Small Business Management Glossary A-H

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  1. ABC Method
    A method of classifying inventory items with categories which are of high value, less costly, and/or low cost items.
  2. Actuating
    Regulating the activities or course of activities of an organization

    To guide and/or supervise the activities of an organization

    Refers to those activities which encourage subordinates to work toward the achievement of the company's goals
  3. Advertising
    The art of making the public aware of the services or commodity that the business has for sale.
  4. Age Discrimination in Employment Act of 1967
    Federal legislation that requires employers to treat applicants and employees equally regardless of age.
  5. Aging Schedule
    A grouping of accounts receivable into age categories based upon the length of time they have been outstanding on the company record.
  6. Americans with Disabilities Act
    Legislation that guarantees disabled people equal access to employment, as well as access to public places.
  7. Angels
    Private investors who are willing to supply financing for new and/or risky small venture startups.
  8. Application Software
    Computer programs designed for a specific use and are relatively easy to use without any technical knowledge of programming.
  9. Arithmetic Logic Unit
    The part of the central processing unit (CPU) where numerical calculations and logical operations are performed.
  10. Articles of Partnership
    A written document that states explicitly the rights and duties of partners in a partnership.
  11. ASCII
    American Standard Code for Informatiuon Interchange

    A commonly used code for representing data.
  12. Assembly Language
    The computer uses a program called an assembler to translate the commands into its own machine language.

    It also keeps track of the symbolic names and assigns appropriate memory locations to them.

    The assembler translates instructions on a one-for-one basis, so one instruction in assembly language becomes one instruction in machine language.

    Assembly language is a great help to the programmer.
  13. Average Collection Period
    A measure of the accounts receivable turnover.
  14. Backup
    A duplicate of an original program or data made as a precaution against loss of damage of the original.
  15. Better Business Bureau
    Association of business firms that promotes ethical conduct by all business firms in a community.
  16. Bit
    The smalles amount of information a computer can store.

    Computers must represent information in the form of bits because the electronic circuits they are made of can have only two states: on or off.
  17. Board of Directors
    The governing body that is elected by the stockholders of a corporation.
  18. Bona Fide Occupational Qualification
    A qualification that is absolutely necessary for the job.

    It is an allowed and approved reason for discrimination.
  19. Book Value
    The cost of a fixed asset less accumulated depreciation.
  20. Brand
    The identification for a product.
  21. Break-Even Analysis
    The point at which total sales revenue equals total operating costs.
  22. Burglary
    The forcible breaking and entering of premises closed for business with the subsequent removal of cash or merchandise.
  23. Business
    An organization that combines inputs of raw materials, capital, labor, and management skills to produce useful outputs of goods and services so as to earn a profit.
  24. Business Interruption Insurance
    An insurance that protects companies during the period necessary to restore property damaged by an insured peril.

    Coverage pays for lost income and other expenses related to recovery.
  25. Business Plan
    New Venture Plan
    A written description of a new idea that projects marketing, operational, and financial aspects of proposed business.
  26. Business Policies
    Fundamental statements that serve as guides to management practice.
  27. Byte
    The space a character, letter, or number takes up in the computer.

    It is made up of a group of eight (8) bits.
  28. Casualty Insurance
    Insurance that provides monetary benefits to a to a business that has experienced an unforseen peril such as flood, fire, etc.
  29. Cathode Ray Tube
    A device like a TV screen in which a cathode ray (electron beam) hits a phosphorescent screen for the display of information.

