Small Business Management

airbud123's version from 2015-09-18 22:10

Section 1

Question Answer
accounts payablean unwritten promise to pay creditors for propert, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit
accounts receivablean unwritten promise by a customer to pay, at a later date, for goods sold or services rendered
actuating, directing, leadingprocess of guiding and/or supervising the activities of an organization to achieve plans and objectives
acquisitioncompany that is inherited or bought
advertisingthe art of making the public aware of the services or commodities that the business has for sale

Section 2

Question Answer
Age Discrimination in Employment Actfederal legislation that requires employer to treat applicants and employees equal regardless of age
age of accounts receivablemeasures the average time required to collect receivables
age of inventorymeasures the average time required to sell inventory
amortizationthe paying off of debt in regular installments over a period of time
Americans with Disabilities Actlegislation that guarantees disabled people equal access to employment, as well as access to pubic places

Section 3

Question Answer
angel investorsprivate investors who are willing to supply financing for new and risky small venture start ups
balance sheetformal financial statement illustrating the assets, liabilities, and owner's equity of a business as of a specific date
bona fide occupational qualificationqualification that is absolutely needed for the job; it is an allowed and approved reason for discrimination
brandinga method of applying verbal or symbolic means to identify a product or service
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

Section 4

Question Answer
Business interruption insuranceAn insurance that protects the companies during the period necessary to restore property damaged by insured peril. Coverage pays for lost income and other expenses related to recovery
Business planA written description of a new idea that projects marketing, operational, and financial aspects of a proposed business
Business policiesFundamental statements that serve as guides to management practice
C Corporationan ordinary corporation, taxed by the federal gov't as a separate legal entity
capital, net worth, owners equityamount by which the total assets exceed the total liabilities of a business (owners interest in business

Section 5

Question Answer
cash discountsdiscounts from quoted prices as an inducement for prompt payment of invoices
cash flowamount of cash a company generates and uses during a period
cash flow statementfinancial report showing a firm's sources of cash as well as it's uses
casualty insuranceInsurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fiire, etc.
Caveat venditorLet the seller beware

Section 6

Question Answer
census of businessA source of market data that explains where certain businesses are located
census of housingA source of market data that keeps track of new home sales by region and/or construction of new houses by region and specific area
census of manufacturingA source of market data that explains where certain manufacturers are located
census of populationA source of market data that compiles population statistics with regard to distribution of population by region, area, etc.

Section 7

Question Answer
chain of commandTHe superior/subordinate relationship that serves as a channel for two-way communications
chamber of commerceAn association of business people who attempt to protect and promote the commercial interests of a community
circulating capital (working capital)THe current asset items consisting of cash, inventories, and accounts receivable
Civil rights act of 1964Federal legislation that prohibits discrimination on the basis of race, color, religion, sex, or national origin
closed end creditBalance of costly goods paid for in small monthly (fractional)payments over a period of time

Section 8

Question Answer
coinsurance clauseA 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
competitionThe practice of trying to obtain something that is being sought by others under similar circumstances at the same time
consumer creditA type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants
consumerismThe 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)A management function which compares organizational and individual performance with predetermined standards or expected results

Section 9

Question Answer
copyrightThe registered rights of a creator to reproduce, publish, and sell the work that is the product of the intelligence and skill of that person
Corporate refugesesThose individuals who flee the bureaucratic environment of big business by going into business themselves
corporationA legal form of organization whereby a legal entity is authorized by a state to operate a business under the entity's charter or articles of incorporation
corporation charterThe written application for permission to incorporate that is approved by a state official
creditAn agreement that payment for a product or service will be made at some later date

Section 10

Question Answer
credit bereauan organization of retailers and other firms in a given community that serves its members by summarizing their credit experience with particular individuals
Credit insuranceInsurance that protects non-retailing businesses from abnormal bad-debt losses 
current ratioThe current assets divided by current liabilities; 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 clauseInsurance policy provision that makes the insurer liable only for losses in excess of the stated deductible

Section 11

Question Answer
DemographicsThe statistical study of human populations with respect to their size, density, distribution, composition, and income
depreciationloss in value of a fixed asst due to wear and tear and the passage of time; or, a method of matching the cost of a fixed asset against the revenues that the fixed asset will help produce during its useful
Earning valuation approachA business valuation approach which centers on estimating the amount of potential income that may be produced by the business in the next year
Economic baseThe 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.

Section 12

Question Answer
Earnings before interest, taxation, depreciation, and amortizationfirms profits after subtracting costs of goods sold and cash operating expenses, but before subtracting interest expense, taxes, depreciation, and amortization
employment applicationA record of statements made at the time the applicant first seeks employment
employment interviewThe primary way of judging the job applicant's appearance, poise, speech, etc.
entrepreneurOne who organizes, manages, and assumes the risk of a business firm or venture
Equal Employment OpportunityThe absence of employment discrimination based on race, color, religion, sex or national origin

Section 13

Question Answer
Equal pay actOutlaws discrimination in pay against those who are over forty years old 
Equity capital (personal capital)Capital that is invested in the business by the owners 
evaluating/controllingA management function which compares organizational and individual performance with predetermined standards or expected results
FactoringObtaining cash before payments are received from customers by selling off one's account receivables to a third party
Fair Labor Standards ACT (Wage and Hour Law)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.

Section 14

Question Answer
Financial managementTHe efficient utilization and adequate regulation of assets, revenue, expenditures, and capital rights
Fixed capitalLong 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 
Fixed expensesA 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.
Funeral service managementTHe administration of a funeral service enterprise, the activities of which encompass marketing, office, facilities, and financial management
General liability insuranceInsurance covering business liability to customers who might be injured on or off premises or from the product sold to them 

Section 15

Question Answer
GoalsBroad statements about what an organization wants to achieve, developed in the strategic planning process; they form the basic plan or direction toward which decisions and activities are focused.
Goodwillan 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 
gross marginnet sales minus costs of good sold
human relationsmotivating people in organizations to develop teamwork which effectively fulfills their needs and achieves organizational objectives
Human resource management (personal management)Process of acquiring, training, developing, motivating, and appraising a sufficient quantity of qualified employees to perform necessary activities 