MGST 217 Study Guide - Midterm Guide: Cash Flow, Retained Earnings, Net Present Value

• School: University of Calgary
• Department: Management Studies
• Course: MGST 217
• Professor: Sharaz Khan

Document Summary

To solve a business problem, there are 4 steps; define the problem, diagram (input/process/output/analysis), build a model, and generate insight. When generating insight, less is more, use visuals and diagrams. Each priority should have a result or an expected result. Starting a business; find idea, choose form of business organization. Business plan = define product/service, marketing plan, management plan, operating plan, financial plan. Influence diagram is a model formulation, can be used in problem formulation. Profit = (price x volume) (fixed costs + variable costs) Fixed costs are the same regardless of the number of customers. Capital costs are costs associated with items used year after year (ex: building, vehicle, etc. ) Variable costs vary with the number of consumers. Ha(cid:396)es & etai(cid:374)ed ea(cid:396)(cid:374)i(cid:374)gs o(cid:449)(cid:374)e(cid:396)(cid:859)s e(cid:395)uit(cid:455) Capital assets help the company earn revenue over several years so we match the cost against the revenue that it provides.