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151

what is SWOT concerned with?

the relationship between an entity and its environment

152

what is the 5 forces concerned with?

the nature, operating attractiveness, and probably long-run profitability of a competitive industry

153

what is the basis for a natural monopoly?

economics of scale- or an increasing return to scale.

154

in a perfectly competitive market, what is the best level of output for the firm?

Marginal revenue = marginal cost.

155

the direct exchange rate expresses the domestic price (in dollars) of:

one unit of foreign currency. 1 euro to $1.15

156

PEST is acronym for:

political, economic, social, and technological

157

What does PESTEL add to PEST?

E= environmental factorsL= legal factors

158

required rate of return for an investment:

riskfree rate + beta(expected rate - riskfree rate)

159

diff in financial structure and capital structure:

financial structure includes all items of liabilities and owners equity, and capital structure includes LONG-TERM liabilities and owners equity.

160

what time series model reduces random fluctuations in data?

exponential smoothing

161

what source of new capital usually has the lowest after tax costs?

bonds. less risk to investors so they're cheaper than equity, and the interest payments are tax deductible

162

what states the terms of a bond?

an indenture

163

what is the profitability index used for?

to rank potential investments by taking into account both the time value of money and the initial cost of the project

164

what is commercial paper?

short term, unsecured promissory notes

165

calculate profitability index of a project?

divide present value of annual after tax cash flows by the original cash invested in the project

166

what is residual income that remains after the cost of all capital, including equity capital, has been deducted?

economic value added. it measures economic profit, not accounting profit. NOPAT minus cost of capital

167

accounting rate of return?

dividing accrual based net income by the initial cost of the project

168

what is EDI for?

electronic data interchange allows companies to place orders with suppliers electronically

169

what kind of network is used to process EDI?

Value added network- VANs provide the additional security and addressing capabilities necessary to process EDI transactions

170

rollback and recovery procedures are most common in:

online real-time systems. periodic snapshots are taken of a master file, and upon detection of a problem, the system reprocesses all transactions that have occurred since the snapshot

171

who designs, creates, and tests program?

application programmers

172

a fire supression system in a computer facility should include:

halon and other chemical suppressents that dont harm computer hardware

173

which critical function is most likely to be missing in a small business computing environment?

authorization

174

in a large firm, who would maintain custody of the entity's data?

the data librarian

175

what allows a database management system to add new records, delete old records, and update records?

a data manipulation language (DML)

176

What is used to verify that a program was free of unauthorized changes?

a source code comparison program. this compares an archived program to the program actually in use

177

What is PaaS?

PaaS is the use of the cloud to create (not access) software

178

what is systematic risk?

market risk. large scale economic events that typically affect all companies

179

most likely strategy to reduce breakeven point?

decrease fixed costs and increase contribution margin

180

what is six sigma similar to?

total quality management