Small Business Exam 3

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

capital lease

A lease in which at the end of the lease period the asset becomes the property of the lessee, possibly with an additional payment.

operating lease

A long-term rental in which ownership of the asset never passes to the person paying for the lease.

separation of duties

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

Managerial Accounting

Accounting methods that are specifically intended to be used by managers for planning, directing, and controlling a business.

operating activities

Activities involved in producing and selling goods and services.

financing activities

Activities through which cash is obtained from and paid to lenders, owners, and investors.

Tax Accounting

An accounting approach based on specific accounting requirements set by governmental taxing agencies.

external (cost) factors

Aspects of the world outside the business which could cause the business's costs to change.

fidelity bonds

Bonds that repay employers for losses caused by dishonest or negligent employees

contingency fee

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

assumed name filing or a fictitious name filing

Filing made with a state(s) in which the business operates disclosing the trade name or assumed name of the business along with the owners of the business.

tax codes

Laws and regulations that specify the requirements of taxation.

employee theft

Misappropriation of business property by employees of that business.

small business investment companies

Private businesses that are authorized to make SBA insured loans to start-ups and small businesses.

protected classes

States of being that are expressly prohibited from suffering discrimination: race, color, religion, sex, national origin, gender, age, or disability.

economy of scale

The idea that it is cheaper (per item) to make many of an item than few.

disposal value

The net amount realized after subtracting the costs of getting rid of an asset from its selling price.

gain on investment

The percentage amount that the payout of an investment differs from original cost

just-in-time inventory

The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer.

fair market value

The price at which goods and services are bought and sold between willing sellers and buyers in an arm's-length transaction.

capital budgeting

The process of deciding among various investment opportunities to create a specific spending plan.

variance analysis

The process of determining the effect of price and quantity changes on revenues and expenses.

retained earnings

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

acquisition cost

The total cost of acquiring an asset, including such costs as purchase price, transportation, installation, testing, and calibrating in order to ready it for its first productive use.

fair credit reporting act

US federal legislation specifying consumers right vis a vis credit reporting agencies

design patent

a 14-year patent for a new, original, and ornamental design for an article of manufacture

utility patent

a 20 year patent covering a process, machine, article of manufacture, composition of matter, or any new or useful improvement of an existing one

plant patent

a 20 year patent that covers new strains of living plant organisms, algae, or macro fungi

hourly fees

a basis for legal charges in which the rate is based on a price per hour

growth trap

a financial crisis that is caused by a business growing faster than it can be financed

litigation

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

property

a general term for real estate but it can also be applied as a legal term for anything owned or possessed

debt

a legal obligation to pay money in the future

tax abatement

a legal reduction in taxes by a government

lock box

a locked receptacle for money, the keys to which are not available to those who physically handle the receptacle

overdraft

a negative balance in a depositors bank account

quality

a products or services fitness for use measured as durability, reliability, serviceability, style, ease of use, and dependability

discounts for prompt payments

a reduction in sale price provided to credit customers for paying outstanding amounts in a timely manner

internal control

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

nonsufficient funds

a situation that occurs when a check is returned to a depositor because the writer of the check did not have a bank available balance equal to or greater than the amount of the check

economic order quantity

a statistical technique that determines the quantity of inventory that a business must hold to minimize total inventory cost

best practices

activities identified by authoritative bodies as examples of optimal ways to get things done in a particular industry, profession, or trade

Articles of partnership

agreement between the partners of a firm on matters pertaining to the formation and operation of the partnership

Contracts

agreements in which the parties exchange promises

foundation

an institution to which private wealth is contributed and from which private wealth is distributed for public purposes

employee referral

an underused, low-cost method for finding worker that rewards your employees for recommending potential candidates that would be a great employee fit

bearer

any person or business entity who possesses a security

capital assets

assets that are expected to provide economic benefits for periods of time greater than one year

