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Business Operations > Operating A Business Test 3 > Flashcards

Operating A Business Test 3 Flashcards

1
Q

Uneventful protection for a small business or small business owner
in regards to monetary compensation in the event that a business &/or
personal peril is experienced.

A

Insurance

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2
Q

Identify business risk to be…

A

covered

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3
Q

obtain coverage for…

A

major potential

losses.

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4
Q

Insurance Planning (Risk to consider)

A 
Loss / Damage to property 
Vehicles / rolling stock
Loss of income resulting from business interruption
Burglary / Robbery
Extensive loss from bad debts
Liability to employees 
Financial hardship
Liability to public 
shoplifting / loss through dishonest employees
Death of Key employees 
Riots / Civil disobedience
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5
Q

life insurance that protects a firm against losses

due to the death of a key person.

A

Key Person Insurance

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6
Q

insurance on a owner that will supply money for a

partner to buy his share upon death

A

Buy – sell Insurance

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7
Q

examples of insurance (including but not limited to)

A

Key-Person Insurance

Buy-Sell Insurance

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8
Q

Protects financial losses
incurred by producers / sellers of goods or services due to injury or damage
resulting fro use of said product.

A

Product Liability / Malpractice Insurance

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9
Q

insurance that provides monetary benefits to a

business that has experienced an unforeseen peril such as a flood or fire.

A

Casualty Insurance

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10
Q

Types of insurance

A 
Product Liability / Malpractice Insurance 
Whole Life 
Casualty Insurance 
Universal Life
Term Life Insurance
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11
Q

buy for a period of time, dissolves at end of time

period unless renewed.

A

Term Life Insurance

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12
Q

Refers to efforts designed to preserve assets and earning power associated with a business

A

Risk Management

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13
Q

Risk Management Considerations

A

Eliminate risks
Minimize risks
Shift the risk
Absorb the risk

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14
Q

remove the cause (security and/or neighborhood

watch.

A

Eliminate Risk

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15
Q

good management (morale, pricing, promotions).

A

Minimize Risks

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16
Q

purchase outside insurance…….to cover the business in regards to monetary compensation in the event that peril is experienced. . . . . business or personal.

A

Shift the Risk

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17
Q

Percentages of earnings as a

contingency for possible future losses; (property, workers comp. medical).

A

Absorb the risk (sole insurance)

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18
Q

Those, over a relevant range, which do not change but becomes progressively smaller on a per-unit basis as volume increases.

Likewise, these do not decrease with increased business, nor do they decrease with declining business activity.

A

Fixed Expenses

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19
Q

Fixed Expenses - examples:

A 
Rent 
Salaries 
Depreciation 
Insurance 
Debt
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20
Q

That cost which is uniform per unit but fluctuates in

total in direct proportion to change in the related activity or volume.

A

Variable Expenses

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21
Q

Variable Expenses - example:

A 
Supplies - pins, paper, etc. 
Hourly wage expense
Repairs 
Utilities 
Taxes
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22
Q

Any cost not specifically associated with production of identifiable products and services. The cost to open the doors.

.

A

Overhead

23
Q

The point at which total sales revenue equals total cost.

A

Break even point

24
Q

Break Even Point may also be referred to as…

A

break even analysis

25
Q

Expense Classification is usually based on the industry standard.

A

Cost Control

26
Q

likewise compared to the industry standard. Best defined as profit on each item of expense in the income statement expressed as a percentage
of sales income.

A

Operating Ratios

27
Q

Examples of Ratio Utilization

A 
Total operating expense ratio.
Net worth - 
Gross - 
Employee wage ratio.
Proprietor’s wage.
Advertising expense.
28
Q

before deductions.

A

gross

29
Q

after deductions.

A

net worth

30
Q

people who are willing to invest in a risky business

A

Angels

31
Q

document that lists the major responsibilities

& task of a specific position. Find the right person for the job and retain them.

A

Job description

32
Q

process for determining the critical components of a job for purposes of selecting, training, and rewarding personnel

A

job analysis

33
Q

COMPONENTS OF A JOB DESCRIPTION

A 
Job description 
Effective date 
Supervisory person 
salary range 
Qualifications 
Responsibilities
34
Q

the ONLY thing that is optional in a job description is…

A

salary range

35
Q

A document that lists knowledge, skills, abilities and personal characteristics
a job holder must possess to perform effectively.

A

JOB SPECIFICATION

36
Q

RECRUITMENT & SELECTION

Factors to consider

A 
Labor Market – Supply & Demand
Demographics
Wages / Benefits
Identity of the organization
Security & potential for advancement
Environmental conditions
Responsibilities
Experience requirements
37
Q

Title VII of the Civil Rights Act of 1964, amended in 1972 and amended again in 1978 by the Pregnancy Discrimination Act

• Jurisdiction: employers &/or unions with 15 or more employees,
employment agencies, union hiring halls, institutions or higher
learning, federal, state and local governments

A

FEDERAL LEGISLATION / Affecting Employment

FEDERAL LEGISLATION CIVIL RIGHTS 1964, 1972, 1978

38
Q

FEDERAL LEGISLATION CIVIL RIGHTS 1964, 1972, 1978

• outlaws discrimination in employment based on

A

race, color, religion,

sex, pregnancy or national origin.

39
Q

• Outlaws discrimination in employment against those over 40 years old.

• Jurisdiction: Employers and unions with 25 or more employees;
employment agencies; federal, state and local governments.

A

Age Discrimination Employment Act 1967

40
Q

• Outlaws discrimination in pay based on the sex of the worker.

• Jurisdiction: Employers engaged in interstate commerce and most
employees of federal, state, and local governments.

A

Equal Pay Act 1963

41
Q

• Outlaws discrimination in employment based on handicaps of employees who, with practical accommodation could do the job.

• Jurisdiction: Covers federal government contractors with contracts of
$2,500 or more.

A

Rehabilitation Act 1973

42
Q
  • Outlaws discrimination in employment against Vietnam era veterans
  • Jurisdiction: Covers Federal Government contractors with contracts of $ 10,000 or more
A

Vietnam Era Veterans Readjustment Act (1974)

43
Q
  • Outlaws non documented persons from employment in the United States
  • Jurisdiction: Covers all employers
A

Immigration Reform Act (1986)

44
Q
  • Prohibits discrimination against any qualified individual with a disability…… mental or physical
  • Jurisdiction: Covers firms with 15 or more employees
A

Americans with Disabilities Act (1990)

45
Q
  • Outlaws discrimination practices in pay: to pay a minimum wage of one and one-half of the regular wage for hours beyond 40 hours
  • Jurisdiction: All business are covered under Federal/or State Legislation
A

Fair Labor Standards Act (Wage & Hour Law)

46
Q

Employment application process

A

vital info
employment history
info which will determine qualifications

47
Q

A qualification that is absolutely necessary for the job. . . . it is an allowed and approved reason for discrimination.

A

Bona Fide Occupational Qualification (BFOQ).

48
Q

(BFOQ).

A

Bona Fide Occupational Qualification

49
Q

Types Employment Interviews

A

Formal

Informal

50
Q

structured - a pre-determined set of questions asked of all applicants.

A

Formal interview

51
Q

unstructured - questions developed as the interview

proceeds.

A

Informal interview

52
Q

That which is illegal to seek would be personal information not related to employment.

A

Reference Checking

53
Q

Is usually submitted voluntarily by the applicant

A

The Resume

54
Q

What have you done with your life?

Antiquated term for resume

A

Curriculum Vitae (CV)

Business Operations (1 decks)

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