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SM- 400 Glossary
| Question | Answer |
|---|---|
| Audit | process by which an organizations account and records are verified |
| Balance sheet | a financial statement that captures the financial condition of the business at that particular moment |
| Break- even analysis | the process of determining the level at which revenues equal total costs |
| cash flow analysis | the process of determining the amount of cash a business has to work with at any given time |
| concurrent controls | mechanisms used to monitor and regulate a task, activity, or performance while it is occurring |
| controlling | the management function that monitors the work effort |
| feedback control | mechanism used to monitor and regulate a task, activity, or performance after it has already occurred |
| feedforward control | mechanisms used to monitor and regulate task, activity, or performance before it occurs |
| financial ratio | comparison of two numbers from a business financial statement: used as a tool by businesses to see relationship between dollars, numbers, and percentages |
| financial statements | records that show businesses financial activities |
| guarantee | a promise made to the consumer that a products purchase price will be refunded if the product is not satisfactory; often called money back guarantee |
| motivate | prompt another person to take some kind of action |
| return on investment | net profit divided by investment or the "bottom line" on how successful an ad or campaign was in terms of what the returns were for the money expended |
| sustainability | the successful long term management of an organizations financial , social, and environmental risks, opportunities and obligations |
| test marketing | the process of introducing a new product yo a limited market to determine what its acceptances will be |
| warranty | a promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected |