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Deferred profit-sharing plans may be used to placate dissatisfied family members in a
family-owned business - if deserved.
One of the first things one should do when forming a business is to retain a competent
lawyer.
Most small companies like to keep a large amount of long-term debt because the risk is
considerably low.
The series of authority and responsibility relationships are depicted in an organization
chart.
Given the increasing tendency for workers to sue their employers, the employer should
put job offers in writing and get the applicant to sign, indicating his or her
understanding and agreement.
One of the problems caused by the introduction of computerized operations is the need
to upgrade employee skills.
Working capital is an owner's share of the assets of a company.
Return on equity is the ratio of net profit to owners' equity.
An audit of a company consists of a formalized, methodical study, examination, and
review of its financial records.
According to the Family Firm Institute of Boston, a majority of family-owned
businesses close down due to high estate taxes.
Downsizing or rightsizing is reducing the number of employees in order to achieve
efficiency.
There is no way to avoid carrying inventory, so the best an owner can do is manage its
movement and control its costs.
A product's benefits are identified and emphasized to develop a competitive niche in the
introduction stage of a product's life cycle.
