BUAD 342 | UTK | Exam #1 Questions with Complete Solutions For Profit - Correct Answers Organizations that strive to generate a profit (revenue in excess of expenses) Not for Profit - Correct Answers Strive to provide particular services to constituents (e.g., governments, educational, or charitable organizations) Business Process - Correct Answers A collection of related activities that combine different resources and inputs to create an output that is of value to the organization, it's stake holders and/or its customers. These outputs may be products or services Procure to Pay - Correct Answers The activities involved in acquiring, paying for, and maintaining the goods and services needed by an organization (inputs) Conversion Business Process - Correct Answers The activities necessary to convert raw inputs into finished products and services. The bridge between Procure to Pay and Order to Cash Order to Cash - Correct Answers The sequence of activities that collectively serve to attract and retain customers, help customers select goods and services, deliver the goods and services requested, and collect payments for the goods and services Economic in Nature - Correct Answers Business events that increase or decrease the quantity of a firm's economic (financial) resources Decision/Management Events - Correct Answers Decisions about managing resources (e.g., human, physical, capital) Procure to Pay Business Process - Correct Answers 1. Identify need and (possibly) internally request the purchase of goods or services by an authorized purchasing agent
- Negotiate a purchase order with the vendor
- Receive and inspect goods or services from a vendor
- Store or maintain goods
- Pay a vendor for goods and services
- Return goods to a vendor 1 / 2
Order to Cash Process - Correct Answers The Order to Cash process is the heart of the company's value chain and is typically the only time the customer directly interacts with the organization.Order to Cash Business Process - Correct Answers 1. Market goods or services to potential or returning customers (and/or perform support activities that help a customer choose you as a vendor)
- Negotiate the terms of an order for goods or services
- Select and inspect goods to be delivered to the customer
- Prepare goods or services for delivery to the customer
- Deliver goods or services to the customer
- Receive payment for goods or services from the customer
- Negotiate the terms of, and possibly accept, a customer return of goods
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Interdependent Business Process - Correct Answers The ability to deliver a product to a customer is dependent on the process of acquiring and converting the resources used to create that product Business Process Analysis - Correct Answers —What happened and why?—What roles are performed and who/what agents perform the roles in executing each event?—What kind of resources were involved and how much was used?—When did this event occur?—Where did this event occur?—What can go wrong by executing this event?Recording Data - Correct Answers Collecting data that describes business events, the who, what, when, where, why, and how much about business activities.Maintaining Reference Data - Correct Answers Keeping current and accurate reference data about resources owned or used, external parties, employees, and locations where activities/business takes place.Reporting Data - Correct Answers Provides information and measurements to support organization critical activities such as planning, controlling, and evaluating