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Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
primary activities of the value chain - ANSinbound logistics, operations, outbound logistics, marketing and sales, service The value chain - ANSfirm infrasture, human resource management, technology, procurement, inbound logistics, operations, outbound logistics, marketing and sales, service secondary activities of the value chain - ANSprocurement, human resources define inbound Logistics - ANSarranging the inbound movement of materials, parts, and/or finished inventory from suppliers define operations - ANSmanage the process that converts inputs (in the forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services). define outbound Logistics - ANSrelated to the storage and movement of the final product define marketing and Sales - ANSselling a product or service define service - ANSall the activities required to keep the product/service working effectively for the buyer after it is sold and delivered define procurement - ANSacquisition of goods, services or works from an outside external source define human resources Management - ANSinvolved in recruiting, hiring, training, developing, compensating and firing define Technological Development - ANSpertains to the equipment, hardware, software, procedures and technical knowledge used by the firm define infrastructure - ANSconsists of activities such as accounting, legal, finance, control, public relations, quality assurance and general (strategic) management value chain example: Fen Side Golf Course is an internationally known Scottish golf facility. It is not just an eighteen hole world-class golf course, it has a five star hotel with 250 luxury rooms, and private leisure centre, indoor tennis courts, as well as a series of top-class restaurants. A. All staff are trained to the highest industry standards. B. The hotel management team focus on goals set out in their strategic plan. C. All golf course fairways are trimmed and watered daily. D. Fresh fruit and vegetables are delivered and prepared every day. E. The hotel has an advanced room reservation system. F. Fen Side is promoted through magazines targeted at the wealthy and influential. G. The whole experience is based upon high quality, professional service at every stage. H. Limousines are available to take guests to airports as they finish their stay. I. Fen Side has a series of contracts with suppliers of - ANSa. human resources b. infrastructure c. services d. inbound logistics
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
e. technology f. marketing g. operations/Human Resources/Marketing- basically everyone h. Outbound Logistics/service/procurement has to rent limousines/operations I. Procurement/inbound logistics, marketing decides too define value chain - ANSset of activities that let firms produce, sell, and support the goods and/or services that generate its profits define nonprofit organization - ANSOne that doesn't make money or charge for its services? They generate revenue but not profit. They see gaps between revenue and cost.Nonprofits often do make money, but they take that money and use it to advance a cause or to improve their business Pros and cons of working at or running a nonprofit as opposed to a for-profit business? - ANSBenefit society and feel good about what you're doing, satisfied taking a lower salary define goods - ANStangible products define services - ANSintangible products Right now, is the US economy more into goods or services? - ANSservices because its now cheaper to produce goods in other countries what percent of the economy comes from services? - ANS80% define risk - ANSdictionary: possibility of loss or injury finance: the chance that an investment's actual return will be different than expected Suppose you invent a solar-powered car that costs $10,000 per car to make, and you are the only manufacturer. How much would you charge? - ANSYou have to figure what most people can afford. Advertise how much people will be saving on gas by using the car entrepreneurship vs. employment pros and cons - ANSeuntrepeunorship pros: Chance for larger profit, make your own business decisions cons: Risky, might not get a salary for a while during company start up, no benefits and perks, responsible if fails employment pros: Steady income, reliable, benefits and perks, hours, low liability cons: low upside, expandable, boss, less control what is the primary purpose of most businesses? - ANSprofit what type of relationship do risk and profit have? - ANSpositive what is the role of the law in the market? - ANSprevent fraud, protect the honest What is the concept of the invisible hand in? - ANSWealth of Nations by Adam Smith
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
