TMP 120 UCSB LATEST QUESTIONS WITH CORRECT ANSWERS
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Course
TMP 120 UCSB
Institution
TMP 120 UCSB
Important for start ups and established firms - ️️-choose where to compete
-uses available resources wisely
-time is critical
-Increase or decrease risk and value
Income statement - ️️-measure a businesses profitability
-what is made and sold in the period
- profit minus expenses equa...
TMP 120 UCSB
Important for start ups and established firms - ✔️✔️-choose where to compete
-uses available resources wisely
-time is critical
-Increase or decrease risk and value
Income statement - ✔️✔️-measure a businesses profitability
-what is made and sold in the period
- profit minus expenses equals net profit
- Does not tell you when a firm receives cash or how much cash is on hand
Strategy - ✔️✔️Creates a unique sustainable competitive advantage
Common elements of strategy - ✔️✔️1. Long term + Consistent Goals
2. Deep understanding of the competitive environment
3. Objective assessment of resources and capabilities
4. Effective execution
Strategy aim - ✔️✔️creating value
2 key Questions for strategy - ✔️✔️a. How to compete?
b. Where to compete?
Competitive Advantage happens when - ✔️✔️a firm possess an advantage over its
rivals when it earns or has the potential to earn a peristyle higher rate of profit
Environmental analysis - ✔️✔️is a strategic tool. It is a process to identify all the
external and internal elements, which can affect the organization's performance. The
analysis entails assessing the level of threat or opportunity the factors might present.
(overall business world)
Industry analysis - ✔️✔️Focuses on the firm's competitors who are producing similar
products
3) Resources and Capabilities - ✔️✔️
Value chain - ✔️✔️company infrastructure / HR/ operations / logistics - the sum of the
chain expresses the companies advantage
support activities - ✔️✔️part of each discreet function; which activities are profitable?
add most value?
Balance sheet - ✔️✔️-"snapshot" of company financial health on one date
-reports what the company: "has today" (assests) = "owes today" (liabilities) + "worth
today" equity
-easy to see how much working capital a company has
Cash Flow statement - ✔️✔️-tracks how cash moves through the business over time
-shows: cash on hand at the start of the period
-plus: Cash received over the period
-minus: cash spent in the period
-equals: cash on hand at the end of the period
Statement of owner's equity - ✔️✔️changes in your equity balance during the period
Liquidity Ratios - ✔️✔️Company's short term ability to pay its debt as it becomes due
Profitability Ratios - ✔️✔️Company's success or failure in generating profit
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