a method of classifying inventory items with categories which are of high values, less costly, and or low cost items
regulating the activities or course of activities of an organization; to guide and or supervise the activities of an organization; refers to those activities which encourage subordinates to work toward the achievment of the company's goals.
The art of making the public aware of the services or commodity that the business has for sale
Federal legislation that requires employers to treat applicants and employees equally regardless of age
A grouping of accounts receivable into age categories based upon the lengths of the time they have been outstanding on the company record.
Americans with Disabilities Act (ADA)
legislation that guarantees disabled people equal access to employment, as well as access to public places.
Private investors who are willing to supply financing for new and or risky small venture startups
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
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 (BFOQ)
A qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination
The cost of a fixed asset less accumulated depreciation
The identification for a product
The point at which total sales revenue equals total operating cost
The forcible breaking and entering of premises closed for business with the subsequent removal of cash or merchandise
An organization that combines inputs of raw materials, capitals, labor, and management skills to produce useful outputs of 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 Plan (New Venture Plan)
A written description of a new idea that projects marketing, operational, and financial aspects of proposed business.
Fundamental statements that serve as guides to management practice
Insurance that provides monetary benefits to a business that has experienced and unforeseen peril such as flood, fire, etc.
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 Manufacturing
A source of marketing data that explains where certain businesses are located
Census of Population
A source of market data that explains where certain manufacturers are located
Chain of Command
The superior-subordinate relationship that serves as a channel for two-way communication.
Chamber of Commerce
An association of business people who attempt to protect and promote the commercial interest in a community.
The current asset items consisting of cash, inventiories, and accounts receivable.
Civil Rights Act of 1964
Federall legislation that prohibits discrimination on the basis of race, color, religion, sex or national origin
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.
The practice of trying to obtain something that is being sought by others under similar circumstances at the same time.
A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants.
The emphasis placed on providing to customers products and services that are safe, reliable, ad honestly advertised; also, a social movement that seeks to strengthen the rights to consumers.
A management function which compares organizational and individual performance with predetermined standards or expected results.
The registered right of creator to reproduce, publish, and sell the work which is the product of the intelligence and skill of that person.
Those individuals who flee the bureaucratic envronment of big business by going into business for themselves.
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
The written application for permission to incorporate that is approved by a state offical.
An agreement that payment for a product or service will be made at some later date.
An organization of retailers and other firms in a given community that serves its members by summarizing their credit experience with particular individuals.
Insurance that protects non-retailing businesses from abnormal bad debt losses.
The current assets divided by the current liabilities and 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.
Insurance policy provision that makes the insurer liable only for losses in excess of the state deductible.
Delegation of Authority
A superior's act of granting to subordinates, on the basis of competence , the right to act or decide.
The statistical study of human populations with respect to their size, density, distribution, composition and income.
(Actuating) regulating the activities or course of activities of an organization; to guide and or supervise the activites of an organization; refers to those activities which encourage suborndinates to work toward the achievement of the company's goals.
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.
The wealth produced in or near a community that provides employment and income to the local population.
Economic Order Quanity (EOQ)
The quanity to be purchased which minimizes total costs.
an unforeseen combination of circumstances that results in a need for immediate action
A record of statements made at the time the applicant first seeks employment
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.
One who organizes, manges, and assumes the risk of a business firm or venture.
Equal Employment Opportunity Act
The absence of empolyment 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.
(controlling) A managment function which compares organizational and individual performance with predetermined standards or expected results.
the obtaining and maintaining of adequate workspace and equipment
Obtaining cash before payments are received from customers by selling off one's accounts for overtime pay for all hours worked over forty hours.
Fair Labor Standards Act (FLSA)
a federal law that establishes a minimum wage and provides for overtime pay for all hours worked over forty hours.
The business function of effectively obtaining and using funds.
the efficient utilization and adequate regulaton of assets, revenue, Expenditures and capital rights.
First-In, First-Out (FIFO) Method
the first goods purchased are the first goods sold
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
A cost that, for a given period of time and range of activity called the relevant range, does not change in total but become pogressively 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.
General Liabillity Insurance
Insuance covering business liabiity to customers who might be injured on or off premises or from the product sold to them.
An intangible asset such as the name of a funeralhome; also, an intangible asset which enables a business to ear a profit in excess of the normal rate of profit earned by other businesses of the same kind.