business look to micro to see how to beat competitors. Expanding needs economic trends from macro 3 key indicators of economic health - ANSGDP, gross output, the business cycle, unemployment rate, inflation (check graph on p41) define GDP - ANStotal value of final goods and services produced by economy in a year define gross output - ANSmeasure of total sales volume at all stages of production types of unemployment rate - ANSfrictional, structural, cyclical, seasonal (figure 2.6) inflation - ANSgeneral rise of goods and services how to measure inflation? - ANSCPI - based on a "basket" of goods and services phases of the business cycle - ANSboom, recession, depression, recovery relationship between inflation and money supply - ANSif there is more money in the economy, the spending power of money in the economy decreases higher interest rates means - ANSless borrowing by businesses and more saving by individual lower interest rates means - ANSmore borrowing by businesses and more spending by individuals define capitalism - ANSeconomic system based on free market enterprise, all or most of the factors of production and distribution are privately owned and operated for profit define socialism - ANSeconomic system based on social ownership and control of enterprise Gov decides to use land to build a school instead of park/selling land. If they built a park, they would have 100K in revenue per year at a maintenance cost of 90K per yr for the next 50 yrs. If they had sold the land, it would have sold for 3m. What is the opp cost of building the school? - ANS3 mil, the opp cost was that they gave up selling the land limitations of the invisible hand? What role do ethics play in business? - ANSEthics are what makes the invisible hand effective in the first place. Ethics help people think things through and helps people make better decisions Define conflict of interest - ANSa situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity example of a conflict of interest? - ANSNfl paying NIH researchers to do research on the medical problems of players. Conflict because the nfl probably is making them find no link from football to trauma define abuse of power - ANSthe commission of an unlawful act, done in an official capacity, which affects the performance of official duties 5 P's of Ethical framework - ANSproblem, possibilities, people, principles, priority what is the mendelow model - ANSit determines how to inform people based on their power and interest
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
True or False: Most adults have solid, well-founded ethical beliefs that can be changed only by new evidence or reasoned arguments - ANSFalse. Most people's ethical judgments are easily manipulated by simply changing contextual factors. John is the captain of a submarine. An explosion has caused the sub to lose most of its oxygen supply and has injured a crewman who is bleeding badly and is going to die from his wound no matter what happens. The remaining oxygen is not sufficient for the entire crew to make it to the surface. The only way to save the other crew members is for John to shoot dead the injured crewman now. Then there will be just enough oxygen for the rest of the crew to survive. Is it morally acceptable for John to shoot the injured crewman? - ANSIf he is going to inevitably die, it is better to take one live to save many. True or False: Sally is a tourist in New York City. Late at night she is confronted by a vicious mugger on a side street. Sally starts screaming for help. Sally is better off if there are 20 bystanders close by rather than only one. - ANSfalse, "bystander effect" — tendency of people to take their behavioral cues from those around them, Sally may be better off with only one person nearby because that person will know that unless he or she helps, Sally will be in big trouble. If there are many people, they will look to each other and if nobody takes the lead, they might all do nothing True or False: If you were in a job interview and an interviewer started asking you sexually inappropriate questions, you would stand up and walk out of the interview. - ANSyou would say true but people don't know and forget about ethics because they want the job so bad define compliance ethics code or strategy - ANSethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers, adhere to external standards, focused on punishment as deterrent define integrity ethics code or strategy - ANSethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees, adhere to external and internal standards, focused on empowerment and decision-making define corporate social responsibility - ANSThe concern businesses have for the welfare of society, not just their own bottom line or owners potential reasons to engage in CSR - ANSLower costs and risk (e.g. from litigation), appeal to consumers, reputation 3 questions to ask yourself when determining ethics of your decision - ANSlegal, balanced, self-esteem Types of ethical violations or potential violations - ANSconflict of interest, abuse of power, and accepting the status quo Ethical frameworks are - ANS5 Ps and stakeholder why are the factors of production important - ANSthey are used to create wealth
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
define deflation - ANSA situation in which prices are declining Stagflation - ANSeconomy is slowing but prices are going up anyhow define consumer price index - ANSMonthly statistics that measure the pace of inflation or deflation Core inflation - ANSCPI-food and energy costs, relied on more today by the government producer price index (PPI) - ANSmeasures prices at the wholesale level. fiscal policy - ANSthe federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending define national debt - ANSSum of government deficits over time. Government spending can increase debt define keynesian economic theory - ANSTheory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession define monetary policy - ANSmanagement of money supply and interest rates by the Federal Reserve what are two major tools for managing the US economy - ANSfiscal and monetary policy define ethics - ANSStandards of moral behavior, that is, behavior accepted by society as right versus wrong Whistleblowers - ANSInsiders who report illegal or unethical behavior define insider trading - ANSAn unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends define social auditing - ANSA systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs. Measures whether organizations are making social responsibility an integral part of top management's decision making 3 major forms of business ownership - ANSSole proprietorship, partnerships, and corporations define sarbanes-oxley - ANShelps protect whistleblowers, stops fraud, have to certify the accuracy of financial records define managerial accounting - ANSto provide managers with the financial information they need to oversee the firm and to make decisions define financial accounting - ANSto provide investors the financial information they need to understand how the firm is performing define loss aversion - ANSrefers to people's tendency to prefer avoiding losses to acquiring equivalent gains define risk aversion - ANSthe degree to which you prefer certainty over uncertainty can i business change the form its in? - ANSyes define Sole Proprietorship - ANSa business that is owned, and usually managed, by one person, easier to form
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
what is the most basic form of ownership? - ANSsole proprietorship advantages of a sole proprietorship? - ANSEasy to start and end business, you are your own boss, pride of ownership, leaving a legacy, retention of company profits, no special taxes disadvantages of a sole proprietorship? - ANSunlimited liability, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited life span define unlimited liability - ANSthe responsibility of business owners for all of the debts of the business define partnership - ANSthe legal form of business with two or more owners, easier to form types of partnerships: - ANSGeneral Partnership Limited Partnership, general partner, limited partner, limited liability, master limited partnership (MLP), limited liability partnership (LLP) define general Partnership - ANSA partnership in which all owners share in operating the business and in assuming liability for the business's debts define Limited Partnership - ANSA partnership with one or more general partners and one or more limited partners. define General Partner - ANSAn owner (partner) who has unlimited liability and is active in managing the firm. define Limited Partner - ANSAn owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment define limited Liability - ANSThe responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders (stockholders) have limited liability. define Master Limited Partnership (MLP) - ANSA partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax. define Limited Liability Partnership (LLP) - ANSA partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision. define uniform Partnership Act (UPA) - ANSAll states except Louisiana have adopted it, it defines 3 key elements of any general partnership: Common ownership, Shared profits and losses, Right to participate in managing the operations of the business advantages of partnerships - ANSMore financial resources, shared management and pooled/complementary skills and knowledge, longer survival, no special taxes Disadvantages of Partnerships - ANSUnlimited liability, Division of profits, Disagreements among partners, Difficulty of termination
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
define franchise agreement - ANSAn arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory. define franchisor - ANSA company that develops a product concept and sells other the rights to make and sell the products. define franchise - ANSThe right to use a specific business's name and sell its products or services in a given territory. define franchisee - ANSPerson who buys a franchise. advantages of franchises - ANSManagement and marketing assistance, personal ownership, nationally recognized name, financial advice and assistance, lower failure rate disadvantages of franchises - ANSLarge start-up costs, shared profits, management regulation, Coattail effects, restrictions on selling, fraudulent franchisors why is franchising in the US successful? - ANSbecause of convenience and a predictable level of service define cooperatives - ANSalso a co-op, the business of owned and controlled by the people who use it--producers, consumers, or workers with similar needs who pool their resources for mutual gain, Formed to give members more economic power as a group define entrepreneurship - ANSAccepting the risk of starting and running a busines why does you take the entrepreneurial risk? - ANSopportunity, profit, independence, challenge Entrepreneurial attributes needed? - ANSSelf-directed, self-nurturing, action-oriented, highly energetic, tolerant of uncertainty how to do you know if its a good business idea? - ANSFill customers' needs, you have the skills and resources necessary to start the business, you can sell the product or service at a price customers are willing and able to pay- and still make a profit, you can get your product or service to customers before your window of opportunity closes, can keep the business going define entrepreneurial Team - ANSA group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product, Teams may be better off define intrapreneurs - ANSCreative people who work as entrepreneurs within corporations, Use a company's existing resources- human, financial, and physical- to launch new products or services define micropreneurs - ANSEntrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle, don't need lots of growth, growth of home-based businesses due to technology, corporate downsizing, social attitudes changing, newer taw laws loosening
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
restrictions on deducting expenses for home offices, challenges of working at home: getting new customers, managing time, keeping work and family tasks separate, abiding by city ordinances, managing risk what type of businesses are growing - ANSonline what do online businesses need - ANSexceptional service and a quick throw around time define entreprise zones - ANSSpecific geographic areas to which governments try to attract private business investments by offering lower taxes and government support, also called empowerment zones or enterprise communities define incubators - ANSCenters that offer new businesses low-cost offices with basic business services define small Business Administration (SBA) - ANSA U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans define small business - ANSA business that is independently owned and operated, is not dominate in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts what percent of the nation's jobs are in small businesses - ANS65% According to the SBA, half of new business don't last ___ years - ANS how many years experience should you have before starting a small business? - ANS How to determine a fair price for a business? - ANSBase the value on what the business owns, what it earns, what makes it unique Major cause of small-business failures is - ANSpoor management Primary concerns when starting a business - ANSplanning and financing define business plan - ANSA detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s) how to finance your business? - ANSpersonal saving, family and business associates, banks and finance institutions, community development financial institutions, angel investors, donation-based services called peer-to-peer lending or crowdfunding, crowd investing/equity crowdfunding, venture capitalists define angel investors - ANSprivate individuals who invest in potentially hot companies before they are public define venture Capitalists - ANSIndividuals or companies that invest in new businesses in exchange for partial ownership of those businesses define Service Corps of Retired Executives (SCORE) - ANSAn SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
define Span of Control - ANSThe optimal number of subordinates a manager supervises or should supervise for span of control, at lower levels where work is standardized, you can have - ANSa broad span of control (15-40 workers) for span of control, at higher levels, you can have - ANSnarrow your control because you need more face to face communication span of control trends today? - ANSexpand span of control, reduce number of middle manager, hire more talented/educated lower-level employees define Tall Organization Structures - ANSAn organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management, Too many messengers-inefficient define Flat Organizational Structures - ANSAn organizational structure that has few layers of management and a broad span of control, More recent way, Large organizations use flat structures to match friendliness of small firms advantages of departmentalization - ANScan develop skills in depth, achieve economies of scale by centralizing needed resources, top management can easily direct departments' activities, saves costs and improves efficiency Disadvantages of departmentalization - ANShard to communicate, response to external changes may be slow, people may be narrow specialists and can't do a lot, department members all think the same and need outside help for new ideas in what ways can you departmentalize? - ANSby product, function, customer group, geographic location, process, some firms use a combination of techniques 4 ways to structure an organization - ANS1Line Organizations, Line-and-Staff Organizations, Matrix-Style Organizations, Cross-Functional Self-Managed Teams define Line Organization - ANSAn organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor, small business organize this way, this follows fayal's traditional management rules, too inflexible for large businesses define Line Personnel - ANSEmployees who are part of the chain of command that is responsible for achieving organizational goals define staff personnel - ANSEmployees who advise and assist line personnel in meeting their goals large businesses turn to what kind of organization? - ANSline and staff organizations define Matrix Organizations - ANSAn organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
advantages of matrix organizations - ANSmanagers have flexibility in assigning people to projects, encourages inter organizational cooperation and teamwork, can produce create solutions, efficient use of organizational resources disadvantages of matrix organizations - ANScostly, complex, confuse employees are where loyalty belongs, requires good interpersonal skills, may provide temporary solutions to long- term problems define Cross-Functional Self-Managed Teams - ANSGroups of employees from different departments who work together on a long-term basis, works best when leadership is shared define networking - ANSUsing communications technology and other means to link organizations and allow them to work together on common objectives define virtual corporation - ANSA temporary networked organization made up of replaceable firms that join and leave as needed define benchmarking - ANSComparing an organization's practices, processes, and products against the world's best define core competencies - ANSThose functions that the organization can do as well as or better than any other organization in the world, Happens after a firm has completed its outsourcing process define digital natives - ANSYoung people who have grown up using the Internet and social networking define