Small Business Management

Terms	Definitions
ABC Method	A method of classifying inventory items with categories which are of high-value, less costly, and/or low-cost items.
Actuating (Directing)	Regulating the activities or course of activities of an organization; to guide and /or supervise the activities of an organization.
Advertising	The art of MAKING THE PUBLIC AWARE of the SERVICES or COMMODITIES that the business has for sale
Age Discrimination in Employment Act of 1967	Federal legislation that requires employers to treat applicants and employees equally regardless of age.
Aging Schedule	A grouping of accounts receivable into age categories based upon the length of time they have been outstanding on the company record.
Americans with Disablities Act (ADA)	legislation that guarantees disabled people equal access to employment, as well as access to public places.
Angels	Private investors who are willing to supply financing for new and/or risky small venture start-ups.
Articles of Partnership	A written document that states explicitly the rights and duties of partners in a partnership.
Average Collection Period	a measure of the accounts receivable turnover.
Better Business Bureau	an association of business firms that promotes ethical conduct by all business firms in a community.
Board of Directors	the governing body that is elected by the stockholders of a corporation.
Bona Fide Occupational Qualification	a qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination.
Book Value	the cost of a fixed asset less accumulated depreciation.
Brand	the identification for a product.
Break-Even Analysis	the point at which total sales revenue equals total costs.
Burglary	the forcible breaking and entering of premises closed for business with the subsequent removal of cash or merchandise.
Business	an organization that combines inputs of raw materials, capital, labor, and management skills to produce useful goods and services so as to earn a profit.
Business Interruption Insurance	an 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.
Business (New Venture) Plan	a written description of a new idea that projects marketing, operational, and financial aspects of a proposed business.
Business Policies	fundamental statements that serve as guides to management practice.
Cash discounts	2/10, n/30-2% discount if paid 10 days from date of invoice/net amount must be paid within 30 days of date of invoice.
Casualty Insurance	insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fire, etc.
Caveat Venditor	let the seller beware.
Census of Business	a source of market data that explains where certain businesses are located.
Census of Housing	a source of market data that keeps track of new home sales by region and/or the construction of new houses by region and specific area.
Census of Manufacture	a source of market data that explains where certain manufacturers are located.
Census of Population	a source of market data that compiles population statistics with regard to distribution of population by region, area, etc.
Chain of Command	the superior/subordinate relationship that serves as a channel for two-way communications.
Chamber of Commerce	an association of business people who attempt to protect and promote the commercial interests of a community.
Circulating Capital (Working Capital)	the current asset items consisting of cash, inventories, and accounts receivable.
Civil Rights Act of 1964	Federal legislation that prohibits discrimination on the basis of race, color, religion, sex, or national origin.
Closed end credit (Installment credit)	balance of costly goods paid for in small monthly (fractional) payments over a period of time.
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.
Competition	the practice of trying to obtain something that is being sought by others under similar circumstances at the same time.
Consumer Credit	A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants.
Consumerism	The emphasis placed on providing consumers, products & services that are safe, reliable & honestly advertised; also a social movement that seeks to strengthen the rights of consumers relative to sellers
Controlling (Evaluating)	A management function which compares organizational and individual performance with predetermined standards or expected results.
Copyright	The registered right of a creator to reproduce, publish, and sell the work which is the product of the intelligence and skill of that person.
Corporate Refugees	Those individuals who flee the bureaucratic environment of big business by going into business for themselves.
Corporation	a legal form of organization whereby a legal entity is authorized by a state to operate a business under the entity's charter or articles of incorporation.
Corporation Charter	the written application for permission to incorporate that is approved by a state official.
Credit	an agreement that payment for a product or service will be made at some later date.
Credit Bureau	an organization of retailers and other firms in a given community that serves its members by summarizing their credit experience with particular individuals.
Credit Insurance	insurance that protects non-retailing businesses from abnormal bad-debt losses.
Current Ratio	the current assets divided by the current liabilities; a measure of the liquidity of the business.
