The MBA Guidebook

Upon successful completion of this course, participants will be able to:

Chapter 1

• Recognize the different types of accounting principles, and the nature of the realization concept.
• Cite the stages in the accounting cycle.
• Specify the activities that are part of the financing, purchasing, payroll, and sales cycles.
• Specify the requirements of the accrual method of accounting.

Chapter 2

• Identify the uses of each of the financial statements.
• Specify the sources of retained earnings.

Chapter 3

• Recognize how the different ratios and other analyses are used to interpret financial statements.

Chapter 4

• Recognize the contents of the cost of capital, and how it is calculated.
• Identify the reason why preferred stock is more expensive than debt.
• Specify the circumstances under which different debt values can be used in the cost of capital.

Chapter 5

• Specify the basis for the use of discounted cash flow analysis.
• Recognize the concept of an annuity.

Chapter 6

• Cite the uses for net present value analysis, the internal rate of return, the payback method, and real options.
• Specify the ranking of criteria used to evaluate investment proposals.
• Recognize the rules for investing in a complex environment.
• Identify the concerns with using the accounting rate of return.

Chapter 7

• Recognize why financial leverage can be so beneficial, as well as its dangers for a business.
• Specify the reasons why managers are more likely to use financial leverage.
• Identify the triggering events for a capital structure analysis.
• Recognize the effects of a tax shield, and how it works.
• Specify the different types of loan covenants.

Chapter 8

• Cite the different types of strategies that can justify an acquisition.
• Identify the sources of financial information about publicly-held businesses.
• Recognize the different documents used in the purchase and sale of businesses.
• Specify the motivations of a financial buyer.

Chapter 9

• Recognize the different methods used to value a business, and how each one can be adjusted.

Chapter 10

• Identify the effects of consistent earnings on a firm’s stock price.
• Cite the characteristics of businesses that can retain risk.
• Identify the characteristics of an enterprise risk management system.
• Identify the types of information included in a risk profile.

Chapter 11

• Specify the steps involved to build a product within a target costing program.
• Recognize the uses to which the R&D waste measurement can be put.
• Identify the actions that can be taken to manage inventory levels.

Chapter 12

• Recognize the different types of pricing strategies.
• Specify the risks associated with marketing, and how they can be mitigated.
• Recognize the calculation for lifetime value.

Chapter 13

• Identify the methods used to aggregate information into a revenue budget, and the issues with an excessively detailed level of reporting.
• Recognize the risks associated with sales, and how they can be mitigated.

Chapter 14

• Specify the basic concepts that underlie constraint analysis, as well as the calculation of throughput.
• Cite the circumstances under which a product can be justifiably cancelled.
• Identify how a business can achieve a high quality of design.
• Recognize the different types of quality costs.
• Specify the components that comprise a material requirements planning system.
• Cite the methods used to achieve short production runs.

Chapter 15

• Identify the items to review as part of a supplier assessment.
• Recognize the issues to be addressed when considering a foreign supplier.
• Specify the advantages of a stable production schedule.

Chapter 16

• Cite the tools available for bulk hiring.
• Identify the methods used to examine a resume.
• Recognize the purposes of telephone screening.
• Specify the impact of the cloning effect on the hiring process.

Chapter 17

• Cite the essential components of a team.
• Rank the different levels of communication methods within a team.

Chapter 18

• Recognize the effects of the stakeholder perspective on ethical decisions.
• Specify the reasons why people tend to overlook ethical issues.

Chapter 19

• Identify the steps used in the development of a strategy.

Chapter 20

• Specify the characteristics of opportunity costs and implicit costs.
• State the situations in which price ceilings and price floors are imposed.
• Recognize the situations in which marginal analysis is used.
• Identify demand shifters and supplier shifters, and their impacts.
• Specify the situations in which demand can be elastic or inelastic.
• Identify the situations in which economies of scope can be employed.