restructuring - ANSRedesigning an organization so that it can more effectively and efficiently serve its customers define inverted organization - ANSan organization that has contract people at the top and the chief executive officer at the bottom of the organization chart, Manager's job is to assist and support frontline people define organizational Culture - ANSWidely shared values within an organization that provide unity and cooperation to achieve common goals 2 types of organizational systems - ANSformal and informal organization define formal organization - ANSThe structure that details lines of responsibility, authority, and position define informal organization - ANSsystem that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization, too unstructured and emotional to allow careful decision making can companies operate with only formal or informal organization? - ANSno define accounting - ANSthe recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties the financial information they need to make good decisions about its operation, helps managers make well-
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
define current assets - ANSItems that can or will be converted to cash within one year. define fixed assets - ANSAssets that are relatively permanent, such as land, buildings, and equipment define intangible assets - ANSLong-term assets (e.g., patents, trademarks, copyrights) that have no real physical form but do have value) Define liabilities - ANSWhat the business owes to others (debts) two types of liabilities - ANScurrent and long-term liabilities define current liabilities - ANSDebts due in one year or less define long-term liabilities - ANSDebts not due for one year or more common liability accounts recorded on a balance sheet - ANSaccounts payable, notes payable, bonds payable define accounts payable - ANSCurrent liabilities or bills the company owes to others for merchandise or services purchased on credit but not yet paid for define notes Payable - ANSShort-term or long-term liabilities that a business promises to repay by a certain date define bonds Payable - ANSlong-term liabilities that represent money lent to the firm that must be paid back define equity - ANSnet value of the firm (stock + retained earnings) define stockholder's equity/ shareholder's equity - ANSthe value of what stockholders own in a firm (minus liabilities) define owners' Equity - ANSThe amount of the business that belongs to the owners minus any liabilities owed by the business, assets-liabilities define retained Earnings - ANSThe accumulated earnings from a firm's profitable operations that were reinvested in the business and not paid out to stockholders in dividends define income Statement - ANSfinancial statement that reports a firm's revenues and expenses over a period of time, shows what the firm bought and sold, but not necessarily the flow of cash define net Income or Net Loss - ANSRevenue left over or depleted after all costs and expenses, including taxes, are paid define revenue - ANSthe monetary value of what a firm received for goods sold, services rendered, and other payments define gross sales - ANSall sales the firm completed define net sales - ANSsales revenue minus returns, allowances for damaged or missing goods and any discounts allowed define cost of Goods Sold - ANSA measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
define gross Profit - ANSHow much a firm earned by buying (or making) and selling merchandise define operating Expenses - ANSCosts involved in operating a business, such as rent, utilities, and salaries operating expenses have two categories - ANSgeneral expenses and selling expenses define selling expenses - ANSrelated to the marketing and distribution of the firm's goods or services define general expenses - ANSadministrative expenses of the firm define bottom line - ANSnet income or loss the firm incurred from revenue minus sales returns, costs, expenses, and taxes over a period of time define depreciation - ANSthe systematic write-off of the cost of a tangible asset over its estimated useful life, allows firm to smooth the expense of a tangible asset over the lifetime of the asset define statement of Cash Flows - ANSa report of a firm's inflows and outflows of cash over a period of time, shows how well the firm is managing its ability to convert goods and services into cash and use that cash to meet obligations define operations in the statement of cash flows - ANScash transactions associated with running the business define investments in the statement of cash flows - ANScash used in or provided by the firm's investment activities define financing in the statement of cash flows - ANScash raised by taking on new debt, or equity capital or cash used to pay business expenses, past debts, or company dividends define cash flow - ANSthe difference between cash coming in and cash going out of a business, cash flow problems are created when business buy goods on credit define ratio analysis - ANSThe assessment of a firm's financial condition using calculations and interpretations of financial ratios developed from the firm's financial statements define liquidity ratios - ANSrefers to how fast an asset can be converted to cash define leverage (debt) ratios - ANSmeasure the degree to which a firm relies on borrowed funds in its operations define probability ratios - ANSmeasure how effectively a firm's managers are using its various resources to achieve profits companies have to report their EPS in 2 ways - ANSbasic and diluted define basic EPS - ANShelps determine the amount of profit a company earned for each share of outstanding common stock current ratio formula - ANScurrent assets/current liabilities debt to owner's equity formula - ANStotal liabilities/owner's equity basic EPS formula - ANSNet income after taxes/# of common stock shares outstanding