    A terminal device similar to a television set on which input or output may be displayed.
  30. Caveat Venditor
    let the seller beware
  31. Census of Business
    A source of market data that explains where certain businesses are located.
  32. Census of Housing
    A source of market data that keeps track of new home sales by region and/or the construction of new houses by region and specific area.
  33. Census of Manufacturing
    A source of market data that explains where certain manufacturers are located.
  34. Census of Population
    A source of market data that compiles population statistics with regard to distribution of population by region, area, etc.
  35. Central Processing Unit
    The unit of a computer system that contains the circuits which control the functions and perform the execution of instructions

    • Composed of the following three parts:
    •        Memory (primary storage)
    •        Arithmatic or logic unit
    •        Control unit
  36. CR-ROM
    Compact Disc Read-Only Memory

    A compact disc from which stored data can be read by a laser beam
  37. Chain of Command
    The superior-subordinate relationship that serves as a channel for two-way communication.
  38. Chamber of Commerce
    An association of business people who attempt to protect and promote the commercial interests in a community.
  39. Circulating Capital
    The difference between current assets and current liabilities

    The current asset items consisting of cash, inventories, and accounts receivable
  40. Civil Rights Act of 1964
    Federal legislation that prohibits discrimination on the basis of race, color, religion, sex, or national origin.
  41. Coinsurance Clause
    A clause in an insurance policy under which the insured agrees to maintain insurance equal to some specified percentage of the property value or otherwise to assume a portion of any loss.
  42. Color Monitor
    A computer monitor that can display more than one (1) active color.
  43. Competition
    The practice of trying to obtain something that is being sought by others under similar circumstances at the same time.
  44. Computer
    A device that manipulates data according to a series of instructions stored in tis memory.

    An electronic device that can accept data, perform instructions on the data, and deliver the results of the processed data.

    By changing the instructions the computer can be made to do a completely different task.
  45. Computer System
    An orginization of hardware and softwaredesigned to accomplish a data processing function.
  46. Consumer Credit
    A type of credit granted by retailers tht is used by individuals or families for satisfaction of their own wants.
  47. Consumerism
    The emphasis place on providing to customers products and services that are safe, reliable, and honestly advertised

    Also, a social movement that seeks to strengthen the rights of consumers relative to sellers
  48. Controlling
    A mangement function which compares organizational and individual performance with predetermined standards or expexcted results.
  49. Control Unit
    A portion of the central processing unit (CPU) that directs the sequence of operations, interprets coded instructions, and initiates the proper commands to execute instructions.
  50. Copyright
    The registered right of a creator to produce, publish, and sell the work which is the product of the intelligence and skill of that person.
  51. Corporate Refugees
    Those individuals who flee the bureaucratic environment of big business by going into business for themselves.
  52. Corporation
    A legal form of organization whereby a legal entity is authorized by a state to operate a business under the entity's charter or articles of incorporation.
  53. Corporation Charter
    The written application for permission to incorporate that is approved by a state official.
  54. Credit
    An agreement that payment for a product or service will be made at some later date.
  55. Credit Bureau
    An orginization of retailers and other firms in a given community that serves its members by summarizing their credit experience with particular individuals.
  56. Credit Insurance
    Insurance that protects non-retailing businesses from abnormal bad-debt losses.
  57. Current Ratio
    The current asstes dividied by the current liabilities and a measure of the liquidity of the business.
  58. Customized Software
    The user tells the programmer what he/she wants to be able to do and the programmer writes a set of instructions (program) to perform the specific tasks for the particular user.
  59. Data
    The information that the computer manipulates
  60. Database
    An organized collection of related data.
  61. Data Input
    The process of entering data into a computer system.
  62. Data Processing
    Any procedure for receiving information and producing a specific result.

