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128 Cards in this Set
- Front
- Back
ABC METHOD
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A method of classifying inventory items with categories which are of
high-value, less costly, and/or low-cost items. |
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ADVERTISING
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The art of making the public aware of the services or commodities
that the business has for sale. |
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AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967
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Federal legislation that
requires employer to treat applicants and employees equally regardless of age. |
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AGING SCHEDULE
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A grouping of accounts receivable into age categories based
upon the length of time they have been outstanding on the company record. |
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AMERICANS WITH DISABILITIES ACT (ADA)
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Legislation that guarantees
disabled people equal access to employment, as well as access to public places. |
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ANGELS
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Private investors who are willing to supply financing for new and/or risky
small venture start-ups. |
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ARTICLES OF PARTNERSHIP
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A written document that states explicitly the rights and duties of partners in a partnership.
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AVERAGE COLLECTION PERIOD
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A measure of the accounts receivable turnover.
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BETTER BUSINESS BUREAU
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Association of business firms that promotes ethical conduct by all business firms in a community.
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BOARD OF DIRECTORS
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The governing body that is elected by the stockholders of a corporation.
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BONA FIDE OCCUPATIONAL QUALIFICATION (BFOQ)
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A qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination.
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BOOK VALUE
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The cost of a fixed asset less accumulated depreciation.
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BRAND
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The identification for a product.
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BREAK-EVEN ANALYSIS
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The point at which total sales revenue equals total operating costs; determined by formula or chart.
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BURGLARY
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The forcible breaking and entering of premises closed for business
with the subsequent removal of cash or merchandise. |
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BUSINESS
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An organization that combines inputs of raw materials, capital, labor, and management skills to produce useful outputs of goods and services so as to earn a profit.
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BUSINESS INTERRUPTION INSURANCE
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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. |
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BUSINESS PLAN (NEW VENTURE PLAN)
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A written description of a new idea that
projects marketing, operational, and financial aspects of a proposed business. |
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BUSINESS POLICIES
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Fundamental statements that serve as guides to management practice.
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CASUALTY INSURANCE
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Insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fire, etc.
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CENSUS OF BUSINESS
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Source of market data that explains where certain businesses are located.
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CENSUS OF HOUSING
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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.
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CENSUS OF MANUFACTURING
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Source of market data that explains where certain manufacturers are located.
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CENSUS OF POPULATION
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A source of market data that compiles population statistics with regard to distribution of population by region, area, etc.
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CHAIN OF COMMAND
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The superior-subordinate relationship that serves as a channel for two-way communication.
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CHAMBER OF COMMERCE
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An association of business people who attempt to protect and promote the commercial interests in a community.
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CIRCULATING CAPITAL
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The current asset items consisting of cash, inventories, and accounts receivable.
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CIVIL RIGHTS ACT OF 1964
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Federal legislation that prohibits discrimination on the basis of race, color, religion, sex, pregnancy, or national origin.
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COINSURANCE CLAUSE
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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. |
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COMPETITION
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The practice of trying to obtain something that is being sought by
others under similar circumstances at the same time. |
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CONSUMER CREDIT
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A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants.
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CONSUMERISM
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The emphasis placed on providing to customers products and services that are safe, reliable, and honestly advertised; also, a social movement
that seeks to strengthen the rights of consumers relative to sellers. |
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CONTROLLING
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SEE EVALUATING
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COPYRIGHT
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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. |
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CORPORATE REFUGEES
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Those individuals who flee the bureaucratic environment of big business by going into business for themselves.
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CORPORATION
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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. |
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CORPORATION CHARTER
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The written application for permission to incorporate that is approved by a state official.
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CREDIT
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An agreement that payment for a product or service will be made at some later date.
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CREDIT BUREAU
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An organization of retailers and other firms in a given community
that serves its members by summarizing their credit experience with particular individuals. |
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CREDIT INSURANCE
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Insurance that protects non-retailing businesses from abnormal bad-debt losses.
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CURRENT RATIO
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The current assets divided by the current liabilities and a measure of the liquidity of the business.
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DEBT EQUITY (DEBT CAPITAL, BORROWED CAPITAL)
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Any borrowed or loaned capital invested in the business that must be repaid to creditors.
