CPA Review BEC - Becker B2.txt

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CPA Review BEC - Becker B2.txt
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2011-08-07 22:27:39
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CPA Becker BEC B2
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CPA Becker BEC B2
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  1. Trough
    • Economic Lowpoint
    • Unused Productive Capacity
    • Unwillingness to Risk New Investments
  2. Recession
    Potential output exceeds actual output
  3. Left Shift =
    Decrease
  4. Right Shift =
    Increase
  5. AD =
    GDP : P
  6. AD =
    GDP : P
  7. SRAS =
    GDP : P
  8. SRAS =
    GDP : P
  9. Wealth Factor
    AD - Favorable
  10. Interest Rate Factor
    AD - Adverse
  11. Confidence Level Factor
    AD - Favorable
  12. Exchange Rate Factor
    AD - Adverse
  13. Government Expenditure Factor
    AD - Favorable
  14. Tax Factor
    AD - Adverse
  15. Input Cost Factor
    SRAS - Adverse
  16. Supply Factor
    SRAS - Favorable
  17. Economic Fluctuations
    Fluctuations in the level of economic activity relative to a long-term growth trend
  18. Peak
    • Highest Point of Economic Activity
    • Firms face Capacity Constraints & Labor Shortages
    • Upward Pressure put on Overall Price Level
  19. Real GDP per Capita
    Measures standard of living across countries or time
  20. Frictional Unemployment
    Unions, Temporary Layoffs, Timing Delay in Job Matching
  21. Structural Unemployment
    Jobs Available do not equal Skilled Workers
  22. Seasonal Unemployment
    Jobs are Seasonal
  23. Cyclical Unemployment
    Results from Recessions
  24. GDP Calculation - Expenditure Approach
    • Government Expenditures +
    • Investments (Private Domestic) +
    • Consumption Expenditures +
    • Exports (Net of Imports)
  25. Stagflation
    • Recession characterized by:
    • -Falling Output
    • -Rising Unemployment
    • -Rising Price Level
  26. Measure of Globalization
    World Trade Growth as a % of GDP
  27. Increased Globalization Factors
    • Increased Transportation
    • Technilogical Advancements
    • Deregulation of International Financial Markets
  28. Sourcing Requirements
    Consists of value-added limits on the percentage of labor or materials on imported products
  29. Functional Interdependance
    Participation of nations in world trade institutions
  30. Systematic Interdependance
    All members of global community share planet
  31. 4 Market Structures from Most to Least Competative
    • 1. Pure Competition
    • 2. Monopolistic Competition
    • 3. Oligopoly
    • 4. Monopoly
  32. Pure Competition Characteristics
    • Many Small Firms
    • No Entry Barriers
    • No Poduct Differentiation
    • Elastic
    • Control Over Quantity Only
    • High Price Competition
    • P = MR = MC
    • No Long Run Profitability
  33. Monopolistic Competition Characteristics
    • Many Small Firms
    • Low Barriers to Entry
    • Low Product Differentiation
    • Elastic (DC - Downward)
    • Control Over Quantity Only
    • Short-Run Price Competition
    • P > MR = MC
    • No Long Run Profitability
  34. Oligopoly Characteristics
    • Few Large Firms
    • High Barriers to Entry
    • High Product Differentiation
    • Inelastic (DC-Downward-Kinked)
    • Control Over Quantity & Price
    • No Price Competition
    • P > MR = MC
    • Long Run Profitability
  35. Monopoly
    • One Large Firm
    • Entry Not Possible
    • No Differentiation
    • Inelastic (DC-Downward)
    • Control Over Quantity & Price
    • Optimum Price
    • P > MR = MC
    • Long Run Profitability
  36. 8 Steps of Strategic Management
    • 1. Define Vision & Mission Statement
    • 2. Set Goals
    • 3. Define Objectives
    • 4. Determine Baseline Measurement
    • 5. Strategic Analysis (SWOT)
    • 6. Create Strategic Plan
    • 7. Implement Strategic Plan
    • 8. Evaluate Strategic Plan
  37. Elasticity
    Sensitivity of demand or supply in relation to change in price
  38. Price Elasticity
    • Adverse Relationship to Demand & Supply
    • Adverse Relationship to Total Revenue
  39. Unit Elasticity
    • Adverse Relationship to Demand & Supply
    • No Effect on Total Revenue
  40. Price Inelasticity
    • No Relationship to Demand & Supply
    • Favorable Relationship to Total Revenue
  41. Price Ceiling
    • Maximum Price Set Above Equalibrium Price
    • Causes Shortages
    • Increased Demand
  42. Price Floor
    • Minimum Price Set Above Equlibrium Price
    • Causes Surplus
    • Decreases Demand
  43. Value Chain Analysis
    Complete life cycle from suppliers to recycling
  44. 2 Major Business Activity Categories
    • Primary Activities
    • Support Activities
  45. Support Activity Examples
    • Purchasing
    • R & D
    • Employee Management
    • Accounting & Finance
    • Strategic Planning
  46. 3 Value Chain Analysis Approaches
    • 1. Internal Cost Anlysis
    • 2. Internal Differentiation Analysis
    • 3. Vertical Analysis
  47. 3 Value Chain Analysis Strategic Framework Characteristics
    • 1. Industry Structure Analysis
    • 2. Core Competencies
    • 3. Segmentation Analysis
  48. 2 Major Forms of Competative Advantage
    • 1. Product of Differentiation
    • 2. Cost Leadership
  49. 4 Aspects of Supply Chain Operations (SCOR) Model
    • Plan - Economic Eval
    • Source - Procurement
    • Make - Primary Function
    • Deliver - Support Function
  50. 5 Stages of Supply Chain Management
    • 1. Fundamentals
    • 2. Cross Functional Teams
    • 3. Integrated Enterprise
    • 4. Extended Supply Chain
    • 5. Supply Chain Communities
  51. Law of Demand (Micro)
    • P Changes 1st - P v. D = Adverse
    • D Changes 1st - D v. P = Favorable
  52. Law of Supply (Micro)
    • P Changes 1st - P v. S = Favorable
    • S Changes 1st - S v. P = Adverse
  53. Price Elasticity of Demand/Supply Calculation
    %ChQ / %ChP
  54. 4 Contributing Factors to Economies of Scale
    • 1. Labor Specialization
    • 2. By-Products
    • 3. Capital Equipment Usage
    • 4. Volume Discounting
  55. Risk Adverse Attitude
    Anticipating greater return for greater risk
  56. Risk Seeking
    Investor's certainty equivalent is greater than the expected value of an investment alternative
  57. Systamatic Risk
    Cannot be eliminated through portfolio diversification

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