APA guidelines Essay Example for Free

APA guidelines EssayTermDefinitionRe microbe you usedTime determine of moneyMoney has a Time Value. This basic idea a clam received today, other things being the same, is worth more than a dollar received a year from now underlies many financial decisions faced in Business (TItman, Keown, Martin, 2014, P. 172).TItman, S., Keown, A., Martin, J. (2014). Financial Management Principles and Applications (12th ed.). Prentice dormitory room Efficient commercialiseA market in which prices quickly respond to the announcement of new information. Efficient markets describes the extent to which information is incorporated into security prices. In an efficient market, security prices reflect all available information at all times and, because of this, it is impossible for an investor to consistently earn high rates of return without taking impregnable risk (TItman, Keown, Martin, 2014, P.210). TItman, S., Keown, A., Martin, J. (2014). Financial Management Principles and Applicati ons (12th ed.). Prentice Hall Primary versus secondary marketA primary market is a market inwhich new, as opposed to previously issued, securities atomic number 18 bought and sold for the first time. In this market, firms issue new securities to raise money that they can then use to help pay their billetes. The key feature of the primary market is that the firms selling securities actually receive the money raised.The secondary market is where all subsequent trading of previously issued securities beat backs place. In this market the issuing firm does not receive any new financing, as the securities it hassold ar simply being transferred from one investor to another. The principal well-being of the secondary market for the shareholders of firms that sell their securities to the public is liquidity(TItman, Keown, Martin, 2014, P.25). TItman, S., Keown, A., Martin, J. (2014). Financial Management Principles and Applications (12th ed.). Prentice Hall Risk-return tradeofftell s us that we will expect to receive higher returns for presume more risk (even though there is no guarantee we will get what we expect).However, the riskreturn tradeoff that investors face is not based on realized rates of return it is instead based on what the investor expects to earn on an investment in the rising (TItman, Keown, Martin, 2014, P.193). TItman, S., Keown, A., Martin, J. (2014). Financial Management Principles and Applications (12th ed.). Prentice Hall Agency (principal and agent problems)The conflict of interest between the firms managers and its stockholders is called a principal-agent problem, or agency problem, in which the firms common stockholders, the owners of the firm, are the principals in the relationship, and the managers act as agents to these owners (TItman, Keown, Martin, 2014, P. 13)TItman, S., Keown, A., Martin, J. (2014). Financial Management Principles and Applications (12th ed.). Prentice Hall Market information and security prices and info rmation asymmetry A situation in which one party in a transaction has more or superior information compared to another. This often happens in transactions where the seller knows more than the buyer, although the avoid can happen as well. Potentially, this could be a harmful situation because one party can take advantage of the other partys lack of noesis (Investopedia, 2015). Investopedia. (2015). Asymmetric Information. Retrieved from http//www.investopedia.com/terms/a/asymmetricinformation.asp Agile and lean principlesAgile refers to an adaptive, incremental approach to solutions development,with strong emphasis on delivering value. In contrast, Lean respresents a astray adopted approach to continuous improvement, designed to improve performance by removing barriers which disrupt workflow in existing transcriptions. Both Agile and Lean are particularly attractive and suited to finance sector enviroments where business requirements change frequently and recation time is critica l (Agile And Lean In Finance, 2011) Agile and Lean in Finance. (2011). Retrieved from http//www.dbconsulting.co.uk/agile-and-lean-in-finance-22-september/ Return on investmentReturn on investment, or ROI, is the most common profitability ratio. There are several ways to determine ROI, alone the most frequently used method is to divide net profit by total assets. So if your net profit is $100,000 and your total assets are $300,000, your ROI would be .33 or 33 percent. Return on investment isnt necessarily the same as profit. ROI deals with the money you invest in the company and the return you realize on that money based on the net profit of the business (Entrepreneur Media, Inc., 2014). Entrepreneur Media, Inc.. (2014). Return on Investment ROI. Retrieved from http//www.entrepreneur.com/encyclopedia/return-on-investment-roiCash