Ch5. Business Management Flashcards
________________ is the simplest form of business organization and the easiest to establish.
Sole ownership
The CSLB requires an additional bond and liability insurance for this type of entity:_______
LLC
A _______________ is a legal entity that continues to exist even with the death of an officer or shareholder (owner).
Corporation
Federal Income Tax is reported and paid to the _______.
IRS (Internal Revenue Service)
State Income Tax is filed with and paid to the _______.
FTB (Franchise Tax Board)
Sales tax is reported and paid to the ________, if you manufacture or sell tangible personal property.
BOE (Board of Equalization)
If you purchase and take delivery of material in a different county than where it will be installed, you will be required to pay ______________ to the county where the materials were purchased.
District Tax
An _________________ raises limits and covers items that would not be covered by your standard General Liability
Policy.
Umbrella policy
To obtain the best rate on an insurance policy, you should obtain multiple quotes and compare _______ and ___________.
Cost and Coverage
Unlike claims-made coverage, ____________
insurance covers claims made after the policy expires.
Occurrence insurance
The formula for the “accounting equation” and the basis of the balance sheet is:
Assets = Liabilities + Owners Equity
The formula for finding what the working capital is:
Working Capital = Total Current Assets - Total Current Liabilities
What is the basic formula for gross profit?
Sales - Cost Of Goods Sold = Gross Profit
What would be the formula to find net profit percentage, if expenses increased?
Net Profit ➖Increased Expense 🟰 (New) Net Profit ➗ Total income 🟰 (decimal) Net Profit 🟰 Covert to (%) Net Profit
The formula for the current ratio is:
Current Assets ➗ Current Liabilities
