busad 250 exam1 review
Exam 1 Review
Spring 2014
Your preparation for Exam 1, should include a thorough review of the following areas:
Ch. 1 – Developing a Business Mindset
Understanding what businesses do
Key terms
How businesses add value (Exhibit 1, p. 3)
The relationship between risk and reward (Exhibit 2, p. 5)
Competitive advantage
The 3 major types of businesses—not-for-profit; goods-producing; service-producing
The Role of Business in Society and potential positive and negative effects (Exhibit 4, p. 8)
The 5 major environments that businesses operate in and their importance
The business mindset (Exhibit 3, p. 7)
The 6 major functional areas of a business and their purpose
Ch. 15 – Business Analytics
Definition of business analytics
Key terms
Purposes/uses of business analytics
Types (scope) of analytics: Descriptive, Predictive, Prescriptive
Nature of decision models: Descriptive, Predictive, Prescriptive
Steps in the problem solving/decision making process (pgs. 392-394)
Ch. 13 – Financial Information and Accounting Concepts
Key terms
What accounting is; financial vs. management accounting and bookkeeping vs. accounting
Private vs. Public accountants
Rules of accounting—GAAP and IFRS
Sarbanes Oxley-Act
Accounting Equation
Double-entry bookkeeping and matching principle
Identify the essential characteristics of effective accounting information: What information is contained in the Balance Sheet, the Income Statement and Cash Flows Statement?
Describe how trend analysis and ratio analysis are used in financial analysis
Understand the common types of financial ratios used: Profitability, Liquidity (Current ratio); Activity ratios (Exhibit 6, p. 329!)--
Ch. 14 – Financial Management
Key terms
Identify the factors that influence financing decisions
Exhibit 1 and Exhibit 2 (pgs. 340 and 341)
Accounts payable and accounts receivable
Budget challenges and types
Interest rates (Prime interest rate), Opportunity Cost, Leverage
Spring 2014
Your preparation for Exam 1, should include a thorough review of the following areas:
Ch. 1 – Developing a Business Mindset
Understanding what businesses do
Key terms
How businesses add value (Exhibit 1, p. 3)
The relationship between risk and reward (Exhibit 2, p. 5)
Competitive advantage
The 3 major types of businesses—not-for-profit; goods-producing; service-producing
The Role of Business in Society and potential positive and negative effects (Exhibit 4, p. 8)
The 5 major environments that businesses operate in and their importance
The business mindset (Exhibit 3, p. 7)
The 6 major functional areas of a business and their purpose
Ch. 15 – Business Analytics
Definition of business analytics
Key terms
Purposes/uses of business analytics
Types (scope) of analytics: Descriptive, Predictive, Prescriptive
Nature of decision models: Descriptive, Predictive, Prescriptive
Steps in the problem solving/decision making process (pgs. 392-394)
Ch. 13 – Financial Information and Accounting Concepts
Key terms
What accounting is; financial vs. management accounting and bookkeeping vs. accounting
Private vs. Public accountants
Rules of accounting—GAAP and IFRS
Sarbanes Oxley-Act
Accounting Equation
Double-entry bookkeeping and matching principle
Identify the essential characteristics of effective accounting information: What information is contained in the Balance Sheet, the Income Statement and Cash Flows Statement?
Describe how trend analysis and ratio analysis are used in financial analysis
Understand the common types of financial ratios used: Profitability, Liquidity (Current ratio); Activity ratios (Exhibit 6, p. 329!)--
Ch. 14 – Financial Management
Key terms
Identify the factors that influence financing decisions
Exhibit 1 and Exhibit 2 (pgs. 340 and 341)
Accounts payable and accounts receivable
Budget challenges and types
Interest rates (Prime interest rate), Opportunity Cost, Leverage