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Small Business Ch 11
Small Business Management Ch 11
Question | Answer |
---|---|
Bootstrapping | Doing more with less in terms of resources invested in a business, and where possible controlling the resources without owning them. |
Cash Budget | A listing of cash receipts and cash disbursements usually for a relative short time period, such as weekly or monthly. |
Current Ratio | A measure of a company's relative liquidity, determined by dividing current assets by current liabilities. |
Debt Ratio | A measure of the fraction of a firm's assets that are financed by debt, determined by dividing total debt by total assets. |
Liquidity | The degree to which a firm has working capital available to meet maturing debt obligations. |
Net Working Capital | Current assets less current liablilities. |
Percentage-of-Sales Technique | A method of forcasting asset investments and financing requirements. |
Pro Forma FInancial Statements | Statements that project a firm's financial performance and condition. |
Spontaneous Debt Financing | Short-term debts, such as accounts payable, that automatically increase in proportion to a firm's sales. |
Working Capital | Currents assets, accounts receivable, and inventory required in day-to-day operations. |