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KEY TERMS
BALANCESHEET
REGULATORS
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SUMMARY
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EXERCISES
CASE STUDY
o Balance sheet?
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 a statement showing the wealth of a business
or organization at a particular date.
o Bankrupt?
KEY TERMS
BALANCESHEET
REGULATORS
SUBSIDIARY
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 unable to pay your debts: The company is
almost bankrupt and will need to secure a
loan to survive.
o Bottom line?
 the last line on a financial document which
shows the final result (total profit once all
costs have been deducted)
o Income statement?
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REGULATORS
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 a financial statement showing revenue,
expenditure and profit from operations
during a given period.
o Mismanagement?
 poor quality management: Lack of cash
flow is often due to mismanagement.
o Regulator?
 a government agency responsible for
overseeing a profession or an activity.
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o Financial statement?

a document showing the state of the
finances of an organization or business.
o Dividends?
KEY TERMS
BALANCESHEET
REGULATORS
SUBSIDIARY
CHAPTER’S
SUMMARY
DISCUSSING
EXERCISES
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 the profit of a company that is paid to the
people who own shares in it
o Subsidiary?
 a company which is owned by a larger
company.
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KEY TERMS
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SUMMARY
QUESTION N O1
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KEY TERMS
CHAPTER’S
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CASE STUDY
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QUESTION N O1
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QUESTION N O4
DISCUSSING
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a
List of matching words
a) Turnover
c
b) Dividend
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e
c) Interest receivable
f
d) Research and
d
development cost
e) Cost of material
b
CASE STUDY
f) Gross profit
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• Enron
• Royal Ahold
 Founder: Mr. Kenneth
Lay
 Service: 16 years from gaspipe line business to the
world’s largest energy
supply.
 Complement: water
business
 Trouble : in October 2001,
its share and credit
plunged.
 Merger: Dynegy, a rival,
just short period of time.
 Bankruptcy: it had
declared its bankruptcy in
the late of 2001.
 Founder: Royal Ahold of
Netherlands
 Service: the world’s third
biggest food retailer.
 Trouble : between 20012002 overstate its profits
$500m.
 Subsidiary: buy subsidiary
business from American,
Argentina, and some other
countries.
 Bankruptcy: it had
declared its inabilityy to
discipline over the faulty of
auditing.
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KEY TERMS
CHAPTER’S
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DISCUSSING
EXERCISES
CASE STUDY
1.
a
2.
b
3.
c
4.
a
5.
d
6.
a
7.
d
8.
c
9.
a
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KEY TERMS
The falling share price could be serious.
Investors are becoming nervous about the market.
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Bosses are getting rapidly angry with the employees.
The prices have been rising fairly slowly this year.
CASE STUDY
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CASE STUDY
DILEMMA
SUGGESTION
SHARING
MultiBrand is a globally successful consumer products
company, which has build up a reputation based on
‘Honesty, Quality, and Innovation’. Since it started
operating ten years ago, it has launched at least two new
high quality products in different markets every year.
However, manager are currently reviewing company policy
because of a recent dramatic fall in profits and share price
performance. Shareholders believe that this is due to over
diversification, rising costs and failing consumer confidence
as the result of complaints that product quality is declining.
Shareholder recommendation are mentioned in the next slide.
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DILEMMA
SUGGESTION
SHARING
 Freeze current policy of developing
new products;
 Concentrate on consolidating current
successful brands;
 Improve quality or reduce price;
 Freeze recruitment but avoid layoffs;
 Reduce current budget by 15 percent.
Select two recommendations or provided by
your own. Then mention it in your paper
followed by your presentation( randomly
selected-5 mn each).
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DILEMMA
SUGGESTION
SHARING
Questions & Comments???
THANKS FOR YOUR GOOD
PARITICIPATION!!!