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DEDUCTIBLE CLAUSE
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Insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible.
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DELEGATION OF AUTHORITY
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A superior's act of granting to subordinates, on the basis of competence, the right to act or decide.
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DEMOGRAPHICS
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The statistical study of human populations with respect to their size, density, distribution, composition, and income.
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DIRECTING (ACTUATING)
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Regulating the activities of an organization; to guide and/or supervise the activities of an organization.
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EARNINGS VALUATION APPROACH
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A business valuation approach which centers on estimating the amount of potential income that may be produced by the business in the next year.
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ECONOMIC BASE
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The wealth produced in or near a community that provides employment and income to the local population.
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ECONOMIC ORDER QUANTITY (EOQ)
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The quantity to be purchased which
minimizes total costs. |
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EMPLOYMENT APPLICATION
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A record of statements made at the time the applicant first seeks employment.
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EMPLOYMENT INTERVIEW
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The primary way of judging the job applicant's appearance, poise, speech, etc.
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ENDOWMENT LIFE INSURANCE
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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. |
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ENTREPRENEUR
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One who organizes, manages, and assumes the risk of a business firm or venture.
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EQUAL EMPLOYMENT OPPORTUNITY ACT
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The absence of employment
discrimination based on race, color, religion, sex, or national origin. |
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EQUAL PAY ACT
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Outlaws discrimination in pay against those who are over forty years old.
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EVALUATING (CONTROLLING)
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A management function which compares organizational and individual performance with predetermined standards or
expected results. |
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FACTORING
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Obtaining cash before payments are received from customers by selling off one's accounts receivable to a third party.
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FAIR LABOR STANDARDS ACT (WAGE AND HOUR)
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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. |
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FINANCE
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The business function of effectively obtaining and using funds.
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FIXED CAPITAL
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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.
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FIXED EXPENSES
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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. |
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GENERAL LIABILITY INSURANCE
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Insurance covering business liability to
customers who might be injured on or off premises or from the product sold to them. |
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GOODWILL
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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. |
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HUMAN RESOURCE FORECAST
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Determining personnel needs in terms of numbers of individuals and their required skills.
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HUMAN RESOURCE MANAGEMENT
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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. |
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HUMAN RESOURCE PLANNING
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Developing a comprehensive strategy for meeting future human resource needs.
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IMMIGRATION REFORM ACT
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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. |
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INNOVATION
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The introduction of something new; a new idea, method, or device.
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INSTALLMENT CREDIT (CLOSED END CREDIT)
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Balance of costly goods paid for
in small monthly (fractional) payments over a period of time. |
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INSURANCE
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Uneventful protection for the small business or small business owner
in regards to monetary ompensation in the event that a business and/or personal peril is experienced. |
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INTANGIBLE ASSETS
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Those assets that cannot be touched or grasped
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INTERDEPENDENCE
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The dependency of businesses on one another.
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INTERVIEWING
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A job-analysis technique in which individuals currently holding a
particular job are asked questions concerning the requirements of the job. |
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INVENTORY
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Those goods or stock of goods which are held for resale.
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INVENTORY TURNOVER
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The number of times the average inventory has been
sold or used up during a period. |
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JOB ANALYSIS
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The process of determining the critical components of a job for purposes of selecting, training, and rewarding personnel.
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JOB DESCRIPTION
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A document that lists the major responsibilities and tasks of the job.
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JOB SPECIFICATION
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A document that lists the knowledge, skills, abilities, and personal characteristics a job holder must possess to perform effectively.
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KEY-PERSON LIFE INSURANCE
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Life insurance that protects a firm against losses due to the death of a key employee.
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LIABILITY INSURANCE
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Insurance that covers business liability to customers of others who might be injured from the product sold to them.
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LIFE INSURANCE
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Insurance that provides death benefits to the survivors of the insured.
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LIMITED LIABILITY COMPANY (Not Corporation)
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New form of business ownership (approved in most states since approximately 1994); combines
aspects of partnerships with the limited liability of a corporation; owners known as members. |
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LINE OF CREDIT
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An understanding between a bank and the business indicating the maximum amount the bank is willing to loan the borrower.
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LIQUIDATION VALUE (MARKET VALUE) APPROACH
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The anticipated value of an asset that would be realized in case of liquidation of the business.
