Management Flashcards
1
Q
Define Management
A
The act of motivating people towards the achievement of a goal or goals.
2
Q
Define Funeral Service Management
A
administration of a funeral service enterprise, the activities of which encompass marketing, office, personnel, facilities, and financial management
3
Q
What is the primary objective for funeral home
A
meet the death-related needs of grieving families
4
Q
What is the secondary objective for a funeral home
A
insuring that funds are available and have a reasonable return on investment (ROI) profit
5
Q
Define expenses
A
a decrease in assets, other than withdrawals by the owner, which result from efforts to produce revenues
6
Q
What are the four functions of management?
A
Planning, organizing, directing, and evaluating
7
Q
In the four functions of management what is another word for the Directing part?
A
Actuating
8
Q
In the four functions of management what is another word for the Evaluating part?
A
Controlling
9
Q
In making plans , the manager must be able to envision the ___result at the ___ of the process
A
end result at the start of the process
10
Q
Define planning
A
The function of determining in advance what needs to be accomplished in order to achieve a particular goal.
11
Q
Define business policies
A
Fundamental statements that serve as guides to management practice
12
Q
Define human resource planning
A
developing a comprehensive strategy for meeting future human resource needs
13
Q
What is the difference between objectives and goals?
A
Objectives are very specific with a time limit and goals are very broad they paint a basic plan or direction
14
Q
Define organizing
A
to arrange or constitute in interdependent parts , each having a specific function or relation with respect to the whole. arrangement and distribution of work among members of an organization.
15
Q
Define motivating
A
energizing, channeling, and sustaining people behavior .
16
Q
How is motivating accomplished by a manager ?
A
understanding employees needs and wants and integrating them with the goals and objectives of the company.
17
Q
Define Directing (actuating )
A
regulating the activities or course of activities of an organization
18
Q
Directing (actuating) includes staffing meaning
A
management function dealing with the recruitment, selection, placement, training, development, and appraisal of the employees
19
Q
Define evaluating (controlling)
A
management function which compares organizational and individual performance with predetermined standards or expected results.
20
Q
In the controlling aspect of management what might the manager have to do with goals and objectives?
A
change them
21
Q
Funeral service managers have the responsibility of protecting ____ ____ of the diseased
A
personal information
22
Q
True or false Funeral service management is more service oriented than product oriented .
A
`True
23
Q
What does “Caveat venditor”
A
let the seller beware
24
Q
True or false funeral service managers often include serving the community the total community while meeting the particular needs of a client-family
A
TRUE
25
True or false FS managers have a duty to assist educational programs related to death, grief, bereavement, funeral rites, and recovery
true
26
How does FS practice differ from other managerial areas in that the total service has to be _________
available to every economical circumstance
27
Define human relations
motivating people in organizations to develop teamwork which effectively fulfills their needs and achieves organizational objectives
28
What does EPA stand for and why is it important?
Environment protection agency , to ensure the environment is not being threatened by an establishment .
29
Define a job description
document that lists Major responsibilities and tasks of a job
30
Define job analysis
determining the critical components of a job for the purpose of selecting, training, and rewarding personnel
31
In the hiring process when is it legal to ask for information that pertains to the applicants age, sex, number of dependents etc.
AFTER the applicant is hired
32
If when interviewing a person an they are giving short answers what is recommended you do to get them to talk ?
give a pause so that they will want to fill the silence.
33
What are the three main reason orientation programs fail?
Was not planned
employee was not made aware of job requirements
employee did not feel welcome
34
Civil rights act of 1964
outlaws discrimination in employment based on race, color, religion, sex, pregnancy, or national origin
35
Age discrimination in employment act (ADE)of 1967
outlaws discrimination in employment against those who are over 40 years old
36
Equal pay act of 1963
outlaws discrimination in pay based on the sex of the worker.
37
rehabilitation act of 1973
outlaws discrimination in employment based on handicaps of workers who , with reasonable employer accommodation , could do the job.
