Volpe Final Exam (MGT 3210)

SBA guaranteed loan program: requirements

"Banks and other lending institutions offer a number of SBA guaranteed loan programs to assist small businesses. While SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions.

glamping

"glamorous" + "camping"; upscale or luxury outdoor camping, including comforts, amenities, & facilities (e.g., pre-pitched tents, beds, electricity, meal service), that are not associated with traditional camping.

utilization ratio

(the percentage of time spent in billable work)

Small Business Innovation Research (SBIR) program

*grants from the US government to small technology-based businesses *offers a uniform method to solicit, evaluate, and selects the research proposals for funding

disconnect rate

1/avg. customer life in months

sole proprietorship

A business owned by a single individual who is responsible for all debts and claims against the business

Return on Investment (ROI)

A capital budgeting equation used to measure the relationship between initial investment and the profits that are expected to be received from making the investment.

Equal Employment Opportunity Commission (EEOC)

A commission established to enforce the provisions of the Equal Employment Opportunity Act

co-insurance

A contract stipulation that requires a policyholder to carry insurance in an amount equal to a stated minimum percentage of the market value of the property insured.

arbitration: explain

A dispute resolution process held instead of court cases in which both sides present their case to a legal professional

litigation: explain

A formal dispute resolution method that operates using the court system, typically with a lawyer representing each party

Employee stock ownership plan (ESOP)

A formalized legal method to transfer some or all of the ownership of a business to its employees

Occupational Health and Safety Administration (OSHA)

A government agency created to enforce safety in the workplace

corporation

A legal "artificial" entity that is formed by filing specific documents with a state government

Limited Liability Company (LLC)

A legal form of business organization that is created by filing required documentation with a state government. LLCs have a choice, under federal tax law, of being taxed as either corporations or partnerships

limited partnership

A legal form of business organization that is created by filing required documentation with a state government; within a limited partnership, one or more partners may have no liability for the debts and actions of the partnership

limited partnership

A legal form os business organization that is created by filing required documentation with a state government; within a limited partnership, one or more partners may have no liability for the debts and actions of the partnership

debt

A legal obligation to pay money in the future

food desert

A low-income urban, suburban or rural area where there are limited vendors of fresh produce but many fast-foot outlets

nepotism

A management philosophy of selecting and promoting people based on family ties

meritocracy

A management philosophy of selecting and promoting people based solely on their being the most capable person for the job

mediation: explain

A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute.

elder concierge

A range of non-medical services for older people who are living independently; includes providing: companionship; transportation to appointments; and help with household tasks, travel plans

internal control

A set of rules and procedures that work to limit the opportunity for employee theft or malfeasance.

Separation of duties

A type of internal control that separates the physical control of an asset from the person accounting for that asset.

Age Discrimination in Employment Act (ADEA)

An act of Congress that makes it illegal to discriminate against people who are older than 40 years of age.

Americans with Disabilities Act (ADA)

An act of Congress that requires that businesses make provisions for access for people with disabilities

accelerator

An organization that supports start-ups, typically of a particular type with a financial investment, free or inexpensive office space, mentoring, a variety of free or low-cost support services, and other resources. The goal of an accelerator is to accelerate a start up form its early stages to being ready to pitch for investment

short-term debt

Any debt that must be paid in less than one year from the date of the financial statement on which it is reported.

accredited investors

As defined by the SEC "any person who comes within any of the following categories, or who the issuer reasonably believes comes within any of the following categories at the time of the sale of the securities to that person: banks, business development, companies, etc.

Accounting Equation

Assets = Liabilities + Stockholders' Equity

fidelity bonds

Bonds, also called dishonesty bonds, that repay employers for losses caused by dishonest or negligent employees

Four C's of Borrowing

Character- of the managers of the business Capacity- of the business to repay both principal and interest of time Conditions- of the industry and economy in which the business operates Collateral- that can be used to secure the loan

categories of fixed costs: committed and discretionary

Committed fixed costs: they are long-term in nature and are difficult to cut back to zero without impacting profitability or long term goals. Include investments in facilities, equipment etc. Discretionary fixed costs: it is usually annual in nature and can be cut back for short periods of time without too much impact on the company. Ex: a company sponsored wellness program

trade secret

Confidential information within a company that gives that company a competitive advantage

outsourcing

Contracting with people or companies outside your business to do work for your business

Variable Costs

Costs that change in direct proportion to the level of activity of the business

trademark

Distinctive word, slogan, or image that identifies a product and its origin

articles of organization

Document setting forth information about a limited liability company that is filed with the state to establish an LLC.

copyright

Exclusive right given to the creator of a literary or artistic work to make use of that work

contingency fees

Fee paid by a client to an attorney for legal services that is dependent on the outcome of a case

"3-F investors"

Friends, Family, and Fools

two types of financial goals: income and wealth

Income is the cash that is available from the business to pay the entrepreneur's salary, whereas wealth is the value of the business if sold.

vicarious liability

Indirect liability or responsibility for the actions of another.