cash equivalents

assets that may be quickly converted to cash

personnel insurance

available to protect both you and your employees from specific risks

factoring receivables

borrowing money secured by a firms accounts receivable

deposits and progress payments

cash payments received before products is completed or delivered

standard contracts

company can just fill in the blanks as needed

trade secret

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

cost of owning

cost incurred in financing, insuring, taxing, or tracking an asset

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

Single taxation

earnings of the business are taxed once with the owners paying the taxes

key employees

employees whose experience and skills are critical to the success of a business

budget

financial plan for the future, based on a single level of operations

grants

gifts of money made to a business for a specific purpose

pledging receivables

giving a third party legal right to debts owed your business in order to provide assurance that borrowed money will be repaid

virtual employees

independent contractors who provide specialized business services or support from a distance, through internet, telephone, fax, or another method of communication

pro forma

indicates estimated or hypothetical information

vicarious liability

indirect or responsibility for the actions of another

buyout insurance

insurance that provides money to owners of a business to buy the shares of any decreased owner from that owners heirs

regulation of the workplace

laws and government rules that limit the freedom of business owners to manage their businesses as they please

equipment

machinery, tools, or materials used in the performance of the work of the business

internet recruiting

method of recruiting that allows you to search a resume database or post a job description to the web

debt capital

money borrowed for the purpose of investment in a business

equity capital

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

waiver

part of a contract in which a party intentionally gives up legal rights or claims

exculpatory clause

part of a contract in which a party to the contract states 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 of business or seek employment doing certain things in a particular area for a period of time

product liability

payment for injury or damage that occurs during the use of the business products

cash flow management

planning and tracking the amounts and timing of money to be received and paid during the business cycle

publicity

press release, public speaking, donate your product or service

periodic inventory

process of physically counting business assets on a set schedule

infringer

someone who uses intellectual property without the permission of the owner

collateral

something of value given pledged as security for payment of a loan

work instructions

specific guidance for completing steps in a process

antispyware program

spyware are programs designed to report on your keystrokes or data, or give remote control of your PC to other

marketable securities

stocks and bonds that are traded on an open market

permanent accounts

the account of assets, liabilities, and equity, excluding accounts for revenues and expenses

Living Wage

the amount needed for a person (or a family of a particular size) to meet the basic necessities of life from a single job

process

the business activities necessary to convert inputs into desired outputs

efficiency

the comparison of productivity ratios to see the extent that an organization has generated more outputs with fewer inputs

risk

the level of probability that an investment will not produce expected gains

consignment

the practice of accepting good 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

business risk

the probability that the future state of the business will be less successful than planned, resulting in the loss of value of business assets

procedure

the series of steps and activities required to complete a process

outputs

the service or product that is produced for sale

Generally Accepted Accounting Principles (GAAP)

the standardized rules for accounting procedure out by the financial accounting standards board used in all audits and submissions of accounting reports to the government

probationary period

trial period in which an employee has temporary status before a formal offer to work full time is presented

an antivirus program

viruses are malicious programs designed to damage PC

legal entity

A being, human or nonhuman, such as a corporation, that is recognized as having rights and duties, such as the right to own property.

Public Business

A business that has its stock bought and sold on an organized stock exchange, such as the New York Stock Exchange.

financial flexibility

A business's ability to manage cash flows in such a manner that the company can respond appropriately to unexpected opportunities and needs.

Financial Accounting

A formal, rule-based set of accounting principles and procedures intended for use by outside owners, investors, banks, and regulators.

Cost-Volume-Profit Analysis

A managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales (volume) to maximize profits.

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.

internal (cost) factors

Aspects of or choices within the business which could cause the business's costs to change.

open-book policy

Concept that key employees should be able to see and understand a firm's financials

off-the-job

Includes lectures, special study, videos, television conferences, case studies, role-playing, simulation, programmed instruction, and laboratory training

financial strength

The ability of a business to survive adverse financial events.

going concern concept

The accounting concept that a business is expected to continue in existence for the foreseeable future.

payback period

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

Business entity concept

The concept that a business has an existence separate from that of its owners.

master budget

a budget which consist of sets of budgets that detail all projected receipts and spending for the budgeted period

arms length transaction

a business deal where the parties have a prior relation or affiliation, but where the business is conducted as if they were unrelated

corporation

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

limited liability company

a legal form of business organization that is created by filing required documentation with a state government

