Business Concepts: Finance, Operations, and Marketing
**Action of an SA**
An aliquot, indivisible, and accumulated capital of an SA that incorporates the rights and obligations of ownership.
**Dividend**
The portion of profits to share that corresponds to an action.
**Rights Under the Action of an SA**
Perceiving assets dividends, participating in the assets resulting from the settlement, preferential subscription rights in capital increases, the right to vote in general shareholder meetings, right to information, and right to challenge the social arrangements that are contrary to law.
**Nominal and Actual Value of a Share**
Nominal value is the value attached to each action in their respective title or book-entry form. The cash value is the market value of a given action.
**Decision Matrix**
A table with the elements involved in a decision problem.
**States of Nature**
An event on which the decision depends and cannot influence, while trying to identify and calculate the probability of occurrence.
**Formal and Informal Organization**
Formal organization is the organization officially established by the company management, usually departmental and hierarchical. The informal organization is the one that arises outside the formal structure spontaneously by natural circumstances of friendship, communication, leadership, etc., and that can be used by management in different ways.
**Organizational Charts**
Graphical representation of relations between different functional departments of the company. Represents the company’s organizational structure.
**Linear Organizational Structure**
It is based on the principle of unity of command, so that each leader commands, directs, and controls a number of subordinates, and they take orders from a single person, establishing a hierarchical system with different levels.
**Online Organizational Structure and Staff**
It combines the direct authority relationships, typical of the linear structure, with consultation and advisory relationships maintained with the departments referred to as staff who perform technical support work.
**Technological Matrix**
A technological matrix is a table that lists the various production processes or technologies that the company can use for factors of production to obtain different products.
**Company Global Productivity**
Relationship between production, over a period of time, and the quantity of inputs consumed to get it. The comparison between the products obtained and the factors used are made in monetary units.
**Product of a Factor**
Relationship between the output obtained and the amount consumed of that factor. Therefore, it is expressed in physical units.
**Fixed Costs**
Those that for a given volume of production and short term do not vary, although varying the amount of product obtained.
**Variable Costs**
Those that vary with production volume, growing with increasing production. Example: raw materials.
**Break-Even Point**
The number of physical units produced and sold to make the income and costs equal. Sales volume from which you begin to take profits.
**Direct Costs**
Costs directly involved in product development and can be associated with it.
**Inventory Costs Breakdown**
Costs that the company has when it runs out of stock, i.e., when it cannot deal with a customer order or when you have to stop the production line for lack of raw materials or other inventory needed.
**Minimum or Safety Stock**
Fewer stocks of a material or product must be in stock to avoid stock shortages.
**PERT Method**
A project scheduling and control method based on the relationship between different activities or phases that make up a production project with expression through the application of a graph, the tasks to be performed, and the estimated time for achievement.
**Critical Path in the PERT Method**
Unites the interrelated activities whose combined length is greater. It is called critical because the activities constituting that path cannot be delayed because if there was a delay, it would postpone the completion of the project.
**Indirect Costs**
Those that cannot tell exactly how each product consumed, cannot fully associate with the product, and therefore have to charge them to the goods or cost center based on some criterion that the company deems appropriate. Example: cost of administration.
**Marketing**
The set of techniques or activities of a business process to better the market, i.e., discovering the needs of consumers, creating or designing the product or service that meets them, and putting it at your disposal.
**Market Segmentation**
Segmenting the market is to divide the market into smaller groups of users or consumers to establish a uniform differentiated marketing strategy for each. There are demographic, geographic, and sociological segmentations.
**Equity**
The set of assets, rights, and obligations belonging to a measurable physical or legal person.
**Assets**
Assets that represent the destination, investment, or employment of the funds collected by the person. It is also known as an economic structure. It comprises the assets of the company plus the duties. The assets represent assets or a group of elements with a positive sign.
**Liabilities**
A set of assets that represent the source of funds, financing, the company’s financial structure. It consists of fixed liabilities or permanent capital and liabilities. Investments used to fund the Asset.
**Capital**
Account that reflects the subscribed capital in companies that are of a commercial manner. The amount of share capital will be achieved by the total value of members’ shares at the time of incorporation. This figure is contained in the articles of association of the company that later is entered in the Commercial Register. If members consider it desirable, for example, to undertake new investments, we can broaden the capital initially formed.
**Reserves**
Retained Earnings for the company and for this purpose.
**Working Capital**
The part of current assets that are financed with fixed liabilities or permanent capital. If so, the FM> 0. If working capital is negative is the suspension of payments begin and if equal to 0, the situation is at the edge of financial imbalance.
**Average Maturation Period**
Length of time since the company invests up to a monetary unit that recovers the recovery of the sale made.