BUS 1050 1st EditionFinal Exam Study Guide Lectures: 13-25Lecture 13 (October 22)Cicero and the story of gyges.- difference versus Plato interpretation of Gyges Plato belives any man would turn bad. Cicero belives an educated man would not- obligations of friendship Friendships are important in business and is necessary- fairness doctrines People do not want to see others fail, and instead succeed. - expediency principle of Aristides Morally right isn’t expedient, and what is expedient isn’t always morally right.- conclusions on grain affair Grain story. Cicero believes that you have the choice to sell grain at any price (in demand) but it’s fair that ifanyone asks, you must be honest in saying there is more. - conclusions on house selling affairmust report defects. If there is something wrong with a product that is not obvious you must notify the buyer.-caveat vendor vs. caveat emptor Seller Beware vs. Buyer BewareCompetitive pricing. Cicero. House and Ship example Responsibility of checking quality of product. Seller should beware and take responsibility of what is being sold (defects). -what is getting to yes”Lecture 14 (October 27)1-Gyges value of education2. fairness doctrine- Value of self interest and enlightened behavior3 Two marketing cases: enlightening strategic marketing (4Ps)Aquinas1- Price (Just price, sin)2- Product (Substance, quantity, quality)3- Promotion- Safety4- Place- Efficiency: Anti ArstotelianDepth- Number of products in a lifeBreadth- Number of lines in companyTotal brands- all products in company= lengthNew ProductsPrice-HighProduct-Basic (Add extras later to extend life)Promotion- Advertising DistributionStages of product life CycleGrowthPrice- Lower a bitProduct- Leave basic, work on improvementsPromotion-Distribution- goodMaturityPrice- LowerProduct- StaysDistribution- SteadyPromotionReposition- Moe to new marketMove to new marketNew use for product (baking soda)Can protract life cycleDeclinePrice- Lower (in some markets, raise in others)Product- Stays the samePromotion- Way LowerDistribution- LowerLecture 15 (October 29)Grain StoryTactical StrategiesPenetration pricing (may result in negative profit but secures market)Skim Pricing (charge highest prices for highest margins)Necessities for Marketing Break even point- (BEP) needed to decide to find a price.MonopsonyIntellectual Property (IP)- Patents(Fixed Costs / Contribution Margin )=BEPSelling Price – Variable Costs (average variable costs)Just Price: cost (of goods)+labor (expense) Lecture 16 (Nov 3)Darwin- Uncontrollable External Variables1. Competition2. Economic3. Cultural4. Legal/Regulatory5. Technological6. Natural/Physical(4, 5, 6, Effect on 4Ps)Darwin-Adaptation- We are the way we are due to our genes that allowed us to adapt. Ex. Inclimate weather. PromotionInform, Persuade, Remind.Forms: Internet, Radio. Outdoor, TV, Publications-Conclusion on all four articlesProduct: selling product is not a sin, but it is a sin to lie about substance, quantity, and quality.Promotion: do not inform buyer unless it endangers the buyer.Place: Manufacturer, wholesaler, retailers, and consumersPrice: Sin to charge the incorrect price. Should be just priceLecture 17 (Nov 5)Veblen (consumer behaviorist)Pecuniary Emulation-Trophy Hunting-Desire to be as successful as someone you see that is successful.Conspicuous Consumption (as a habit of standard of living: buying so people see what you have)-Women as trophies-Historical perspectives and motives of men Example of seeing chief with a big hut and food. Motivates other villagers to do the same- Motive that lies at the root of ownershipEmulation: desire to want what others have and going through limitations -What happens when people can’t buy goods on emulative basis road to debt-How Compspicuous consumption affects social classes division of social classes and changes society.-Canons of reputability and expenditure -Canon of reputability: buy something based on its reputation -Canon of expenditure: how much something costsTheory of the Liege of ClassPower is not measured relative to income but rather possessions. Brands represent power. Buying family brands are middle class aspirations. Buying luxury represent upper class aspirations.Price of product represents aspirations for power. Expenditure is product selling in relation to price.The development of creating demand synthesis. Marketing approaches advertisement.Demand 2 is unjust to a moral society. (Galbraith)Marketing is safest bet to civilization from war and de-evolution.Lecture 18 (Nov 10The Accounting SystemInputs: accounting documents, sales, purchasing, shipping, payroll, bank, travel records, entertainment records.Processing: Entries are made into journals: Recording. The effects of these journals entries are transferred or posted into ledgers: Classifying.All accounts are summarized.Output: financial statements, income balance sheet, outside reportsAssets Liabilities Owners EquityAccounts ReceivableInventoryInvestmentsEquipment LandBuildingsMotor VehiclesGoodwillCashAccounts PayableNotes PayableBonds PayableTaxes PayableCapital StockRetained EarningsRevenues Cost of Goods Sold ExpensesSales RevenueRental RevenueCommissions RevenueRoyalty RevenueCost of buying goodsCost of storing goodsWagesRent RepairsTravelinsuranceUtilitiesEntertainmentStorageInterestDonationsLicensesFeesSuppliesAdvertisingTaxesClassifications of Assets-Current Asset (cash inventory)-Fixed Asset (Land, equipment)-Intangible (Other: Intellectual property)Bonds: IOUFor organizations, equity value is determined by: Retained earnings, price earnings.Lecture 19 (Nov 12)Pacioli (Directed to Merchants):Inventory->Memo-> Journal->LedgerFinancial Report (public company:10k Report)Balance Sheet-> Income statement-> Cashflow statementAssets = liabilities and Owners EquityNP Ratio: Net profit/Net SalesGross Profit: Net Sales-Cost of GoodsStory of Taxation: Accounts find a way to get what shareholders demand.- three things necessary to carry on a business1) Cash 2) Bookkeeping 3) Arrange transactions in systematic way (Debit, Credit)- explain his system and how it worksEverything in God's name.- explain his religious ideasCatholic Monks- how does he keep his accountsFrugality, cutting costs.- what is the purpose of accountingTo get rich.- explain the cakes storySaikaku ordered rice cakes. Assistant purchased the cake. Pay by weight. Saikaku was upset because after the cake cools down, it would cost less. Do