Business Management

Question 1

Value Chain

Answer 1

Processes and initiatives needed to support and direct the product/service transformation within the organization, the creation of the value proposition applicable to such

Question 2

Two focal points of the Business Management Course

Answer 2

1) Provide a solid base level understanding of business structure and cross-functional relationships of its various components
2) Discuss the underlying fundamentals of managing a business in today’s corporate and entrepreneurial environment

Question 3

Profit Formula

Answer 3

Profit = Total Revenue - Total Costs
Profit = (Selling Price X Quantity Sold ) - (Total Cost X Quantity Produced)
Profit unit = Selling Price Unit - Total Cost Unit

Profit = (Net Income ÷ Assets Deployed)
Profit = (Unit Margins x Unit Volumes)
Profit = (Price - Costs)
Profit = (Market Share x Market Size)

Question 4

Role of C-Suite Management Team

Answer 4

Strategic Direction + Business Model Execution = Company Performance

Question 5

1) Revenue Model
2) Cost Structure
3) Margin Requirements
4) Cash Operating Cycle
5) Capitalization Requirements

Answer 5

Five key areas of Financial Analysis

Question 6

Per unit selling price x Quantity Sold

Answer 6

Sales Revenue

Question 7

Analyzing the revenue model

Answer 7

draw both current and longer term conclusions on the health of the organization

1) Which products within our portfolio are seeing increases in revenue? Which products are seeing decreases?
2) How much revenue is reliant on a single product? If we have multiple products, what percentage of revenue comes from each product?

Question 8

The money owed by an organization to its suppliers and other short term service providers

Answer 8

Accounts Payable

Question 9

The money owed by customers to an organization for products/services that the organization has delivered to such customers but not yet received payment for.

Answer 9

Account Recievable

Question 10

The process of acquiring another company or operation

Answer 10

Acquisition

Question 11

Key processes an organization undertakes in order to deliver products/services to the market place

Answer 11

Activities

Question 12

Assists managers in assessing the efficiency and effectiveness of key components of an organizations operations

Answer 12

Activity ratios

Question 13

The settling of a dispute by a third party whose decision is considered to binding on both parties to the dispute

Answer 13

Arbitration

Question 14

Assets

Answer 14

Refers to (1) the infrastructure of the resource base of the organization (2) The resources that the organization has at its disposal and that it can utilize in the generation of business and ultimately, profit

Question 15

The credit facility for which an organization borrows money for a stipulated period of time. I’m return for the use of these funds, the organization agrees to pay the holder of the bond an agreed upon amount of interest at regular intervals (regularly, semi-annually) during the period of time for which the funds are borrowed.

Answer 15

A bond

Question 16

Refers to the point where total expenses = total revenue. The income statesmen results in a profit of $0.

Answer 16

Breakeven Point

Question 17

The mission focused activities aimed at identifying the needs of a particular market or markets, and the development of a solution to such needs through the acquisition and transformation of resources into goods and services that can be delivered to the market at a profit

Answer 17

Business

Question 18

Outlines specific objectives the organization wants to achieve for each of its identified business initiatives and/or business units

Answer 18

Business Level Strategy

Question 19

Can be best visualized as the underlying operational platform or structure which a business uses to position its approach to a given market and thereby generate its revenue, and most importantly, derive its profit.

Answer 19

Business Models

Question 20

The maximum amount of a product that can be produced or services delivered, given facility, equipment and process constraints.

Answer 20

Capacity

Question 21

Refers to the money needed by an organization to support asset based expenditures, meet operating cash requirements, and invest in the development of new products and/or services which the organization desires to introduce in the market place.

Answer 21

Capital

Question 22

Refers to an assessment of the operations management team of the state of current capital assets and a determination as to their applicability to meeting the needs of the organization.

Answer 22

Capital Asset Evaluation and Acquisition

Question 23

The decisions managers make with respect to investment and divestment of capital assets (building, equipment, business subsidiaries), that may be needed, or are no longer needed, by an organizations business system.

Answer 23

Capital Asset Transactions

Question 24

An organizations mixture (use) of debt, internal cash reserves and external equity based investments in financial support of operational activities

Answer 24

Capital Structure

Question 25

A framework for assessing the full capitalization requirements of a business venture

Answer 25

Capitalization Well

Question 26

The point in time an organization is able to cover the actual cash expenses of an operation from the revenue it generates.

Answer 26

Cash flow positive

Question 27

Cash Operating Cycle (COC)

Answer 27

The amount of time it takes for an organization to recover its cash (products sold and money is received) it has paid out for the development, distribution and production of products.

Question 28

Chartered Banks

Answer 28

Financial institutions regulated under the Canada Bank Act. Their primary responsibility is to bring together borrowers and lenders by accepting deposits and lending out money - all in a manner that safeguards the interests of their customers.

Question 29

The name for a statement that describes the required responsibilities, actions and rules of behaviour of an organizations employees.

