1. What is R & D and why is critical to the growth of a company.

Research & Development means work directed toward the innovation, introduction and improvement of products and processes. when evaluating why some companies are more competitive than others the terms technology and innovation often come up.

Technology is know-how, knowing how to make a news the tools for the job. It is the combination of the technology with markets that creates innovation and gives a competitive edge. When technological know how is developed, sold, distributed, and used, then it becomes innovation.

2. What are (A) LOGISTICS and (B) SCM.11

Answer:

A. Logistics involves those activities that focus on the getting the right amount of the right products or services to the right place at the right time at the lowest possible cost.

B. Supply Change Management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provides value to customers.

3. Define Operation Management

Involves many same issues in both the services and manufacturing sectors. These issues includes facility location, facility layout, and quality control. The recourses used maybe different, but the management are similar.

4. Name any 3 of 7 modern production techniques:

Answers:

a. Materials requirement planning

b. Just in time inventory control

c. Purchasing

5. Define Productivity

Computer have been a great help to service employees, allowing them to perform their tasks faster and more accurately. ATM's make banking faster and easier; automated check out machines enable grocery clerks(and customers) to process items more quickly.

Chapter 10 Quiz:

Multiple Choice:

1. D

2. C

3. C

Short Answers:

A. Canada Deposit Insurance Corporation. Guarantees deposits up to $ 100,000(Principal and Interest) in each member institution.

B. Anything that people generate accept as a payment for goods and services.

>Portability

>Divisibility

>Stability

C. The Current Bank of Canada is under Crown Corporation and it is governor is Mark Carney

Responsibilities: He serves as Chairman of the Financial Stability Board (FSB) and as a member of the Board of Directors of the Bank for International Settlements (BIS)

D.

Answers:

CDIC - is Federal Crown Corporation

Securities Dealers - Provincial

Banks - Federal

Insurance Companies - Provincial and Federal

Co-op credit association - Federal and Provincial

Credit Unions - Provincial

Chapter 11 Quiz:

Multiple Choice:

1. Forecasting can be short-term for ___ year(s) or less & long-term for as far as ___ year(s).9/10

Answer: C

2. A supplier can sell a promissory note to a ___ at a ___ . 25

answer: A

3. Money has what is called a ___

answer: B

4. ____ is an expensive short-term fund source, the process of selling accounts receivable for cash. 34\

Answer: D

5. For long-term financing, firms can borrow funds by

answer: C

6 .A term-loan agreements advantage is that the ___ is ___.

Answer: B

7 .Issuing bond is ___ financing

Answer: A

8. Equity financing is selling ___ of a firm in the form of ___. 40

Answer: D

9.____ is money that is invested in new or emerging companies with profit potential.

Answer: C

Short Answers:

1. Name any 4 of 8 major functions of a Financial Manager. 4

answer: A. Auditing, B. Planning, C. Budgeting, D. Obtain Funds

2. Explain how important it is for business of any size to manage an effective inventory system. 20

Effective marketing implies a clear customer orientation, To satisfy customers, Business must maintain inventories that often involves a sizeable expenditure of funds.

3. Name any 3 sources of funds for each short-term and long-term loans. 23

Short term Financing- trade credit, promissory note, Factoring

Long Term Financing- Debt Financing(ex. Lending institutions, selling bonds) Equity Financing (Retain earnings, Venture Capital, selling Stocked)

4. Trade credit: explain the meaning of the following: "business invoices to certain items such as 2/10, net 30."26 It means that the buyer can the 2 % discount if the invoice is paid with in 10 days. The total bill is due ( net) in 30 days if the purchaser doesn't not take the advantage of the discount.

5. What is a revolving credit and it benefit. Give one example. 32

Line of Credit that is guaranteed. For example if banks apply for such agreement they usually charge a fee for guaranteeing such a agreement.

6. What a commercial paper. Give one example. 35

Answer: Consists of unsecured promissory note, in amount of $100,000 and up, that mature in 365 days (366 in a leap year) or less.