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Flashcards in Operating A Business Test 3 Deck (54):
1

Uneventful protection for a small business or small business owner
in regards to monetary compensation in the event that a business &/or
personal peril is experienced.

Insurance

2

Identify business risk to be...

covered

3

obtain coverage for...

major potential
losses.

4

Insurance Planning (Risk to consider)

Loss / Damage to property
Vehicles / rolling stock
Loss of income resulting from business interruption
Burglary / Robbery
Extensive loss from bad debts
Liability to employees
Financial hardship
Liability to public
shoplifting / loss through dishonest employees
Death of Key employees
Riots / Civil disobedience

5

life insurance that protects a firm against losses
due to the death of a key person.

Key Person Insurance

6

insurance on a owner that will supply money for a
partner to buy his share upon death

Buy – sell Insurance

7

examples of insurance (including but not limited to)

Key-Person Insurance
Buy-Sell Insurance

8

Protects financial losses
incurred by producers / sellers of goods or services due to injury or damage
resulting fro use of said product.

Product Liability / Malpractice Insurance

9

insurance that provides monetary benefits to a
business that has experienced an unforeseen peril such as a flood or fire.

Casualty Insurance

10

Types of insurance

Product Liability / Malpractice Insurance
Whole Life
Casualty Insurance
Universal Life
Term Life Insurance

11

buy for a period of time, dissolves at end of time
period unless renewed.

Term Life Insurance

12

Refers to efforts designed to preserve assets and earning power associated with a business

Risk Management

13

Risk Management Considerations

Eliminate risks
Minimize risks
Shift the risk
Absorb the risk

14

remove the cause (security and/or neighborhood
watch.

Eliminate Risk

15

good management (morale, pricing, promotions).

Minimize Risks

16

purchase outside insurance.......to cover the business in regards to monetary compensation in the event that peril is experienced. . . . . business or personal.

Shift the Risk

17

Percentages of earnings as a
contingency for possible future losses; (property, workers comp. medical).

Absorb the risk (sole insurance)

18

Those, over a relevant range, which do not change but becomes progressively smaller on a per-unit basis as volume increases.

Likewise, these do not decrease with increased business, nor do they decrease with declining business activity.



Fixed Expenses

19

Fixed Expenses - examples:

Rent
Salaries
Depreciation
Insurance
Debt

20

That cost which is uniform per unit but fluctuates in
total in direct proportion to change in the related activity or volume.



Variable Expenses

21

Variable Expenses - example:

Supplies - pins, paper, etc.
Hourly wage expense
Repairs
Utilities
Taxes

22

Any cost not specifically associated with production of identifiable products and services. The cost to open the doors.

.

Overhead

23

The point at which total sales revenue equals total cost.


Break even point

24

Break Even Point may also be referred to as...

break even analysis

25

Expense Classification is usually based on the industry standard.

Cost Control

26

likewise compared to the industry standard. Best defined as profit on each item of expense in the income statement expressed as a percentage
of sales income.


Operating Ratios

27

Examples of Ratio Utilization

Total operating expense ratio.
Net worth -
Gross -
Employee wage ratio.
Proprietor’s wage.
Advertising expense.

28

before deductions.

gross

29

after deductions.

net worth

30

people who are willing to invest in a risky business

Angels

31

document that lists the major responsibilities
& task of a specific position. Find the right person for the job and retain them.

Job description

32

process for determining the critical components of a job for purposes of selecting, training, and rewarding personnel

job analysis

33

COMPONENTS OF A JOB DESCRIPTION

Job description
Effective date
Supervisory person
salary range
Qualifications
Responsibilities

34

the ONLY thing that is optional in a job description is...

salary range

35

A document that lists knowledge, skills, abilities and personal characteristics
a job holder must possess to perform effectively.

JOB SPECIFICATION

36

RECRUITMENT & SELECTION
(Factors to consider)

Labor Market – Supply & Demand
Demographics
Wages / Benefits
Identity of the organization
Security & potential for advancement
Environmental conditions
Responsibilities
Experience requirements

37

Title VII of the Civil Rights Act of 1964, amended in 1972 and amended again in 1978 by the Pregnancy Discrimination Act


• Jurisdiction: employers &/or unions with 15 or more employees,
employment agencies, union hiring halls, institutions or higher
learning, federal, state and local governments


FEDERAL LEGISLATION / Affecting Employment
FEDERAL LEGISLATION CIVIL RIGHTS 1964, 1972, 1978

38

FEDERAL LEGISLATION CIVIL RIGHTS 1964, 1972, 1978
• outlaws discrimination in employment based on

race, color, religion,
sex, pregnancy or national origin.

39

• Outlaws discrimination in employment against those over 40 years old.

• Jurisdiction: Employers and unions with 25 or more employees;
employment agencies; federal, state and local governments.

Age Discrimination Employment Act 1967

40

• Outlaws discrimination in pay based on the sex of the worker.

• Jurisdiction: Employers engaged in interstate commerce and most
employees of federal, state, and local governments.

Equal Pay Act 1963

41

• Outlaws discrimination in employment based on handicaps of employees who, with practical accommodation could do the job.

• Jurisdiction: Covers federal government contractors with contracts of
$2,500 or more.

Rehabilitation Act 1973

42

• Outlaws discrimination in employment against Vietnam era veterans

• Jurisdiction: Covers Federal Government contractors with contracts of $ 10,000 or more

Vietnam Era Veterans Readjustment Act (1974)

43

• Outlaws non documented persons from employment in the United States

• Jurisdiction: Covers all employers

Immigration Reform Act (1986)

44

• Prohibits discrimination against any qualified individual with a disability...... mental or physical

• Jurisdiction: Covers firms with 15 or more employees

Americans with Disabilities Act (1990)

45

• Outlaws discrimination practices in pay: to pay a minimum wage of one and one-half of the regular wage for hours beyond 40 hours

• Jurisdiction: All business are covered under Federal/or State Legislation

Fair Labor Standards Act (Wage & Hour Law)

46

Employment application process

vital info
employment history
info which will determine qualifications

47

A qualification that is absolutely necessary for the job. . . . it is an allowed and approved reason for discrimination.

Bona Fide Occupational Qualification (BFOQ).

48

(BFOQ).

Bona Fide Occupational Qualification

49

Types Employment Interviews


Formal
Informal

50

structured - a pre-determined set of questions asked of all applicants.

Formal interview

51

unstructured - questions developed as the interview
proceeds.

Informal interview

52

That which is illegal to seek would be personal information not related to employment.

Reference Checking

53


Is usually submitted voluntarily by the applicant

The Resume

54

What have you done with your life?
Antiquated term for resume

Curriculum Vitae (CV)