...Analyzing Business Transactions LEARNING OBJECTIVES 1. 2. Record in equation form the financial effects of a business transaction. Define, identify, and understand the relationship between asset, liability, and owner’s equity accounts. Analyze the effects of business transactions on a firm’s assets, liabilities, and owner’s equity and record these effects in accounting equation form. Prepare an income statement. Prepare a statement of owner’s equity and a balance sheet. Define the accounting terms new to this chapter. LP2 Chapter NEW TERMS accounts payable accounts receivable assets balance sheet break even business transaction capital equity expense fair market value fundamental accounting equation income statement liabilities net income net loss on account owner’s equity revenue statement of owner’s equity withdrawals 3. 4. 5. 6. www.southwest.com Rollin King and Herb Kelleher had a simple notion when they got into the airline business: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies almost 100 million passengers a year to 63 cities all across the country. In an economy where airlines struggle to stay out of bankruptcy, Southwest has flourished. Other airlines have tried to imitate...
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...eading Report – Business to Business Transactions This report deals with business to business transaction models and various types systems that businesses implement to achieve efficiencies. It details how the increases in technology has made certain possibilities of business to business interactions that were impossible before, whether it was due to the lack of efficiency or lack of tools needed for such interactions to be possible. The internet has ushered in a whole new world of possibilities in business to business interactions. It is one of the major reasons why the expansion of business activities into the digital cyberspace have been an absolute necessity for an organization to be competitive in its market. What business to business transactions mean in the digital age is the interaction of commerce between two businesses electronically either through the internet, intranet, extranet or some other private network, which can also include VAN (value added network). The introduction and advancement of many web based technologies has given more companies the ability to have their influence felt in cyberspace. This includes communicating between other businesses and their customers and also made their transactions between the various parties much more efficient and simpler. It has gone as far as some business models incorporating business to business transactions in to their supply chain theories. This makes sense because the business to business transaction systems are quickly...
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...report deals with business to business transaction models and various types systems that businesses implement to achieve efficiencies. It details how the increases in technology has made certain possibilities of business to business interactions that were impossible before, whether it was due to the lack of efficiency or lack of tools needed for such interactions to be possible. The internet has ushered in a whole new world of possibilities in business to business interactions. It is one of the major reasons why the expansion of business activities into the digital cyberspace have been an absolute necessity for an organization to be competitive in its market. What business to business transactions mean in the digital age is the interaction of commerce between two businesses electronically either through the internet, intranet, extranet or some other private network, which can also include VAN (value added network). The introduction and advancement of many web based technologies has given more companies the ability to have their influence felt in cyberspace. This includes communicating between other businesses and their customers and also made their transactions between the various parties much more efficient and simpler. It has gone as far as some business models incorporating business to business transactions in to their supply chain theories. This makes sense because the business to business transaction systems are quickly becoming a normality in the business market and not just...
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...Understanding Vertical Marketing Systems Critical Analysis Paper Jane Q. Learner Business 101 Developing a Business Perspective June 22, 2007 Introduction The text of the paper starts here. Typically the writer provides an introduction sharing something of interest to capture the reader's attention and introduce the topic. Also, it helps to include a specific statement of purpose. For example, the writer might state "This paper will address the pros and cons of vertical marketing systems. Adding an introduction or statement of purpose not only helps the reader know what to expect, it forces the writer to focus and stay on task. Vertical Marketing Systems All material in the paper is double-spaced. Depending on your topic and the length of paper, it might help to use category headings like the one above. However, overuse of category headings can be very annoying and distracting. Headings and subheadings must be in bold type per APA 6th edition. First level headings must be centered on the page. Advantages of Vertical Marketing Systems Second level headings like the one above are left justified on the page in bold type. One way you can improve your work is to have a conclusion at the end of a paper with the heading “Conclusion” above it (centered). Summarizing your key points and arguments is a professional way to end a paper. Conclusion Each paper must include a separate references page (see the page below) with references listed in alphabetical order, with the...
