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For small business owners, a lack of accurate cost information can foster the illusion of
making a greater profit than is really earned.
Job splitting occurs when a single full-time job is retained, but its performance is shared
by two or more employees.
Supplies for use in offices and shops should not be counted as inventory.
A management information system (MIS) is designed to download the latest news
updates from a variety of sources on a daily basis.
According to the 80-20 rule, approximately 20 percent of a company's income comes
from 80 percent of its products.
The main advantages of on-the-job training are that it results in low out-of-pocket costs
and production continues during the training.
Purchasing for a manufacturing plant involves getting the proper materials and
processing them into finished goods while maintaining inventory and quality control.
Materials that have a high cost relative to revenue take up a large share of a
small-business owner's time.
Employing a fixed charge to increase the return to common stockholders is known as
financial leverage.
A tort is a wrongful act by one party that results in injury to a second party's person,
property or reputation for which the first party is liable.
Holding too much cash reduces a small business owner's income because it produces no
revenue.
Most decisions about the location of a small firm are influenced by the type of business
it conducts.
Immediate-response advertising refers to purchasing and marketing other nations'
products.
