Small Business Management II

airbud123's version from 2015-09-18 23:26

Section 1

Question Answer
Immigration reform actFederal legislation requiring employers to check job applicants' papers to be sure they are either US citizens or aliens authorized to work in US.
InnovationThe introduction of something new; a new idea, method, or device.
income statementformal financial statement which presents income, expenses, and resulting net profit or net loss for a given period
Installment credit (closed end credit)Balance of costly goods paid for by a small monthly (fractional) payment over a period of time
InsuranceUnevetentful 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

Section 2

Question Answer
Intangible assetA type of asset that is not able to be physically touched but is retained by a small business because of its genuine value appeal. 
InterdependenceThe dependency of business on one another 
InterviewingJob analysis technique in which individuals currently holding a particular job are asked questions concerning the requirements of the job 
InventoryThose goods or stock of goods that are held for resale
Inventory turnoverThe number of times the average inventory has been sold or used up during a period

Section 3

Question Answer
Job analysisA process for determining the critical components of a job for purposes of selecting, training, and rewarding personnel
Job descriptionA document that lists the major responsibilities and tasks of the job
Job specificationA document that lists the knowledge, skills, abilities, and personal characteristics a jobholder must possess to perform effectively 
Key person life insurancelife insurance that protects a firm against losses due to the death of a key employee
Liability insurancensurance that covers business liability to customers or others who might be injured from the product sold to them

Section 4

Question Answer
Limited liability company (not corporation)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
Line of creditAn understanding between a bank and the business indicating the maximum amount the bank is willing to loan the borrower
Liquidation value (market value) approachAnticipated value of an asset that would be realized in case of liquidation of the business.
liquidations the process by which a company (or part of a company) is brought to an end, and the assets and property of the company are redistributed
long-range plandocument designed to communicate the organizations goal for the future

Section 5

Question Answer
ManagementArt and science of motivating people toward the achievement of a goal
ManufacturingA business that makes finished goods from raw materials by hand or machinery 
markdownA reduction of selling price below the original selling price
market group of potential customers possessing purchasing power and unsatisfied needs. 
Marketing/marketing managementProcess of planning and executing the development, pricing, promotion, and distribution of an organization's goods and/or services

Section 6

Question Answer
Market surveyA study that is used by a business to determine where the potential customers are
Market value approachAn approach used in business valuation that determines value based upon previous sales of similar businesses
MarkupDifference between merchandise cost and selling price; i.e. gross margin
MerchandisingA business that purchases finished goods for resale 
Merchandising businessA business that purchases finished goods for resale

Section 7

Question Answer
MortgageA claim given by the borrower to the lender against he borrower's property in return for a loan
Mortgage loanLoan secured by a mortgage on property
MotivatingEnergizing, channeling, and sustaining people's behavior 
OSHAFederal legislation that mandates that employers provide a workplace that is free from hazards likely to cause death or serious physical harm
Office managementThe administration and supervision of office duties and functions

Section 8

Question Answer
Open end credit (revolving credit)A line of credit that may be used over and over again up to a certain borrowing limit
net income (net profit)the difference between gross profit and expenses when gross profit is larger
Operating ratiosA 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 standard in regards o measuring the possible growth of the business
OrganizingTHe way in which work is arranged and distributed among members of the firm
OverheadAny cost not specifically associated with production of identifiable products and services

Section 9

Question Answer
PartnershipA form of legal organization in which a business association made up of two or more persons is formed for the purpose of carrying on as co-owners
patentThe registered rights of an inventor to make, use, and sell an invention
Personal capital (equity capital)Capital that is invested in the business association made up of two or more persons is formed for the purpose of carrying on as co-owners
planningthe process of setting performance objectives and determining what actions should be taken to accomplish them
pricing policyfactors which influence prices

Section 10

Question Answer
product liability insuranceinsurance that protects a firm against claims that its product caused bodily injury irproerty to the user
proprietorship business owned by one person, who bears unlimited liability for the enterprise
ratio analysis quantitive evaluation of information contained in a company's financial stamement (balance sheet, income statement, and cash flow statement) to determine overall financial strength of a business
recruitmentprocess of forming a pool of qualified applicants for tasks that need to be filled
replacement value approachan insurance concept in which the fair market price to purchase similar products in similar condition is used to settle claims

Section 11

Question Answer
resumewritten summary of one's personal, educational, and professional achievements
riskprobability of threat or damage, injury, liability, loss, or any ither negative occurence that is caused by external or internal vulnerabilities
risk managementprocess of identifying, assessing, and prioritizing certain kinds of events happening to or having an impact on business with the intent to reduce or eliminate risk
S Corptype of corporation that offers limited liability to owners but is taxed by the federal gov't as a partnership
sales promotionplan which provides inducements to potential purchasers of products or services

Section 12

Question Answer
self insuranceform of risk management whereby a part of the firms earnings is earmarked as a contigency fund for possible future losses, specifically individual loss categories, such as property, medical, or workers comp
service businessbusiness that provides a service as opposed to a product
small businessbusiness that is independently owned and operated and is not dominant in its field of operations
small business administrationprincipal gov't agency concerned with the financing, operation, and management of small business
staffingprocess of selecting employees and assigning them to tasks in order to fulfill goals and objectives of the organization

Section 13

Question Answer
startupsnew business ventures started "from scratch"
tangible assetsassets that can be appraised by value or seen or touched
trade creditform of credit that is extended by one business to another business to help finance distribution of producers goods
trademarkintangible assets that is a distinct name, sign, or symbol that the federal gov't grants exclusive rights to use for a specified period of time
valuation estimate of the worth of price of a company

Section 14

Question Answer
variable expensecost which is uniform per unit, but fluctuates in direct proportion to change change in the related total activity or volume
venture capitalistanyone that invests in, or financially sponsors, a new business
vietnam veterans adjustmentoutlaws discrimination in employment act of vietnam
wrokers comp insurancecoverage that provides benefit to employees injured at work
zoning ordinanceformal codification of land use policies by a unit of local gov't with the goal to establish permitted uses for land and to distinguish between different types of uses which maybe incompatible