38
Vietnam Era Veterans Readjustment Act of 1974
outlaws discrimination in employment against Vietnam era veterans
39
Americans with disabilities act of 1990
prohibits discrimination against any qualified individual with a disability.
40
Fair Labor standard act FLSA
outlaws discriminatory practices in pay ; requires employers to pay mini min wage and to pay minimally time and a half for any hours worked beyond 40 workers in a week.
41
immigration reform act of 1987
outlaws non-documented persons from employment in the US
42
Bona Fide Occupational Qualification (BFOQ)
a qualification necessary the job that is allowed and approved reason for discrimination. approvals are granted case by case. `
43
What are the 5 most common factors in funeral home employee turnover?
```
lack of appreciation
failing to value employees
paying low or unfair salary
failing to resolve personal conflicts
assigning a heavy work load
```
44
What are the 5 components to Maslows Hierarchy of needs theory ? In order of most important
```
Physiological need (base)
safety needs
affiliation needs
esteem needs
and self actualizing needs (tip)
```
45
In theory X and Y which is the downer ?
X
46
In theory X and Y which is the inspiring?
y
47
In Hertzberg two factor theory Intrinsic factors are called ____ and include __________________________
Called MOTIVATORS and include achievement, recognition, work, responsibility, and advancement
48
In Hertzberg two factor theory extrinsic factors are called ____ and include
HYGIENES and include company policy, supervision, salary , interpersonal relations with co-workers, and working conditions
49
Define Total Quality management (TQM)
efforts of all members of an organization directed to ensure that quality in the production of goods and services is achieved
50
Define mission statement
fundamental statements that serve as a guide to management practice
51
Define delegation of authority
superiors act of granting to subordinates , on the basis of competence , the right to act or decide
52
Define chain of command
superior-subordinate relationship that serves as a channel for two-way communication
53
Better Business Bureau
association of business firms that promote ethical conduct by all business firms in the community
54
Chamber of Commerce
an association of business people who attempt to protect and promote the commercial interests in a community.
55
Define recruitment/selection
process of forming a pool of qualified applicants for tasks that need to be filled
56
Define demographics
statistical study of human populations with respect to their size, density, distribution, composition, and income
57
Define Human resource management (personnel management )
process of acquiring, training, developing, motivating, and appraising a sufficient quantity of qualified employees to perform necessary activities; and developing activities and an organizational climate conducive to maximum efficiency and worker satisfaction
58
True or false it is illegal to seek personal information of an applicant through a reference
true
59
True or false A Signed release should be sought from applicant to seek reference information
true
60
Define Resume
a written summary of one's personal, educational, and professional achievements
61
Define interviewing
a job-analysis technique in which individuals currently holding a particular job are asked questions concerning the requirements of the job
62
Define Job specification
a document that lists the knowledge, skills, abilities, and personal characteristics a job holder must possess to perform effectively
63
Define Recruitment and selection
the process of forming a pool of qualified applicants for tasks that need to be filled
64
Define employment application process
a record of statements made at the time the applicant first seeks employment
65
Define Employment Interview
the primary way of judging the applicant's appearance, poise, speech, etc.
66
What are the two types of interviews?
