FSE2202 FUNERAL HOME MANAGEMENT – Flashcards

Unlock all answers in this set

Unlock answers
question
Business Plan (New Venture Plan)
answer
A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business.
question
Consumerism
answer
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.
question
Copyright
answer
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.
question
Advisory Board
answer
The business governance board which helps make major decisions for the funeral home, but does not deal with the daily operations.
question
Angels AKA Business Angels
answer
Private investors who are willing to supply financing for new and/or risky small venture start-ups.
question
Articles of Partnership
answer
A written document that states explicitly the rights and duties of partners in a partnership.
question
Artisan Entrepreneur
answer
A person who starts a business with primarily technical skills and little business knowledge.
question
Board Of Directors
answer
The governing body that is elected by the stockholders of a corporation.
question
Book Value
answer
The cost of a fixed asset less accumulated depreciation.
question
Limited Partner
answer
Can only lose the amount of money they invested in a partnership.
question
Business
answer
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.
question
Capital
answer
The amount by which the total assets exceed the total liabilities of a business; an owner's financial interest in a business.
question
Conflicted familial pattern
answer
The family pattern in which the family members work against one another instead of together.
question
Corporate Refugees
answer
Those individuals who flee the bureaucratic environment of big business by going into business for themselves.
question
Corporation
answer
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.
question
Corporation Charter
answer
The written application for permission to incorporate that is approved by a state official.
question
Debt Equity (Debt Capital, Borrowed Capital)
answer
Any borrowed or loaned capital invested in the business that must be repaid to creditors.
question
Entrepreneur
answer
One who organizes, manages, and assumes the risk of a business firm or venture.
question
Equity capital (Personal capital)
answer
Capital that is invested in the business by the owner(s).
question
Founder
answer
An entrepreneur who brings a new firm into existence.
question
Franchisee
answer
An entrepreneur whose power is limited by a contractual relationship with a franchising organization.
question
General Manager
answer
An entrepreneur who functions as an administrator of a business.
question
General Partner
answer
A partner in a limited partnership who has unlimited personal liability. A partner of a partnership who is personally liable for the debts of the business
question
Goodwill
answer
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.
question
Intangible Asset
answer
Those assests that cannot be touched or grasped (examples include patents, copyrights and goodwill).
question
Laissez-fare
answer
The business pattern in which the family members do not interfere with each others departments or responsibilities.
question
Legal Entity
answer
A business organization that is recognized by the law as having a separate legal existence.
question
Limited Liability Company
answer
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.
question
Merchandising business
answer
A business that purchases finished goods for resale.
question
New venture plan (Business Plan)
answer
A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business.
question
Opportunistic Entrepreneur
answer
A person who starts a business with both sophisticated managerial skills and technical knowledge.
question
Overseer Board
answer
The business governance board which makes most decisions for a family funeral home, including the decisions made during the daily operation.
question
Paper Board of Directors
answer
The business governance board which exists only on paper and never holds true meetings.
question
Participative (business pattern)
answer
The business pattern in which all family members participate in the operations, decisions or profits of the funeral home
question
Partnership
answer
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.
question
Patent
answer
The registered right of an inventor to make, use, and sell an invention.
question
Paternalistic
answer
The business pattern in which the parent is in control.
question
Patriarchal
answer
The family pattern in which the father is in charge.
question
Personal Capital (Equity Capital)
answer
Capital that is invested in the business by the owner(s).
question
Professional Business Pattern
answer
The business pattern in which the family funeral home is completed oriented toward the business and not family.
question
Proprietorship (Sole)
answer
A business owned by one person who is subject to claims of creditors.
question
Rubber-Stamp Board of Directors
answer
The business governance board which exists and holds meetings, but only approves actions desired or completed by the manager of the funeral home.
question
Service Business
answer
A business that provides a service as opposed to a product.
question
Small Business
answer
A business which is independently owned and operated and is not dominant in its field of operations.
question
Small Business Administration (SBA)
answer
The principal government agency concerned with the financing, operation, and management of small businesses.
