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Global Policies

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Submitted By theindiankid20
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www.readingsandlearnings.wordpress.com
Balance Sheet – snapshot at certain time
Income Statement – how company performs during a time period: 1st, 2nd quarters, monthly, yearly… * 1. Revenue * 2. Profit * 3. Costs
Pro-Forma – predictions, future, what if statement
Common-Size - % statement vs numbers * Compare year to year and versus competitors
EBITDA – cash flow
Junk Bond – high yield bond (risky)
Depreciation – non cash item

Ratios (LLAPS)
Liquidity = CA/CL
Leverage = TD/TE
Activity = TS/TA (retail industry) (TAT)
Profit = NP/NS, ROA = NP/ASSETS, ROE = NP/EQUITY (investors look at ROE the most)
Shareholder = Div + (Share P end – Share P beg)
PE Ratio = Stock Price/Proj. NI
EBITDA = NI(profit) + Dep. + Taxes
***be able to produce a highly leveraged balance sheet 6—7 ratio (lev) and 1—2 ratio (liq)

* Board of Directors * Chairman of the Board * CEO * President * V.P’s of Depts. (functional) * Employees
Corporate Strategy * strategy of company as a whole * CEO and Chairman develop strategy and direction * Long range strategy
Functional Area Strategy * Short range strategy – change anytime * i.e. * lower prices, reduce production costs, finance the growth of company
1st step of strategy is planning
Ultimate objective of a strategy is to develop a sustainable competitive advantage! * Activities tailored to your company
Operational Effectiveness – is not strategy
Strategy rests on unique set of activities
SWOT
* Strength (internal) * Weaknesses (internal) * Opportunities (external) * Threats (external)
PEST
* Political * Economy * Social * Technology

Elasticity – how price of something changes due to demand * Price goes up – Demand goes down * Gas up – start to walk or find other

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