Vocab Test- 1A Small Business Mgmt Flashcards
1
Q
ABC Method
A
a method of classifying inventory items with categories which are of high-value, less costly, and/or low- cost items
2
Q
Advertising
A
the art of making the public aware of the services or commodities that the business has for sale
3
Q
Age Discrimination in Employment Act of 1967
A
federal legislation that requires employer to treat applicants and employees equally regardless of age
4
Q
Aging Schedule
A
a grouping of accounts receivable into age categories based upon the length of time they have been outstanding on the company record
5
Q
Americans with Disabilities Act (ADA)
A
legislation that guarantees disabled people equal access to employment, as well as access to public places
6
Q
Angels
A
private investors who are willing to supply financing for new and/or risky small venture start-ups
7
Q
Articles of Partnership
A
a written document that states explicitly the rights and duties of partners in a partnership
8
Q
Average Collection Period
A
a measure of the acts receivable turnover
9
Q
Better Business Bureau
A
association of business firms that promotes ethical conduct by all business firms in a community
10
Q
Board of Directors
A
governing body that is elected by the stockholders of a corporation
11
Q
Bona Fide Occupational Qualification (BFOQ)
A
a qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination
12
Q
Book Value
A
the cost of a fixed asset less accumulated depreciation
13
Q
Brand
A
the identification for a product
14
Q
Break-Even Analysis
A
the point at which total sales revenue equals total operating costs; determined by a formula or chart
15
Q
Burglary
A
the forcible breaking and entering of premises closed for business with the subsequent removal of cash or merchandise
16
Q
Business
A
an organization that combines inputs of raw materials, capital, labor, and mgmt skills to produce useful outputs of goods and services so as to earn a profit
17
Q
Business Interruption Insurance
A
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.
18
Q
Business Plan (new venture plan)
A
A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business
19
Q
Casualty Insurance
A
Insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fire, etc.
20
Q
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.
21
Q
Census of Business
A
source of market data that explains where certain businesses are located
22
Q
Census of Manufacturing
A
source of market data that explains where certain manufacturers are located
23
Q
Census of Population
A
source of market data that complies population statistics with regard to distribution of population by region, area, etc.
24
Q
Chain of Command
A
the superior-subordinate relationship that serves as a channel for two-way communication
25
Chamber of Commerce
an association of business people who attempt to protect and promote the commercial interests in a community
26
Circulating Capital
the current asset items consisting of cash, inventories, and acts receivable
27
Civil Rights Act of 1964
Federal legislation that prohibits discrimination on the basis of race, color, religion, sex, pregnancy, or national origin
28
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 any loss
29
Competition
the practice of trying to obtain something that is being sought by others under similar circumstances at the same time
30
Consumer credit
a type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants
31
Consumerism
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.
32
Controlling
see evaluating
33
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
34
Corporate Refugees
those individuals who flee the bureaucratic environ. of big business by going into business for themselves.
35
Corporation
an artificial being, invisible, intangible, and existing only ib contemplation of law; an entity that is something that has a distinct existence separate and apart from the existence of its individual members
36
Corporation Charter
the written application for permission to incorporate that is approved by a state official
37
Credit
an agreement that payment for a product or service will be made at some later date
38
Credit Bureau
an organization of retailers and other firms in a given community that servers its members by summarizing their credit experience with particular individuals.
39
Credit Insurance
insurance that protects non-retailing businesses from abnormal bad-debt losses
40
Current Ratio
the current assets divided by the current liabilities and a measure of the liquidity of the business
41
Debt Equity (Debt Capital, Borrowed Capital)
any borrowed or loaned capital invested in the business that must be repaid to creditors
42
Deductible Clause
insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible
43
Delegation of Authority
a superior's act of granting to subordinates, on the basis of competence, the right to act or decide
44
Demographics
the statistical study of human populations with respect to their size, density, distribution, composition, and income
45
Directing (actuating)
regulating the activities of an organization; to guide and/or supervise the activities of an organization
46
Earnings Valuation Approach
A business valuation approach which centers on estimating the amount potential income that may be produced by the business in the next year
47
Economic Base
the wealth produced in or near a community that provides employment and income to the local population
48
Economic order Quantity (EOQ)
the quantity to be purchased which minimizes total costs.
49
Employment Application
a record of statements made at the time the applicant first seeks employment
50
Employment Interview
primary way of judging the job applicant's appearance, poise, speech, etc.
51
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
52
Entrepreneur
one who organizes, manages, and assumes the risk of a business firm or venture
53
Equal Employment Opportunity Act
The absence of employment discrimination based on race, color, religion, sex, or national origin
54
Equal Pay Act
Outlaws discrimination in pay against those who are over forty years old
55
Evaluating (Controlling)
a management function which compares organizational and individual performance with predetermined standards or expected results
56
Factoring
Obtaining cash before payments are received form customers by selling off ones'accousts receivable to a third party
57
Fair Labor Standards act (wage and hour)
outlaws discriminatory practices in pay; requires employers to pay a minimum wage to employees, and to pay a minimum of one and one-half times the regular rate for any hours beyond forty worked in a week
58
Finance
business function of effectively obtaining and using funds
59
Fixed Capital
long-term capital that is invested in the small business; also, funds invested in such long-term assets as :land, building, machinery, furniture, fixtures, and other equipment
60
Fixed Expenses
a cost that, for a given period o 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 increase; these expenses do not increase with increased business, nor do they decrease with declining business activity
61
General Liability Insurance
insurance covering business liability to customers who might be injured on or off premises or from the product sold to them
62
Goodwill
an intangible asset such as the name of a funeral home; also, 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
63
Human Resource Forecast
determining personnel needs in terms of numbers of individuals and their required skills
64
Human Resource Management
process of acquiring, training, developing, motivating, and appraising a sufficient quantity of qualified employees to perform necessary activities; developing activities and an organizational climate conducive to maximum efficiency and worker satisfaction
65
Human Resource Planning
developing a comprehensive strategy for meeting future human resource needs
66
Immigration Reform Act
federal legislation requiring employers to check job applicants' papers to be sure they ar either us citizens or aliens authorized to work in the u.s
67
Innovation
the introduction of something new; a new idea, method, or device
68
Installment Credit ( Closed End Credit)
balance of costly goods paid for in small monthly fractional payments over a period of time.
