BUSSPP 0200 1st Edition Lecture 4 Outline of Last Lecture I II III IV Organizations Firms Environments Concepts of Management Goals Stakeholders Outline of Current Lecture I Goals Stakeholders Review same as last lecture II Accounting Profit III Economic Profit IV Beginning Chapter 2 Transactions Markets Current Lecture I Goals Stakeholders A Concept 1 In micro one goal 2 in business in practice multiple goals B Why 1 Stakeholders any party with a vested interest in the firm somehow the firm s fate and the stakeholder s fate are intertwined a Types all have different interests Employees Owners Debt holders suppliers Customers Neighborhoods localities Governments II Accounting profit A fixed B backward looking historical These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute C Opportunity costs not considered D Time value of money not considered a Time value of money value of the dollar over time inflation deflation E no cost of capital a cost of capital every dollar invested has a cost i e interest F Reporting 1 10 k form official annual report required by law 2 10 q report quarterly report estimate proforma 3 national accounting standards III Economic profit A indefinite B historical futuristic estimate C Opportunity costs considered D Time value of money considered E Cost of capital F No reporting IV Chapter 2 Transactions Markets A Transaction Exchange among parties almost always assisted by 3rd parties 1 Parties a Buyers b Sellers c 3rd Parties i brokers bring buyers and sellers together ii infrastructure providers 3rd parties that provide services that increase the efficiency of transactions modern commerce would not exist without them 2 Types of transactions all independent a Legal illegal b Domestic international i currency risks ii legal issues between countries iii language barrier c market transfer i market firm and another part of its environment ii transfer within the firm s infrastructure d Purchase barter i purchase for goods services ii barter goods services for goods services cannot determine buyer seller e Spot future i spot immediate completion of the deal continuous action ii future separation between striking completing the deal both in time and physicality 3 Market arena within which similar types of transactions occur a Types i Physical ii virtual massive increase b properties i Stability most markets most times in developed economies are stable price availability attribute
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