Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FINANCE > Building A Team, Fundraising and Entity Selection Debra Druther CPA > Flashcards

Building A Team, Fundraising and Entity Selection Debra Druther CPA Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 65 flashcards Series 63 flashcards Series 66 flashcards Series 7 Top-off Exam flashcards SIE Exam flashcards CFA flashcards Series 79 Top-Off Exam flashcards
1
Q

Finance Quote!

A

Running your business without knowing your numbers is like driving a car without being able to see your direction or speed. It’s only a matter of time before you crash.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The Two types of teams a brewery owner should have are

A 
Outside team (CPA, Attorney, insurance agent)
Inside Team (CEO, CFO, HR, Sales team)
Also a third team is Support
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Outside team is devoted to…

A

Getting all of the compliance stuff out of the way so you can focus on the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Who should be on the outside team-CPA?

A

A good CPA should know

  • Tax deductible fees
  • Flag potential audits
  • Missed deductions/credits
  • Deals with laws and due dates
  • Access to networks of providers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Who should be on the outside team-Bookkeeper?

A

A good bookkeeper or accountant

  • Can be a combination of people (one does books and the other to make fixes)
  • It helps you at tax time - no last minute scramble, staying organized all year.
  • Important to understand fiscal health of your business, make sure people are paying you.
  • Someone to do the dirty work on collections of payments.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who should be on the outside team-Lawyers?

A
  • At least two lawyers
  • Should have one business attorney and one intellectual property, copyright etc. attorney
  • Access to their networs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Who should be on the outside team-Insurance Brokers?

A
  • Familiar with the industry
  • Job to explain and coordinate different types of insurance as needed
  • Work with you to figure out what you need
  • Offer solutions based on industry, geography and or costs
  • Can advise on best practices
  • Keep you informed on law changes like (Health insurance and Obamacare)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Who should be on the outside team-Payroll services?

A
  • outsource payroll to a payroll company
  • Can remit payroll taxes direct from bank account
  • Creates payroll reports for ease of use for your bookkeeper and tax prepare
  • Files payroll tax returns on your behalf
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Finding outside team members Who To?

A
  • Ask friends and family
  • Check credentials on Linked In
  • Ask professionals for references and referrals
  • Always interview first and ask good questions
  • Remember you are building a team, not a group of strangers.
  • Ditch them if they are not being useful
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Building an Inside Team -

A
  • Taking on multiple rolls is critical at start up
  • Need a range of skills to be able to grow
  • Find the right mix of people is essential
  • Effective management team means a more efficient and capable business.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Building an Inside Team - Rolls inside

A
  • Each team member should focus on their skills set.
  • Brewery will benefit by having its overall growth and direction viewed from different perspectives.
  • Don’t underestimate the importance of a good rapport between your internal team
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Building an Inside Team - Roll of the Inside Team

A
  • For operating in more than one location.
  • Operating in more than one business type
  • For different cultures, like mergers etc.
  • Operating at different levels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Building an Inside Team - Management Team Skills Sets

A
  • Sales and Marketing
  • Production
  • Food management
  • Administration
  • Procurement, Buying
  • Finance
  • Promotional
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Building an Inside Team - Keys to a good team

A
  • Making sure roles and responsibilities are in place
    • Formal, manager meetings, progress reports
    • informal - team building sessions, general feedback
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Building an Inside Team - Typical Roles for A Working Brewery

A
  • CEO, secures strategic relationships, spearheads innovation/modernization
  • CFO, Negotiates supplies and distribution contracts, funds capitol improvements and expansion
  • CIO, Optimizes production data and inventory and productivity savings.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Building an Inside Team - Typical Roles for A Working Brewery

A
  • HR, human resources, provide recruiting, retention of brew-master and chefs, manage increased productivity
  • VP Sales and Marketing building brand awareness, distributor relationships
17
Q

Requirements for building the team

A
  • Analyze skills the business requires and consider strengths/weaknesses you offer personally
  • Analyze fit of existing skills among staff and prioritize missing skills
  • Evaluate if staff development could fill the skill gaps which aide in forming a more cohesive team
  • Consider your options, Independent contractors, Consultants etc.
18
Q

Performance Management

A

Need to have a good system in place to monitor performance and rate.

19
Q

Performance assessment is divided into two parts: PART 1

A

1- Measurement
Relies on key performance indicators like Measurable factors Like: Sales figures, production output, machine downtime, financial performance etc.