Answer 29

Code of conduct

Question 30

An asset that an individual pledges as security toward a credit facility (loan). The individual agrees to forfeit the collateral in the event of an inability to repay the loan.

Answer 30

Collateral

Question 31

A legally binding document that defines the policies, procedures and protocols

Answer 31

Collective bargaining agreement

Question 32

The process of dividing the organizations work units into defined functional areas

Answer 32

Departmentalizations

Question 33

Assets that have been earmarked for a specific purpose and that are not available for managers to support organizational operating needs.

Answer 33

Designated restricted assets

Question 34

The level of financial and operational commitment an organization incurs as a result of implementing the organizations strategies

Answer 34

Directional lock-in

Question 35

Reductions in the cost base of an organization as a result of greater size, process standardization, or enhanced operational efficiencies

Answer 35

Economies of Scale

Question 36

The value creating skills an organizations employees bring to the marketplace. The success of many businesses lies with the specialized skills that exist within its labour force

Answer 36

Employee interaction

Question 37

A person who starts a business and is willing to accept the risk associated with investing money in order to make money.

Answer 37

Entrepreneur

Question 38

The infrastructure layout and related facility components that will be required to house and support the processes and materials used by organizations.

Answer 38

Facility Design and Layout

Question 39

Those costs that, although not directly tied to the manufacturing of a specific product or the delivery of a specified service, nonetheless exist as a result of conducting our business and operating our company.

Answer 39

Fixed costs (also called indirect costs)

Question 40

For-Profit Companies

Answer 40

Organizations whose overarching objective is profitability and wealth creation on behalf of their shareholders and stakeholders.

Question 41

Managements ability to forward anticipated results for the upcoming quarter, year, or planning-cycle period

Answer 41

Forecasting and Budgeting

Question 42

When a company or individual from one country makes an investment into a business within another country. This investment can reflect the physical ownership of productive assets or the purchase of a significant interest in the operations of a business.

Answer 42

Foreign Direct Investment (FDI)

Question 43

A quasi organization comprising the worlds major fully developed countries

Answer 43

G7/8

Question 44

GDP (Gross Domestic Product)

Answer 44

Refers to the total market value of the foods and services (economic output) a nation produced domestically over a period of time ( generally one calendar year).

Question 45

Complaints raised by an employee

Answer 45

Grievances

Question 46

Gross Profit Margin

Answer 46

The portion of an organizations revenue that is left over after the organization has paid the direct costs (wages, components, materials, etc.) associated with its products or services.

Question 47

A strategy that reflects a reduced commitment to a particular market given its perceived weak future growth or profitability potential

Answer 47

Harvesting

Question 48

IPO (Initial Public Offering)

Answer 48

The sale of a company's stock for the first time in the public marketplace with the intent to raise equity (money) to fund company operations and growth.

Question 49

Honesty, reliability, ethics and moral judgment

Answer 49

Integrity

Question 50

Three fundamental characteristics of business operations

Answer 50

1) Commercial Endeavours 2) Organizational efficiency 3) Employee Interaction

Question 51

Five key area of company centric side of a business

Answer 51

1) Activities 2) Resources 3) Partners 4) Cost Structure 5) Portfolio of Products and Seevices

Question 52

The markers the organization serves, the products and services it offers, and the needs it professes to meet in the market place

Answer 52

Commercial endeavours

Question 53

Employee Interaction

Answer 53

The value creating skills an organizations employees bring to the marketplace. The success of many businesses lies with the specializes skills that exist within its labour force

Question 54

Organizational Efficiency and Structure

Answer 54

A reflection of the complexities of the business activities that circulate within an organization

Question 55

Business

Answer 55

The mission focused activities aimed at identifying the needs of a particular market or markets, and the development of a solution to such needs through the acquisition and transformation of resources into goods and services that can be delivered at a profit.

Question 56

Business models

Answer 56

The underlying operational platform or structure which a business uses to position its approached to a given market and thereby generate its revenue and, most importantly, derive its profit.

Question 57

The key processes an organization undertakes in order to deliver products and services to the marketplace

Answer 57

Activities

Question 58

Refers to four core areas - assets, labour, capital and managerial acumen

Answer 58

Resources

Question 59

The infrastructure and resource base of the organization

Answer 59

Assets

Question 60

The human resource (talent) requirements of the business.

Answer 60

Labour

Question 61

The money needed by an organization to support asset-based expenditures, meeting operating cash requirements, and invest in the development of new products and/or services which the organization desires to introduce to the marketplace

Answer 61

Capital

Question 62

The foresight, drive, knowledge, ability, decision making competency, and ingenuity of the organizations key individuals - its owners or top level managers

Answer 62

Managerial acumen

Question 63

The efficiency and effectiveness of a business entity Dan be assessed against three fundamental characteristics

Answer 63

1) Commercial endeavours 2) its human resource (employee) interaction model 3) its organizational efficiency and structure