Term
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Definition
| refers to the markets the organization serves, the products and services it offers, and the needs it professes to meet in the marketplace |
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Term
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Definition
| refers to the value-creating skills that an organization’s employees bring to the marketplace. |
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Term
| • Organizational efficiency and structure |
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Definition
| a reflection of the complexities of the business activities that circulate within an organization. |
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Term
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Definition
| mission-focused activities aimed at identifying the needs of a particular market, or markets, and the development of a solution to such needs through the acquisition or transformation of goods and services that can be delivered to the marketplace at a profit. |
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Term
| assets, labour, capital and managerial acumen |
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Definition
| • 4 core fundamental resource areas of a business model |
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Term
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Definition
| represent the infrastructure and resource base of the organization |
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Term
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Definition
| refers to the human resource requirements of the business |
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Term
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Definition
| refers to the money needed by an organization to support asset-based expenditures, meet operating cash requirements, and invest in the development of the new products or services that the organization desires to introduce into the marketplace. |
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Term
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Definition
| refers to the foresight, drive, knowledge, ability, decision-making competency, and ingenuity of the organization’s key individuals. A key component is the visionary leadership that a senior management team provides |
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Term
| capabilities, competencies, capacity |
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Definition
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Term
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Definition
| refers to individuals, groups or organizations that have a direct or indirect relationship with an organization, and that can be impacted by its policies, actions, and decisions. |
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Term
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Definition
| the ‘bottom line’ results that an organization has realized for a given period of time. Total Revenue – Total Expenses = |
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Term
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Definition
| corresponds to the efficiency and effectiveness of an organization to use its assets and its capital to generate profits for the organization over a period of time. Takes into account factors such as return on the capital invested, return on equity, the financial leverage the organization undertook to finance its assets, etc. |
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Term
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Definition
| a statement that summarizes whom a product/service is geared toward and the benefits the purchaser will realize as a result of using the product. It also communicates to the purchaser how the product or service differs from competing products or service offered= service + product + brand + cost + emotional benefits |
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Term
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Definition
| a portion of the market that is deemed to possess unique characteristics businesses can target in order to generate a preference for their products and/or services |
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Term
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Definition
| occur when commencing a business operation or expanding its capacity. Examples could be the purchase of equipment or building(s). |
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Term
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Definition
| expenses incurred as a result of the normal business operations. Examples include salaries of employees, the purchase of raw materials for the fabrication of products, shipping costs, or the costs of advertising campaigns. |
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Term
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Definition
| the development of plans and decisions that will guide the direction of the firm and determine its long-term performance. It also checks the life expectancy of the product and assess whether the firm has the resources to compete in the market |
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Term
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Definition
| the immediate term actions that a firm executes to meet the short-term objectives set forth in the current planning cycle. |
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Term
| environmental stewardship |
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Definition
| the integration of sustainability values into the managing of environmental resources |
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Term
| Climate Change, Pollution and Health, The Energy Crunch, Resource Depletion, and the Capital Squeeze |
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Definition
| five great sustainability challenges |
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Term
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Definition
| the 1997 (effective 2005) international agreement that binds participating nations into stabilizing and reducing greenhouse gas emissions |
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Term
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Definition
| a measure of heat required to raise the temperature of one pound of water by 1 degree F. |
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Term
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Definition
| are based on the belief that resources are finite and that, at some point in time, the availability of such resources will pass their maximum production point and begin to decline |
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Term
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Definition
| the ability to actively manage existing supplies and regenerate new supplies of material in such a way that we minimize resource depletion |
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Term
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Definition
| country or state owned investment funds |
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Term
| cost of capital (interest rates, cost of company funds both debt and equity) |
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Definition
| will increase as the demand for capital for investment purposes exceeds the supply. |
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Term
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Definition
| government actions or policies that restrict the outflow of funds from one economy to another. |
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Term
| eco efficiency management |
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Definition
