Busy. Please wait.

Forgot Password?

Don't have an account?  Sign up 

show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.

By signing up, I agree to StudyStack's Terms of Service and Privacy Policy.

Already a StudyStack user? Log In

Reset Password
Enter the email address associated with your account, and we'll email you a link to reset your password.

Remove ads
Don't know (0)
Know (0)
remaining cards (0)
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
restart all cards

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Small Business Mgt.

Dr. Herskowitz's Final exam study guide

Current Assets Assets that will be converted to cash within 1 year
Working Capital Current Assets-Current liablilites
Break-Even point the point where revenues generate $0 income or losses
Profit Margin Net Profit (EAT)/ Revenues
Current Ratio Current Assets/ Current Liabilites
What is the difference between a company's profits and its cash flow? Give at least 3 examples of the difference between cash flow and profits depreciation; Capital expenditures not included in income statement; repayment or increase in debt; credit sales reduce cash flow; increase or decrease in inventory not on income statement; purchase or sale of assets not on income statement
COGS Cost Of Goods Sold
What will happen to ABC's working capital if it uses $100,000 of its cash and purchases a new truck? current assets decrease by $100,000 with no change in Current Liab. therefore Working Capital will decrease by $100,000
Return on Assets formula Net Income/ Total Assets
How can you increase your working capital? Decrease inventory--Increase inventory turns--reduce receivables by reducing credit policy--speed up collections--increase cash by reducing expenses
what is a S501 (c) (3) corporation? a tax exempt corporation
What is a Utilitarian ethical philosophy? The greatest good for the greatest number
what is a "unique selling proposition?" (USP) a key customer benefit that answers the customer's question "what's in it for me"
What is an IPO? Initial Public Offering
What is "Leverage"? the amount of debt that a company has in comparison to its equity
what is an SBA loan? A loan from the Small Business Administration. The SBA is a government insured loan program.
What does the term "Collateral" mean? it is the assets used to secure a loan
how does price convey an image for the product or service? offers signals quality and value to customers. it indicates what niche the product is in.
offers comparison to competitors products small businesses often under price their product in an attempt to compete with other products. Target market, business images and prices are all interrelated
distinguish between 'objectivist' and 'relativists' in determining ethical philosophies objectivist: moral standards are objective, set and consistent regardless of time, culture or place. Relativists: believe that moral and ethics are different given different cultures or times. one person cannot impose an ethical standard on someone
comparing media for ads, differentiate between 'audience' 'reach' and 'frequency audience: # of paid subscribers or listening of something specific...Reach: #of people exposed to an ad at least once in a period of time...Frequency: avg. # of times a person is exposed to an ad in the same time period.
what is publicity (vs. ads) any news covered by the media and the business doesnt have to pay. ex. write an article--sponser an even-involve celebrities-speak to local organizations-publish a newsletter-sponsor a seminar-serve on community boards-promote a cause
when introducing a new product: discuss penetration and skimming as pricing strategies. Penetration: competitive market, low price/high volume...Skimming: little or now competition, initial high price 'whatever the market will bear', lower price as competition enters
types of loans that banks will typically make to small bus.'s short-term loans, commercial loans and working capital loans. floor planning loans. intermediate and long term loans. term loans. eqp loans. character loans.
discuss the 2 most typical type loans for an asset based lender account receivable financing-55% to 80% of face amt.Acct rec. assigned to lenger. Payments made directly to lender. Inventory financing:no more than 50% of value of inventory.Lender takes a security interest in inventory. High cost and high adm. maint.
what is a line of credit (LOC) and how does it typically work? a short term loan from a bank that allows a borrower to repay the loan and then re-borrow from the loan throughout the term of the LOC.
what is a UBIT Unrelated Business Income Tax. (business activity producing income)
list 4 equity financing-advantages and disadvantages 1-friends and family members 2-Angels:private investors who put on LOTS of cash up front for part ownership) 3-venture capitalists:tricky.. rigorous review of details 4-IPO: selling stock to the public.
what is a SWOT analysis? S-strength W-weakness O-opportunities T-threats. SW are internal and OT are external
what 5 things should you learn from a UFOC? 1-specific requirements 2-contract agreements 3-previous owners and contracts 4-royalties 5-fees
name and ex. of the 3 types of franchises merchandise: Sonic Service: house cleaners Both: Salon (has both service-haircuts, and merch.-retail products)
what is the primary mission of World Vision International? feed and clothe the hungry
What does World Vision mean when they talk about 'participatory development'? having recipiants of hte money help with the projects, like getting a job.
describe a micro-finance organization. a bank holds classes for poor women and grows to teach them finances. then gives them a loan with small payments.
what are loan repayment rates and why so high for a micro-finance loan? repayment rates are high-around 130% but they have a 90-100% payback rate!! they're so high bc the people working the bank have to earn a living too!
Created by: kemmert