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...critical and complex nature of today's business applications has made it very important for IT organizations to monitor and manage application service levels at high standards of availability. Problems faced in an enterprise include service failures and performance degradation. Since these services form an important type of business delivery, monitoring these services and quickly correcting problems before they can impact business operations is crucial in any enterprise. Service-level agreements are used to evaluate service availability, performance, and usage. By constantly monitoring the service levels, IT organizations can identify problems and their potential impact, diagnose root causes of service failure, and fix these in compliance with the service-level agreements. Enterprise Manager provides a comprehensive monitoring solution that helps you to effectively manage services from the overview level to the individual component level. When a service fails or performs poorly, Grid Control provides diagnostics tools that help to resolve problems quickly and efficiently, significantly reducing administrative costs spent on problem identification and resolution. Finally, customized reports offer a valuable mechanism to analyze the behavior of the applications over time. Grid Control monitors not only individual components in the IT infrastructure, but also the applications hosted by those components, allowing you to model and monitor business functions using a top-down approach...
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...(Session : 2013-14) TUTORIAL SHEET-1 MANAGEMENT INFORMATION SYSTEM (MBA- 033) |Unit: 1 |Topic: Introduction to Information Systems | |Date of Distribution: | Name of Faculty: Dr. Ashish Avasthi | | |Mr. Vivek Pandey | Q1. Describe the concept of Operation Support System and Management Support System with suitable examples. Ans1. Operation Support System a) Efficiently process business transactions b) Control industrial processes c) Support communications and collaboration d) Update corporate databases Management Support System Provide information and support for effective decision making by managers Q2. “Cybernetic systems are self-monitoring and self-regulating.” Justify the statement. Ans 2. A system with feedback is called cybernetic system. Feedback is data about the performance of a system. For example data about sales performance is feedback to sales manager. Whereas control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal or not. The control function then makes necessary adjustments to a system’s input and processing...
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...Principal Competitive Thrusts with Strategic Information Systems Information is strategic if its objective is to improve the competitive position of the organization. Such system helps the firm attract customers profitably and for an extended period of time. Any type of system supporting operations, management, or knowledge work of the organization may be deployed as strategic system. Competitive Strategies Michael Porter formulated the Four Generic Business Strategies to gain competitive advantage. * Differentiation * Selects one or more criteria used by buyers in a market and then places the business uniquely to meet those criteria * Cost Leadership * Focuses on becoming the lowest cost producer in the industry * Differentiation Focus * Allows the business to aim differentiation within a small number of target market segments * Cost focus * Allows the business to seek a lower-cost advantage within a small number of market segments Competitive Forces Competitive strategies have been formulated because of the competitive forces in an industry. Industry is a group of firms that market products which are closely substitutes for each other like the car industry. Switching costs * These are the costs of switching to your competitor for product or service you provide Competitive Tactics * Internal growth – this tactic makes it possible to realize economic of scale. * Innovation – this tactic makes internal innovation possible by generating...
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...Lessons from Alibaba.com: government’s role in electronic contracting Qin Hu Xun Wu and Clement K. Wang The authors Qin Hu is a Lawyer, Legal Counsel of China Merchants Sekou Industrial Zone Company Limited, Shenzhen, China. Xun Wu is based at the Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, USA. Clement K. Wang is Associate Director (Research), NUS Enterprise Centre, National University of Singapore, Singapore. Introduction Story of Alibaba.com The development of e-commerce has been nothing short of explosive in recent years. Many believe that its growth and impact will only become more prevailing in the future. The sale of goods by US firms over the Internet, for example, is predicted to reach $1.3 trillion by 2003. By 2004, European enterprises are expected to have online sales of $1.6 trillion[1]. Companies in China, with the largest population in the world, are also probing this new source of revenue. The China Internet Network Information Center (CNNIC) issued an Annual Report in Internet Development in January 2000 that estimates that there were 22.5 million Internet users in China at the end of 2000[2]. A recent nationwide survey showed that China had more than 1,100 consumer related e-commerce Web sites by the end of the first quarter in 2000 (People’s Daily, 2000). Four Web companies, Sina.com, Sohu.com, China.com, and Netease.com have already been listed on the NASDAQ. However, the country’s e-commerce market is still in its infancy....