| refers to the tactical shifts required within business operations to maximize the efficiency of resource utilization and minimize or eliminate the resulting current degradation of the planet that such operations bring. Consists of 2 broad categories of operational reassessment: resource management and emissions management |
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Term
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Definition
| includes the processes involved in transforming materials into a product or service available for sale in the marketplace |
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Term
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Definition
| how our economic evolution has driven the environment degradation to the level that we now face |
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Term
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Definition
| a type of investment fraud that involved the payment of purported returns to existing investors from funds contributed by new investors ex of Bernie Madoff, Nortel Networks Co, Enron, WorldCom, Tyco, Orion |
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Term
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Definition
| reflects the moral principles or beliefs about what an individual views as being right or wrong. |
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Term
| individual, societal, professional, business culture |
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Definition
| • Four fundamental sources of Ethics |
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Term
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Definition
| we need to think in terms not of what is in our personal best interest, but what is in the best interests of the stakeholders and the public at large |
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Term
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Definition
| honestly, reliability, ethics, moral judgment. The most important skill you can bring to the workplace |
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Term
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Definition
| • For many organizations, the responsibility for developing policies relating to values, ethics, and financial integrity lies with _____, the governing body of a corporation, comprising of individuals chosen or elected to oversee the management of the organization |
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Term
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Definition
| the process through which an individual informs someone in authority of a dishonest act |
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Term
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Definition
| the name for a statement that describes the required responsibilities, actions, and rules of behaviour of an organization’s employees |
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Term
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Definition
| the integration of accounting, auditing and investigative skills (field that has significantly grown). Looks beyond the numbers in order to interpret what exactly is transpiring within an organization |
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Term
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Definition
| the understanding that the purpose of an organization is to create shared value by strategically integrating into its actions a partnership mentality with society where the objectives of both parties are met. It means treating the public interest as a key stakeholder in an organization’s operational success. |
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Term
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Definition
| refers to the ability to produce or supply goods at a lower cost than other countries or to possess unique services or resources that are unavailable elsewhere |
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Term
| the law of supply and demand |
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Definition
| the ability of the market, independent of external influences to determine the price for which a product or service will be bought and sold |
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Term
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Definition
| reflect a situation where the quantity demand does change significantly due to a change in price. |
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Term
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Definition
| results when movement in price does not result in significant changes in demand |
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Term
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Definition
| governed largely by the law of supply and demand, provides full and open access to the principles of private ownership, entrepreneurship and wealth creation and possesses an absence of regulation on the part of a government. Foreign trade and movements in labour and capital are largely unrestricted. |
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Term
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Definition
| an economic system where the fundamentals of supply and demand, the principles of private ownership, entrepreneurship and wealth creation are largely restricted or absent and the government controls economic direction and activity. No or minimal external trade |
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Term
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Definition
| includes the core principles of economic freedom, with some degree of centralized economic planning and government regulation and involvement. |
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Term
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Definition
| the purchases you make in support of your day-to-day economic activity that are deemed to be of value in meeting sustenance needs and in improving your quality of life. Clothing, food, housing would be examples. |
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Term
| capital asset investments |
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Definition
| only make to further expand your capacity to conduct and expand your productivity and overall economic capacity. |
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Term
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Definition
| refers to the total market value of the goods and services (economic output) a nation produces domestically over a period of time. Examples of factors that contribute to GDP are goods and services produced and purchased domestically, business investments, goods produced for export, government spending. Track to determine whether an economy is growing or contracting. It is a reflection of the overall economic output of a country, or region |
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Term
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Definition
| typically believed to occur when an economy experiences two or more quarters of negative GDP movement. |
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Term
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Definition
| are financial institutions regulated under the Canada Bank Act. Their primary responsibility is to bring together borrowers and lenders by accepting deposits and lending out money- all in a manner that safeguards the interests of their customers. |
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Term
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Definition
| a rise in the level of prices of goods and services within an economy over a period of time |
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Term
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Definition
| means being equal or equivalent to- the value of one currency being equal to that of another |
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Term
| o Purchasing Power Parity (PPP) |
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Definition