Debt Equity (Debt Capital, Borrowed Capital)	any borrowed or loaned capital invested in the business that must be repaid to creditors.
Deductible Clause	insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible.
Delegation of Authority	a superior's act of granting to subordinates, on the basis of competence, the right to act or decide.
Demographics	the statistical study of human populations with respect to their size, density, distribution, composition, and income.
Disaster	a sudden misfortune, resulting in the loss of life and/or property.
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.
Economic Base	the wealth produced in or near a community that provides employment and income to the local population.
Economic Order Quantity	the quantity to be purchased which minimizes total costs.
Emergency	an unforeseen combination of circumstances that results in a need for immediate action.
Employment Application	a record of statements made at the time the applicant first seeks employment.
Employment Interview	the primary way of judging the job applicant's appearance, poise, speech, etc.
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.
Entrepreneur	one who organizes, manages, and assumes the risk of a business firm or venture.
Equal Employment Opportunity	the absence of employment discrimination based on race, color, religion, sex, or national origin.
Equal Pay Act	outlaws discrimination in pay against those who are over forty years old.
Equity Capital (Personal Capital)	capital that is invested in the business by the owner (s).
Facilities Management	The obtaining and maintaining of adequate work space and funeral equipment.
Factoring	Obtaining cash before payments are received from customers by selling off one's accounts receivables to a third party.
Fair Labor Standards Act	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.
Finance	the business function of effectively obtaining and using funds.
Financial Management	The efficient utilization and adequate regulation of assets, revenue, expenditures, and capital rights.
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.
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.
Funeral Service Management	The administration of a funeral service enterprise, the activities of which encompass marketing, office, personnel, facilities, and financial management.
General Liability Insurance	insurance covering business liability to customers who might be injured on or off premises or from the product sold to them.
Goals	broad statements about what an organization wants to achieve; developed in the strategic planning process; 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)
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 normal rate of profit earned by other businesses of the same kind.
Human Relations	motivating people in organizations to develop teamwork which effectively fulfills their needs and achieves organizational objectives.
Human Resource Forecast	determining personnel needs in terms of numbers of individuals and their required skills
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.
Human Resource Planning	developing a comprehensive strategy for meeting future human resource needs.
Immigration Reform Act	Federal legislation requiring employers to check job applicants' papers to be sure they are either U.S. citizens or aliens authorized to work in the U.S.
Innovation	something new, a change; the act of introducing a new method, idea, device, etc.
Installment Credit (Closed End Credit)	Balance of costly goods paid for in small monthly (FRACTIONAL) payments over a period of time.
Insurance	Uneventful protection for the small business or small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced.
Intangible Asset	a type of asset that is not able to by physically touched but is retained by a small business because of its genuine value appeal
Interdependence	the dependency of businesses on one another.
Interviewing	a job-analysis technique in which individuals currently holding a particular job are asked questions concerning the requirements of the job.
Inventory	those goods or stock of goods that are held for resale
Inventory turnover	the number of times the average inventory has been sold or used up during a period.
Job Analysis	a process for determining the critical components of a job for purposes of selecting, training, and rewarding personnel.
Job Description	a document that lists the major responsibilities and tasks of the job.
Job Specification	a document that lists the knowledge, skills, abilities, and personal characteristics a jobholder must possess to perform effectively.
Key-Person Life Insurance	life insurance that protects a firm against losses due to the death of a key employee.
Liability Insurance	insurance that covers business liability to customers or others who might be injured from the product sold to them.
Life Insurance	insurance that provides death benefits to the survivors of the insured.
Limited Liability Company	new from of business ownership; combines aspects of partnerships with the limited liability of a corporation; owners known as members.
Line of Credit	an understanding between a bank and the business indicating the maximum amount the bank is willing to loan the borrower.
