Business Management Overview and Global Environment

A comprehensive system for collecting, analyzing and communicating financial information.

Recording financial transactions, like sales or expenses.

A system that uses technology to collect, process, and distribute financial information.

Provides financial data for external users like investors and creditors.

Provides financial data specifically for internal managers to make decisions.

A snapshot of a company's assets, liabilities, and equity at a specific point in time.

A summary of a company's revenue and expenses over a specific period.

Tracks the movement of cash in and out of a company over a period.

The process of creating tangible products that can be stored and inventoried.

The process of creating intangible offerings where customer interaction is crucial.

A set of strategies and tools used to plan, organize, and manage the production of goods and services.

Adds value to products by making them available at the right time.

Adds value to products by making them available at the right place.

Adds value to products by making them available for ownership.

Adds value to products by changing their form to make them more useful or desirable.

A management philosophy that emphasizes continuous improvement of processes and products.

The process of creating a successful business venture, involving key steps like identifying opportunities, developing a business plan, and accessing resources.

A written document outlining a company's goals, strategies, and financial projections. It serves as a roadmap for business growth.

An independent business typically owned and operated by one person with fewer than 100 employees.

A legal structure in which a business is owned and operated by two or more individuals who share profits and losses.

A legal entity that is separate from its owners, providing limited liability and allowing for easier access to capital.

A business owned and operated by a group of people who share in the profits and losses.

A business model in which an existing business grants a license to another party (the franchisee) to operate under its brand and system.

The number of women starting and running businesses has been increasing, reflecting changing demographics and economic opportunities.

Borrowing money that must be repaid with interest.

Selling ownership shares in a company, which doesn't require repayment but can dilute ownership.

The process of identifying, analyzing, and managing potential risks to a business.

The concept of providing value to customers while also achieving profitability for the business.

The four key elements of marketing: product, price, place, and promotion.

Understanding consumer behavior and adapting marketing strategies to meet their needs and preferences.

Categorizing customers into groups based on shared characteristics to tailor marketing efforts.

Building long-term relationships with customers for repeat business and loyalty.

Uncontrollable forces that affect businesses, including economic, technological, political, social, cultural, business, and global aspects.

The cyclical pattern of economic activity, characterized by phases of peak, recession, trough, and recovery. These phases impact overall economic stability, impacting business operations and strategies.

A measure of a country's total output of goods and services produced within its borders during a specific period. A key indicator of economic growth.

A measure of the total value of all goods and services produced by a country's residents, regardless of their location. It includes income earned by citizens abroad. Another vital economic indicator.

A measure of the general increase in prices of goods and services within an economy. High inflation indicates declining purchasing power. It can hinder economic growth.

The percentage of the labor force that is unemployed and actively seeking work. High unemployment rates reflect a weak economy and limited job opportunities.

The use of knowledge, tools, and techniques to create and improve products, processes, and services. It plays a critical role in innovation and value creation for customers.

Regulations, laws, and government policies that affect businesses, including trade policies, tax laws, and environmental regulations.

Ethical accounting practices are essential for maintaining trust in financial reporting and upholding the integrity of the accounting profession.

The main components of financial statements include the balance sheet, income statement, and statement of cash flows. These statements give a comprehensive overview of a company's financial performance and position.

The Accounting Information System (AIS) is a framework that organizes procedures for identifying, measuring, recording, and preserving financial information. This ensures accurate and timely financial reporting.

Financial managers are responsible for making decisions about investments, securing funding, managing daily financial operations, and overseeing risk management within a company.

Businesses assess their funding needs based on both short-term operating expenses (daily operations) and long-term capital expenditures (major investments).

Cash-flow management is crucial for a firm's financial health, ensuring that funds are used efficiently. This involves effectively managing cash inflows and outflows.

The choice between debt and equity financing significantly impacts a firm's capital structure and financial obligations, affecting its cost of capital and risk profile.

Securities markets offer multiple avenues for companies to raise capital, including primary and secondary markets, and provide investors with various investment vehicles.