    The rearrangement and refinement of raw data into a form suitable for futher use.
  63. Debt Equity
    Debt Capital
    Borrowed Capital
    Any borrowed or loaned capital invested in the business that must be repaid to creditors.
  64. Deductible Clause
    Insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible.
  65. Delegation of Authority
    A superior's act of granting to subordinates, on the basis of competence, the right to act or decide.
  66. Demographics
    The statistical study of human populations with respect to their size, density, distribution, composition, and income.
  67. Desktop Publishing
    The use of a computer to design and print professional-quality typeset documents.
  68. Disaster
    A sudden misfortune, resulting in the loss of life and/or property.
  69. Disk
    A thin disk of magnetic material capable of storing a large amount of information.
  70. Display
    The words, symbols or numbers which appear in visual form.
  71. Earnings Valuation Approach
    A business valuation approach which centers on estimating the amount of potential income that may be produced by the business in the next year.
  72. Economic Base
    The wealth produced in or near a community that provides employment and income to the local population.
  73. Economic Order Quantity
    The quality to be purchased which minimizes total costs.
  74. Emergency
    An unforseen combination of circumstances that results in a need for immediate action.
  75. Employment Application
    A record of statements made at the time the applicant first seeks employment.
  76. Employment Interview
    The primary way of judging the job applicant's appearance, poise, speech, etc.
  77. Endowment Life Insurance
    Life insurance that allows the insured, rather than the beneficiary, to collect the face value of the policy upon maturity or to collect that value in annual payments.
  78. Entrepreneur
    One who organizes, manages, and assumes the risk of a business firm or venture.
  79. Equal Employment Opportunity Act
    The absence of employment discrimination based on rece, color, religion, sex, or national origin.
  80. Equal Pay Act
    Outlaws discrimination in pay against those who are over forty years old.
  81. Facilities Management
    The obtaining and maintaining of adequate workspace and equipment.
  82. Factoring
    Obtaining cash before payments are received from customers by selling off one's accounts receivable to a third party.
  83. Fair Labor Standards Act
    Wage and Hour Law
    Outlaws discriminatory practices in pay

    Requires employers to pay a minimum wage to employees, and to pay a minimum of one and one-half times the regular rate for any hours beyond forty worked in a week.
  84. Finance
    The business function of effectively obtaining and using funds.
  85. Financial Management
    The efficient utilization and adequate regulation of assets, revenue, expenditures, and capital rights.
  86. First-In, First-Out Method
  87. The first goods purchased are the first foods sold.
  88. Fixed Capital
    Long-term capital that is invested in the small business

    Also, funds invested in such long-term assets as: land, building, machinery, furniture, fixtures, and other equipment.
  89. Fixed Expenses
    A cost that, for a given period of time and range of activity called the relevant range, does not change in total but becomes progressively smaller on a per-unit basis as volume increases

    These expenses do not increase with increased business, nor do they decrease with declining business activity.
  90. Fixed/Hard Disk
    A device containing a sealed rigid magnetic disk and read/write mechanism, usually built directly into a computer's cabinet.
  91. Floppy Disk/Diskette
    A flexible, plastic disk on which data is stored magnetically.
  92. Format
    To prepare a new disk for use by the computer or an old one for re-use.

    Formatting erases all previous information.

    All new disks must be formatted before they may be used.
  93. General Liability Insurance
    Insurance covering business liability to customers who might be injured on or off premises of from the product sold to them.
  94. Gigabyte
    1,000 megabytes.
  95. Goodwill
    An intangible asset such as the name of a funeral home.

    Also, an intangible asset which enables a business to earn a profit in excess of the normal rate of profit earned by other businesses of the same kind.
  96. Graphics
    Pictures, charts, diagrams, etc.
  97. Hardware
    The physical equiipment or device which makes up a computer system, including its input and output devices.

    Everything except the programs in the computer system.
  98. High Level Language
    Programming language developed to make the task of programming easier.
  99. Human Relations
    Motivating people in organizations to develop teamwork which effectively fulfills their needs and achieves organizational objectives.
  100. Human Resource Forecast
    Determining personnel needs in terms of numbers of individuals and their required skills.
  101. Human Resource Management
    Personnel Management
    The process of acquiring, training, developing, motivating and appraising a suficient quantity of qualified employed to perform necessary activities.

    Developing activities and an organizational climate conducive to maximum efficiency and worker satisfaction.
  102. Human Resource Planning
    Developing a comprehensive strategy for meeting future human resource needs.
Card Set
Small Business Management Glossary A-H
Small Business Management Glossary A-H
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