ILTS Business, Marketing, and Computer Education (216) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Accounting equation

Assets equal liabilities plus owner's equity. Every recorded transaction must keep this equation balanced, so total debits always equal total credits in the ledger.

Debit and credit rules

Assets and expenses increase with debits. Liabilities, equity, and revenue increase with credits. A normal account balance sits on the side that increases the account.

Net income formula

Net income equals revenue minus all expenses, including cost of goods sold, operating expenses, interest, and taxes. It is the bottom-line profit reported on the income statement.

Gross profit margin

Gross profit divided by net sales, expressed as a percentage. It measures how much of each sales dollar remains after covering the direct cost of the goods sold.

Break-even point in units

Fixed costs divided by the contribution margin per unit, where contribution margin equals price minus variable cost per unit. The result is the sales volume producing zero profit.

Current ratio

Current assets divided by current liabilities. It estimates short-term liquidity, indicating whether a firm can cover obligations due within one year using near-term assets.

FIFO versus LIFO

FIFO assigns the oldest inventory costs to cost of goods sold; LIFO assigns the newest. When prices rise, LIFO yields higher cost of goods sold and lower taxable income.

Elements of a contract

Offer, acceptance, consideration, capacity, and legality. Missing any element generally makes an agreement unenforceable, and minors may usually void contracts they sign.

Limited liability protection

Owners of corporations and LLCs are generally not personally liable for business debts beyond their investment. Sole proprietors and general partners bear unlimited personal liability.

Marketing mix four Ps

Product, price, place, and promotion. These are the controllable decision areas a firm combines to reach a chosen target market with a consistent positioning strategy.

Product life cycle

The progression through introduction, growth, maturity, and decline. Sales volume and profit change at each stage, and marketing strategy is adjusted accordingly.

Penetration pricing

Setting a low introductory price to attract buyers quickly and build market share. It works best when demand is price sensitive and scale economies lower unit costs.

Price skimming

Setting a high initial price to capture revenue from early adopters willing to pay a premium. The price is lowered later as competition enters the market.

Cost-plus pricing

Adding a standard markup percentage to the unit cost of a product to set its selling price. It is simple but ignores customer perceived value and competitor pricing.

Market segmentation criteria

Effective segments are measurable, accessible, substantial, differentiable, and actionable. A segment too small or unreachable cannot support a viable targeted marketing plan.

Promotion mix components

Advertising, personal selling, sales promotion, public relations, and direct or digital marketing. Personal selling has the highest cost per contact but allows tailored persuasion.

AIDA model

A message sequence moving the audience through attention, interest, desire, and action. It structures persuasive promotional copy toward a specific response from the target buyer.

Distribution intensity levels

Intensive places goods in many outlets for convenience products; selective uses a limited set of retailers for shopping goods; exclusive restricts to one or few dealers for specialty goods.

SWOT analysis

Strengths and weaknesses are internal factors a firm controls; opportunities and threats are external conditions. The framework pairs internal capability with environmental scanning.

Promotion break-even volume

Incremental fixed cost of the promotion divided by unit contribution margin. The result is the extra unit sales needed before the promotional spending pays for itself.

Binary place values

Each position in a binary number represents a power of two, doubling leftward: 1, 2, 4, 8, 16, 32. Binary 1011 equals 8 + 2 + 1, or 11 decimal.

Data storage units

Eight bits make one byte. One kilobyte equals 1,024 bytes, one megabyte equals 1,024 kilobytes, and one gigabyte equals 1,024 megabytes in standard binary measurement.

Absolute cell reference

A reference written with dollar signs, such as $A$1, that does not change when a formula is copied. Mixed references lock only the row or the column.

IF function syntax

=IF(condition, value_if_true, value_if_false). The spreadsheet evaluates the logical test and returns one of two results, enabling conditional calculations and simple decision rules.

VLOOKUP exact match

=VLOOKUP(lookup_value, table_range, column_index, FALSE) searches the first column for an exact match and returns a value from the specified column of that row.

Boolean AND versus OR

AND returns true only when every condition is true; OR returns true when at least one condition is true. NOT reverses a single logical value.

Loop termination condition

An iteration must have a test that eventually becomes false or a counter reaching its limit. Without a reachable stopping state, the loop runs indefinitely.

Primary and foreign keys

A primary key uniquely identifies each row in a table. A foreign key holds a primary key value from another table, linking records and enforcing referential integrity.

LAN versus WAN

A local area network spans a limited area such as a school building; a wide area network spans large geographic distances. Both use shared addressing and routing protocols.

DNS and IP addresses

An IP address numerically identifies a host on a network. DNS translates human-readable domain names into those numeric addresses so browsers can locate servers.

Fair use limitation

A limited legal exception allowing use of copyrighted material without permission for purposes such as teaching, news, or criticism, judged by purpose, nature, amount, and market effect.

Acceptable use policy

A school or organization document defining permitted and prohibited use of its network, devices, and data. Violations may result in loss of access or disciplinary action.