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...Extreme Business-Models in the Clothing Industry - A Case Study of H&M and ZARA Kristianstad University The Department of Business Studies FE6130 Bachelor Dissertation International Business Program December 2007 Tutors: Håkan Phil Timurs Umans Authours: Susanne Göransson Angelica Jönsson Michaela Persson Abstract In the clothing industry firms compete successfully by applying different businessmodels. H&M and ZARA are two extremes in the clothing industry. H&M’s business-model mainly focuses on outsourcing and ZARA’s business-model mainly focuses on in-house production. The problem is that the existing theories alone cannot explain why two firms competing in the same environment under the same conditions choose different business-models. The purpose of this dissertation is to further expand the idea of why the two clothing firms H&M and ZARA chose different business-models. Our set of Complementarities for H&M and ZARA are based on the information derived from studying theories, the EU clothing industry and the two firms. Finally, Complementarities were analysed by conducting interviews. Our Complementarities partly explain why H&M and ZARA chose different business-models. However, our analysis is applicable for H&M and ZARA since the Complementarities are based on characteristics found in these two firms. The value of Complementarities can be used by other firms if they find their specific characteristics. Keywords: business-models, internalization, governance...
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...introduction of the collaborative strategy in the Taiwanese shoe industry. Design/methodology/approach – Literature review in the area of Chinese business culture, and guanxi network is used to elaborate the information obtained from the company. Findings – This paper highlights that the belief of sincerity and trustworthiness has refined to the organization culture that supports the sustainability of Taiwanese guanxi network. Besides, the transaction cost theory, resource-based view, and specific relationship investment has become a hinder strategy for Taiwanese organization to maintain the business relationship. This paper introduces an interesting collaborative strategy between three parties, the original equipment manufacturer (OEM) supplier, the machinery manufacturer, and the end-user (the branding). Although there is no direct business flows between the end-user and the machinery manufacturer, the specific relationship investment between these two parties are tight and cannot be separated. This has ensured the proper business flows between the OEM supplier and the end-user as well as the OEM supplier and the machinery manufacturer. Originality/value – This paper illustrates that a guanxi network is not sufficient to ensure a long-term business relationship to be established. Indeed, the organization culture as well as the consideration on the transaction cost and resources from each party does have a great impact on the collaboration relationship to be...
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...Domino’s Sizzles with Pizza Tracker 1. What kinds of systems are described in this case? Identify and describe the business processes each supports. Describe the inputs, processes, and outputs of these systems. There are three kinds of systems are described in this case. They are the Transaction Processing System (TPS), the Management Information System (MIS), and the Decision Support System (DSS). The Transaction Processing System (TPS) is a computerized system that performs and records the daily routine transactions necessary to conduct business. It is the sales order entry or point of sale (POS) system that captures purchase and payment information. The customer inputs the pizza order that describe the type of pizza crust, the types of pizza toppings, and any side orders. The Transaction Processing System (TPS) then processes the information inputted by the customer and updates Domino’s database with this customer’s pizza order. Next the Management Information System (MIS) helps middle management with administrative activities, controlling, decision- making, and monitoring to see if everything in the process is working well. The Management Information System (MIS) receives transaction data from the Transaction Processing System (TPS) regarding the customer’s order to condense and present this data in reports. Finally the Management Information System (MIS) outputs report information such as type of pizza toppings used, how much time it took to make the pizza, and how long it...
