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Working Capital (Circulating Capital)

answer

The difference between current assets and current liabilities.

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Whole Life Insurance

answer

Life insurance that gives lifetime protection to the insured person.

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Wage and Hour Law (Fair Labor Standards Act)

answer

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

answer

Outlaws discrimination in employment against Vietname Era veterans.

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Venture Capitalist

answer

An investor or investment group that commits money to new business ventures.

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Variable Expense

answer

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

answer

A combination of whole life insurance and term life insurance.

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Truth in Lending Act

answer

An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit.

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Trademark

answer

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

answer

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)

answer

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

answer

Life insurance that has no cash value whenever the ploidy expires.

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Tangible Assets

answer

A physical asset that possesses genuine value.

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Stock or Stock Certificate

answer

A document specifying the number of shares owned by a stockholer.

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Staffing

answer

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

answer

A legal form of organization whereby the business is owned and operated by one person.

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Small Business Administration (SBA)

answer

The principal government agency concerned with the financing, operation and management of small businesses.

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Small Business

answer

A business which is independently owned and operated and is not dominant in it's field of operations.

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Service Business

answer

A business that provides a service as opposed to a product.

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Self-Insurance

answer

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

answer

A plan which provides inducements to potential purchases of products and/or services.

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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.

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Risk Management

answer

All efforts designed to preserve assets and earning power associated with a business.

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Resume

answer

Written summary of one's personal, educational and professional achievements.

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Replacement Value Approach

answer

The fair market price to purchase similar assets.

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Recruitment

answer

The process of forming a pool of qualified applicants for tasks that need to be filled.

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Rebate

answer

A return of a portion of a payment.

question

Quantity Discount

answer

Reduction in the amount of a bill when a minimum quantity of merchandise has been ordered.

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Public Relations

answer

Inducing the public to have a positive feeling about a particular business.

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Proprietorship

answer

A business owned by one person who is subject to claims of creditors.

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Professional Business Pattern

answer

The business pattern in which the family funeral home is completed oriented toward the business and not family.

question

Product Liability Insurance

answer

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

answer

Factors which influence prices.

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Post-Need Services (After Care; Follow-up Services)

answer

Services provided by a funeral services organization that occur after final disposition.

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Planning

answer

That function of determining in advance what needs to be accomplished in order to achieve a particular goal.

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Personnel Management

answer

See Human Resource Management.

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Personal Capital (Equity Capital)

answer

Capital that is invested in the business by the owner(s).

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Patriarchal

answer

The family pattern in which the father is in charge.

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Paternalistic

answer

The business pattern in which the parent is in control.

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Patent

answer

The registered right of an inventor to make, use and sell an invention.

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Partnership

answer

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

answer

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

answer

The business governance board which exists only on paper and never holds true meetings.

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Overseer Board

answer

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

answer

Expenses incurred in the normal operation of a business.

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Organizing

answer

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

answer

A person who starts a business with both sophisticated managerial skills and technical knowledge.

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Operating Ratios

answer

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)

answer

A line of credit that may be used over and over again up to a certain borrowing limit.

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Office Management

answer

The administration and supervision of office duties and functions.

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Occupational Safety and Health Act (OSHA)

answer

Federal legistlation that mandates that employers provide a workplace that is free from hazards likely to cause death or serious physical harm.

question

Objectives

answer

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.]

question

New Venture Plan (Business Plan)

answer

A written descrption of a new idea that projects marketing, operational, and financial aspects of a proposed business.

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Motivating

answer

Energizing, channeling and sustaining people's behavior.

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Mortgage Loan

answer

A loan secured by a mortgage on property.

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Mortgage

answer

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

answer

A business that purchases finished goods for resale.

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Merchandise

answer

Those goods or stock of goods which are held for resale at a profit.

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Matriarchal

answer

The family pattern in which the mother is in charge.

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Markup

answer

The difference between merchandise cost and selling price, i.e., gross margin.

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Marketing Management

answer

The process of planning and executing the development, pricing, promotion, and distribution of an organization's goods or services.

question

Marketing

answer

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

answer

An approach used in business valuation which determines value based upon previous sales of similar businesses.

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Market Survey

answer

A study that is used by a business to determine where the potential customers are located.

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Market

answer

A group of potential customers possessing purchasing power and unsatisfied needs.

question

Markdown

answer

A reduction of selling price below the original selling price.

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Manufacturing Business

answer

A business that makes finished goods from raw materials by hand or machinery.

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Management

answer

The art and science of motivating people toward the achievement of a goal.

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Liquidation Value (Market Value) Approach

answer

The anticipated value of an asset that would be realized in case of liquidation of the business.

