BA101, Weeks 9 & 10
BA101, Weeks 9 & 10 BA 101
Popular in Intro To Business
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This page Bundle was uploaded by Emma Cochrane on Saturday February 27, 2016. The Bundle belongs to BA 101 at University of Oregon taught by Engel S in Fall 2015. Since its upload, it has received 47 views. For similar materials see Intro To Business in Business at University of Oregon.
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Date Created: 02/27/16
Feb 16 Predatory pricing 0 illegal in the US a predatory pricing is the act of selling below cost to put the competition out of business Contribution margin fixed costs net profits Balance sheet 0 Assets 0 cash 0 accounts receivable o inventory 0 buildings 0 land 0 equipment 0 current assets cash accounts receivable inventory 0 Liabilities 0 loans 0 accounts payable 0 bonds 0 owner s equity 0 current liabilities loans accounts payable 0 assets liabilities OE Companies go bankrupt and out of business when they run out of cash not when they aren t making a profit Feb 23 Cash Flows 0 Negative cash flows are denoted by numbers in Negative cash flows can also be represented with a negative sign in front of the number or with the number shown in red 0 increase value of inventory use of cash 0 Sources are in black uses in red or parentheses Break Even Fixed costs selling priceunit variable costunit o EX 5000012 4 6250 units 0 It s in units and not dollars because it s the number of units you have to sell in order to pay for the production of the units the number where the profit would be 0 NPV 0 Net Present Value o 0 now end of year 1 end of year 2 end of year 3 o A 10000 1000 10000 20000 0 B 10000 0 15000 16000 Marketing Mix Review 0 Product 0 Price a Place 0 Promotion 0 Service Distribution Channels 0 Two kinds of middle men 0 Agent does not own product earns a commission 0 Merchant owns the product resells product at a markup o If you don t have middle men you decrease selling price a producer gt agents gt wholesalers gt retailers gt consumers Feb 25 Business Law Private Enterprise 0 The market turns selfinterest into social good 0 To work the system has to have 0 private property 0 freedom of choice 0 right to keep profits 0 fair competition 0 The government has to ensure these factors exist Government 0 Intervention o to ensure fair competitions private property freedom of choice right to keep profits 0 to promote economic health and social responsibility 0 to correct market failures and ethical lapses The Law 0 Common Law 0 the law judges establish while deciding disputes precedent Statutory Law 0 laws enacted by a federal or state legislature 0 Administrative Law 0 regulations based by state and federal administrative agencies Criminal and Civil Laws 0 Derived from three sources 0 Administrative law 0 Statutory law 0 Precedents 0 Criminal law a dispute between the government and an individual 0 punished by fines andor imprisonment 0 Civil law a dispute between two individuals 0 fine may be imposed Torts A tort is a civil wrong inflicted on other people or their property Tort is a form of negligence Torts include all wrongs that are not a breach of contract Examples of tort 0 Assault Slander Libel Product Liability Fraud 0 O O 0 Fraud 0 Fraud is a form of tort where someone hurts another by deception or manipulation 0 Fraud is something said or done in a dishonest way to trick people 0 Ex when a person promises you that you can make a lot of money through an investment takes your money and the investment never existed Alternative Dispute Resolution 0 Arbitration brings in a 3rd person to help who then makes a ruling arbitrator 0 binding agree to abide ahead of time bound by decision of arbitrator o nonbinding Mediation brings in a 3rd person to help who then makes a ruling mediator o Nonbinding always Property 0 Intellectual Property 0 Trademark symbols used by firms to identify products 0 Patent inventors get exclusive right to inventions 17 years 0 Copyright authors have exclusive rights to documents Contracts 0 Contracts are legally enforceable agreements between two or more parties Breach of contract 0 A violation of a valid contract where the injured party goes to court to enforce contract and sometimes collect damages 0 Agency 0 Acts on behalf of another in another s interest Contractual Capacity 0 To be a legal contract the parties must have a legal ability to enter into the contract they much have a contractual capacity 0 Individuals that lack the capacity to enter into a contract include those who are Minors under the age of 18 Mentally unstable mentally incapable or insane Intoxicated Under duress or coercion 0 O O 0 Uniform Commercial Code a First published in 1952 it seeks to harmonize the law of commercial transactions in all 50 states The UCC addresses such topics as 0 Warranties Express specifically defined by the seller Implied legally imposed on sellerdisclaimed 1 Clear Title ownership 2 Product will perform the function it s designed for 3 Perform as advertised 0 Negotiable Instruments Tools that allows the commercial transfer of wealth ChecksCDs good when endorsed when they are signed Government s Other Roles 0 Manage money 0 Take money out of markets taxing consumers 0 Put money into market
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