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