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Limited Partner

answer

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)

answer

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

answer

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

answer

Insurance that provides death benefits to the survivors of the insured.

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Legal Entity

answer

A business organization that is recognized by the law as having a separate legal existence.`

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Laissez-fare

answer

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

answer

Life insurance that protects a firm against losses due to the death of a key employee.

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Job Specification

answer

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

answer

A document that lists the major responsibilities and tasks of the job.

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Job Analysis

answer

A process for determining the critical components of a job for purposes of selecting, training, and rewarding personnel.

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Inventory Turnover

answer

The number of times the average inventory has been sold or used up during a period.

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Inventory (Merchandise)

answer

Those goods or stock of goods which are held for resale at a profit.

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Interviewing

answer

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

answer

The dependency of businesses on one another.

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Intangible Asset

answer

Those assets that cannot be touched or grasped (examples include patents, copyrights and goodwill).

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Insurance

answer

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)

answer

Balance of costly goods paid for in small monthly (fractional) payments over a period of time.

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Innovation

answer

The introduction of something new; a new idea, method or device.

question

Immigration Reform Act

answer

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.

question

Human Resource Planning

answer

Developing a comprehensive strategy for meeting future human resource needs.

question

Human Resource Management (Personnel Management)

answer

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.

question

Human Resource Forecast

answer

Determining personnel needs in terms of numbers of individuals and their required skills.

question

Human Relations

answer

Motivating people in organizations to develop teamwork which effectively fulfills their needs and achieves organizational objectives.

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

Goals

answer

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].

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

General Manager

answer

An entrepreneur who functions as an administrator of a business.

question

General Liability Insurance

answer

Insurance covering business liability to customers who might be injured on or off premises or from the product sold to them.

question

Funeral Service Management

answer

The administration of a funeral service enterprise, the activites of which encompass marketing, office, personnel, facilities and financial mangement.

question

Franchisee

answer

An entrepreneur whose power is limited by a contractual relationship with a franchising organization.

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Founder

answer

An entrepreneur who brings a new firm into existence.

question

Follow-up Services

answer

See Post-Need Services

question

Fixed Expenses

answer

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.

question

Fixed Capital

answer

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.

question

Financial Management

answer

The efficient utilization and adequate regulation of assets, revenue, expenditures and capital rights.

question

Finance

answer

The business function of effectively obtaining and using funds.

question

Fair Labor Standards Act (Wage and Hour Law)

answer

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.

question

Fair Credit Reporting Act

answer

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.

question

Factoring

answer

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

answer

The obtaining and maintaining of adequate work space and funeral equipment.

question

Evaluating (Controlling)

answer

A management function which compares organizational and individual performance with predetermined standards or expected results.

question

Equity Capital (Personal Capital)

answer

Capital that is invested in the business by the owner(s).

question

Equal Pay Act

answer

Outlaws discrimination in pay against those who are over forty years old.

question

Equal Employment Opportunity

answer

The absence of employment discrimination based on race, color, religion, sex or national origin.

question

Equal Credit Opportunity Act

answer

The absence of discrimination based on race, color, religion, sex or national origin.

question

Entrepreneur

answer

One who organizes, manages, and assumes the risk of a business firm or venture.

question

Endowment Life Insurance

answer

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

answer

The primary way of judging the job applicant's appearance, poise, speech, etc..

question

Employment Application

answer

The record of statements made at the time the applicant first seeks employment.

question

Emergency

answer

An unforeseen combination of circumstances that results in a need for immediate action.

question

Economic Order Quantity (EOQ)

answer

The quantity to be purchased which minimizes total costs.

question

Economic Base

answer

The wealth produced in or near a community that provides employment and income to the local population.

question

Earnings Valuation 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.

question

Disaster

answer

A sudden misfortune, resulting in the loss of life and/or property.

question

Directing (Actuating)

answer

Regulating the activities of course of activities of an organization; to guide and/or supervise the activities of an organization.

question

Directing

answer

Refers to those activities which encourage subordinates to work toward the achievement of the company's goals.

question

Demographics

answer

The statistical study of human populations with respect to their size, density, distribution, composition and income.

question

Delegation of Authority

answer

Superior's act of granting to subordinates, on the basis of competence, the right to act or decide.

question

Deductible Clause

answer

Insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible.

question

Debt Equity (Debt Capital, Borrowed Capital)

answer

Any borrowed or loaned capital invested in the business that must be repaid to creditors.

question

Current Ratio

answer

The current assets DIVIDED by the current liabilities and a measure of the liquidity of the business.

question

Credit Insurance

answer

Insurance that protects non-retailing businesses from abnormal bad-debt losses.

question

Credit Bureau

answer

An organization of retailers and other firms in a given community that serves its members by summarizing their credit experience with particular individuals.

question

Credit

answer

An agreement that payment for a product or service will be made at some later date.

question

Corporation Charter

answer

A written application for permission to incorporate that is approved by a state official.