Liquidation Value (Market 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.
Manufacturing	a business that makes finished goods from raw materials by hand or machinery.
Markdown	a reduction of selling price below the original selling price.
Market	a group of potential customers possessing purchasing power and unsatisfied needs.
Marketing/Marketing Management	the process of planning and executing the development, pricing, promotion, and distribution of an organization's goods and/or services.
Market Survey	a study that is used by a business to determine where the potential customers are.
Market Value Approach	an approach used in business valuation that determines value based upon previous sales of similar businesses.
Markup	the difference between merchandise cost and selling price, i.e., gross margin.
Merchandising	a business that purchases finished goods for resale.
Merchandising business	a business that purchases finished goods for resale.
Mortgage	a claim given by the borrower to the lender against the borrower's property in return for a loan.
Mortgage Loan	a loan secured by a mortgage on property.
Motivating	energizing, channeling and sustaining people's behavior.
Occupational Safety and Health Act	Federal legislation that mandates that employers provide a workplace that is free from hazards likely to cause death or serious physical harm.
Office Management	the administration and supervision of office duties and functions.
Open End Credit (Revolving Credit)	a line of credit that may be used over and over again up to a certain borrowing limit.
Operating Ratios	a comparison of profit and each item of expense in the invome statement expressed as a percentage of sales income; the operating ratios can be compared to the industry standard in regards to measuring the possible growth of the business.
Organizing	the way in which work is arranged and distributed among members of the firm.
Overhead	any cost not specifically associated with prodution of identifiable products and services.
Partnership	a form of legal organization in which a business association made up of two or more persons is formed for the purpose of carrying on as co-owners.
Patent	the registered rights of inventor to make, use, and sell an invention.
Planning	that function of determining in advance what needs to be accomplished in order to achieve a particular goal.
Post Need Service (Aftercare; Follow-Up Services)	services provided by a funeral service organization that occur after final disposition.
Pricing policy	Factors which influence prices.
Product Liability Insurance	insurance that protects a firm against claims that its porduct caused bodily injury or property damage to the user.
Recruitment	the process of forming a pool of qualified applicants for tasks that need to be filled
Replacement Value Approach	the fair market price to purchase similar assets.
Resume	written summary of one's personal, educational, and professional achievements.
Risk	a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.
Risk Management	all efforts designed to preserve assets and earning power associated with a business.
Sales Promotion	a plan which provides inducements to potential purchasers of products and/or services.
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.
Service Business	a business that provides a service as opposed to a product.
Small Business	a business which is independently owned and operated and is not dominant in its field of operations.
Small Business Administration	the principal government agency concerned with the financing, operation, and management of small businesses.
Sole Proprietorship	a legal form of organization whereby the business is owned and operated by one person.
Staffing	a management function dealing with the recruitment, selection, placement, training, development, and appraisal of the employees of the firm.
Tangible Asset	a physical asset that possesses genuine value.
Term Life Insurance	life insurance that has no cash value when the policy expires.
Total Quality Management	the efforts of all members of an organization directed to ensure that quality in the production of goods and services is achieved.
Trade Credit	a form of credit that is extended by one business to another business to help finance distribution of producer's goods.
Trademark	an intangible asset that is a distinct name, sign, or symbol for which the Federal government grants exclusive rights to use for a specified period of time.
Univeral Life Insurance	a combination of whole life insurance and term life insurance.
Variable Expense	a cost that is uniform per unit, but fluctuates in total in direct proportion to change in the related total activity or volume.
Venture Capitalist	anyone who invests in, or financially sponsors, a new business.
Vietnam Era Veterans Readjustment Act	outlaws discrimination in employment against Vietnam Era veterans.
Whole Life Insurance	life insurance that gives lifetime protection the insured person.

First Time Here?

Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.

Set Champions

There are no high scores or champions for this set yet. You can sign up or log in to be the first!

Small Business Management

Share this set

About this set

Created by:

Discuss

Small Business Management

Study:

Games:

Tools:

141 terms

Terms

Definitions

First Time Here?

Set Champions