question
Sole Proprietorship
answer
A legal form of organization whereby the business is owned and operated by one person
question
Stock or Stock Certificate
answer
A document specifying the number of shares owned by a stockholder.
question
Trademark
answer
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.
question
Venture Capitalist
answer
An investor or investment group that commits money to new business ventures.
question
Corporate Charter:
answer
Written application for permission to incorporate that is approved by a state official.
question
Earnings Approach:
answer
A business valuation approach, which centers on estimating the amount of potential income that may be produced by the business in the next year. Income-based small business valuation. Establishes the business value by dividing the expected financial benefit (exp seller's cash flow).
question
Factoring:.
answer
Obtaining cash before payments are received from customers by selling off one's accounts receivables to a third party
question
Total Quality Management:
answer
The efforts of all members of an organization directed to ensure that quality in the production of goods and services is achieved
question
Replacement value:
answer
Fair market price to purchase similar assets.
question
Liquidation value:
answer
The anticipated value of an asset that would be realized in case of liquidation of the business.
question
Book value:
answer
Cost of a fixed asset less accumulated depreciation.
question
Circulating capital aka Working Capital:
answer
The current asset items consisting of cash, inventories, and accounts receivable. Difference between current assets and current liabilities.
question
Fixed Capital:
answer
Long-term capital that is invested in the small business such as land, building and machinery
question
Primary objective of a funeral home:
answer
Fulfilling the needs of the client-families and the community.
question
Secondary objective of a funeral home:
answer
Insuring funds are available for meeting expenses, reasonable return on investment and capital improvements.
question
Occupation Safety and Health Act:
answer
Federal legislation that mandates that employers provide a workplace that is free from hazards likely to cause death or serious physical harm.
question
Trade Credit
answer
A form of credit that is extended by one business to another business to help finance distribution of producer's goods.
question
Characteristics of entrepreneurs:
answer
-Willing to take risks -Need for Achievement -Self-Confidence -Forward-looking approach -Open-mindedness -Need for Achievement -Willingness to take risks
question
Family BUSINESS patterns:
answer
-Paternalistic -Laissez-faire -Participative -Professional
question
Family Patterns:
answer
-Patriarchal -Matriarchal -Collaborative -Conflicted
question
Governance Pattern:
answer
-Paper Board -Rubber-stamp Board -Advisory Board
question
Seven Stages of Business Succession
answer
Pre-Business Introductory Introductory Functional Functional Advanced Functional Early Succession Mature Succession
question
Characteristics of a small business:
answer
-Highly personalized /Customer focus -Integrity and Responsibility -Innovation
question
Contributions of small businesses
answer
Simulates economic competition -Represent 99.7 % of all employer firms -Generate jobs
question
External cause of business failure
answer
-HR planning -Capital Shortages -Taxes -Governmental regulations -Consumerism -Disaster of tragedy -Business Risks
question
Internal cause of business failure:
answer
Lack of expertise -Financial shortages -HR Management
question
Parts of a Business Plan:
answer
1) Cover Page 2) Executive Summary 3) General Company Description 4) Products and Services Plan 5) Marketing Plan 6) Management Plan 7) Operating Plan 8) Financial Plan 9) Appendix
question
Pre-Business Stage
answer
a potential successor becomes acquainted with the business part of growing up. The young child may accompany the parent to the office, may learn some of the terminology of the business or some faucets of the business. Orientation of the business if very informal.
question
Introductory Stage
answer
includes experiences that occur before the successor is old enough to begin part-time work. In this stage, deliberate actions are taken to introduce the child to the business and employees in the business.
question
Introductory Functional Stage
answer
the son or daughter begins to function as a part-time employee. This may be after school, on weekends or during school breaks. The offspring learns who the key persons are in the business and the role each plays. This stage may include formal education and work for other firms, such as an internship
question
Functional Stage
answer
begins when the potential successor enters full-time employment, usually follows his/her education. This stage includes non-managerial roles in the company
question
Advanced Functional Stage
answer
as the potential successor assumes managerial roles, he/she enters the advanced functional stage. This may include directing other employees, but not managing the entire company.