networking

Interacting with others in order to build relationships useful to a business

demand deposit

Money held in checking and savings accounts

ghost brands

Older consumer brands that lose market share when the marketer decreases brand advertising with consequent decline in consumer demand for the brand

Astroturfing

Online postings that appear to be genuine (positive or negative) "grassroots" arguments but are written by parties who are in the employ of an enterprise and whose true identity and leanings are masked by their online identity

Statement of Cash Flow: three parts/major functions

Operating activities, investing activities, financing activities Major functions: Consider technical and emotional sides of cash flow management, monitor cash flow projections, evaluate whether a company is generating cash

exculpatory clause

Part of a contract in which a party to the contract states that he or she will not be responsible for certain actions.

noncompete clause

Part of a contract in which a person agrees not to open a certain type business or seek employment doing certain things in a particular area for a period of time

independent contractors

Persons working to achieve a certain goal without being subjected to substantial controls by another.

factoring

Selling the rights to collect accounts receivable to an entity outside your business

Payback Period

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset.

cost of capital

The average rate of return a company must pay to its long-term creditors and shareholders for the use of their funds.

Operating Cycle

The average time required to purchase inventory, sell it on account, and then collect cash from customers—that is, go from cash to cash.

Three common mistakes in unreliable and inaccurate revenue forecasts

The linear forecast mistake, the hockey stick forecast mistake, the 20/80 vs 80/20 mistake

consignment

The practice of accepting goods for resale, without taking ownership of them and without being responsible to pay prior to their being sold.

barter

The practice of trading goods and services without the use of money

return on equity

The ratio of profits to owner investment in a business

Retained Earnings

The sum of all profits and losses, less all dividends paid since the beginning of the business

Small Business Technology Transfer (STTR) program

The two largest governmental grant programs that are specifically intended for small businesses. these programs make sure that every U.S. agency that makes research grants provide a min. of 2% of its grant budget to small businesses

agritourism

Tourism and entertainment activities undertaken by small farmers to produce additional income from traditional farm properties

Initial Public Offering (IPO)

Transfer method describing the first-time public sale of a stock listed on a public stock exchange

partnership

Two or more people cooperating to conduct a business enterprise

black hat SEO

Using search engine optimization techniques that take advantage of Google's search algorithms but violate Google's guidelines

gift

Valuable assets or services donated to the business without any obligation to repay or give up any ownership interest.

Employee collusion

When one or more employees work together to circumvent an internal control

patent

a grant by the federal government to an inventor for an idea that is new, useful, and non obvious, giving the inventor the exclusive right to make, use, or sell his or her idea

Beauty junkie

a high-frequency, big-spending cosmetics shopper

tax abatement

a legal reduction in taxes by a government

financial leverage

a measure of the amount of debt relative to total investment

Net Present Value (NPV) Analysis

a method of evaluating investments that uses the time value of money to assess whether the investment's expected rate of return is greater than the company's cost of capital

overdraft

a negative balance in a depositor's bank account

Payables

amounts owed to vendors for merchandise or services purchased on credit

Receivables

amounts that are owed to a business for merchandise that was sold on credit

surety bonds

an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements

graphene

an allotrope of carbon; the strongest, thinnest material known to exist & one of the most pliable.

deposits and progress payments

cash payments received before product is completed or delivered

Fixed Costs

costs that remain constant as output changes

float

delays in the movement of money among depositors and banks

cottage foods

food items prepared and stored in an individual's unlicensed and uninspected residential kitchen and available for sale directly to consumers; some U.S. states allow sales of such foods that are deemed to be non-potentially hazardous (i.e. they do not require time or temp control for safety). Ex: jam, jelly, candy, popcorn, etc

grants

gifts of money made to a business for a specific purpose

clean meat

meat grown in a lab from animal stem cells and cultivated into muscle tissue. It is genetically identical to meat obtained through conventional slaughtering

equity capital

money contributed to the businesses in return for part ownership of the business

general partnership

partnership in which partners share equally in both responsibility and liability

flexitarians

people who usually eat the same as vegetarians but eat meat sometimes

trade discounts

percentage discounts from gross invoice amounts provided to encourage prompt payment

bioplastics

plastics derived from plant materials rather than petroleum products

Pro Forma Statements

projected, or forecast, income statements and balance sheets

channel checks

stock research processes by which investment analysts gather information on the performance of retail operations by visiting stores, talking with suppliers, sales clerks and customers

marketable securities

stocks and bonds that are traded on an open market

Internet of things

the connection of objects to the Internet; enables remote control & beaming out user data

Liquidity

the ease with which an asset can be converted into cash

weighted average cost of capital (WAC)

the expected average future cost of funds

Dunbar's number

the idea that human beings have a cognitive limit to the number of close relationships (about 150) they can maintain; theory of evolutionary psychologist Robin Dunbar of the University of Oxford

black swan

the occurrence (or non-occurrence) of an event that: lies outside the range of normal expectations; has extreme impact; and only seems explainable and predictable in hindsight

desperation week

the seven days before Christmas Day when many last-minute shoppers buy last-minute gifts

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

critter wines

wines identified by an animal on their trademarked labels