Vocab
Small Business Management
Business Management Cont.
Financial Management 1
Financial Management 2
100
A written description of the business idea and how it will be carried out, including all major activities.
What is a business plan?
100

Tend to be independent, persistent, and self-motivated. They like doing things themselves, stay on task and do not need someone to supervise them.

What is a Small Business Owner/Entrepreneur?

100

Name one larger purveyor/distributor.

Sysco, US Foods, Gordon Food Service, Reinhart, Shamrock Foods, Food Services of America. 

100

What does COGS stand for?


Cost of goods sold.

100
A detailed plan for meeting the financial needs of a business. It anticipates sources of income and predicts expenses.
What is a Business Budget?
200

Name one common mistake entrepreneurs make related to financial analysis.  

Not understanding revenue drivers, underestimating costs, underestimating time to generate costs, lack of comparable, top-down vs. bottom-up forecasting, underestimating time to secure funding. 

200

The comparable method compares your company to industry averages and helps validate your financial projections. True or False

True

200

What is another name for the bottom line of an income statement?

net income

200

What is the  name of the financial document that describes how well a business has done over a period of time?


Income Statement

200

What are three types of business budgets?

Start-up, Operating and Cash Budgets.

300
The amount of money paid to an employee for work performed.
What is Compensation?
300

Name one of the 3 integrated financial statements.


 Income Statement, Balance Sheet, Statement of Cash flows

300
This characteristic works well with others, develops group relationships.
What is cooperation?
300

What is the name of the income statement that keeps track of cash?


Statement of cash flows

300

A restaurant serves lunch and dinner, averages $25 per person and has seats for 100 people. The business owner projects that it will turn tables twice each service. What is the projected amount of gross profit per day?

$10,000

400
Includes compensation in forms other than a direct payment to the employee.
What are Benefits?
400
Requires an owner to analyze her or his concept, and make decisions about key business activities such as production, marketing, staffing and financing.
What is Developing a Business Plan?
400

Where do you account for sales from credit?

Accounts receivable 

400

What is one example of a revenue driver?


Customer visits, up-selling

400
A financial statement that shows revenues, expenses, and net income (profit) or loss for a period of time.
What is an Income Statement?
500

Shows the financial performance of a business.

What is a Financial Record?

500
A government agency that provides services and helpful publications to small businesses.
What is the Small Business Administration?
500

What is the first step you must do when applying the build up method?

Identify all sources of revenue

500

What is one example of a line item that would be on an operating expense worksheet?


Rent, salary, hourly employees, marketing/advertising, utilities, dues, bank charges

500
A financial statement that lists a business's assets (owns) and liabilities (owes) to show owner's equity. Assets = Liabilities + Owner's Equity
What is the Balance Sheet?
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