Funeral Management Chap 16 & 17 part 1

Job description

a document that lists the major responsibilities and tasks of the job

Cash Flow Statement

a financial report showing a firm's sources of cash as well as its uses of cash

EBITDA (Earnings Before Interest, Taxation, Depreciation, and Amortization

a firm's profits after subtracting costs of goods sold and cash operating expenses, but before subtracting interest expense, taxes, depreciation, and amortization.

Trade credit

a form of credit that is extended by one business to another business to help finance distribution of producer's goods.

Self-insurance

a form of risk management whereby a part of the firm's earnings is earmarked as a contingency fund for possible future losses, specifically for individual loss categories, such as property, medical, or worker's compensation.

Balance Sheet

a formal financial statement illustrating the assets, liabilities, and owner's equity of a business as of a specific date.

Occupational Safety and Health Act (OSHA)

a governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees; are individual state OSHA agency may supersede the U.S. Department of Labor OSHA regulations.

Aging Schedule

a grouping of accounts receivable into age categories based upon the length of time they have been outstanding on the company record.

Sales promotion

a plan which provides inducements to potential purchasers of products and/or services.

Bona fide occupational qualification (BFOQ)

a qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination.

Employment application

a record of statements made at the time the applicant first seeks employment.

Business plan (New venture plan)

a summary of how a business owner, manager, or entrepreneur intends to organize the business endeavor and implement activities necessary for the venture to succeed. (a written description of a new idea that projects marketing, operational, and financial aspects of a proposed business)

Consumer Credit

a type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants.

Articles of Partnershi

a written document that explicitly states the rights and duties of partners in a partnership

Risk managemen

all efforts designed to preserve assets and earning power associated with a business.

Corporation

an artificial being, invisible, intangible, and existing only in contemplation of law; an entity that is something that has a distinct existence separate and apart from the existence of its individual members

Better Business Bureau

an association of business firms that promotes ethical conduct by all business firms in a community.

Goodwill

an 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.

C Corporation

an ordinary corporation, taxed by the federal government as a separate legal entity

Accounts Receivable

an unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

Accounts Payable

an unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment purchased on credit, or for services received on credit.

Venture capitalist

anyone that invests in, or financially sponsors, a new business.

Management

art and science of motivating people toward the achievement of a goal

Chamber of Commerce

as association of business people who attempt to protect and promote the commercial interest in a community.

Goals

broad statements about what an organization wants to achieve; developed in the strategic planning process; they form; they form the basic plan or direction toward which decisions and activities are focused. (Goals are motivational in nature and are usually stated in broad, general terms without reference to a time period.)

Equity capital (Personal capital)

capital that is invested in the business by the owner(s).

Workers' compensation insurance

coverage that provides benefits to employees injured at work

Human Resource Planning

developing a comprehensive strategy for meeting future human resource needs.

Motivating

energizing, channeling and sustaining people's behavior.

Valuation

estimate of the worth or price of a company

Civil Rights Act of 1964

federal legislation that prohibits discrimination on the basis of race, color, religion, sex, pregnancy, or natural origin.

Age Discrimination in Employment Act

federal legislation that requires employer to treat applicants and employees equally regardless of age

Business policies

fundamental statements that serve as guides to management practice.

Product liability insurance

insurance that protects a firm against claims that its product caused bodily injury or property damage to the user

Business interruption insurance

insurance that protects companies during the period necessary to restore property damaged by an insured peril. Coverage pays for lost income and other expenses related to recovery.

Credit Insurance

insurance that protects non-retailing businesses from abnormal bad-debt losses

Key-person life insurance

life insurance that protects a firm against losses due to the death of a key employee

Fixed capital

long-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

Age of accounts receivable

measures the average time required to collect recievales.

Human Relations

motivating people in organizations to develop teamwork which effectively fulfills their needs and achieves organizational objectives

Factoring

obtaining cash before payments are received from customers by selling off one's accounts receivable to a third party.

Equal Pay Act

outlaws discrimination in pay based on the sex of the worker.

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.

