Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
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
Normal Size Small Size show me how
Small Business Mgt.
Dr. Herskowitz's Final exam study guide
| Questions | Answer |
|---|---|
| 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
Popular Miscellaneous sets