Engineering Management

1281 Words6 Pages
Chapter 11 1. How may the marketing concept be explained? Is it applicable to engineering firms?

* The marketing concept state that the engineer manager must try to satisfy the needs of his/her clients by means of set of coordinated activities. * It I applicable to an engineering firm because, same in other firms they need to survive, to be able to do so they must continuously generate income by selling enough quantity of their products or services.

2. What is meant by the term “product”?

* The term Product is including all tangible or intangible items and its capacity to satisfy a specific need. 3. How may an engineer manager meet the threat of a competitor’s product?

* The Engineer manager must
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* To finance the firm’s services. * To finance the purchase of inventory. * To finance the purchase of major assets.

3. Are the various sources of the firm’s cash in-flow? * Cash sales. * Collection of the accounts receivable. * Loans and credits. * Sale of assets. * Ownership contributions. * Advances from the customers.

4. What is the different between short-term and long-term sources of funds?

* Short-term sources of funds are those with repayment schedules of less than one year. While the long-term sources of funds are those with repayment schedules of more than two years and can be consider as long-term depts.

5. What are the suppliers of the short-term funds? Describe briefly each.

* Trade Creditors – refers to the suppliers extending credit to a buyer for use in manufacturing, processing, or reselling goods for profit. * Instruments used in trade credit consist of the following; * Open-book credit – in unsecured and permits the customers to pay for goods delivered to him in a specified no. of days. * Trade Acceptance – is a time draft drawn by a seller upon a purchase payable to the sellers as payee. * Promissory notes – an unconditional promise in writing made by the one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determined future time.

* Commercial
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