Human resource management (Personnel Management)

process of acquiring, training, developing, motivating and appraising a sufficient quantity of qualified employees to perform necessary activities; developing activities and an organizational climate conducive to maximum efficiency and worker satisfaction.

Actuating (Directing)

regulating the activities or course of activities of an organization; to guide and/or supervise the activities of an organization

Ergonomics

study of workplace design; the study of how a workplace and the equipment used therein can best be designed for comfort, efficiency, safety, and productivity.

Planning

that function of determining in advance what needs to be accomplished in order to achieve a particular goal.

Advertising

the art of making the public aware of the services or commodities that the business has for sale

Current Ratio

the current assets divided by the current liabilities; a measure of the liquidity of the business

Board of Directors

the governing body that is elected by the stockholders of a corporation

Amortization

the paying off of a debt in regular installments over a period of time.

Break-even analysis

the point at which total sales revenue equals total operating costs; determined by formula or chart

Employment interview

the primary way of judging the job applicant's appearance, poise, speech, etc

Job analysis

the process of determining the critical components of a job for purposes of selecting, training, and rewarding personnel.

Recruitment

the process of forming a pool of qualified applicants for tasks that need to be filled.

Resume

Written summary of one's personal, educational, and professional achievements.

Earnings valuation approach

a business valuation approach which centers on estimating the amount of potential income that may be produced by the business in the next year.

Coinsurance Clause

a 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.

Universal Life Insurance

a combination of whole life insurance and term life insurance

Operating ratios

a comparison of profit and each item of expense in the income statement expressed as a percentage of sales income; the operating ratios can be compared to the industry standards in regard to measuring the possible growth of the business.

Fixed expenses

a 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.

Job specification

a document that lists the knowledge, skills, abilities, and personal characteristics a job holder must possess to perform effectively.

Interviewing

a job-analysis technique in which individuals currently holding a particular job are asked questions concerning the requirements of the job.

Staffing

a management function dealing with the recruitment, selection, placement, training, development, and appraisal of the employees of the firm.

Controlling (Evaluating)

a management function which compares organizational and individual performance with predetermined standards or expected results.

Prospectus

a marketing document used to solicit investors' monies.

Average Collection Period

a measure of the accounts receivable turnover.

Family and Medical Leave Act (FMLA)

legislation that ensures employees of unpaid leave for childbirth and other family needs

Americans with Disabilities Act (ADA)

legislation that guarantees disabled people equal access to employment, as well as access to public places.

Endowment Life Insurance

life insurance that allows the insured, rather than the beneficiary, to collect the face value of the policy upon maturity or to collect that value in annual payments

Term Life Insurance

life insurance that has no cash value when the policy expires.

Objectives

specific statement of ends, the achievement of which are to be completed within a specific time period. Objectives are used in the management control process, and provide a quantitative and time framework to the organization's goals. Objectives are intended to be accomplished by a specific date and are started in terms, preferably in such a way that

Equal Employment Opportunity Act

the absence of employment discrimination based on race, color, religion, sex, or national origin.

Office Management

the administration and supervision of office duties, and equipment.

Funeral Service Manag

the administration of a funeral service enterprise, the activities of which encompass marketing, office, facilities, and financial management

Cash Flow

the amount of cash, a company generates and uses during a period.

Liquidation value approach

the anticipated value of an asset that would be realized in case of liquidation of the business.

Management

the art and science of motivating people toward the achievement of a goal.

Circulating capital (Working capital)

the difference between current assets and current liabilities

Leadership

the process of inspiring others to work hard to accomplish important tasks.

Corporation Charter

the written application for permission to incorporate that is approved by a state official.

Organizing

to arrange or constitute in interdependent parts, each having a specific function or relation with respect to the whole; the arrangement and distribution of work among members of an organization

Pricing policy

Factors which influence prices.

Caveat emptor

Latin for 'let the buyer beware' Buyer's risk: the commercial principle that the buyer is responsible for making sure that goods bought are of a reasonable quality, unless the seller is offering a guarantee of their quality.

Caveat Venditor

Latin for 'let the seller beware' The commercial principle that the seller is responsible for the product and discourages selling goods of unreasonable quality.