MGT 3210 Midterm Exam
Operating agreement
A contract among LLC members outlining how the LLC will conduct itself
Cash disbursement
A schedule of the amounts and timings of payments of cash out of a business
Research Resources: Business Plans Handbook
Business plan examples
Business-to-business (B2B)
Business to business using e-commerce
Business to consumer (B2C)
Business to consumer transactions using e-commerce
The 4 C's Lenders look for
Character of the manager Capacity to repay both principal and interest on time Conditions of the industry Collateral used to secure the loan
Articles of Organization
Document setting forth information about a limited liability company that is filed with the state to establish an LLC
Pass through taxation
Earnings of the business are distributed to the business owners and those owners (rather than the business) pay individual tax on the earnings
Single taxation
Earnings of the business are taxed once with the owners paying the taxes
Double taxation
Earnings of the business are taxed twice with the business as well as its owners being subject to tax
Legal Entity
Existence of a being. A corporation that is recognized as having rights and duties, such as the right to own property in the entity's name
Assumed name filing
Filing made with the state(s) in which the business operates disclosing the trade name or assumed name of the business along with the owners of the business
Fictitious name filing
Filing made with the state(s) in which the business operates disclosing the trade name or assumed name of the business along with the owners of the business
Cash budget
Financial plan for the future, based on single level operations.
Research Resources: Dataplanet Statistical Datasets
Geographical demographic data
Research Resources: PolicyMap
Geographical demographic data
What does the income statement provide
How well the business is doing in creating profit
Research Resources: Bizminer
Industry and company insights
Research Resources: IBIS World
Industry research reports
What does the Balance sheet provide to shareholders
Liquidity, financial flexibility and strength
Research Resources: Business Source Premier
Periodicals and articles, including Harvard Business Review access
Independant Contractors
Persons working to achieve a certain goal without being subjected to substantial controls by another
S - Corp vs C - Corp
S-corp is similar but they can pass through taxation, there are more taxation limitations, there is additional filing, and there are limitations on who can be stockholders
Research Resources: Statista
Statistics and market sizing data
Piercing the veil
The dissolution of a corporate form, making it back into a sole proprietorship or general partnership, if the court finds that the owner carelessly mixe up personal business assets or finances
Check the box taxation
The election of a subchapter-s corporate form, by checking the appropriate box on a tax return. This form of taxation produces single taxation for the owner
Assumed Name
The name under which the business is operated
Doing business as (dba)
The name under which the business is operated
Cash receipts budget
a schedule of the amounts and timings of the receipt of cash into business
What are the three categories of the statement of cash flow
operating, financing, investing
Trade name
the name under which the business is operated
Cash-to-cash cycle
the time that is required for a business to acquire resources, convert them into product, sell the product, and receive cash from the sale
