Small Business Final

The ________ is a way to publicly inform potential investors that a for-profit firm is pursuing a social benefit role.

B-Corp certification

Properly prepared financial statements agree such that the cash flow statement provides the ending cash balance for the

Balance Sheet

A(n) ________ identifies when, how, and why money is expected to come into the business, and when, how, and why it is expected to leave.

Cash Budget

Cash that can be obtained by selling the products and services of a business and collecting cash from customers is called

Cash Flow from operations

Exclusive rights given to the creator of a literary or artistic work to make use of that work is called a

Copyright

Which of the following is the cost incurred in financing, insuring, taxing, or tracking an asset?

Cost of owning

This ratio is determined by dividing current assets by current liabilities.

Current Ratio

________ measures the extent to which a business can meet its obligations for the long haul.

Debt-to-equity ratio

Making ________ work requires giving employees permission to act, the knowledge to act, and the skill to act.

Empowerment

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

Financial Accounting

The emphasis of financial management during the ________ phase is to obtain increasing amounts of cash inflows to pay for added inventory, productive assets, and employees.

Growth

A(n) ________ is a valuable process that can greatly help an employer with the issues of keeping risks at acceptable levels. It is strictly a management tool that is not provided to outsiders; it can be structured and conducted in any systematic manner the owner finds acceptable.

Internal Audit

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

Internal control

Which of the following statements is not true of using insurance to manage business risk?

It is possible to use insurance to avoid all types of business risk.

A(n) ________ defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position.

Job Description

The term ________ is associated with objectively evaluating how well someone is doing their job.

Job metrics

In the accounting equation, assets equal

Liabilities + owners equity

________ ratios measure the business's ability to pay debts and expenses that are due in the current accounting period.

Liquidity

Out of the courts, small-claims court, arbitration, and mediation, which one utilizes attorneys or spicalists rather than judges?

Mediation

________ refers to the concept that key employees should be able to see and understand a firm's financials, that they should have a part in moving the numbers in the right direction, and that they should have a direct stake in the strategy and success of the firm.

Open-book policy

At the ________ stage of a business, the emphasis of financial management is to build owner wealth, to conserve assets, to match cash inflows to outflows, and to maximize the return on capital assets by making optimal investing decisions.

Operations

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

Payback Period

Which of the following is a drawback to financing with debt?

Payment is expected even if you have no money to make the payment.

________ refers to a type of periodic inventory that conducts a count of the entire inventory being held for sale at a specific point in time.

Physical inventory

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

Receivables

When using a(n) ________, the attorney will be paid a specified amount every month regardless of the workload for that month.

Retainer

Except for ________, business forms are types of separate, legal entities.

Sole proprietorships

________ is an accounting approach based on specific accounting requirements set by governmental taxing agencies.

Tax Accounting

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

articles of organization.

As a business owner, if you have a group of people you assemble because you trust their judgment and goodwill toward you and your firm who may meet with you as a group, or individually for impromptu meetings are considered your

board of advisors

The most effective cash flow techniques require

budgeting for both the amount and timing of required cash flows.

During the start-up phase of a business, the emphasis is on

conserving what little cash the business has.

To protect your business from having cash drained by employees, you first must hire honest and ethical people, and secondly,

develop and enforce effective internal control over who may handle cash and who may account for cash.

Which of the following answer options is not one of the most commonly identified sources of U.S. business risk small businesses face?

government instability

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

just-in-time inventory.

Which of the following is a formal dispute resolution method that operates using the court system, typically with a lawyer representing each party?

litigation

An accounting method that is specifically intended to be used for planning, directing, and controlling a business is called

managerial Accounting

Which of the following refers to a 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?

noncompete clause

A(n) ________ refers to a contract among LLC members outlining how the LLC will conduct itself.

operating agreement

A grant by the U.S. government to an inventor for an idea that is new, useful, and nonobvious, giving the inventor the exclusive right to make, use, or sell his or her idea is called a

patent

One of the first steps in developing a compensation plan is

to determine whether hiring is to be done for an hourly or salaried position.

The first task to be completed before a comprehensive insurance program for a business can be developed is

to identify risks.

OSHA's Recording and Reporting of Occupational Injuries and Illnesses requires employers to record occupational injuries and illnesses on a log with a separate supporting record for each injury and illness and post in the workplace the log for the previous calendar year during the following month of February. This is required of employers with more than ________ employees on a company-wide basis.

10

Giving a third party legal rights to debts owed by the business in order to provide assurance that borrowed money will be repaid is called

pledging receivables.