Funeral Home Management – Flashcards
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Working Capital (Circulating Capital)
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The difference between current assets and current liabilities.
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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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Wage and Hour Law (Fair Labor Standards Act)
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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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Vietnam Era Veterans Readjustment Act
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Outlaws discrimination in employment against Vietname Era veterans.
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Venture Capitalist
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An investor or investment group that commits money to new business ventures.
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Variable Expense
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A cost which is uniform per unit, but fluctuates in total in direct proportion to change in the related total activity or volume.
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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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Truth in Lending Act
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An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit.
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Trademark
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An intangible asset that is a distinct name, sign, or symbol that the federal govenment grants exclusive rights to use for a specified period of time.
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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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Total Quality Mangement (TQM)
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The efforts of all members of an organization directed to ensure that quality in the production of goods and services is achieved.
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Term Life Insurance
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Life insurance that has no cash value whenever the ploidy expires.
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Tangible Assets
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A physical asset that possesses genuine value.
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Stock or Stock Certificate
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A document specifying the number of shares owned by a stockholer.
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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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Sole Proprietorships
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A legal form of organization whereby the business is owned and operated by one person.
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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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Small Business
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A business which is independently owned and operated and is not dominant in it's field of operations.
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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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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 afor individual loss categories such as property, medical or worker's compensation.
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Sales Promotion
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A plan which provides inducements to potential purchases of products and/or services.
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Rubber-Stamp Board of Directors
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The business governance board which exists and holds meetings, but only approves actions desired or completed by the manager of the funeral home.
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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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Resume
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Written summary of one's personal, educational and professional achievements.
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Replacement Value Approach
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The fair market price to purchase similar assets.
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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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Rebate
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A return of a portion of a payment.
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Quantity Discount
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Reduction in the amount of a bill when a minimum quantity of merchandise has been ordered.
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Public Relations
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Inducing the public to have a positive feeling about a particular business.
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Proprietorship
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A business owned by one person who is subject to claims of creditors.
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Professional Business Pattern
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The business pattern in which the family funeral home is completed oriented toward the business and not family.
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Product Liability Insurance
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Insurance that protects a firm agains claims that its product caused bodily injury or property damage to the user.
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Pricing Policy
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Factors which influence prices.
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Post-Need Services (After Care; Follow-up Services)
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Services provided by a funeral services organization that occur after final disposition.
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Planning
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That function of determining in advance what needs to be accomplished in order to achieve a particular goal.
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Personnel Management
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See Human Resource Management.
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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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Patriarchal
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The family pattern in which the father is in charge.
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Paternalistic
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The business pattern in which the parent is in control.
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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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Partnership
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The voluntary association of two ormore people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit.
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Participative
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The business pattern in which all family members participate in the operations, decisions or profits of the funeral home.
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Paper Board of Directors
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The business governance board which exists only on paper and never holds true meetings.
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Overseer Board
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The business governance board which makes most decisions for a family funeral home, including the decisions made during the daily operations.
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Overhead
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Expenses incurred in the normal operation of a business.
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Organizing
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To arrange or constitute in interdependent parts, each having a specific function or relation with respect to the whole;the arrangement and distribution of work among members of an organization.
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Opportunistic Entrepreneur
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A person who starts a business with both sophisticated managerial skills and technical knowledge.
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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 standard in regards to measuring the possible growth of the business
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Open End Credit (Revolving Account)
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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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Office Management
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The administration and supervision of office duties and functions.
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Occupational Safety and Health Act (OSHA)
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Federal legistlation that mandates that employers provide a workplace that is free from hazards likely to cause death or serious physical harm.
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Objectives
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Specific statements of ends, the achievement of which are contemplated within a specific time period. (Objectives are used in the management control process, and provide a quantitative and time framework to the organization's goals. Objectives are intended to be accomplished by a specific date and are stated in specific terms, preferably in such a way that there is some measurable basis for determining the extent to which they have been achieved.) [See also Goals.]
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New Venture Plan (Business Plan)
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A written descrption of a new idea that projects marketing, operational, and financial aspects of a proposed business.