(1) Structured (formal) - per-determined set of questions asked of all applicants
(2) Unstructured (informal) - questions developed as the interviewer proceeds
67
Occupational Safety and Health Act (OSHA) of 1970
a governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees; an individual state OSHA agency may supersede the U.S. Department of Labor OSHA regulations
68
Equal Employment Opportunity Act of 1972
the absence of employment discrimination based on race, color, religion, sex, or national origin
69
Define financial management
the efficient utilization and adequate regulation of assets, revenue, expenditures, and capital rights
70
Define Accounting systems
a language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data
71
Define Accrual accounting
recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not
72
Define Cash basis accounting
an accounting practice in which revenue is not recognized in the accounting records until received and in which expenses are not recognized until paid
73
Define Budgeting
a formal written statement, which may be based upon adjusted historical data, of management's plans for the future expressed in financial terms
74
Define Finance advantages
the business function of effectively obtaining and using funds
75
What are the 3 types of capital
(1) Working capital (circulating capital) - difference between current assets and current liabilities
(2) Fixed capital - long-term capital invested in the business; also, funds invested in such long-term assets as: land, building, machinery, furniture, fixtures, and other equipment
(3) Personal capital (equity capital) - capital invested in the business by the owner(s)
76
Define Debt equity
Any borrowed or loaned capital invested in the business that must be repaid to creditors
77
Define Angels
private investors who are willing to supply financing for new and/or risky small venture start-ups
78
Define Venture capitalists
anyone that invests in, or financially sponsors, a new business
79
Define Line of credit
an understanding between a bank and the business indicating the maximum amount the bank is willing to loan the borrower
80
Define Open end credit (revolving credit)
a line of credit that may be used over and over again up to a certain borrowing limit
81
Define Mortgage loans
a loan secured by the mortgage on property
82
Define Mortgage
a claim given by the borrower to the lender against the borrower's property in return for a loan
83
Define Small Business Administration (SBA) loans
the principal government agency concerned with the financing, operation, and management of small businesses
84
Define Factoring accounts receivable
obtaining cash before payments are received from customer's by selling off one's accounts receivables to a third party
85
Define Account receivable
an unwritten promise by a customer to pay, at a later date, for goods sold or services rendered
86
Define Note receivable
a written promise of a customer to pay the business a sum of money at a future date
87
Define Fixed assets (long term assets) -
property of a relatively permanent nature used in the operation of a business and not intended for resale
88
Define Cost analysis/break even analysis (break even point)
the point at which total sales revenue equals total cost
89
Define fixed expenses
does not change in total but becomes progressively smaller on a per-unit basis as volume increases. These expenses do not increase with increased business, nor do they decrease with declining business activity.
90
What are examples of fixed expenses
rent, supervisory salaries, depreciation, insurance, debt
91
Define Salary
generally considered to be compensation for managerial or administrative services, expressed in terms of a month or year
92
Define Depreciation
the loss in value of a fixed asset due to wear and tear and the passage of time; or a method of matching the cost of a fixed asset against the revenues that the fixed asset will help produce during its useful life
93
Define Variable expenses
a cost which is uniform per unit but fluctuates in total in direct proportion to change in the related activity or volume.
94
What are some examples of variable expenses ?
supplies, hourly wage expenses, repairs, utilities, taxes
95
Define Supplies
a type of asset that will be consumed as it is used
96
Define Wages
a form of compensation for skilled and unskilled labor, expressed in terms of hours, weeks, or pieces completed
97
Define Federal Unemployment Tax Act (FUTA)
a federal act imposed on each employer for the purpose of financing the administration costs of the federal and state unemployment compensation programs
98
Define SUTA
state unemployment tax act
99
Define Federal Insurance Contributions Act (FICA)
a federal act which requires most employers and employees to pay taxes to support the federal social security program
100
Define Income tax
a tax levied on individuals and businesses by federal, state, and local governments
101
Define Retail sales tax
a tax imposed on tangible personal property sold at retail
102
Define Operating expenses (overhead)
any cost not specifically associated with production of identifiable products and services; expenses incurred in the normal operation of a business
103
Define operating ratios
a comparison of profit and each item of expense in the income statement expressed as a percentage of sales income; the operating ratios can be compared to the industry standard in regards to measuring the possible growth of the business
104
What are the uses for financial analysis?