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
the process of acquiring, training, developing, motivating and appraising a sufficient quantity of qualified employees to perform necessary activities.
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.
the introdution of something new; a new idea, method, or device.
Installment Credit (Closed End Credit)
balance of costly goods paid for in small monthly (fractional) payments over a period of time
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
a type of asset that is not able to be physically touched but is retained by a small business because of its genuine value appeal
the dependency of businesses on one another
a job-analysis technique in which individuals currently holding a particuar job are asked questions concernig the requirements of the job.
those goods or stock of goods which are held for resale
the number of times the average inventory has been sold or used up during a period.
a process for determining the critical components of a job for purposes of selecting, training, and rewarding personnel
a document that lists the major responsiblities and tasks of the job.
a document that lists the knowledge, skills, abilities and personal characteristics a job holder 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
Last-In, First-Out (LIFO) Method
the most recently purchased goods are the first sold.
insurance that provides death benefits to the survivors of the insured
Limited Liability Company
a new form of business ownership that combines the aspects of partnerships with the limited liability of a corporation; owners are 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 Approach
the anticipated value of an asset that would be realized in case of liquidation of the business
the art and science of motivating people toward the achievement of a goal.
a business that makes finsihed goods from raw materials by hand or machinery
a reduction of selling price below the original selling price
a group of potential customers possessing purchasing power and unsatisfied needs.
the process of planning and executing the development, pricing, promotion, and distribution of an organization's goods or service
a study that is used by a business to determin where the potential customers are located
Market Value Approach
an approach used in business valuation which determines value based upon previous sales of similar businesses.
the difference between merchandise cost and selling price, i.e. gross margin
a business that purchases finished goods for resale
a claim given by the borrower to the lender against the borrower's property in return for a loan.
a loan secured by a mortgage on property
Occupational Saftey & Health Act (OSHA)
federal legislation that mandates that employers provide a workplace that is free from hazards likely to cause death or serious physical harm
the administratin 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
a comparison of profit and each item of expense in the income statement expressed as a percentage of sales income; the operating rations can be compared to the industry standard in regards to measuring the possible growth of the business
the way in which work is arranged and distributed amount members of the firm
any cost not specifically associated with production of identifiable products and services; expenses incurred in the normal operation of a business
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
the registered right of an inventor to make, use, and sell an invention
Personal Capital (Equity Capital)
capital that is invested in the business by the owner(s)
that function of determining in advance what needs to be accomplished in order to achieve a particular goal.
factors which influence prices
Product Liability Insurance
insurance that protects a firm against claims that its product caused bodily injury or property damage to the user
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 products in similar condition
written summary of one's personal, educational, and professional achievements
a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.
all efforts designed to preserve assets and earning power associated with a business.
a plan which provides inducements to potential purchasers of products and or services
a form of risk managment where by a part of the firm's earnings is earmarked as a contingency fnd for possible future losses, specifically for individual loss catergories such as property, medical, or worker's compensation.
a business that provides a servivce as opposed to a product
a business which is independently owned and operated and is not dominant in it's field of operations
Small Business Administration (SBA)
the principal goverment agency concered with the financing, operation, and mangement of small businesses.
Sole Proprietorship (Proprietorship)
a legal form of organization whereby the business is owned and operated by one person
a managment function dealing with the recruitment, selection, placemet, training, developement, and appraisals of the employees of the firm.
a physiical asset that possses genuine value.
Term Life Insurance
life insurance that has no cash value whenever the policy expires
Total Quality Management (TQM)
the efforts of all memebers of an organization directed to ensure that the quality in the production of goods and services is achieved
a form of credit that is extended by one business to another business to help finance distribution of producer's goods.
an intangible asset that is distinct name, sign, or symbol that the fedeal goverment grants exclusive right to use for specified period of time
Universal Life Insurance
a combination of whole life insurance and term life insurance
a cost which is uniform per unit, but fluctuates in total in direct proportion to change in the related total activity or volume
anyone that invests in, or financially sponsers, a new business
Vietname Era Veterans Readjustment Act
outlaws discrimination in employment against Vietnam Era veternas
Whole Life Insurance
life insurance that gives lifetime protection to the insured person
Working Capital (Circulating Capital)
the difference between current assets and current liabilities