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Motivating
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Energizing, channeling and sustaining people's behavior.
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Mortgage Loan
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A loan secured by a mortgage on property.
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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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Merchandising Business
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A business that purchases finished goods for resale.
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Merchandise
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Those goods or stock of goods which are held for resale at a profit.
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Matriarchal
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The family pattern in which the mother is in charge.
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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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Marketing Management
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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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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 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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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
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A group of potential customers possessing purchasing power and unsatisfied needs.
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Markdown
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A reduction of selling price below the original selling price.
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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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Management
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The art and science of motivating people toward the achievement of a goal.
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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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Limited Partner
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A partner in a limited parnership who is not active in the management and has limited personal liability.
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Limited Liability Companay (not corporation)
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New form of business ownership (approved in most states since approximately 1994); combines aspects of partnerships with the liited liability of a corporation; owners known as members.
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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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Legal Entity
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A business organization that is recognized by the law as having a separate legal existence.`
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Laissez-fare
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The business pattern in which the family members do not interfere with each other's departments or responsibilities.
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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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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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Job Description
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A document that lists the major responsibilities and tasks of the job.
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Job Analysis
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A process for determining the critical components of a job for purposes of selecting, training, and rewarding personnel.
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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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Inventory (Merchandise)
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Those goods or stock of goods which are held for resale at a profit.
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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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Interdependence
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The dependency of businesses on one another.
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Intangible Asset
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Those assets that cannot be touched or grasped (examples include patents, copyrights and goodwill).
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Insurance
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Uneventful protection for the samll business or small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced.
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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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Innovation
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The introduction of something new; a new idea, method or device.
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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 quthorized to work in the U.S.
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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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Human Resource Management (Personnel Management)
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The process of acquiring, training, developing, motivating, and appraising a sufficient quantity of qualified employees to perform necessary activities; and developing activities and an organizational climate conducive to maximum efficiency and worker satisfaction.
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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 Relations
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Motivating people in organizations to develop teamwork which effectively fulfills their needs and achieves organizational objectives.
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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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Goals
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Broad statements about what an organization wants to achieve; developed in the strategic planning process; they form the basic plan of direction toward which decisions and activities are focused. (Goals are motivational ini nature and are usually stated in broad, general terms without reference to a time period). [See also Objectives].
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General Partner
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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.
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General Manager
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An entrepreneur who functions as an administrator of a business.
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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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Funeral Service Management
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The administration of a funeral service enterprise, the activites of which encompass marketing, office, personnel, facilities and financial mangement.
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Franchisee
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An entrepreneur whose power is limited by a contractual relationship with a franchising organization.
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Founder
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An entrepreneur who brings a new firm into existence.
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Follow-up Services
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See Post-Need Services
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Fixed Expenses
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A cost that, for a given period of time and rage 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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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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Financial Management
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The efficient utilization and adequate regulation of assets, revenue, expenditures and capital rights.
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Finance
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The business function of effectively obtaining and using funds.
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Fair Labor Standards Act (Wage and Hour Law)
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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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Fair Credit Reporting Act
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An act which requires creditors to notify a potential recipient of credit whenever any adverseaction or denial of credit was based on a credit report.
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Factoring
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Obtaining cash before payments are received from customers by selling of one's accounts receivables to a third party.
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Facilities Management
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The obtaining and maintaining of adequate work space and funeral equipment.
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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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Equity Capital (Personal Capital)
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Capital that is invested in the business by the owner(s).
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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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Equal Employment Opportunity
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The absence of employment discrimination based on race, color, religion, sex or national origin.
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Equal Credit Opportunity Act
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The absence of discrimination based on race, color, religion, sex or national origin.
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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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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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Employment Interview
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The primary way of judging the job applicant's appearance, poise, speech, etc..
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Employment Application
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The record of statements made at the time the applicant first seeks employment.
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Emergency
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An unforeseen combination of circumstances that results in a need for immediate action.
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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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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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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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Disaster
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A sudden misfortune, resulting in the loss of life and/or property.