1. Develop and identify trends which will show extent and direction of change
2. Provide a basis for implementing changes in business strategy to contain costs or to expand into other areas of the marketplace
3. Determine relationship of the firm as compared to some predetermined standard or industry average
105
Define Income statement
a formal financial statement which presents the income, expenses, and resulting net profit or net loss for a given period
106
Difference between comparative and common size statements for an income statement
1. Comparative forms - record the income statement data for two or more comparable periods on the same form so that the information can be readily compared
2. Common-size statements (percentage method) - express the major items in the income statement as a percent of net sales and compare with previous fiscal periods
107
Define Balance sheet
a formal financial statement illustrating the assets, liabilities, and owner's equity of a business as of a specific date
108
Difference between comparative and common size statements for a balance sheet
1. Comparative forms - record the balance sheet data for two or more comparable periods on the same form so that the information can be readily compared
2. . Common-size statements (percentage method) - express the major items in the balance sheet as a percentage of the total assets and compare with previous fiscal periods
109
Define Liquidity analysis
measures the ability of the firm to meet its current obligation
110
Define Current Asset Ratio =current assets ÷ current liabilities
the current assets divided by the current liabilities and a measure of the liquidity of the business
111
Define current assets and current liabilities
Current assets - cash or other assets that will be converted to cash or consumed within one year
Current liabilities - debts of a business that are generally paid within one year
112
Acid-Test Ratio (Quick Ratio) = quick assets ÷ current liabilities
quick assets divided by current liabilities
113
Define Quick assets
cash, marketable securities, accounts and notes receivable
114
Define Return on investment = net income ÷ average owner's equity
the ratio of net income to owner's equity in the business
115
Define Net income (net profit)
the difference between gross profit and expenses when gross profit is larger
116
Define Activity analysis
measures how efficiently a firm is utilizing its assets
117
Accounts Receivable Turnover
measures how many times per year accounts receivable are collected
Calculation: net credit sales ÷ average accounts receivable
118
Age of Accounts Receivable
measures the average time required to collect accounts receivable
Calculation: 365 ÷ accounts receivable turnover, expressed in number of days
119
Define Inventory Turnover
The number of times the average inventory has been sold or used up (turned over) during a period
Calculation: cost of goods sold for period ÷ average inventory
120
Age of Inventory
measures the average time required to sell inventory
Calculation: 365 ÷ inventory turnover, expressed in days
121
Profitability analysis
provides evidence concerning the earnings potential of a company and how effectively the firm is being managed
122
Define Profit Margin
net income divided by net sales
Calculation: net income ÷ net sales or
Retail- wholesale
123
Define Net sales
sales - sales returns and allowances - sales discounts
124
Define Gross profit (gross margin)
net sales- the cost of goods sold
125
Define Gross Profit Percentage
gross profit divided by net sales
Calculation: gross profit ÷ net sales, expressed as a %
126
Define Marketing
the process of planning and executing the development, pricing, promotion, and distribution of an organization's goods or services
127
Define Market
a group of potential customers having purchasing power and unsatisfied needs
128
Define market survey
a study that is used by a business to determine where the potential customers are located
129
Define Economic base
wealth produced in or near a community that provides employment and income to the local population
130
Define Competition
practice of trying to obtain something that is being sought by others under similar circumstances at the same time
131
Define Census of Population
a source of market data that compiles population statistics with regard to distribution of population by region, area,
132
Census of Business
- a source of market data that explains where certain businesses are located
133
Census of Housing
- a source of market data that keeps track of new home sales by region and/or the construction of new houses by region and specific area
134
Census of Manufacture
- a source of market data that explains where certain manufacturers are located
135
Advertising
- the art of making the public aware of the services or commodities that a business has for sale
136
Sales promotion
- a plan which provides inducements to potential purchasers of products or services
137
merchandising
the purchase, pricing, display, and sale of merchandise.
138
Cash discounts
- discounts from quoted prices as an inducement for prompt payment of invoices
139
Quantity discounts
- the amount by which the bill or invoice will be reduced when a minimum quantity of merchandise has been ordered
140
Rebates
- the return of a portion of a payment
141
Consignment
- to give to an agent to be cared for or sold
142
Sundry items
- the various miscellaneous items provided or used to complement the services of a funeral director
143
Funeral ceremony
- a service commemorating the deceased with the body present
144
Visitation (calling hours/visiting hours)
time set aside for friends and relatives to pay respect for the deceased prior to the funeral service
145
Memorial service
- a ceremony commemorating the deceased without the body present
146
Graveside service
- a service to commemorate the deceased held at the cemetery prior to burial
147
Direct cremation
- a disposition of human remains by cremation, without formal viewing, visitation, or ceremony with the body present
148
Immediate burial
- a disposition of human remains by burial, without formal viewing, visitation, or ceremony with the body present, except for a graveside service
149
Define Inventory (merchandise) requirements
- those goods or stock of goods which are held for resale; goods purchased for resale at a profit
150
EOQ (Economic Order Quantity)
- quantity to be purchased which minimizes total costs
151
Purchase discounts
- the amount of any discounts granted by suppliers to encourage prompt payment of their invoices
152
Common business credit/sales terms
```
MOM (middle of month)
EOM (end of month)
CWO (cash with order)
CBD (cash before delivery)
COD (cash on delivery)
```
153
Markup
merchandise cost - selling price, i.e., gross margin
154
Markdown
- a reduction of selling price from original selling price
155
Price determination of merchandise
- method used by management to establish the selling price for services and merchandise
156
Graduated recovery
- a pricing method where the markup varies , higher priced caskets get a higher markup
157
. Price quotation
- method by which prices are explained to the consumer (example: itemized GPL required by FTC but package pricing allowed) - price determination and quotation must comply with applicable federal and state law
158
Unit pricing
- a method of price quotation which creates one total price package including both service and merchandise
159
Bi-Unit pricing
- a method of price quotation showing separately the price of the service to be rendered and the price of the merchandise (casket). The common two units were "professional services" and "casket."
160
Functional pricing
- a method of price quotation in which the charges are broken down into several major component parts, such as professional services, facilities, automobiles, and merchandise. Basically, the mortuary charged for three or more areas.
161
Itemization pricing
- the method of price quotation by which each and every function or unit of service and/or item of merchandise is priced separately
162
Package pricing
- a pricing method which groups together selected services and/or merchandise
163
Cash advance items
any item of service or merchandise described to a purchaser as a "cash advance," "accommodation," "cash disbursement," or similar term. A cash advance item is also any item obtained from a third party and paid for by the funeral provider on the purchaser's behalf
164
Sales frequency
- the number of times sales in a given price bracket occur over a fixed period of time
165
Sales frequency chart
- for a defined period of time, a chart is used to track which units sell and how many of each type
166
Balanced line
technique used to determine the number (how many) and quality of caskets to be shown. Plus it should show the allocation of those caskets to specific quartiles within the display room. It gives a reference point that the prices in the selection room are balanced.
167
Crude range /dollar spread
- the spread between the highest value and the lowest value. To compute: take the highest value minus the lowest value, plus one.
The most active is bwteen Q3 and Q4
168
consumer Value Index (CVI)
percentage derived by dividing the wholesale cost of the merchandise by the retail price of the merchandise
Wholesale cost/retail price= CVI
169
Merchandise Value Ratio (MVR)
relationship between the wholesale cost of the merchandise and the total cost to the consumer.
Wholesale cost/(total of merch + services)= MVR
170
Graduated recovery
- today, this is considered the "best" pricing method.
Definition - the return on money is produced by varying the amount expected on each selection.
171
Keystone approach (historical -- unethical)
associated with "All Sales" - this is a pricing method showing 3 caskets to help the buyer find a buying level (using unethical influence).
relationship between approach casket and median price
172
Trade credit
a form of credit that is extended by one business to another business to help finance distribution of producer's goods
173
Consumer credit
a type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants
174
bad debts expense
- accounts receivable that are uncollectible
175
Installment credit (closed-end credit)
- balance of costly goods paid for in small monthly equal (fractional) payments over a period of time
176
Revolving credit accounts (open-end credit)
- a line of credit that may be used over and over again up to a certain borrowing limit
177
What are the four p's of marketing?
price, product, promotion, and place
178
Mark up/ gross casket margin/ margin
difference between merchandise cost and selling price
179
Mark up is AKA
Profit
180
Value Progression
The more a consumer spends, the more value he should receive.
