Finance Essentials for Small Business Flashcards
1
Q
- Insufficient capital
- Poor cash management
- Poor record keeping and controls
- Improper product pricing
- Uncontrolled growth
A
Preventable Business Mistakes
2
Q
1) Overestimate cash inflows
2) Underestimate cash outflows
A
Tendencies of Small Business Owners
3
Q
Offers overall view of a company’s future capital needs, problems, and more.
A
Cash Forecast
4
Q
Costs that do not change (like rent, utilities, and insurance).
A
Fixed Cost
5
Q
Costs that vary relative to activities.
A
Variable Cost
6
Q
How many months should a new business have in forecasted cashflows?
A
Six
7
Q
Procedures to ensure accounting information is accurate and reliable to safeguard your assets and records.
A
Controls
8
Q
Refers to the “opportunities” you pass up, especially those that can be more financially rewarding.
A
Opportunity Cost
