Flashcards in Nate BEC Deck (182)
what is SWOT concerned with?
the relationship between an entity and its environment
what is the 5 forces concerned with?
the nature, operating attractiveness, and probably long-run profitability of a competitive industry
what is the basis for a natural monopoly?
economics of scale- or an increasing return to scale.
in a perfectly competitive market, what is the best level of output for the firm?
Marginal revenue = marginal cost.
the direct exchange rate expresses the domestic price (in dollars) of:
one unit of foreign currency. 1 euro to $1.15
PEST is acronym for:
political, economic, social, and technological
What does PESTEL add to PEST?
E= environmental factorsL= legal factors
required rate of return for an investment:
riskfree rate + beta(expected rate - riskfree rate)
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.
what time series model reduces random fluctuations in data?
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
what states the terms of a bond?
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
what is commercial paper?
short term, unsecured promissory notes
calculate profitability index of a project?
divide present value of annual after tax cash flows by the original cash invested in the project
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
accounting rate of return?
dividing accrual based net income by the initial cost of the project
what is EDI for?
electronic data interchange allows companies to place orders with suppliers electronically
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
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
who designs, creates, and tests program?
a fire supression system in a computer facility should include:
halon and other chemical suppressents that dont harm computer hardware
which critical function is most likely to be missing in a small business computing environment?
in a large firm, who would maintain custody of the entity's data?
the data librarian
what allows a database management system to add new records, delete old records, and update records?
a data manipulation language (DML)
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
What is PaaS?
PaaS is the use of the cloud to create (not access) software
what is systematic risk?
market risk. large scale economic events that typically affect all companies
most likely strategy to reduce breakeven point?
decrease fixed costs and increase contribution margin