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Directing (Actuating)
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Regulating the activities of course of activities of an organization; to guide and/or supervise the activities of an organization.
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Directing
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Refers to those activities which encourage subordinates to work toward the achievement of the company's goals.
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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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Delegation of Authority
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Superior's act of granting to subordinates, on the basis of competence, the right to act or decide.
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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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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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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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Credit Insurance
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Insurance that protects non-retailing businesses from abnormal bad-debt losses.
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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
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An agreement that payment for a product or service will be made at some later date.
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Corporation Charter
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A written application for permission to incorporate that is approved by a state official.
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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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Corporate Refugees
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Thos individuals who flee the bureaucratic environment of big business by going into business for themselves.
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Copyright
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The registered right of creator to reproduce, publish and sell the work which is the product of the intelligence and skill of that person.
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Controlling (Evaluating)
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A management function which compares organizational and individual performance with predetermined standards or expected results.
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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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Consumer Credit Protection Act
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An act which requires a seller to disclose terms of sale and give facts of actual interest rate and other charges.
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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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Consignment
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The merchandising agreement whereby merchandise is given to a retailer to sell, but the retailer does not have to pay for the merchandise that will be displayed until it is sold.
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Conflicted Family Pattern
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The family pattern in which the family members work against one another instead of together.
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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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Collaborative
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The family pattern in which the family members work together.
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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 others=wise to assume a portion of any loss.
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Closed End Credit (Installment 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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Civil Rights Act of 1964
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Federal legislation that prohibits discrimination on the basis of race, color, religion, sex or nation origin.
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Circulating Capital (Working Capital)
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The DIFFERENCE between current assets and current liabilities.
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Chamber of Commerce
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An association of business people who attempt to protect and promote the commercial interest in a community.
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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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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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Census of Manufacture
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A source of market data that explains where certain manufacturers are located.
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Census of Housing
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A source of market data that keeps track of new home sales by regions and/or the construction of new houses by region and specific area.
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Census of Business
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A source of market data that explains where certain businesses are located.
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Caveat Venditor
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Let the seller beware.
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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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Cash Discounts
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2/10, n/30 - 2% discount if paid in 10 days from date of invoice/net amount must be paid within 30 days of date of invoice.
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Capital
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The amount by which the total assets EXCEEDS the total liabilities of a business; an owner's financial interest in a business.
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Buy-Sell Life Insurance
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Insurance on an owner of a business that will supply enough money for a partner to buy his share of the business on death.
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Business Policies
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Fundamental statements that serve as guides to management practice.
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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 Interruption Insurance
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An insurance that protects companies during the period necessary to restore property damaged by an insured peril.
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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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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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Budget
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A formal written statement, which may be based upon adjusted historical data, of management's plans for the future expressed in financial terms.
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Break-Even Analysis
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The point at which total sales revenue equals total costs.
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Brand
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The identification for a product
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Book Value
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The cost of a FIXED asset LESS accumulated depreciation.
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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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Board of Directors
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The governing body that is elected by the stockholders of a corporation.
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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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Average Collection Period
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A measure of the accounts receivable turnover.
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Automobile Insurance
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Insurance covering motor vehicles
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Artisan Entrepreneur
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A person who starts a business with primarily technical skills and little business knowledge.
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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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Angels
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Private owners who are willing to supply financing for new and/or risky small venture start-ups.
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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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Aging Schedule
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A grouping of accounts receiving into age categories based upon the length of time they have been outstanding on the company record.
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Age Discrimination in Employment Act
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Federal legislation that requires employers to treat applicants and employees equally regardless of age.
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After Care
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See Post-Need Services.
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Advisory Board
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The business governance board which helps make major decisions for the funeral home, buy does not deal with the daily operations.
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Advertising
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The art of making the public aware of the services or commodities that a business has for sale.
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Actuating (Directing)
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Regulating the activities or course of activities of an organization; to guide and /or supervise the activities of an organization.
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Accident & Health Insurance
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Insurance against loss through accident or sickness.
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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.