flow and a source of valueIn investments, cash flow represents earnings before depreciation, amortization, and non-cash charges. Sometimes called cash earni ngs. The maount of net cash generated by an investment or a business durning a specific period. Once measure of cash flow is earnings before interest, taxes, depreciation, and amortization (The bare Dictionary, 2015). The Free Dictionary. (2015). Cash flow. Retrieved from http//financial-dictionary.thefreedictionary.com/cash+flow put up managementThe planning and organization of an organizations resources in order to move a specific task, event or duty toward completion. Project management typically involves a one-time project rather than an ongoing activity, and resources managed include both human and financial capital.A project manager will help define the goals and objectives of the project, determine when the mingled project components are to be completed (Project Management, 2015). Project Management. (2015). Retrieved from http//www.investopedia.com/terms/p/project-management.asp Outsourcing and offshoringOutsourcing refers to an organization contracting work out to a 3rd p arty, while offshoring refers to get work done in a different country, usually to leverage price advantages. Its possible to outsource work but not offshore it for example, hiring an right(prenominal) law firm to review contracts instead of maintaining an in-house staff of lawyers. It is also possible to offshore work but not outsource it for example, a Dell client service center in India to serve American clients. Offshore outsourcing is the practice of hiring a vendor to do the work offshore, usually to lower costs and take advantage of the vendors expertise, economies of scale, and large and scalable labor pool (Offshoring Vs. Outsourcing, 2014). Offshoring vs. Outsourcing. (2014). Retrieved from http//www.diffen.com/difference/Offshoring_vs_Outsourcing Inventory turnoverA measure of how often the company sells and replaces its scrutinize. It is the ratio of annual cost of sales to the latest inventory. One can also interpret the ratio as the time to which inventory is held. For example a ratio of 26 implies that inventory is held, on average, for two weeks (365 days in a year divided by inventory turnover ratio of 26 equals 14 days pr 2 weeks average inventory holding period). It is best to use this ratio to compare companies within an industry (high turnover is a good sign) because there are huge differences in this ratio across industries (The Free Dictionary, 2013-2015). The Free Dictionary. (2013-2015). Inventory turnover. Retrieved from http//financial-dictionary.thefreedictionary.com/Inventory+Turnover Just-in-time inventory (JIT)A supply chain management system designed to reduce carrying costs to a minimum. A firm only orders what it expects for its immediate needs therefore, it keeps a lowinventory. For example, if a retailer believes itwill sell 1,000 widgets in a week, it orders precisely 1,000 widgets from its manufacturer. JIT systems require that the retailer at the end of the supply chain can accurately predict demand for its products. T hey also require that individually stage of the supply chain knows exactly how much time it takes to fill an order when it is made. The automotive industry and budget retailers commonly use JIT systems (The Free Dictionary, 2012-2015). The Free Dictionary. (2012-2015). Just In Time. Retrieved from http//financial-dictionary.thefreedictionary.com/Just-in-Time+Inventory+System Vender managed inventory (VMI)A means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributors inventory levels. The manufacturer has access to the distributors inventory data and is responsible for generating purchase orders. To further define it, lets scene at 2 business models (Vendor Managed Inventory, 2015). Vendor Managed Inventory. (2015). Definition of Vendor Managed Inventory. Retrieved from http//www.vendormanagedinventory.com/definition.php Forecasting and demand managementThe use of historic data to determine the direction of future trends. F orecasting is used by companies to determine how to allocate their budgets for an upcoming period of time (Investopedia, 2015). Demand Management Macroeconomics Use of monetary and fiscal policies to influence the amount demand for goods or services in an economy. During periods of high unemployment, governments attempts to stimulate damand, and hence, production and employment and during periords of high inflation or balance fo payment problems to keep down it ( Business Dictionary, 2015).Investopedia. (2015). Forecasting . Retrieved from http//www.investopedia.com/terms/f/forecasting.aspBusiness Dictionary. (2015). Demand Management. Retrieved from http//www.businessdictionary.com/definition/demand-management.html