Small business, test 4

Communication

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burglary

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Case Studies

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Notification Act

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Errors and omissions insurance

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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.

Inventory valuation

Determination of the number of assets held by the firm for sale or production

Regulation in the workplace

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

Worker adjustment and Retraining

Requires employers to notify employees of impending layoffs

just in time inventory

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

Accounts receivable

The total amount of money owed to a business.

Insurance

a contract between two or more parties in which one party agrees, for a fee, to assume the risk of another

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

Exempt

a federal government descriptor of employees who are exempt from the Fair Labor Standards Act and are generally paid salaries

Plant

a general term for the facilities of a business

Nepotism

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

Perpetual Inventory

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

General Partnership

all partners are equally and fully responsible for the business obligations

Age Discrimination in Employment Act

an act of congress that makes it illegal to discriminate against people who are older than 40 years of age

Americans with Disabilities Act

an act of congress that requires that business make provisions for access for people with disabilities

Safety Stock

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

Deductible

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

Virtual Employees

an independent contractor who provides specialized business services or support from a distance, through the internet, telephone, fax, or another method of communication

Job Description

defines all knowledge, skills, and abilities needed to fill the position, including personality, experience, and education

On-the-job Training

delivered to employees while they perform their regular jobs; techniques include orientations, job instruction training, apprenticeships, internships and assistantships, job rotation, and coaching

Contingency Fee

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

Point-of-sale system

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

Vicarious Liability

indirect liability or responsibility for the actions of another

Unemployment Insurance

is collected by the IRS and state agencies as a percentage of tax on payroll

Tax codes

laws and regulations that specify the requirements of taxation

Employee Theft

misappropriation of business property by employees of that business

Crime Insurance

offers protection against losses from crimes committed against your business

Inventory

products that are held for sale to customers

Executive Order No. 11246

prohibits federal contractors and federally‐assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identity or national origin

Mediation

puts the dispute to a neutral third party who is not a judge. Are not binding on the two parties

Sole Proprietorship Advantages

secrecy, unique tax advantages, owner doesn't have to share profits, relative freedom of action and control, easiest and simplest form to organize, operate, and dissolve

Factoring

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

Internal Control

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

Infringer

someone who uses intellectual property without the permission of the owner

Payback Peridod

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

Replacement value

the cost incurred to replace one asset with an identical asset

Periodic Inventory

the process of physically counting business assets on a set schedule

Probationary Period

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

Litigation

uses small-claims court or the regular court to settle differences

Adverse possession

when the owner of real property does not enforce property rights and allows a nonowner to use the property as if it was his or her own

Limited Partnership

where most partners are liable only for the amount they invested in the partnership

Small claims court

works only when you are owed money, can prove it, and have exhausted order procedures like calls and letters to a customer