question
Early Succession Stage
answer
the son/daughter is named president or general manager. He/she becomes the manager de jure of the company. That is the manager in name though maybe not in fact. The parent or founder may still be controlling much of the company, but not in a day-to-day managerial role.
question
Mature Succession Stage
answer
reached when the transition from parent to offspring is complete and the offspring is fully and solely in charge of the business. In this stage, the parent will not usurp the authority of the offspring, and all decisions are made by the offspring.
question
Drawbacks of Entrepreneurship
answer
Long hours of hard work Emotional energy Risk of business failure
question
Sole Proprietorship Advantages
answer
Ease of Starting Low cost of organization - Freedom to manage Profits - All profits go to the single owner Promptness of action Secrecy Customer Recognition Unique credit standing (The company can use personal assets for business purposes)
question
Sole Proprietorship Disadvantages
answer
Unlimited financial risk Limited size Limited life - Limited management ability Limited opportunities for employees - Difficulty in raising capital
question
Partnership Advantages
answer
Combined management, talent, and capital of the two (or more) partners Easy to form (as long as the partners agree to the division of labor) Efficiency of labor Possibility of employees to buy into the business Possibility of raising more capital than proprietorship Each partner contributes good will in the business
question
Partnership Disadvantages
answer
Lack of continuity Decisions are binding on both parties Frozen investments Unlimited liability of general partners Possibility of unsatisfactory division of profits Possibility of managerial difficulties
question
Corporation Advantages
answer
Continuity in existence Ease of ownership Limited liability Large financial capability Specialized management (Large companies can hire people to handle specific areas of management.) Legal entity
question
Corporation Disadvantages
answer
Legal restrictions on activities Separation of ownership and control Lack of personal interest Double taxation of earnings Lack of privacy Difficult to create
question
Cover page
answer
Contains the name of the venture and the owners, date prepared, and contact person
question
Executive Summary
answer
1-3 page overview of the total business plan This should be written after the other sections are completed. It highlights the significant points and, ideally, creates enough excitement to motivate the reader to continue
question
General Company Description
answer
This section explains the type of company and gives the history if it already exists This section will include information regarding whether the business is a manufacturing, retail, service or other type of business. It should also include a proposed form of organization, such as a sole proprietorship, partnership or corporation. It would be organized as follows: Name of Business Location of Business Nature and primary product or service of the business Current status (startup, buyout or expansion) and history Legal form of Organization (proprietorship, partnership or corporation)
question
Products and/or Services Plan
answer
This section describes the product and/or service and points out any unique features. This should include why people will purchase your product or service. It should be organized as follows: Description of products and/or services Features of product /service providing competitive advantage Legal protection - patents, copyrights, trademarks
question
Marketing Plan
answer
This section shows who the customers will be and the type of competition the business will face. It should outline a strategy and specifies what will give the firm a competitive edge. It should be organized as follows: Analysis of target market and profile of target customer Methods to identify and attract customers Selling approach - type of sales force and distribution channels Types of sales promotion and advertising It may include credit and pricing policies
question
Management Plan
answer
it should identify key persons, such as active investors, the management team and directors for the business. As it lists the persons, it should cite the experience and competence that each possess. It should be organized as follows: Description of management team Outside investors and/or directors with qualifications Outside resources Plans for recruiting and training employees
question
Operating Plan
answer
This section explains the type of manufacturing or operating system to be used, as well as describes the facilities, labor, raw materials, and processing requirements. It should be organized as follows: Operating and Manufacturing methods Description of operating facilities (location, space and equipment) Quality-control methods Procedures to control inventory and operations Sources of supply and purchasing procedures
question
Financial Plan
answer
This section specifies the financial needs and comtemplated sources of financing. This must also include the projections of revenues, costs and profits, usually for 2 years. It should be organized as follows: Historical financial statements for last 3 to 5 years (including income statements, balance sheets, and cash flow statements) Planned sources of financing
question
Appendix
answer
This provides supplementary materials to the plan and should be organized as follows: Management Team Biographies Ethics code Other Items not included in other parts of the business plan
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New