Considerations in making short-term Investments
- The most important consideration in selecting an investment is safety of the amount of the investment.(low risk. Ex. Investments in Bank savings accounts, certificates of deposit, money market accounts and certain government issued Securities like treasury notes and bills.
- Liquidity and price stability. The investment should be in an instrument that is highly liquid which means that it can be quickly converted to cash without incurring significant loss or penalty.
- Non taxability and diversification.
How to choose performance measures.
Choosing among different performance measures requires an understanding of how the measure will be used (compensation, resource allocation, business unit). Must reflect the strategy of the company. Must represent economic reality. Should provide a clear and accurate measure of performance. Should be clearly controllable by the manager being evaluated.
What is encryption and how is it useful.
The process of transforming information using an algorithm to make it unreadable to anyone except those possessing special knowledge, referred to as a key. (Plaintext to ciphertext and back using key).
Guards against risks to privacy, protection of data, authentication and user identification. (Identity theft)
What is a balanced score card and its advatages
A performance measurement system that includes both financial and non financial measures. It includes measures in the 4 perspectives (financial, customer, internal business processes, and learning and growth). By measuring performance from multiple aspects, it provides a more strategic measurement system compared to those that are one dimensional. Aids in communicating company goals to all members of the org.
