BA101- study guideChapter 1Economics: Social Science that deals with consumption, production, distribution of goods and services and with the theory and management of economies or economic systems Demand: is the quantity of goods and services that consumers are willing to buy at different prices. Supply: is the quantity of goods and services that businesses are willing to provide at those different prices. Private enterprise requires 4 things:1. Private Property2. Freedom of choice3. The right to keep profits4. Fair competition Specialization: is a measure of how broadly or narrowly defined the range of included activities are. Economic Cost: the money spent implementing the decisions Opportunity Cost: is the cost of what you gave up. not the sum of alternatives but the benefit of the single alternative.Business: an organization that seeks a profit by providing goods that satisfy the needs or wants of people.Product: good, service or idea that has tangible or intangible characteristicsProfit: basic goal of the business, the difference between what it cost to make a productand what the product sells for.Stakeholders: a group of people who have an interest in the actions a business takes. four groups: owners, employees, customers, citizens. Marketing: the activities that are designed to provide goods and services that satisfy the customers. (Market research, pricing promotion and distribution)1Accounting: the process that tracks, summarizes and analyzes a firms financial position. Production: the activities and processes that are used in making the products Finance: the activities that are concerned with funding a business and using resources effectively Planning: determining what the organization needs to do and how to get it done. Organizing: arranging the organizations resources and activities in such a way to makeit possible to accomplish a plan. Operating: enacting the plan including guiding and motivating employees to work toward accomplishing necessary tasks. Controlling: Measuring and comparing performance to expectations established in the planning process, and adjusting either the performance or the plan. Effective: means doing the right thing Efficient: means doing things right.Chapter 2: MarketingMarketing:Defines your strategy for competing in the marketplace. Market Research: To determine the need so fits customersMarket Mix: To determine how to satisfy those needs through addressing:(the four P’s of marketing mix)1.product2.price3.place4.promotion and serviceMarket Strategy: To analyze its competitive advantages, plans, and actionsTarget Marketing: To select specific markets to serve.5 areas of the marketing program:1. products and services. (narrow product line, specialized services)2. Price (allow customer to pay for It before or after the fact)Higher prices mean lower volume23. Promotion (adverstising, salesmenship,4. Place or distribution channel (location or distributor)5. Service (customer service) Market research:Systematic gathering of information about your customer base.Steps:1. define the problem/opportunity2. assess available information3. gather additional information4. external data and secondary research5. primary research6. organizing and interpreting data7. making decisions and taking action8. assessing the results of the action Target Marketing:Geographic segmentation (focusing on the needs of the customer based on their geographic location) Demographic Segmentation (focusing on the attributes of market based upon gender, age, income, education or other measurable factors) Physiographic Segmentation (putting people into groups based on beliefs or ideas they have)Sales Forecast: to attempt to predict your unit sales and revenue. The process begins by assessing how the total market will perform. you must look at how your competitors are doing.Different types of forecasting?Market forecast: take your sales and add the growth rate to it potential forecast: what you should have sold your potential- in graph in fasttrack reportDecember customer survey score: add all the scores up and get a percentage of the one u want and use that percent to calculate how much to produce. make sure you make the increase by either 10/20% for the next years total sales.Diminishing return : also referred to as the rate of diminishing return, states that adding additional investment beyond a certain threshold will not add proportional returnsfor example???:Chapter 3:Accounting3Management Accounting: provides vital information about a company to internal users. helps managers plan, operate, and control a company’s activities. managers make more informed effective decisions.Financial Accounting: gives information about a company to external users. -external users: people outside the company who need accounting info to decide whether or not to engage with the company. GAAP (Generally Accepted Accounting Principles): principles developed to insure that information is relevant, reliable, material and valid.Budgeting: process of quantifying managers’ plans and showing the impact of these plans on the company’s operating activities Cost Analysis: defining costs of specific activities or products within a companyManufacturing Cost Reports: reports used to highlight differences in cost for managers to analyze. Balance Sheet summarizes the company position at the end of a given day. -Assets: the economic resources that a company owns and that it expects will provide future benefits to the company. Anything owned or under the direct control of a companyis an asset -Liabilities: the company’s economic obligations (debts) to its creditors. -Owner’s equity: the owner’s current investment in the assets of the company includes the owner’s original contribution.-Assets= liabilities + Owners equity Current Assets: assets that can be converted into cash with a year -cash: currency readily available to the business-accounts receivable: the amount your customers owe because they purchased from you on credit.-inventory: the product the business has on hand to sell.-Total current assets: assets used to operate your businessFixed assets: assets that have a long-term use or value -property, plant and equipment: purchase price for land, buildings and equipment thatyou use to create your products/services-accumulated depreciation: how much of the value of your plant and equipment you have used up while operating your business 4-total fixed assets: net value of your