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

liquidity

a measure of how quickly you can raise money through internal sources by converting assets to cash

financial leverage

a measure of the amount of debt relative to total investment

flat fees

a method of billing for lawyers in which a fixed amount is paid for a certain task

timing purchases

a method of controlling the timing of cash outflows that is invisible to suppliers and vendors

charge back

a reduction in the bank account of a merchant by a credit card company

cash receipts budget

a schedule of the amounts and timing of the receipt of cash into a business

cash disbursements budget

a schedule of the amounts and timings of payments of cash out of a business

cost of goods sold budget

a schedule that shows the predicted cost of product actually sold during the accounting period

activity based cost estimates

an accounting method which assigns costs based on the different types of work a business does in order to sell a particular product or service

reconciling

an accounting process that identifies the causes of all differences between book and bank balances

joint venture

an agreement between two or more entities to pool resources in order to complete a project

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

deductible

an amount of loss that will not be paid by an insurance company

community development organization

an organization authorized by the SBA to make insured loans to small businesses that are expected to increase economic activity within a specific area

accelerator

an organization that supports startup technology businesses by providing inexpensive office space, a variety of support services and resources

intellectual property rights

comprise the legal rights to use unique features of products or services that provide competitive advantage

outsourcing

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

coverage

contractual provisions of insurance policies that specify what risks the insurance company is assuming

cost of disposition

cost incurred in the activities necessary to get rid of an asset

credit insurance

covers abnormal losses from credit customers not paying their bills

job description

defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position

on-the-job-training

delivered to employees while they perform their regular jobs

inventory valuation

determination of the amount of assets held by the firm for sale of production

point-of-sale system

hardware and software combinations that integrate inventory management directly into accounting software

account

in terms of accounting practice, an account is a chronological list of all additions to and subtractions from a single type of asset

entrepreneurial leadership

leadership really means administration. two key factors: task and person

unsecured debt

loans that do not allow a lender to seize specific assets in the event of nonpayment

secured debt

loans that provide the lender with the legal right to seize assets in the event of nonpayments

outside equity

money from selling part of your business to people who are not and will not be involved in the management of the business

demand deposit

money held in checking and saving account

accounts receivable

money owed to your business by customers who purchased your product on credit

cash

money that is immediately available to be spent

bar coding

obtaining a universal product code number and scan-ready visual tag, and printing it on the product or its packaging

dividends

payments of profits to the owners of corporation

trade discounts

percentage discounts from gross invoice amounts provided to encourage prompt payments

independent contractors

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

a firewall

programs or pieces of equipment called routers which serve as a barrier between your PC and the internet

intellectual property

property coming from some sort of original thought; for example, patents, trade secrets, trademarks, and copyrights

intangible property

property that has no value of its own but that represents value, such as a stock certificate

key person

protects you in the event that a key employee dies or is disable and cannot work

life insurance

provided to employees to provide security for their families

SaaS

refers to an internet based program that you would use in work or leisure

Psychological contract

refers to employees beliefs about the promises between the employee and the firm

Depreciation

regular and systematic reduction in income that transfers asset value to expense over time

noncore projects

revenue-producing tasks and activities related to, but not part of the primary strategy of a business

noncash incentives

rewards that do not require payments of cash such as stock options, compensating time off, or added vacation days

Microlender

sba approved partners who offer sba guaranteed microloans to eligible small business

Factoring

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

comprehensive budget

set of budgets that detail all projected receipts and spending for the budget period

perpetual inventory

system of recording the receipt and sale of each item as it occurs

insurable value

the amount of an asset for which a company will write an insurance policy

optimum stocking level

the amount of inventory that results in the minimum cost, when considering the cost of lost sales resulting from running out of stock, the number of units sold per day, and the number of days required to receive inventory

cost or operating

the direct cost incurred in using an asset for the purpose for which it was intended

mediation

the dispute is put to a neutral third party who is not a judge

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 mixed up personal and business assets or finances

weighted average cost of capital

the expected average future cost of funds

supply chain

the line of distribution of a product from its start as materials outside the target firm to its handling in the target firm to its handling by sellers into the hands of customers

employee fit

the match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual

inputs

the materials, labor, and energy put into the production of a good or service

trade name or assumed name or doing business (dba)