69
Insurance
Uneventful protection for the small business or small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced
70
Intangible Assets
those assets that cannot be touched or grasped
71
Interdependence
the dependency of businesses on one another
72
Interviewing
a job-analysis technique in which individuals currently holding a particular job are asked questions concerning the requirements of the job
73
Inventory (Merchandise)
those goods or stock of goods which are held for resale at a profit
74
Inventory Turnover
the number of times the average inventory has been sold or used up during a period
75
Job Analysis
the process of determining the critical components of a job for purposes of selecting, training, and rewarding personnel
76
Job Description
a document that lists the major responsibilities and tasks of the job
77
Job Specification
a document that lists the knowledge, skills, abilities, and personal characteristics a job holder must possess to perform effectively
78
Key- person Life Insurance
life insurance that protects a firm against losses due to the death of a key employee
79
Liability Insurance
insurance that covers business liability to customers of others who might be injured from the product sold to them
80
Life Insurance
Insurance that provides death benefits to the survivors of the insured
81
Limited Liability Company (not corporation)
new form of business ownership (approved in most states since approximately 1994) combines aspects of partnerships with the limited liability of a corporation; owners known as members
82
Line of Credit
an understanding between a bank and the business indicating the max amt the bank is willing to loan the borrower
83
Liquidation Value (Market value) Approach
the anticipated value of an asset that would be realized in case of liquidation of the business
84
Management
the art and science of motivating people toward the achievement of a goal
85
Manufacturing Business
a business that makes finished goods from raw materials by hand or machinery
86
Markdown
a reduction of selling price below the original selling price
87
Market
a group of potential customers possessing purchasing power and unsatisfied needs
88
Marketing
the process of planning and executing the development, pricing, promotion, and distribution of an organization's goods or services
89
Market Survey
a study that is used by a business to determine where the potential customers are located
90
Market Value Approach
an approach used in business valuation which determines value based upon previous sales of similar businesses
91
Markup
the difference between merchandise cost and selling price (gross margin)
92
Merchandising business
a business that purchases finished goods for resale
93
Mortgage
a claim given by the borrower to the lender against the borrower's property in return for a loan
94
Mortgage Loan
a loan secured by a mortgage on property
95
Occupational Safety and Health Act (OSHA)
a govt agency with the responsibility for regulatory and enforcement safety and health matters for most US employees; an individual state OSHA agency may supersede the US Dept of Labor OSHA regulations
96
Open-End Credit (Revolving)
a line of credit that may be used over and over again put o a certain borrowing limit
97
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 standards in regard to measuring the possible growth of the business
98
Organizing
to arrange or constitute in interdependent parts, each having a specific fun or relation with respect to the whole; the arrangement and distribution of work among members of an organization
99
Overhead
Expenses incurred in the normal operation of a business
100
Partnership
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
101
Patent
the registered right of an inventor to make, use, and sell an invention
102
Personal Capital (Equity Capital)
Capital that is invested in the business by the owner
103
Planning
that fxn of determining in advance what needs to be accomplished in order to achieve a particular goal
104
Pricing Policy
factors which influence prices
105
Product Liability Insurance
Insurance that protects a firm against claims that its product caused bodily injury or property damage to the user
106
Proprietorship
see sole proprietorship
107
Recruitment
the process foo forming a pool of qualified applicants for tasks that need to be filled
108
Replacement Value Approach
the fair market price to purchase similar products unseemlier condition
109
Resume
written summary of one's personal, educational, and professional achievements
110
Risk
a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for
111
Risk Management
all efforts designed to preserve assets and earning power associated with a business
112
Sales Promotion
A plan which provides inducements to potential purchasers of products and or services
113
Self-Insurance
a form of risk mgmt whereby a part of the firms earnings is earmarked as a contingency fund for possible future losses, specifically for individual loss categories such a property , medical, or workers comp.
114
Service business
a business that provides a service as opposed to a product
115
Small Business
a business which is indeed. owned and operated and is not dominant in its field of operations
116
Small Business Adm.
principal govt. agency concerned with the financing, operation, and mgmt of small businesses
117
Sole Proprietorship
a business owned by one person who is subject to claims of creditors
118
Staffing
a mgmt fxn dealing with the recruitment, selection, placement, training, development and appraisal of the employees of the firm
119
Tangible Assets
those assets that can be appraised by value or seen or touched
120
Term Life Insurance
life insurance that has no cash value whenever the policy expires
121
Trade credit
the form of credit that is extended by one business to another business to help finance distribution of producers goods.
122
Trademark
an intangible asset that is a distinct name, sign, or symbol that the federal govt grants exclusive rights to use for a specified period of time
123
Universal Life insurance
a combination of whole life insurance and term life insurance
124
Variable expense
a cost whites uniform per unit, but fluctuates in direct proportion to change in the related total activity or volume
125
Venture Capitalist
anyone that invests in or financially sponsors a new business
126
Vietnam Era Veterans Readjustment Act
outlaws discrimination in employment against Vietnam Era Vets.
127
Whole Life Insurance
Life insurance that gives lifetime protection to the insured person
128
Working Capital (Circulating Capital)
the difference between current assets and current liabilities
