Chapter 19
The process of developing and engaging in mutually beneficial informal relationships.
Networking
An outline, or summary, of the work to be performed for a particular position.
Job description
The features of a product or service that enable it to satisfy customers’ stated and implied needs
Quality
A firms _____________ is the flow of resources through the company's accounts as part of its day-to-day operations
Working Capital Cycle
________ is the possibility of losses associated with the assets and earnings potential of a firm
Business Risk
The number of employees who are supervised by one manager
Span of Control
A list of the knowledge, skills, abilities, and other characteristics needed to perform a specific job
Job specification
The term ________ refers to the processes used to create and deliver a product or service
Operations
An analytical method that helps managers make decisions about long-term investments
Capital Budgeting Analysis
An insurance term that refers to the depreciated value of property
actual cash value (ACV)
___________ is an important source of information and support for small companies, and it is often the first place that small business owners turn to for help.
U.S. Small Business Administration (SBA)
_______ systems relate compensation to various measures of performance
Incentive
Contracting with a third party to take on and manage one or more of a firm’s functions
Outsourcing
Capital budgeting techniques that compare the present value of future cash flows with the cost of the initial investment
discounted cash flow (DCF) techniques
A loss in which physical damage to property reduces its value to the property owner
direct loss
Founding entrepreneurs need a tolerance for _______ and a capacity for ________.
Ambiguity, Adaptation
The composition of the U.S. workforce is becoming more diverse over time with respect to _____ , _____ , _____ , and _____.
Race, ethnicity, gender, and age
A method that provides for periodic counting of items in inventory
Physical inventory system
The number of days, on average, that a business takes to pay its accounts payable
days in payables
Compensatory damages for such losses as pain and suffering, mental anguish, and loss of physical abilities.
economic damages
Name the 6 managerial responsibilities of entrepreneurs.
Planning activities, creating an organizational structure, delegating authority, controlling operations, communicating effectively, negotiating
The 5 steps to evaluating prospects and selecting employees
Use applications forms, interview the applicants, check references and other background information, test the applicants, require physical examinations
A method for keeping an ongoing current record of inventory
Perpetual inventory system
The present value of expected future cash flows less the initial investment outlay
net present value (NPV)
The uncertainty associated with an investment decision
Market risk