| a measure that takes into account the relative cost of living and the inflation rates of each country and adjusts the total value of economic activity accordingly |
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Term
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Definition
| refers to a macro-level assessment of the political, economic, social, technology, environmental, and legal trends that can or will impact the markets within which an organization competes |
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Term
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Definition
| . It is the outcome of the intent of economic policies that are put in place to protect or improve the competitiveness of domestic industries via impeding or restricting the openness of a market to foreign competitors through the use of tariffs, trade restrictions, quotas, artificial control of currency values or other related activities. |
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Term
| o Purely Competitive Markets |
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Definition
| characterized by a number of similar products or services, the absence of a dominant market leader and few barriers to entry. Absence of differentiation. The product is largely viewed as a commodity, with price being a key component of the overall purchase decision. |
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Term
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Definition
| markets that possess a number of different suppliers of products and services but the nature of the product, along with the marketing efforts, has enabled true differentiation to set in. ex of cell phones |
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Term
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Definition
| contain a small number of suppliers that control a large percentage of market share within the market and achieve success in distinguishing themselves from their competitors. Ex- the commercial passenger airline manufacturing business |
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Term
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Definition
| are served by a single product/service supplier. Many are government regulated. The best solution. Ex is the delivery of utilities such as electricity. |
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Term
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Definition
| the sale of a company’s stock for the first time in the public marketplace with the intent to raise equity to fund company operations and growth |
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Term
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Definition
| transferring a component of a firms business system to another country for the purpose of reducing costs, improving efficiency or effectiveness, or developing a competitive advantage |
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Term
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Definition
| contracting out a portion of, or a component of, a firm’s business system for the purpose of reducing costs, improving efficiency or effectiveness, acquiring expertise, or developing a competitive advantage. |
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Term
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Definition
| refers to the cash position of a company and its ability to meet its immediate debt and operational obligations. It also refers to the ability of the company to convert existing assets to cash in order to meet such obligations. |
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Term
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Definition
| refers to the long term stability of the company and its ability to meet its ongoing debt and operational obligations and to fund future growth |
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Term
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Definition
| the illegal market that arises within economies where goods are scarce, taxation on such goods is high, or the prices of legit goods are beyond the capacity of significant segments of the population to buy |
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Term
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Definition
| debt issued by a national government |
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Term
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Definition
| a general term that describes the variety of loans that could be offered to a business or country |
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Term
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Definition
| the relationship between imports and exports over a defined period of time. A positive balance = trade surplus, negative =deficit |
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Term
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Definition
| a country’s net trade in goods and services plus net earnings from interest and investments and net transfer payments to and from the rest of the world during the period specified |
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Term
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Definition
• for many, the easiest way to commence a business
• it is the commencement of business by a single individual where there is no real creation of a separate legal business entity |
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Term
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Definition
| a written agreement among the partners that outlines the expectations of each partner and details how the partnership is going to work. It outlines the percentage of ownership that is attributed to each partner |
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Term
| joint and several liability |
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Definition
| refers to the liability obligation of partners as the result of a legal contract. Partners can be held individually liable for their share of the obligation (several) or fully liable for the full obligation (joint) in the event that the other parties to the agreement are unable to pay their obligations |
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Term
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Definition
| a written agreement among the partners that details the sale by one partner and the purchase by another of the business interest of the selling partner |
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Term
| • limited liability partnership (LLP): |
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Definition
| a partnership made up of both general partners and limited passive partners. Limited partners contribute equity capital but are not actively involved in the management. Commonly found in the real estate sector |
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Term
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Definition
| the legal process of setting up a corporation |
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Term
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Definition
| refers to the initial sale of stock through a public exchange |
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Term
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Definition
| refers to stocks being publicly traded through a dealer network versus an exchange |
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Term
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Definition
| refers to an organization’s mixture of debt, internal cash reserves and external equity-based investments in financial support of operational activities |
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Term
| current year operating profits |
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Definition
o the excess dollars that organizations have generated during the current operating period as a result of their business activities after their current expense obligations that been paid.
