances of timely repayment.

Obtaining cash by selling accounts receivable to another firm.

Fixed payment, fixed interest payments, and fixed time period.

An informal agreement between a borrower and a bank as to the maximum amount of funds the bank will provide at any one time.