BMGT 110 Study Guide - Midterm Guide: Sinking Fund, Accounts Payable, Investment

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 110
• Professor: Turner

Document Summary

Taking risks and making profits within the dynamic. Working for others: entrepreneurship is riskier and more exciting, 5 factors of production labor (workers) land (or natural resources, capital (machines, tools, buildings, whatever is used in production, entrepreneurship, knowledge. The trend towards mixed economies: free-market- capitalism, command- socialism and communism, mixed economies- some allocation of resources is made by the market and some by government, us is a mixed economy. Managing businesses ethically and responsibly: compliance-based ethical codes- increasing control and penalizing wrongdoers, integrity-based ethics codes- the organization"s values create and environment that supports ethically sound behavior, accountability, whistleblowers- report illegal or unethical behavior. Cooperatives: cooperative- owned and controlled by the people who use it producers, consumers, or workers with similar needs who pool money together, agriculture. Profit margin (return on sales)=net income/ total sales. Acid test ratio= (cash + ar + securities)/ current liability. Total liabilities to owners" equity= total liability/ owners" equity.