o Total revenue – total operating expenses during a defined period of time |
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Term
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Definition
| o represents the dollar amount of net earnings that an organization has accumulated over the history of its operations and that it has chosen to hold within the organization |
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Term
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Definition
| the most accurate recognition of the capacity of the organization to draw on its cash reserves to fund its current and future needs |
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Term
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Definition
| refers to debt that an organization has taken on in support of its business activities. |
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Term
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Definition
| refers to money owed by an organization to its suppliers and are found under the current liabilities section of the balance sheet |
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Term
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Definition
| refers to money owed by customers of the organization for products or services that the organization has delivered to such customers but has not yet received payment for. |
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Term
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Definition
| • Refers to capital assets used to secure a credit facility. Would be used to pay off the lender in the event that the organization cannot meet the credit facility repayment obligations |
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Term
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Definition
| refers to an arrangement with a lending institution that provides an organization with a pre-arranged borrowing ceiling (max) that the organization can draw on at any time and in any amount up to the agreed up on limit. Immediate access to a predetermined sum of money at a specified interest rate. |
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Term
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Definition
| refers to the total sum of money over and above the principal borrowed paid by an organization as a result of incurring and repaying debt obligation. Includes interest paid and costs incurred insetting up the credit facility |
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Term
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Definition
| a credit facility by which an organization borrows money for a stipulated period of time. In return for these funds, the organization promises to pay the holder of the bond an agreed-upon amount of interest at regular intervals during the period of time for which the funds are borrowed. Represent a legal obligation to pay the face value of the bond on a given date in the future. |
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Term
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Definition
| offer objective and independent creditworthiness assessment of an organization’s solvency, liquidity, and overall long term health |
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Term
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Definition
| refers to a high probability of default. Commonly referred to as speculative bond |
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Term
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Definition
| refers to the amount borrowed or the amount remaining on a loan separate from the cost of borrowing |
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Term
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Definition
| • The length of time for which the mortgage will be underwritten |
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Term
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Definition
| refers to a credit facility under which an organization borrows a stipulated amount of money, for a defined period of time with a defined interest rate schedule. Generally shorter than a mortgage but similar in style |
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Term
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Definition
| refers to the base-lending rate used by banks. The rate at which banks lend money to their most preferred customers |
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Term
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Definition
| represent a legal obligation to pay a service provider with an agreed-upon amount of money |
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Term
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Definition
| refers to the use of debt to finance an organization’s capital asset base |
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Term
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Definition
| investments can be either a direct monetary investment into the company or monetary investment as a result of the issuance of stock |
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Term
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Definition
| a security that represents a percentage of ownership in a corporation’s assets and entitlement to a pro-rata claim on earnings when released |
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Term
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Definition
| refers to an additional public offering of an organization’s stock for the purpose of raising new capital |
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Term
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Definition
| which means that the price of existing stock will decline due to the fact that a larger number of shares now exist. |
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Term
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Definition
| refers to the current market value of an organization. It is calculated by taking the number of shares outstanding multiplied by the current value of shares |
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Term
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Definition
| the required legal document to be filed with the securities commission that has jurisdiction for the share issuance, it provides information relating to the current financial stability of the company and the intent of the share issuance, thereby enabling investors to make an informed decision on the risk associated with the purchase of the shares being offered. |
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Term
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Definition
| the portion of an organization's revenue that is left over after the organization has paid the direct costs associated with its products |
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Term
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Definition
| the portion of an organization's revenue that is left after all operating expenses associated with its products or services have been paid |
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Term
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Definition
| represent the flow of money within the organization that is directly related to day-to-day business dealings |
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Term
| capital asset transactions |
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Definition
| the decisions managers make with respect to investment and divestment of capital assets that may be needed, or are no longer needed, as part of the organization's business system |
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Term
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Definition
| the amount of assets an organization possesses that can easily be converted to cash |
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Term
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Definition
| the ability of an organization to generate revenue and to grow its revenue streams |
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Term
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Definition
| the ability of an organization to meet long-term fixed expense requirements and to fund future growth |
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Term
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Definition
| the ability of an organization to effectively manage its operations and allocate its resources |
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Term
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Definition
| the financial statement that responds to the question of whether our business is earning a profit as a result of the sales we have made versus the expenses we have incurred in developing our goods and services and delivering them to the marketplace |
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Term
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Definition
| reflects the dollar amount that the organization has received asa result of sellings its products |
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Term
|
Definition
| are the expenses that are directly incurred in the manufacturing of a product or the delivery of a service. includes cost of components, labour, packaging and delivery charges |
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Term
