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