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MANAGEMENT
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The art and science of motivating people toward the achievement
of a goal. |
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MANUFACTURING BUSINESS
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A business that makes finished goods from raw materials by hand or machinery.
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MARKDOWN
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A reduction of selling price below the original selling price.
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MARKET
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A group of potential customers possessing purchasing power and
unsatisfied needs. |
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MARKETING
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The process of planning and executing the development, pricing, promotion, and distribution of an organization's goods or services.
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MARKET SURVEY
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A study that is used by a business to determine where the potential customers are located.
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MARKET VALUE APPROACH
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An approach used in business valuation which determines value based upon previous sales of similar businesses.
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MARKUP
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The difference between merchandise cost and selling price (i.e., gross
margin). |
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MERCHANDISING BUSINESS
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A business that purchases finished goods for resale.
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MORTGAGE
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A claim given by the borrower to the lender against the borrower's property in return for a loan.
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MORTGAGE LOAN
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A loan secured by a mortgage on property.
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OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA)
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A governmental agency with the responsibility for regulatory and enforcement safety and health matters for most United States employees; an individual state OSHA agency may supersede the U. S. Department of Labor OSHA regulations.
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OPEN-END CREDIT (REVOLVING CREDIT)
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A line of credit that may be used over
and over again up to a certain borrowing limit. |
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OPERATING RATIOS
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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.
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OVERHEAD
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Expenses incurred in the normal operation of a business.
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PARTNERSHIP
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The voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit.
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PATENT
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The registered right of an inventor to make, use, and sell an invention.
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PERSONAL CAPITAL (EQUITY CAPITAL)
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Capital that is invested in the business
by the owner(s). |
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PLANNING
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That function of determining in dvance what needs to be accomplished in order to achieve a particular goal.
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PRICING POLICY
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Factors which influence prices.
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PRODUCT LIABILITY INSURANCE
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Insurance that protects a firm against claims that its product caused bodily injury or property damage to the user.
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PROPRIETORSHIP
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SEE SOLE PROPRIETORSHIP
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RECRUITMENT
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The process of forming a pool of qualified applicants for tasks that
need to be filled. |
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REPLACEMENT VALUE APPROACH
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The fair market price to purchase similar products in similar condition.
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RESUME
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Written summary of one's personal, educational, and professional
achievements. |
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RISK
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A condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.
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RISK MANAGEMENT
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All efforts designed to preserve assets and earning power associated with a business.
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SALES PROMOTION
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A plan which provides inducements to potential purchasers of products and/or services.
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SELF-INSURANCE
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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.
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SERVICE BUSINESS
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A business that provides a service as opposed to a product.
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SMALL BUSINESS
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A business which is independently owned and operated and is not dominant in its field of operations.
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SMALL BUSINESS ADMINISTRATION (SBA)
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The principal government agency
concerned with the financing, operation, and management of small businesses. |
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SOLE PROPRIETORSHIP (PROPRIETORSHIP)
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A business owned by one person
who is subject to claims of creditors. |
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STAFFING
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A management function dealing with the recruitment, selection, placement, training, development, and appraisal of the employees of the firm.
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TANGIBLE ASSETS
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Those assets that can be appraised by value or seen or touched.
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TERM LIFE INSURANCE
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Life insurance that has no cash value whenever the policy expires.
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TRADE CREDIT
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A form of credit that is extended by one business to another business to help finance distribution of producer's goods.
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TRADEMARK
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An intangible asset that is a distinct name, sign, or symbol that the
federal government grants exclusive rights to use for a specified period of time. |
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UNIVERSAL LIFE INSURANCE
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A combination of whole life insurance and term life insurance.
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VARIABLE EXPENSE
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A cost which is uniform per unit, but fluctuates in direct proportion to change in the related total activity or volume.
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VENTURE CAPITALIST
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Anyone that invests in, or financially sponsors, a new business.
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VIETNAM ERA VETERANS READJUSTMENT ACT
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Outlaws discrimination in employment against Vietnam Era veterans.
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WHOLE LIFE INSURANCE
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Life insurance that gives lifetime protection to the insured person.
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WORKING CAPITAL (CIRCULATING CAPITAL)
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The difference between current
assets and current liabilities. |