NOCTI General Management (Abbrev./Law) LIVE
Chief Financial Officer (CFO)
An executive responsible for the financial affairs of a corporation or other business structure.
Chief Executive Officer (CEO)
This executive is the highest-ranking person in a company and is ultimately responsible for making managerial decisions.
The chief accountant in an organization, having responsibility for both financial and managerial accounting activities.
Chief Operating Officer (COO)
This executive oversees ongoing business operations within the company. The COO reports to the CEO and is usually second-in-command within the company.
Credit Card Act
President Obama signed this law into place in 2009. Two main purposes of the law is to prohibit credit card companies from abusive hiking up of interest rates AND making the rates and fees more transparent so consumers can understand how much they are paying on their credit card.
Fair Labor Standards Act (FLSA)
This is a federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, or local governments. This law is upheld by the U.S. Department of Labor.
Federal Unemployment Tax Act (FUTA)
This is a payroll tax paid by employers on employee wages. The federal tax assists states in providing unemployment benefits for those who are unemployed for reasons out of their control.
A person’s credit score calculated with software from Fair Isaac Corporation.
Just-In-Time Delivery (JIT)
This is an inventory strategy companies employee to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. This method requires that producers are able to accurately forecast demand.
Limited Liability Company (LLC)
This is a form of business ownership that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. Corporations are allowed to be a “member” of this.
Limited Liability Partnership (LLP)
This is a form of business ownership that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. Corporations are NOT allowed to be a “member” of this.
Return on Investment (ROI)
This is the most common profitability ratio. The most common formula is to divide net profit by total assets.
This is an Individual Retirement Account that allows a person to set aside after-tax income. When the person withdraws funds upon retirement, the withdrawals are tax-free.
Sarbanes Oxley Act
The law passed in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. This law mandates strict reforms to improve financial disclosures from corporations and prevent accounting fraud.
Small Business Administration (SBA)
The SBA is a government program that offers free management and accounting advice to small business owners. SBA also provides loans to qualified persons wanting to start a business.
Securities Act of 1933
Often referred to as the “truth in securities” law. This law requires that investors receive financial and other significant information concerning securities being offered for public sale. It also prohibits deceit, misrepresentations and other fraud in the sale of securities.
Security and Exchange Commission (SEC)
This is a government commission created by Congress to regulate the securities markets (stock markets) and protect investors. In addition to regulation and protection, it also monitors corporate takeovers in the U.S.
This is also known as Social Security. This is a federal program signed into law by President Franklin Roosevelt in 1935. Employees and Employers pay into this system.
Federal Insurance Contributions Act (FICA)
This is a U.S. federal payroll tax, also referred to as Social Security and Medicare.
U.S. Patent and Trademark Office (USPTO)
This office reviews trademark applications and determines whether an applicant meets the requirements for federal registration.
World Trade Organization (WTO)
This is a global international organization that deals with the rules of trade between nations. The goal of this organization is to help producers of goods and services, exporters, and importers conduct their business in a fair manner.
Federal Equal Employment Opportunity Law (EEO)
This set of laws prohibits discrimination based on race, color, religion, sex, or national origin. It also includes equal pay for men and women, and protects people with disabilities.
Family and Medical Leave Act (FMLA)
This is a federal law that guarantees certain employees up to 12 work seeks of unpaid leave each year with no threat of job loss. This also requires that employers covered by the law maintain the health benefits for eligible workers just as if they were working.
Occupational Safety and Health Act (OSHA)
The law enforces that employers are responsible for providing a safe and healthful workplace. OSHA sets standards for safety and provides training. Employers must comply with all applicable standards.
Most states require employers to buy an insurance policy that compensates employees if they get hurt or become ill from workplace exposure.
In all states except Montana, there is an ___ work law in place. This means employers can fire an employee at any time for any reason, unless it’s an illegal one. Likewise, an employee can leave the job at anytime.
Employer Identification Number (EIN)
Every business needs one of these (similar to a Social Security Number for individuals). All tax forms will require this number.
Internal Revenue Service (IRS)
This is a U.S. agency that is responsible for the collection and enforcement of taxes. The IRS was established by President Lincoln and operates under the authority of the U.S. Department of Treasury.
Federal Trade Commission (FTC)
This is a government agency that enforces consumer protection laws by preventing and eliminating fraud, deception, and unfair business practices.
Truth in Advertising Law
This law is enforced by the FTC. It has three main parts: Advertising must be truthful and non-deceptive; Advertising must have evidence to backup claims; Advertisements cannot be unfair.
This is a tax charged by many states. Owners of a brick and mortar storefront charge a sales tax that’s required in that specific area, but what if you have an online business? According to the FTC, if your business has a physical presence in a state, such as a store, office, or warehouse, you must collect applicable state and local sales tax. Of course, some states don’t have this tax.
Personal Information Security
Businesses must be careful with sensitive data such as social security numbers, credit card numbers, and other sensitive information. A sound data security plan as 5 key principles: Take stock (know what type of private information you have); Scale down (keep only what you need); Lock it (protect the information you keep); Pitch it (properly dispose of what you no longer need); Plan ahead (create a plan to respond to security incidents).
Affordable Care Act
This is often referred to as ObamaCare. It is a U.S. healthcare reform law that expands and improves access to care and curbs spending through regulation and taxes.
Americans with Disabilities Act (ADA)
Passed in 1990, this is the nation’s first comprehensive civil rights law addressing the needs of people with disabilities, prohibiting discrimination in employment, public services, public accommodations, and telecommunications.
Legislation preventing or controlling trusts or other monopolies, with the intention of promoting competition in business
North American Free Trade Agreement (NAFTA)
This is the most comprehensive regional trade agreement ever negotiated by the United States. It creates one of the world’s largest free trade zones with Canada, Mexico, and the U.S.
Doing Business As (DBA)
This is the name of a business other than the owner’s name or, in the case of a corporation, a name that is different from the legal or true corporate name as on file with the Secretary of State.
United States Consumer Product Safety Commission (CPSC)
This is an independent federal agency designed to protect the public against unreasonable risks of injuries and deaths associated with consumer products.
Environmental Protection Agency (EPA)
This is an agency of the U.S. federal government which was created for the purpose of protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress.
Equal Pay Act
This is a federal law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex (see Gender pay gap). It was signed into law on June 10, 1963, by John F. Kennedy as part of his New Frontier Program.
European Union (EU)
A group of European countries that participates in the world economy as one economic unit and operates under one official currency, the euro. The group’s goal is to create a barrier-free trade zone and to enhance economic wealth by creating more efficiency within its marketplace.
Food and Drug Administration (FDA)
This group is responsible for protecting the public health by assuring the safety, efficacy and security of human and veterinary drugs, biological products, medical devices, our nation’s food supply, cosmetics, and products that emit radiation.
The Federal Reserve (The Fed)
The central banking system of the U.S. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. It sets interest rates.
Free on Board (FOB)
When using the term in business, buyers and sellers attach ___ to the beginning of a location to show the point at which freight changes hands from seller to buyer. For example: ___ Origin or ___ Destination
Also called the Anti-Price Discrimination Act. This is a U.S. law that prohibits anticompetitive practices by producers, specifically price discrimination.
Uniform Commercial Code (UCC)
This is a comprehensive set of laws governing commercial transactions between U.S. states and territories. These transactions include borrowing money, leases, contracts, and the sale of goods.
National Labor Relations Act (NLRA)
Also known as the Wagner Act. This law guarantees the rights of private sector employees to organize into trade unions, engage in collective bargaining for better terms and conditions at work, and take collective action including strike if necessary.