Bracket method of progression: constant % called riser (8%), this is a larger riser than stair step
181
relative pay
you get what you pay for
182
As the CVI increases the consumer ________ for his money
As the CVI increases the consumer recieves more for his money
183
Fixed multiple method is AKA as
straight line or times factor
184
What are the three types of graduated recovery method? (mark up varies )
Q2 and Q3 use same multiple
Q1 slightly higher
Q4 slightly lower
Increasing- Entry, low markup &higher end , high markup
decreasing-High end, low markup&low end high markup
modified-graduated recovery- same as decreasing except the 1st entry gets a less harsh markup
185
Vertical merchandising
providing customers with selection of prices
186
Horizontal merchandising
actual number of choices available at each price
187
Quartile
the division of the total into four segments , each representing one fourth of the total
188
consumerized pricing
pricing so that the the figures are familiar to the consumer (usually ends in 5,7,9, or 0 )
189
Direct selection room procedure
funeral director remains in the selection room throughout the selection process
190
Indirect selection room procedure
funeral director does NOT remain in the selection room throughout the selection process
191
demonstration/educational group
3 or 4 caskets used to educate on elements of casket construction
192
direct lighting
illumination shining directly on an object
193
indirect lighting
reflected illumination of an object
194
Best illumination is a combo
combo of direct and indirect
195
foot candle
amount of illumination produced by a source of one candle at a distance of one foot.
196
Fluorescent light
(form of indirect) illumination produced by a tubular electric discharge lamp
197
incandescent light
illumination resulting from the glowing of a heated element
198
fractional display
portions of caskets in the selection room
199
fair market value FMV
price in cash or equivalents that a buyer would pay to a seller
200
capital asset value
real estate, automobiles, and other tangible assets used in the business
201
financial asset value
economic value of cash , investments, and receivables acquired from the payments of consumers.
202
goodwill asset value
intangible assets of business, known as goodwill
203
liquidation value
value of the assets if the business is shut down .
204
going concern value
assumes the business is valued as as an ongoing bushiness
205
share holders equity
assets- liabilities
206
COLA cost of living adjustment
annual increase that keeps up with inflation
207
entrepreneur
organizes, manages, and assumes the risk of a business firm
208
manufacturing
makes finished goods from raw materials by hand or machinery
209
sole proprietorship
conducting a business as an individual and sole owner
210
general partnership
two or more persons who conduct buisness as co-owners
211
Limited partnership
general partners and partners have limited interests in profits and liability
212
corporation
legal entities established under state law
213
Profit corporations
have shareholders and established under states business corporation act
214
limited liability company
a legal entity that has the option of being taxed like a partnership but shields assets from business debt like a corporation
215
business plan
summary of how an owner intends to organize the business
216
executive summary
overview of the entire plan , with the history of the company .
217
market analysis
illustrates knowledge of the business . Includes target market info, market test results, evaluation of competition, regulatory restrictions
218
company description
info on the nature of the business and a list of primary factors that will make the business successful
219
copy rights
registered right of a creator to produce , publish, and sell
220
patents
registered right of an inventor to make, use, and sell an innovation
221
trademark
name, symbol, or characteristic that identifies a product
222
loss leader pricing
advertising a low cost hoping they will buy something more expensive
223
traffic flow
display arranged so family moves through quality of caskets
224
Declining price structure
higher priced caskets get a lower mark up
225
Modified declining price
lowest priced casket is less expensive
226
market
group of potential customers having purchasing power and unsatisfied needs
227
six buying motives
comfort, convenience, security, prestige, health, or economy
228
public relations
Inducing the public to have a positive feeling about a particular business.
