Vocab 1 Flashcards
ADVERTISING
The art of making the public aware of the services or commodities that the business has for sale.
AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967
Federal legislation that requires employer to treat applicants and employees equally regardless of age.
AGING SCHEDULE
A grouping of accounts receivable into age categories based upon the length of time they have been outstanding on the company record.
AMERICANS WITH DISABILITIES ACT (ADA)
Legislation that guarantees disabled people equal access to employment, as well as access to public places.
ANGELS
Private investors who are willing to supply financing for new and/or risky small venture start-ups.
ARTICLES OF PARTNERSHIP
A written document that states explicitly the rights and duties of partners in a partnership
AVERAGE COLLECTION PERIOD
A measure of the accounts receivable turnover
BETTER BUSINESS BUREAU
Association of business firms that promotes ethical
conduct by all business firms in a community.
BOARD OF DIRECTORS
The governing body that is elected by the stockholders of a corporation.
BONA FIDE OCCUPATIONAL QUALIFICATION (BFOQ)
A qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination.
BOOK VALUE
The cost of a fixed asset less accumulated depreciation.
BRAND
The identification for a product.
BREAK-EVEN ANALYSIS
The point at which total sales revenue equals total operating costs; determined by formula or chart.
BURGLARY
The forcible breaking and entering of premises closed for business with the subsequent removal of cash or merchandise
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 a profit.
BUSINESS INTERRUPTION INSURANCE
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 PLAN (NEW VENTURE PLAN)
A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business.
BUSINESS POLICIES
Fundamental statements that serve as guides to management practice.
CASUALTY INSURANCE
Insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fire, etc.
CENSUS OF BUSINESS
Source of market data that explains where certain businesses are located.
CENSUS OF HOUSING
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 MANUFACTURING
Source of market data that explains where certain manufacturers are located.
CENSUS OF POPULATION
A source of market data that compiles population statistics with regard to distribution of population by region, area, etc.
CHAIN OF COMMAND
The superior-subordinate relationship that serves as a channel for two-way communication
CHAMBER OF COMMERCE
An association of business people who attempt to protect and promote the commercial interests in a community.
CIRCULATING CAPITAL
The current asset items consisting of cash, inventories, and accounts receivable.
CIVIL RIGHTS ACT OF 1964
Federal legislation that prohibits discrimination on the basis of race, color, religion, sex, pregnancy, or national origin.
COINSURANCE CLAUSE
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.
COMPETITION
The practice of trying to obtain something that is being sought by others under similar circumstances at the same time.
CONSUMER CREDIT
A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants.
CONSUMERISM
The emphasis placed on providing to customers products and services that are safe, reliable, and honestly advertised; also, a social movement that seeks to strengthen the rights of consumers relative to sellers.
CONTROLLING
Evaluating
COPYRIGHT
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.
CORPORATE REFUGEES
Those individuals who flee the bureaucratic environment of big business by going into business for themselves.
CORPORATION
An artificial being, invisible, intangible, and existing only in contemplation of law; an entity that is something that has a distinct existence separate and apart from the existence of its individual members.
CORPORATION CHARTER
The written application for permission to incorporate that is approved by a state official.
CREDIT
An agreement that payment for a product or service will be made at some later date
CREDIT BUREAU
An organization of retailers and other firms in a given community that serves its members by summarizing their credit experience with particular individuals.
CREDIT INSURANCE
Insurance that protects non-retailing businesses from abnormal bad-debt losses.
CURRENT RATIO
The current assets divided by the current liabilities and a measure of the liquidity of the business.
DEBT EQUITY (DEBT CAPITAL, BORROWED CAPITAL)
Any borrowed or loaned capital invested in the business that must be repaid to creditors.
DEDUCTIBLE CLAUSE
Insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible.
DELEGATION OF AUTHORITY
A superior’s act of granting to subordinates, on the basis of competence, the right to act or decide.
DEMOGRAPHICS
The statistical study of human populations with respect to their size, density, distribution, composition, and income.
DIRECTING (ACTUATING)
Regulating the activities of an organization; to guide and/or supervise the activities of an organization.
EARNINGS VALUATION APPROACH
A business valuation approach which centers on estimating the amount of potential income that may be produced by the business in the next year.
ECONOMIC BASE
The wealth produced in or near a community that provides employment and income to the local population.
ECONOMIC ORDER QUANTITY (EOQ)
The quantity to be purchased which minimizes total costs.
EMPLOYMENT APPLICATION
A record of statements made at the time the applicant first seeks employment.
EMPLOYMENT INTERVIEW
The primary way of judging the job applicant’s appearance, poise, speech, etc.
ENDOWMENT LIFE INSURANCE
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.
ENTREPRENEUR
One who organizes, manages, and assumes the risk of a business firm or venture.
ABC METHOD
A method of classifying inventory items with categories which are of
high-value, less costly, and/or low-cost items.