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...favorite albums and artists on vinyl; True Vinyl is the best choice to obtain their selections. True Vinyl will allow our customers to browse through our physical store or shop online to find the record; we will also offer in-store pick-up or safe fast shipping for our online customers. The key to our store’s success will be information systems. True Vinyl will need to utilize both computer-based forms as well as non-computer based types of information systems in order to be successful in providing excellent service and products to our customers. For True Vinyl, I propose utilizing: • Functional Area Information System for payroll this would help this business system for processing and payroll. The sales would have to be cost effective to be able to support the increase of employee’s to purchase this system. • Transaction Processing System this system would help out in sales with policies, procedures, equipment to help with point of sales. • Office Automation Systems this would help with middle managers, and knowledge workers. These employees would schedule resources for record sales projection with calendars and would communicate with e-mail, voicemail, videoconferencing and groupware. • Supply Chain Management System would help employees manage flow of products from various suppliers. If a customer is looking for a certain record we can look when we would be getting it in and...
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...only do we offer thousands of music records, but our consumers also have the ability to record and download music to any electronic device such as an Ipod, Iphone, or Laptop. In order for the business to operate in a smooth operating manner, increase profits from record sales, and stay ahead of competitors we utilize different types of information systems that support the record store in the following functional areas: • Management Information System • Office Automation System • Transaction Processing System • Functional Area Information Systems • Increasing and Retaining the record stores’ budge Information Systems Table |TYPE |FUNCTION |EXAMPLE | |Management Information Systems |Produces reports that are summarized from transaction data |Drafts reports on total sales from each | | | |customer | |Office Automation System |Support Daily work activities of individuals and groups such|Amazing system to work in any business the | | |as Microsoft Office....
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...In 1996, Arauco acquired Alto Paraná in Argentina to expand its land holdings and production capacity of pulp. Alto Paraná produces approximately 350,000 tons of pulp in its own pulp mill, which is supplied by its own plantations (50%) and third parties (50%). Alto Paraná frequently enters into negotiations with third parties, but must contend with substantial transaction costs due to the remoteness of the Alto Paraná facility. These transaction costs, in the form of transportation expenses, drastically decrease profit margins. In our analysis of Alto Paraná’s operations, we calculated the quasi-rents to be $61.7/ton. Given these costs, we believe that Arauco made the right business decision to vertically integrate Alto Paraná’s operations to own both forests and pulp production facilities. In order to calculate quasi-rents, the components of transaction costs to both the pulp mill and the forest, and each party’s next-best selling and buying alternatives (if they were to stop conducting business with each other) must be evaluated. If the pulp mill does not procure softwood from the surrounding forest plantations it would have to acquire it from Corrientes, which is 300 km away. As such, Alto Paraná would incur additional transportation costs (assuming cost of wood is the same at both places) over the new supply route. This value (Tcpulp) comes out to $14.4 / ton (see Appendix). If the local forested wood cannot be sold to the pulp mill in Alto Paraná, it will have to be...
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...Name: Mathel Joy P. Berin Date: 06-25-14 Course: BS Accounting Technology Year & Section: 3B Instructor: Elizabeth Bauzon Assignment #1 CS 212: Fundamental of Information System and System Development 1. What is an information system? What are some ways information system are changing our lives? * A combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization. 2. How would you distinguish data and information? Information and Knowledge? To distinguish between data and information you need to know what each one means. Data is the raw material for processing and refers to unprocessed information. Information is processed data. Information is that which informs that from which data can be derived. Information is conveyed either as the content of a message or through direct or indirect observation of some thing. That which is perceived can be construed as a message in its own right, and in that sense, information is always conveyed as the content of a message. Information can be encoded into various forms for transmission and interpretation. Knowledge is a familiarity, awareness or understanding of someone or something, such as facts, information, descriptions, or skills, which is acquired through experience or education by perceiving, discovering, or learning. Knowledge can refer to a theoretical or practical understanding of a subject. 3. Enumerate...
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