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
what does the statement of cash flows report? - ANScash receipts and cash disbursements related to a firm's activities over a period of time 3 major areas in the statement of cash flows - ANSoperations, investments, financing Financial ratios are important tools for - ANSunderstanding the health of a firm and its ability to conduct business and discharge its obligations Basic earnings per share (EPS) - ANSnet income/number of common stock shares outstanding try this www.accountingcoach.com - ANSyes what is the #1 priority of a firm's managers - ANSmaking sure they have enough cash to fulfill their obligations what road maps do firms use - ANSforecasts and budgets why do firms need to use short-term financing - ANSto cover unforeseen shortfalls in day-to- day expenses types of short term financing includes - ANStrade credit, bank loans, factoring 3 types of bank loans - ANSSecured (collateral), Unsecured (no collateral), line of credit (if there's an established relationship between bank and business) define long-term financing - ANSwhen projects or investments take a long time to pay off types of long-term financing - ANSDebt financing has long-term loans and bonds, equity financing has stock and retained Earnings fill in figure 18.6 - ANS do bonds have interest payments? Convertible - Exchange for common stock instead of being repaid in cash - ANSyes Maturity date for bonds means - ANSwhen the principal is due what does a callable for bonds do? - ANSAllows firms to retire more expensive debt (e.g. in exchange for less expensive debt) for bonds, if a company is riskier, what does it do? - ANSoffers more collateral define sinking fund - ANSFirm sets aside funds periodically to repay bonds (or to buy back stock) at a predetermined price a convertible in bonds means - ANSexchange for common stock instead of being repaid in cash define stock - ANSownership of a company characteristics of common stock - ANSVoting rights, dividends, preemptive right to buy new shares (option to not have stake diluted)
Lecture Review (202 5 )
A complete and detailed review of the BMGT (Business
Management) final exam material at the University of Maryland.
It covers essential concepts across multiple chapters including
economics, business structures, value chains, operations
management, ethics, accounting, and finance. The content is
formatted as a question-and-answer guide, making it ideal for
last-minute revision or self-testing. It includes applied examples,
terminology definitions, and comparisons between key business
concepts.
Latest Updated 2025/2026 Exam Study Guide
characteristics of preferred stock - ANSprior claim on dividends and assets (in case of firm dissolution), dividends are cumulative, have to sell your stock if firm wants it back, callable define broker - ANSindividuals who execute trades on behalf of others bid and ask for stocks - ANSbid is what the buyer offers, ask is what the seller asks for Specialist or market-maker - ANSindividual who connects buyers to sellers based on bid and ask (usually focuses on a few stocks) why make the stocks public - ANSraise funds, capitalize on ownership (venture capitalists) implications of stocks going public? - ANScontrol of the company is extended to people with possibly different goals from original owners (short-term value vs. overall success), board of directors required to represent stockholder interests, reporting requirements (10-K, etc)- public companies have to publish their balance sheets and 10K reports two fiscal policy tools are - ANStaxation and gov spending why does the security and exchange commission exist - ANSto ensure that information is available, accurate, and used fairly in financial markets define bond - ANSfirm borrows money for a fixed period of time for a variable or fixed interest rate, periodic interest payments, must pay back principal at maturity date five standards of money - ANSPortability (being able to carry it around with you, can use it anywhere), Divisibility (different increments), Stability (value is fairly consistent over time), Durability (doesn't break, lasts a long time), Uniqueness (non-counterfeitability) define commodity standard - ANScurrency is valuable because it can be redeemed for a specific amount of the commodity what is M- 1 - ANSmoney that can be accessed easily and quickly (cash, checks, etc.) what is M- 3 - ANSM-2 + big deposits that are harder to turn into cash (institutional money market funds) what is M- 2 - ANSM-1 + money that can be accessed less quickly (savings, money market accounts, etc.) define bank run - ANSwhen depositors fear that a bank will become insolvent and rush to withdraw their money The Federal Deposit Insurance Corporation (FDIC) is - ANSan independent agency created by the Congress to maintain stability and public confidence in the nation's financial system, insures bank deposits define commercial banks - ANSprofit-seeking organization that accepts checking (demand) deposits and saving (time) deposits and then loans out the funds define credit unions - ANSnonprofit, member-owned, offer full set of bank services what do nonbanks offer - ANSoffer non-deposit services five parts of the federal reserve - ANSboard of governors, Federal Open Market Committee, Federal Reserve Banks, advisory councils, member banks of the system