229
facilities management
the obtaining and maintaining of adequate work space and funeral equipment
230
What are the four facilities and equipment requirements ?
Licensure, ADA, OSHA, and outsourcing consideration
231
Fractional displayed can be in portions of what three sizes?
2, 1/4, 1/8, and a full size
232
How many foot candles of illumination are needed at casket level?
90-100
233
church truck
wheeled collapsible support for the casket
234
casket stand
stand or support in which a caskets rests in the selection room
235
casket rack
a device upon which caskets are placed one on top of the other for display or storage
236
Recommended minimum and maximum amount of caskets in a traditional selection room
12-30
237
consecutive method of casket placement
placing caskets in order of increasing or decreasing value
238
Zoning ordinances
law passed by a municipality , regulates and prescribes the kind of building that will be built
239
what are five items that frequently need to be inspected
vehicles, parking lots, prep room, public areas, and equipment
240
what is refereed to as rolling stock?
vehicles
241
office management
administration and supervision of office duties and functions
242
risk
condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for
243
key-person life insurance
protection against losses due to the death of a key employee
244
Buy-sell life insurance
insurance on an owner that will supply enough money for a partner to buy his share of the business on death
245
Businesses interruption insurance
insurance that protects companies during the period necessary to restore property damage by an insured peril
246
product liability insurance
protects firm against claims that its product caused bodily injury or property damage to the user
247
casualty insurance
provides monetary benefits to a business that has experienced an unforeseen peril like a flood
248
credit insurance
insurance that protects non-retailing businesses from abnormal bad-debit losses
249
general liability insurance
insurance covering businesses liability to customers who might be injured on or of premises or from the product sold to them
250
liability insurance
insurance that covers business liability to customers who may have been injured from the product sold to them
251
self insurance
risk management whereby a part of the firms earnings is earmarked as a contingency fund for possible future losses like property, medical, or workers comp.
252
life insurance :
insurance that provides death benefits to the survivors of the insured
253
Endowment life insurance
allows the insured rather than the beneficiary to collect the face value of the policy upon maturity or to collect in payments
254
Term life insurance
no cash value when policy expires
255
Whole life insurance
gives lifetime protection to the insured person
256
Universal life insurance
combination of whole life and term life insurance
257
coinsurance clause
clause in an insurance policy under which the insured agrees to maintain insurance equal to some specified percentage of the property value
258
deductible clause
insurance policy provision that makes the insurer liable only for the losses in excess of stated deductible
259
Risk management
all efforts designed to preserve assets and earning power associated with a business
260
the distance between the floor and the casket in a display room should be
26" to 30"
261
Entrepreneur
one who organizes, manages, and assumes the risk of the business firm or venture.
262
Corporate refugees
individuals who flee the bureaucratic environment of big business by going into business for themselves
263
business
an organization that combines inputs of raw materials, capital, labor, and management skills to produce useful outputs of goods and services so as to earn profit.
264
business plan (venture plan)
written description of new ideas that project marketing, operational, and financial aspects of a proposed business
265
what are four examples of quantitative criteria when pertaining to number of employees for a small business
1. Number of employees (500-1500)
2. wholesale trade(500)
3. retail trade (25-100)
4. services(25-300)
266
dollar sales volume
quantity of items a business sells during a given period.
267
what are five example of qualitative criteria for a small business
1. managed by owner
2. personalized
3. largely local
4. dependent on internal sources
5. not a major force in industry
268
What are the three trends in small business that the notes address
1. service sector increase
2. women in small business
3. minority ownership
269
manufacturing business
business that makes finished goods from raw material by hand or machinery
270
merchandising business
purchases finished goods for resale
271
service business
provides service as opposed to a product
272
interdependence
dependency of a business on one another
273
innovation
introduction of something new , new idea, method, or device
274
capital shortages
lack of available money
275
interest
money paid for the use of money
276
rate
annual percentage rate used to compute interest
277
consumerism
emphasis on providing with products and services that are safe , reliable, and honestly advertised
278
what are 5 examples of external problems for a small business?
1. human resource planning
2. capital shortage
3. tax burden
4. government regulations
5. consumerism
279
What are 3 internal problems for a small business
1. lack of expertise
2. financial shortage
3. human resource managment
280
tangible assets
physical assets that can be appraised by value/ possesses genuine value
281
intangible assets
cant physically touch but is retained cause of value appeal
282
human resource forecast
determining personnel needs in terms of numbers of individuals and their required skills
283
book value
cost of a fixed asset less accumulated depreciation
284
liquidation value (market value approach)
anticipated value of an asset that would be realized in case of liquidation of the business
285
replacement value approach
fair market price to p[purchase something similar
286
earnings valuation approach
centers on estimating the amount of potential income that may be produced by the business in the next year
287
Market value approach
determines values based on previous sales of similar businesses
288
What are the 5 ways of determining selling price for tangible items?
1. book value
2. liquidation value
3. replacement value
4. earnings valuation approach
5. market value approach
289
goodwill
intangible asset such as the funeral home name that generates business (ppl recognize it )
290
trademarks
intangible asset such as name sign, or symbol that the federal government grants exclusive rights to use (Nike sign)
291
copyrights
the registered right of a creator to reproduce, publish, and sell work that represents the skill and intelligence of the person
292
patents
registerd right of an inventor to make, use, and sell an invention
293
sole proprietorship
business owned and operated by one person
294
partnership
voluntary buisness association of two or more persons who have combined their resources to carry on as co-owners of a lawful enterprise/business for their joint profit.
295
articles of partnership
written document that states explicitly the rights and duties of partners in a partnership
296
corporation
an entity that is something that has a distinct existence separate and apart from the existence of its individual members.
297
what kind of business gets the disadvantage of double taxation on earnings?
Corporate
298
corporation charter
written application for permission to incorporate that is approved by state official
299
board of directors
governing body that is elected by the stockholders of a corporation
300
limited liability company (not corporation )
combines aspects of partnerships with the limited liability of a corporation ; owners known as members
301
how long should a "couch cushion "emergency money last?
6 months
302
notes receivable
written promise of a customer to pay at a later date
303
acts receivable
unwritten promise of a customer to pay at a later date
304
FOB shipping point
transportation charges paid by buyer
305
FOB destination
charges are paid by the seller
306
Income statement displays
income, expenses, and resulting net profit or loss
307
synonymous to income statement
Profit &lost statement
| operating statement
308
Financial statement that includes withdrawals and additional investments by the buissness owner
owners equity
309
Whats displayed on multiple step income
gross profit margin, operating income, net income and loss
310
which employee taxes are paid by both the employer and the employee
FICA
311
What are the three purposes for financial analysis
1.develop and 2.identify trends
implement change
3.compare to an industry standard
312
What are the two factor essential for indirect approach method of casket display rooms
1. adequate pre-counseling
| 2. Effective display to depict comparative values
313
What are the four post-selection room procedures
required federal and satte disclosures
verification of selections
compute total expenses
verify method of payment
314
disaster
a sudden misfortune resulting in the loss of life and or property
315
What are three types of disasters?
natural
human responsible
Combination of both
316
emergency
an unforeseen combination of circumstance that results in a need for immediate reaction
317
caveat emptor
"Let the Buyer Beware
318
Intent is to educate families , casket selection
demonstrational group
319
essential concerns of a good pricing method
recover cost of merch
cover cost of dong business
generate profit
320
Pricing method used today
unit
321
one total price package
functional
322
By law federal these taxes are withed from gross earnings
FICA, Medicare, and Federal Income Tax
323
mortgage payable
account used to reflect an obligation, secured by mortgage on certain property