| general operating expenses |
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Definition
| are indirect expenses that an organization incurs and that must be paid from an organizations gross profit margin. include admin expenses, general marketing expenses, operational overhead |
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Term
| earnings before interest and taxes (EBIT) |
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Definition
| is determined by subtracting general operating expenses from gross profit margin |
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Term
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Definition
| is the interest payments that the organization is obligated to pay during a specified period on the debt that the organization has undertaken in order to finance its operations |
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Term
| earnings before taxes (EBT) |
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Definition
| is the amount of earnings the operation has produced prior to recognizing its federal and provincial income tax obligations |
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Term
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Definition
| represents the firms profit or loss from the sale of its products to its customers. |
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Term
|
Definition
| provides managers with an understanding of the resources the organization has at its disposal at a given point in time, and the financial obligations the business has incurred as a result of purchasing these resources |
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Term
|
Definition
| refers to the resources that the organization has at its disposal and that it can utilize in the generation of business activity and ultimately profit |
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Term
|
Definition
| the debts or financial obligations that an organization has incurred |
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Term
|
Definition
| represents the value of capital received from the owners of the business that is used to fund the start up or ongoing operations of the business as well as reflecting the value of the organizations retained earnings |
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Term
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Definition
| owners capital invested + retained earnings |
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Term
|
Definition
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Term
|
Definition
|
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Term
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Definition
| provides managers with a full understanding of the total movement of cash from all sources into and out of the business |
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Term
|
Definition
| seek to define the relationship between critical components of information found on financial statements |
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Term
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Definition
| focus on assessing the amount of income the organization has earned in comparison to the operating activity that has taken place and the assets that have been used to support its generation |
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Term
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Definition
| identifies to managers the percentage of sales the company has generated that actually represent profit for the business |
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Term
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Definition
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Term
|
Definition
| identifies the relationship of net income to the total asset base of the organization |
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Term
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Definition
| computes the amount of net income that was earned on each dollar of invested capital provided by the business's owners |
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Term
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Definition
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Term
|
Definition
|
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Term
|
Definition
| this ratio is calculated for corporations where shares have been issued and investors are looking to see what the return on their investment is for each share purchased |
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Term
|
Definition
| net income/# of shares outstanding |
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Term
|
Definition
| shows the relationship between an organizations current assets and current liabilities |
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Term
|
Definition
| current assets/current liabilities |
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Term
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Definition
| useful when an organization is really concerned about its current liquidity position. |
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Term
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Definition
| cash + marketable securities + accounts receivable/ current liabilities |
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Term
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Definition
| designed to assess the ability of an organization to meet its long term financial obligations |
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Term
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Definition
| net income + depreciation/ total liabilities |
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Term
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Definition
| focus on the amount of debt an organization has taken on , the relatinoship of this debt value against its total asset base, and the ability of the organization to meet its debt servicing obligations |
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Term
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Definition
| this lets managers know how much of the asset base of the organization has been created via debt financing. this identifies the amount of financial leverage the organization has assumed in order to build the company |
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Term
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Definition
| total liabilities/total assets |
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Term
|
Definition
| assist managers in assessing the efficiency and effectiveness of key components of an organizations operations |
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Term
|
Definition
| the # of days it takes to convert accounts receivable to cash is an important piece of information for managers to understand |
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Term
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Definition
| the amount of debt an organization uses in order to finance its asset base |
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Term
| forecasting and budgeting |
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Definition
| refers to managements ability to project forward anticipated results for the upcoming quarter, year, or planning cycle period |
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Term
| designated restricted areas |
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Definition
| assets that have been earmarked for a specific purpose and that are not available for managers to support organizational operating needs |
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Term
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Definition
| the process by which we assess and interpret the relatinoships among the financial results shown on an organizations financial statements |
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Term
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Definition
| the process of assessing the impact of the amount of debt an organization has incurred in order to finance its asset base |
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Term
| trend or comparative analysis |
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Definition
| whereby we look at trends occurring over time by analyzing financial statements across multiple time periods |
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Term
|
Definition
| where we look at the specific dollar amount |
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Term
|
Definition
| management's primary orientation is the economic interests of shareholders |
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Term
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Definition
| management should maximize profits but not at the expense of employees, suppliers, community |
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Term
current cash position
short term debt
long term debt
common equity
preferred equity |
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Definition
| the firm's capital structure determines how a company fiannces its overall operation and growth through a mix of the following: |
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Term
|
Definition
| where is the current cash position found |
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