20
Q

Performance assessment is divided into two parts: PART 1

A

2- Evaluation form 4 key phases

  • Set objectives - have clear expectations of employee
  • Manage the performance, provide employees with tools and resources they need to perform well
  • Carry out appraisal, monitor, assess, and discuss performance and agree on future goals
  • Provide rewards, not necessarily monetary
21
Q

Fundraising, Debt Vs. Equity: Debt Financing

A

Debt Financing-

  • Refers to money raised through bank or loan
  • Must be re-paid, plus interest
  • Usually a single purpose, over defined period of time.
  • Usually secured with collateral, like a home or the equipment being purchased.
  • Monthly payments fore you to manage cash flow
  • Bankers look closely at debt to equity ratio
22
Q

Fundraising, Debt Vs. Equity: Equity Financing

A

Equity financing:

  • Money invested in a business in exchange for a portion of ownership and future profits
  • Usually long term, general use funds
  • Taking on equity usually means placing a priority on growth, or that you cannot afford to take on anymore debt.
23
Q

Fundraising, Debt Vs. Equity: Debt Advantages

A

Debt advantages:

  • Debt does not dilute the owners ownership interest in the company
  • Lender is entitled to repay of only the agreed upon loan amount plus interest, with no claim on future profits
  • Loan plus interest are known amounts, the payments can be planned
  • Interest on the debt is tax deductible, which in effect lowers the cost of the actual loan
  • Raising debt capitol is usually less complicated
  • Don’t need to send performance updates to large numbers of investors.
24
Q

Fundraising, Debt Vs. Equity: Debt Disadvantages

A

Debt Disadvantages:

  • unlike equity, debt must at some point be repaid in full.
  • High interest costs during financially difficult periods can increase risk of insolvency
  • Companies that are highly leveraged find it difficult to grow due to high cost of debt.
  • Cash flow is not required, but must also be budgeted for.
  • Loans can come with restrictions on what you can use it for.
25
Q

Fundraising, Debt Vs. Equity: Disadvantages of debt equity compared to equity

A

Compared:

  • Higher debt:equity ratio make a company look more risky to potential investors and lenders
  • Need to put up collateral or a personal guarantee
26
Q

Equity Advantages:

A

Benefits of taking on investors:

  • Growth, cash influx from investors help accelerate launch of new products, hiring of employees, and expansion into new facilities.
  • Low risk, don’t have to pay money back if un- successful
  • Patience, Lenders are more times than not more flexible with payments and
  • Widen your investment network and experts
  • Additional knowledge and ideas for bettering processes
  • Partnering to fill strength gaps
27
Q

Equity disadvantages:Risks of taking on an investor

A
  • Control, shared
  • More scrutiny and accountability
  • Expectations, investors will want strategic plans that effect profitability
  • Marriage, California is a common property state, what your investor owns so does his or hers spouse.
  • Expensive to buy out as shares increase in earnings.
  • Early investments means selling off large chunks of the business in the beginning
28
Q

Debt to equity ratio

A

Brewery standards are a debt:equity ratio of 1.4 or 140%

- Debt to Equity ration = Total debts divided by total equity

29
Q

Entity selection is state specific

A

Sole Proprietorship:

  • Simple entity
  • No formal procedure to start
  • No separate tax return needs to be filed
  • Personally liable for debts and obligations of the business.
30
Q

General and Limited Liability Partnerships

A

LLC and General partnerships:

  • Easy form like a sole prop.
  • Basically is an association of two or more persons to carry on the business
  • Separate tax returns to be filed Form 1065
  • income deductions pass through individual partners.
  • General partners treated as having the liability for debts and liabilities of the business.
  • Partners share the liability
  • Must have at least one general partner
  • Annual $800.00 / franchise tax board
31
Q

LLC

A
  • Most popular and flexible
  • Offers liability and protection of a corp. but can be taxed like a partnership
  • Separate tax returns
  • income deductions pass through individual members
  • $800 franchise tax
  • Additional CA LLC fees based on gross receipts, (Double taxation)
32
Q

Single member limited liability

A
  • LLC that has one member
  • Disregarded entity for fed. tax purposes
  • Files separate tax return
  • $800 Franchise tax
  • Additional CA LLC fees on gross receipts.
33
Q

C- Corp

A
  • The business people think of
  • Owned by individual shareholders
  • Shareholders vote on policy issues but decisions are left to board of directors
  • Day to day operations run by officers of the company (CEO, CFO, CIO)
  • Shareholders pay tax on dividends
  • taxed at graduated rates from 15-35%
34
Q

S- CORP

A
  • Most restrictions
  • Only one class of stock
  • Limited number of investors, no foreign investors
  • Files separate tax returns
  • income, deductions pass through shareholders individual taxes
  • Reasonable compensation
  • Risk being treated as a C-Corp if any restrictions are broken.

FINANCE (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions