Small Business Management Flashcards
A method of classifying inventory items with categories which are of high value, less costly, and/or low-cost items
ABC Method
The art of making the public aware of the services or commodities that the business has for sale
Advertising
Federal legislation that requires employers to treat applicants and employees equally regardless of age
Age Discrimination Act of 1967
A grouping of accounts receivable into age categories based upon the length of time they have been outstanding on the company record
Aging Schedule
Legislation that guarantees disabled people equal access to employment, as well as access to public places
Americans with Disabilities Act (ADA)
Private investors who are willing to supply financing for new and/or risky small venture start-ups
Angels
A written document that states explicitly the rights and duties of partners in a partnership
Articles of partnership
A measure of the accounts receivable turnover
Average Collection Period
Association of business firms that promotes ethical conduct by all corporation
Better Business Bureau
The governing body that is elected by the stockholders of a corporation
Board of Directors
A qualification that s absolutely necessary for the job
An allowed and approved reason for discrimination
Bona Fide Occupational Qualification
The cost of a fixed asset less accumulated depreciation
Book Value
The identification for a product
Brand
The point at which total sales revenue equals totals operating costs; determined by formula or chart
Break-Even Analysis
The forcible breaking and entering of premises closed for business with the subsequent removal of cash or merchandise
Burglary
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 a profit
Business
Insurance that protects companies during the period necessary to restore property damaged by an insured peril. Coverage pays for lost income and other expenses related to recovery
Business Interruption Insurance
A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business
Business Plan/New Venture Plan
Fundamental statements that serve as guides to management practice
Business Policies
Insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fire, etc
Casualty Insurance
Source of market data that explains where certain businesses are located
Census of Business
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
Census of Housing
Source of market data that compiles population statistics with regard to distribution of population by region, area, etc
Census of Population
The superior-subordinate relationship that serves as a channel for two-way communication
Chain of Command
An association of business people who attempt to protect and promote the commercial interests in a community
Chamber of Commerce
Source of market data that explains where certain manufacturers are located
Census of Manufacturing
The current asset items consisting of cash, inventories, and accounts receivable
Circulating Capital
Federal legislation that prohibits discrimination on the basis of race, color, religion, sex, pregnancy, or national origin
Civil Rights Act of 1964
A clause in an insurance policy under which the insured agrees to maintain insurance equal to some specified percentage of the property value or otherwise to assume a portion of any loss
Coinsurance Clause
The practice of trying to obtain something that is being sought by other under similar circumstances at the same time
Competition
A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants
Consumer Credit
The emphasis placed on providing to customers products and services that are safe, reliable, and honestly advertised
Consumerism
A social movement that seeks to strengthen the rights of consumers relative to sellers
Conumerism
A management function which compares organizational and individual performance with predetermined standards or expected results
Controlling/Evaluating
The registered right of a creator to reproduce, publish, and sell the work which is the product of the intelligence and skill of that person
Copyright
Those individuals who flee the bureaucratic environment of big business by going into business for themselves
Corporate Refugees
An artificial being invisible, intangible, and existing only in contemplation of law
Corporation
An entity that is something that has a distinct existence separate and apart from the existence of its individual members
Corporation
The written application for permission to incorporate that is approved by a state official
Corporation Charter
An agreement that payment for a product or service will be made at some later date
Credit
An organization of retailers and other firms in a given community that serves its members by summarizing that credit experience with particular individuals
Credit Bureau
Insurance that protects non-retailing businesses from abnormal bad-debt losses
Credit Insurance
The current assets divided by the current liabilities and a measure of the liquidity of the business
Current Ratio
Any borrowed or loaned capital invested in the business that must be repaid to creditors
Debt Equity
Insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible
Deductible Clause
A superior’s act of granting to subordinated, on the basis of competence, the right to act or decide
Delegation of Authority
The statistical study of human populations with respect to their size, density, distribution, composition, and income
Demographics
Regulating the activities of an organization
Directing (Actuating)
To guide and/or supervise the activities of an organization
Directing (Actuating)
A business valuation approach which centers on estimating the amount of potential income that may be produced by the business in the next year
Earnings Valuation Approach
The wealth produced in or near a community that provides employment and income to the local population
Economic Base
The quantity to be purchased which minimizes total costs
Economic Order Quantity
A record of statements made at the time the applicant first seeks employment
Employment Application
The primary way of judging the job applicant’s appearance, poise, speech, etc.
Employment Interview
Life insurance that allows the insured, rather than the beneficiary to collect the face value of the policy upon maturity or to collect that value in annual payments
Endowment Life Insurance
One who organizes, manages, and assumes the risk of a business firm or venture
Entrepreneur
The absence of employment discrimination based on race, color, religion, sex, or national origin
Equal Employment Opportunity Act
Outlaws discrimination in pay against those who are over forty years old
Equal Pay Act
A management function which compares organizational and individual performance with predetermined standards or expected results
Evaluating (Controlling)
Obtaining cash before payments are received from customers by selling off one’s accounts receivables to a third party
Factoring
Outlaws discriminatory practices in pay
Fair Labor Standards Act (Wage and Hour)
Requires employers to pay a minimum wage to employees, and to pay a minimum of one and one half times regular rate for any hours beyond forty worked in a week
Fair Labor Standards Act (Wage and Hour)
The business function of effectively obtaining and using funds
Finance
Long term capital that is invested in the small business, as well as funds invested in such long-term assets as: land, building, machinery, furniture, fixtures, and other equipment
Fixed Capital
A cost that, for a given period of time and range of activity called the relevant range, does not change in total, but becomes progressively smaller on a per unit basis as volume increases
Fixed Expenses
These expenses do not increase with increased business, not do they decrease with declining business activity
Fixed Expenses
Insurance covering business liability to customers who might be injured on or off premises or from the product sold to them
General Liability Insurance
An intangible asset such as the name of a funeral home
Goodwill
An intangible asset which enables a business to earn a profit in excess of the normal rate of profit earned by other businesses of the same kind
Goodwill
Determining personnel needs in terms of numbers of individuals and their required skills
Human Resource Forecast
Process of acquiring, training, developing, motivating, and appraising a sufficient quantity of qualified employees to perform necessary activites
Human Resource Management
Developing activities and an organizational climate conductive to maximum efficiency and worker satisfaction
Human Resource Management
Developing a comprehensive strategy for meeting future human resource needs
Human Resource Planning
Federal legislation requiring employers to check job applicants’ papers to be sure they are either US citizens or aliens authorized to work in the US
Immigration Reform Act
The introduction of something new
Innovation
A new idea, method, or device
Innovation
Balance of costly goods paid for in small monthly (fractional) payments over a period of time
Installment Credit (Closed End Credit)
Uneventful protection for the small business or small business owner in regards to monetary compensation in the even that a business and/or personal peril is experienced
Insurance
Those assets that cannot be touched or grasped
Intangible assets
The dependency of businesses on one another
Interdependence
A job-analysis technique in which individuals currently holding a particular job are asked questions concerning the requirements of the job
Interviewing
Those goods or stock of goods which are held for resale at a profit
Inventory (Merchandise)
The number of times the average inventory has been sold or used up during a period
Inventory Turnover
The process of determining the critical components of a job for purposes of selecting,, training, and rewarding personnel
Job Analysis
A document that lists the major responsibilities and tasks of the job
Job Description
A document that lists the knowledge, skills, abilities, and personal characteristics a job holder must possess to perform effectively
Job Specification
Life insurance that protects a firm against losses due to the death of a key employee
Key-Person Life Insurance
Insurance that covers business liability to customers of others who might be injured from the product sold to them
Liability Insurance
Insurance that provides death benefits to the survivors of the insured
Life Insurance
New form of business ownership, approved in most states since 1994, combines aspects of partnerships with the limited liability of a corporation, owners known as members
Limited Liability Company
An understanding between a bank and the business indicating the maximum amount the bank is willing to loan the borrower
Line of Credit
The anticipated value of an asset that would be realized in case of liquidation of the business
Liquidation Value (Market Value) Approach
The art and science of motivating people toward the achievement of a goal
Management
A business that makes finished goods from raw materials by hand or machinery
Manufacturing Business
A reduction of selling price below the original selling price
Markdown
A group of potential customers possessing purchasing power and unsatisfied needs
Market
The process of planning and executing the development, pricing promotion, and distribution of an organization’s goods or service
Marketing
A study that is used by a business to determine where the potential customers are located
Market Survey
An approach used in business valuation which determines value based upon previous sales of similar businesses
Market Value Approach
The difference between merchandise cost and selling price
Markup
A business that purchases finished goods for resale
Merchandising Business
A claim given by the borrower to the lender against the borrower’s property in return for a loan
Mortgage
A loan secured by a mortgage on property
Mortgage Loan
A governmental agency with the responsibility for regulatory and enforcement safety and health matters for most United States employees; an individuals state OSHA agency may supersede the US Department of Labor OSHA regulations
Occupational Safety And Health Act (OSHA)
A line of credit that may be used over and over again up to a certain borrowing limit
Open-End Credit (Revolving Credit)
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 standards in regard to measuring the possible growth of the business
Operating Ratios
To arrange or constitute in interdependent parts, each having a specific function or relation with respect to the whole
Organizing
The arrangement and distribution of work among members of an organization
Organizing
Expenses incurred in the normal operation of a business
Overhead
The voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit
Partnership
The registered right of an inventor to make, use, and sell an invention
Patent
Capital that is invested in the business by the owner(s)
Personal Capital (Equity Capital)
That function of determining in advance what needs to be accomplished in order to achieve a particular goal
Planning
Factors which influence price
Pricing Policy
Insurance that protects a firm against claims that its product caused bodily injury or property damage to the user
Product Liability Insurance
The process of forming a pool of qualified applicants for tasks that need to be filled
Recruitment
The fair market price to purchase similar products in similar condition
Replacement Value Approach
Written summary of one’s personal, educational, and professional achievements
Resume
A condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for
Risk
All efforts designed to preserve assets and earning power associated with a business
Risk Management
a plan which provides inducements to potential purchasers of products and/or services
Sales Promotion
A form of risk management whereby a part of the firm’s earnings is earmarked as a contingency fund for possible future losses, specifically for individual loss categories such as property, medical, or worker’s compensation
Self-Insurance
A business that provides a service as opposed to a business
Service Business
A business which is independently owned and operated and is not dominant in its field of operations
Small Business
The principal government agency concerned with the financing, operation, and management of small businesses
Small Business Administration
A business owned by one person who is subject to claims of creditors
Sole Proprietorship
A management function dealing with the recruitment, selection, placement, training, development, and appraisal of the employees of the firm
Staffing
Those assets that can be appraised by value or seen or touched
Tangible Assets
Life insurance that has no cash value whenever the policy expires
Term Life Insurance
A form of credit that is extended by one business to another business to help finance distribution of producer’s goods
Trade Credit
An intangible asset that is a distinct name, sign, or symbol that the federal government grants exclusive rights to use for a specified period of time
Trademark
A combination of whole life insurance and term life insurance
Universal Life Insurance
A cost which is uniform per unit, but fluctuates in direct proportion to change in the related total activity or volume
Variable Expense
Anyone that invests in, or financially sponsors, a new business
Venture Capitalist
Outlaws discrimination in employment against Vietnam Era Veterans
Vietnam Era Veterans Readjustment Act
Life insurance that gives lifetime protection to the insured person
Whole Life Insurance
The difference between current assets and current liabilities
Working Capital (Circulating Capital)
