B6005 Financial Management

Answer Key In-class Exercise 3 Bond Valuation

Discounted cash flows                                                                                         Answer: F

.         The market value of any real or financial asset, including stocks, bonds, or art work, may be found by determining future cash flows and then discounting them back to the present.

Call provision                                                                                                                  Answer: F 

.       A call provision... Continue reading "B6005 Financial Management" »

What is E-commerce?

Definition of E-commerce

E-commerce is the process of conducting commercial transactions, such as buying and selling goods or services, using the internet and electronic communication.

Types of E-commerce

• Business-to-Consumer (B2C): Businesses selling directly to individual consumers (e.g., online retailers).
• Business-to-Business (B2B): Businesses selling to other businesses (e.g., wholesale suppliers).
• Consumer-to-Consumer (C2C): Individuals selling directly to other individuals (e.g., online marketplaces).
• Mobile Commerce (M-commerce): Transactions conducted through mobile devices.

Significance of E-commerce

E-commerce is important because it offers businesses the ability to reach a global audience, operate 24/7, reduce costs,... Continue reading "E-commerce Essentials: Digital Commerce & Online Business Benefits" »

Principles of Economics

Scarcity and Economics

Scarcity refers to the limited nature of society's resources. Economics is the study of how society manages its scarce resources.

How People Make Decisions

1. People Face Tradeoffs

Every decision involves tradeoffs. A significant tradeoff society faces is between:

• Efficiency: When society gets the most from its scarce resources.
• Equality: When prosperity is distributed uniformly among society's members.

Tradeoff Example: To achieve greater equality, income could be redistributed from the wealthy to the poor. However, this can reduce the incentive to work and produce, shrinking the overall economy.

2. The Cost of Something Is What You Give Up to Get It

Decision-making requires comparing the costs and benefits... Continue reading "Principles of Economics: A Comprehensive Guide" »

Essential Business & Financial Definitions

• Start-up: A new business

• Benefit: An advantage or gain

• Idea: A concept or thought

• Problem: A challenge to solve

• Solution: A way to solve a problem

• Product: A good for sale

• Service: A helpful action or work

• Customer: A buyer or user

• Target Audience: The intended group of people

• Competition: Other businesses in the market

• Business Plan: A roadmap for a business

• Marketing: Promoting products or services

• Funding: Money for a business

• Earn: To receive money for work

• Income: Money received regularly

• Sales: Transactions of goods or services

• Profit: Money earned after costs

• Goods: Physical products

• Savings: Setting money aside

• Budget: A plan for money management

Synonyms for Key Business Terms

• Start-up: New company, new venture

• Benefit:

Key Economic Indicators & Labor Market Concepts

Macroeconomic Goals & Measures

Monetary Policy: Changes in the money supply, or the rate of growth of the money supply, to achieve particular macroeconomic goals.

Consumer Price Index (CPI): A widely cited index number for the price level; the weighted average of prices of a specific set of goods and services purchased by a typical household.

Unemployment & Employment Metrics

Unemployment Rate: The percentage of the civilian labor force that is unemployed.

Formula: Number of unemployed persons / Civilian labor force

Employment Rate: The percentage of the civilian non-institutional population that is employed.

Formula: Number of employed persons / Civilian non-institutional population

Labor

Cost Accounting Concepts and Objective Questions

Here are some key cost accounting concepts and objective-type questions to test your understanding:

Key Cost Accounting Concepts

1. Costing: Refers to the allocation of costs to cost centers and cost units.
2. Economic Order Quantity (EOQ): The optimal order quantity that minimizes total inventory costs.
3. Idle Time: Time spent by workers on unproductive activities.
4. Apportionment: The process of distributing overheads to various cost centers.
5. Profit under Absorption Costing: Higher when production exceeds sales compared to marginal costing.
6. Purpose of Cost Accounting: To ascertain and control costs.
7. Minimum Stock: The minimum level of inventory that must be maintained at all times.
8. Labor Turnover: Measured as

Understanding Liberalism: Core Principles and Evolution

Liberalism is based on the idea that individuals acting in their self-interest can benefit society. Adam Smith’s concept of the "invisible hand" explains how self-interest drives economic growth. However, Smith also recognized the need for state intervention to prevent monopolies and maintain fair competition.

Key Economic Principles of Liberalism

• Free Trade: David Ricardo’s theory of comparative advantage demonstrates that countries benefit when they specialize in what they do best and trade with others. While beneficial, these advantages are not always equally distributed.
• Private Property: Valued for driving innovation and market efficiency.
• Competition: Essential for efficient markets,

Business Studies

The NBER has formally affirmed that the US financial system is in a recession.

By putting into action an effective monetary policy, the Federal Reserve and the US government could uphold stable prices, thus sustaining conditions for long-standing economic expansion as well as increased employment opportunities. This study will explain how open market operations, discount rate, and reserve requirements could be utilized in order to stimulate the American economy.

Open Market Operations

Open market operations (OMOs) refer to the buying and selling of securities by a central bank in the open market to execute monetary policy. OMOs could be utilized in adjusting the supply of reserve balances in order to uphold the federal funds rate... Continue reading "Monetary Policy Tools to Revive the US Economy" »

There are several forms of business organizations, each with its own structure, advantages, and disadvantages. The choice of business organization affects factors like legal liability, taxation, management, and control. Here are the main forms of business organizations and their pros and cons:

1. Sole Proprietorship

A sole proprietorship is a business owned and operated by a single individual. It's the simplest form of business organization.

Advantages:

• Easy to set up and dissolve – Minimal legal formalities and low start-up costs.
• Complete control – The owner makes all decisions and keeps all profits.
• Tax simplicity – Profits are taxed as personal income, avoiding corporate taxes.

Disadvantages:

• Unlimited liability – The owner is personally

Mastering Post-Sale Customer Engagement

Achieving Repeat Sales

Repeat sales are earned by consistently demonstrating the ability to add value in diverse ways.

Responding to Post-Sale Customer Expectations

• Ensure your customer strategy is on target.
• Focus on diligent follow-through and follow-up activities.
• Regularly reexamine your product strategy.

Understanding Customer Attrition

Regaining a lost customer can be four to five times more expensive than retaining a current, satisfied customer.

Main Causes of Customer Attrition:

• Poor service
• Product dissatisfaction
• Price considerations

Key B2B Service Behaviors

1. Diligence: Persistence in service delivery.
2. Information Communication: Transparent and timely sharing of relevant updates.
3. Inducements: Offering incentives