the name under which a business is operated

cost of capital

the percentage cost of obtaining future funds

breakeven point

the point at which total costs equal gross revenue

feedback

the process of communicating within or to the organization about how the outputs worked or were received

operations

the process of transforming materials, labor, and energy into goods or services

investing activities

the purchase and sale of land, buildings, equipment, and securities

microinventory

the purchase of inventory only after a sale is made; very typical with internet firms

productivity

the ratio measures of how well a firm does in using its inputs to create outputs, literally productivity is outputs dividend by inputs

optimum capital structure

the ratio of debt to equity that provides the maximum level of profits

whole of life costs

the sum of all capital assets, including acquisition, ownership, operation, and disposal

company book balance

the sum of cash inflows and cash outflows recorded in the firms accounting records

bank ledger balance

the sum of deposits and withdrawals recorded in a banks accounting record

bank available balance

the sum of money that has actually been received and paid out of a depositors account

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

replacement cost

the total cost of replacing an asset with an essentially identical assets

diversify

to invest in multiple investments of differing risk profiles for the purpose of reducing overall investment risk

partnership

two or more people cooperating to conduct a business enterprise

credit reporting agency

a business that collects, collates, and reports information concerning an entitys use of debt

return on investment

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

cash budget

a cash budget identifies when, how, and why cash is expected to come into the business, and when, how, and why it is expected to leave

interest

a charge for the use of money, usually figured as a percentage of the principal

check the box taxation

a choice LLCs can make on their tax returns to be taxed as a corporation or a partnership

insurance

a contract between two parties in which one party protects the other against certain types of loss in exchange for payments

subcontract

a contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform

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

plant

a general term for the facilities of a business

word of mouth

discounts, local signage, facebook, cooperative advertising

pass through (taxation)

earnings of the business are distributed to the business owners and those owners pay individual tax on the earnings

articulate

the concept that information flows from the income statement through the statements of retained earnings and owners equity to the balance sheet

replacement value

the cost incurred to replace one asset with an identical asset

variance

the difference between an actual and budgeted revenue or cost

book value

the difference between the original cost of an asset and total amount of depreciation expense that has been recognized to date

physical inventory

a count of all the inventory being held for a sale at a specific point in time

Arbitration

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

Nonexmempt

a federal government descriptor of employees under the fair labor standards act who get an hourly wage and time-and-a-half for overtime

exempt

a federal government descriptor of employees who are exempt

patent

a grant by the US 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 idea

pull-through system

a term for just-in-time inventory systems in which product is ordered and placed into production only after a sale has been completed

hold harmless

a type of waiver in which a party agrees not to hold another party responsible for certain events

angel investor

a wealthy individual who invest in companies in relatively early stages of development

activity-based cost estimates

an accounting method which assign costs based on the different types of work a business does in order to sell a particular product or service

clearinghouse

an entity that processes checks and electronic fund transfers for banks and other financial organizations

tax credits

direct reductions in the amount of taxes that must be paid, dependent upon meeting some legal criteria

double taxation

earnings of the business are taxed twice with the business as well as its owners being subject to tax

copyright

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

medical

most highly desired from of insurance for most employees

commercial paper

notes issued by credit-worthy corporations

currency

the bills and coins printed by governments to represent money

specialty contacts

unique contract terms, large dollar amounts at stake

bootstrapping

using low-cost or free techniques to minimize your cost of doing business

gaming the payment process

using methods to appear to be paying bills on time, when in fact payment is being delayed or avoided

gift

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

sarbanes-oxley act

a federal law describing the steps publicly traded businesses must take to protect and provide their key financial information

retainer

a fee paid by a client to an attorney to engage the attorneys service

safety stock

an amount of inventory carried to ensure that you will not run out of inventory because of fluctuating levels of sales


संबंधित स्टडी सेट्स

Lección 10 10.4/Repaso Florence

View Set

PSYCHOLOGY 235 FINAL CAPONE TESTS

View Set

Ch.10 lesson 3: The Transfer Of Heat

View Set

match the organism with the disease it may cause

View Set

Linux Academy LPIC Exam 1 Study Guide

View Set

Additive Inverse and Identity, Multiplicative Inverse, Identity, and property of zero

View Set

Chapter 6: Socioemotional Development in Infancy

View Set