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

Corporate Refugees

answer

Thos individuals who flee the bureaucratic environment of big business by going into business for themselves.

question

Copyright

answer

The registered right of creator to reproduce, publish and sell the work which is the product of the intelligence and skill of that person.

question

Controlling (Evaluating)

answer

A management function which compares organizational and individual performance with predetermined standards or expected results.

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

Consumer Credit Protection Act

answer

An act which requires a seller to disclose terms of sale and give facts of actual interest rate and other charges.

question

Consumer Credit

answer

A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants.

question

Consignment

answer

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.

question

Conflicted Family Pattern

answer

The family pattern in which the family members work against one another instead of together.

question

Competition

answer

The practice of trying to obtain something that is being sought by others under similar circumstances at the same time.

question

Collaborative

answer

The family pattern in which the family members work together.

question

Coinsurance Clause

answer

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.

question

Closed End Credit (Installment Credit)

answer

Balance of costly goods paid for in small monthly (fractional) payments over a period of time.

question

Civil Rights Act of 1964

answer

Federal legislation that prohibits discrimination on the basis of race, color, religion, sex or nation origin.

question

Circulating Capital (Working Capital)

answer

The DIFFERENCE between current assets and current liabilities.

question

Chamber of Commerce

answer

An association of business people who attempt to protect and promote the commercial interest in a community.

question

Chain of Command

answer

The superior-subordinate relationship that serves as a channel for two-way communication.

question

Census of Population

answer

A source of market data that compiles population statistics with regard to distribution of population by region, area, etc.

question

Census of Manufacture

answer

A source of market data that explains where certain manufacturers are located.

question

Census of Housing

answer

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.

question

Census of Business

answer

A source of market data that explains where certain businesses are located.

question

Caveat Venditor

answer

Let the seller beware.

question

Casualty Insurance

answer

Insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fire, etc.

question

Cash Discounts

answer

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.

question

Capital

answer

The amount by which the total assets EXCEEDS the total liabilities of a business; an owner's financial interest in a business.

question

Buy-Sell Life Insurance

answer

Insurance on an owner of a business that will supply enough money for a partner to buy his share of the business on death.

question

Business Policies

answer

Fundamental statements that serve as guides to management practice.

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

Business Interruption Insurance

answer

An insurance that protects companies during the period necessary to restore property damaged by an insured peril.

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

Burglary

answer

The forcible breaking and entering of premises closed for business with the subsequent removal of cash or merchandise.

question

Budget

answer

A formal written statement, which may be based upon adjusted historical data, of management's plans for the future expressed in financial terms.

question

Break-Even Analysis

answer

The point at which total sales revenue equals total costs.

question

Brand

answer

The identification for a product

question

Book Value

answer

The cost of a FIXED asset LESS accumulated depreciation.

question

Bona Fide Occupational Qualification (BFOQ)

answer

A qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination.

question

Board of Directors

answer

The governing body that is elected by the stockholders of a corporation.

question

Better Business Bureau

answer

Association of business firms that promotes ethical conduct by all business firms in a community.

question

Average Collection Period

answer

A measure of the accounts receivable turnover.

question

Automobile Insurance

answer

Insurance covering motor vehicles

question

Artisan Entrepreneur

answer

A person who starts a business with primarily technical skills and little business knowledge.

question

Articles of Partnership

answer

A written document that states explicitly the rights and duties of partners in a partnership

question

Angels

answer

Private owners who are willing to supply financing for new and/or risky small venture start-ups.

question

Americans with Disabilities Act (ADA)

answer

Legislation that guarantees disabled people equal access to employment, as well as access to public places.

question

Aging Schedule

answer

A grouping of accounts receiving into age categories based upon the length of time they have been outstanding on the company record.

question

Age Discrimination in Employment Act

answer

Federal legislation that requires employers to treat applicants and employees equally regardless of age.

question

After Care

answer

See Post-Need Services.

question

Advisory Board

answer

The business governance board which helps make major decisions for the funeral home, buy does not deal with the daily operations.

question

Advertising

answer

The art of making the public aware of the services or commodities that a business has for sale.

question

Actuating (Directing)

answer

Regulating the activities or course of activities of an organization; to guide and /or supervise the activities of an organization.

question

Accident & Health Insurance

answer

Insurance against loss through accident or sickness.

question

ABC Method

answer

A method of classifying inventory items with categories which are of high-value, less costly, and/or low-cost items.

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