...Small Business Management | | | | Table of Contents Question 1: 3 Full Absorption Costing: 3 Direct Costing: 3 Question 4: 6 ACCION USA Small Business Loans: 7 Mississippi Capital Access Loan Program 7 Ohio Mini-Loan Guarantee Program 8 Iowa Target Small Business Assistance Program: 9 Montana Indian Equity Fund: 9 Question 3: 9 Bibliography 12 Question 1: In the field of accounting, there are two different ways of allocating production and other costs to products and services. Full Absorption Costing: It is a managerial accounting cost method of expensing all the costs to products and services. Under this approach, products and services are charged with all the prime costs as well as fixed overheads. All the fixed manufacturing overheads are divided amongst products and services based on number of units of products produced, number of units of labor used or amount of administrative expenses incurred on respective products/services. Generally Accepted Accounting Principles (GAAP) requires it for external reporting purposes. It helps in calculation of taxes and generating sales reports. It is an important technique to determine whether retail prices of a company reflect its full absorption costs. It is also important for such companies, which do not have deep pockets, and allocating all the overhead costs on products/services is extremely necessary to determine cost of their products. Direct Costing: It is a technique more suitable for internal...
Words: 2481 - Pages: 10
...Small Business Management American Public University February 6th, 2013 Abstract In this paper I will discuss the role and the importance of small business. There are several arguments for owning a small business and there are plenty of arguments against owning a small business. I will present how to start a small business, how to organize a small business, and how to operate a small business. This paper can be used a Small Business Bible, or a “How to” guide for anyone looking to open a small business. Small Business Owners and Managers face various issues such as social responsibility and ethics, those issues will be discussed in this paper. At the end of this paper you will be able to write a Business Plan and decide if owning or managing a small business is for you. Defining small business is not easy because the definition varies, however a small business is independently owned and operated and is not dominant in its field. There’s not much difference in a entrepreneur and a small business owner. I think everyone thinks about owning their own business at some point in their lives. I’ve thought about owning a hair salon, a beauty supply store, a restaurant, etc. the list goes on…however most recently I thought about owning a night club. Before starting a business the Small Business Administration (www.sba.gov) suggests you ask yourself the following questions: 1. Why am I starting a business? 2. What kind of business do I want? 3. Who is my...
Words: 2000 - Pages: 8
...Inventory Management System for small business Jim Shrestha Washington Adventist University, Takoma Park, Silver Spring, MD Abstract In this paper, I tried to illustrate the importance of inventory management system for small business. The term small business denotes to all those business which is family or person owned and donot have maximum revenue. This paper explains the idea, how to set up new inventory management system with minimal budget. As my paper focuses more on small business, I explain very common and effortless way of setting up new inventory management system. Most of the informations are extracted from different inventory management supplier’s official websites. With these information and some visual figures, I anticipate everyone can understand how setting up new inventory management system in their business can be more economical and time saving. Inventory Management System Inventory management system is the key term to the modern business era. Without a proper inventory management tools, a business cannot perform in it’s fullest. Simply it is the automated management method of business inventory where every purchase and sale are listed in an organised fashion. The systems ensure customers always have enough of what they want and balance that goal against a retailer's financial need to maintain as little stock as possible. Because mismanaged inventory leads to disappointed customers. That’s why this inventory management system has become...
Words: 988 - Pages: 4
...of us have had personal experiences with small business—as an owner, employee, friend, or relative of an owner, or in other relationships. Explain one or more such experience(s) you have recently had. I recently quit my job as a production coordinator and BCBG. This was a large company and in the end I realized that the benefits of a large company did not outweigh what I was losing in terms of personal job satisfaction. I returned to a much smaller business which only has 7 employees, including myself. I find that this provides me with more opportunity to learn all aspects of the business and gives me a more solid base of knowledge to build upon when I go to start my own company. After returning to a small business I found myself sleeping better at night and being excited to wake up in the morning and go to work, never knowing what fun tasks the day held for me. My coworker is always available and since she has personally done every job in the entire company, is a walking encyclopedia of knowledge and is able to answer every question I have. I also enjoy having a direct communication line to the owner of the business and approvals for projects and tasks are instant! I love it and couldn’t be happier. Best career move I ever made. 1.4) Distinguish between a small business and an entrepreneurial venture. If you were to start your own business, which would you wish it to be? Why? According to the text, a small business is independently owned and operated and...
Words: 1033 - Pages: 5
...Small Business Management Joseph Lofoco Strayer University Professor Willie Robinson October 31, 2010 Abstract In this paper I will answer the following questions about My Friend’s Bookstore Plan: 1. Describe what would happen to the cash position and cash flow of My Friends’ Bookstore if the owners decided to open another store. 2. Is My Friends’ Bookstore a good candidate for franchising? Explain and defend your answer. 3. Describe what the owners would have to do to prepare to franchise their business. 4. The three partners own the bookstore equally. What are some of the difficulties they may encounter in sharing management duties equally? 5. What processes might the owners put in place to clarify their duties as equal partners? Small Business Management 1. Describe what would happen to the cash position and cash flow of My Friends’ Bookstore if the owners decided to open another store. The cash position of My Friend’s Bookstore would decrease if the owners decided to open an additional store due to the amount of cash or equivalent instruments held during this transition would transfer to the other store to initiate the start up of this business and the start up costs would most likely be taken from...
Words: 1316 - Pages: 6
...(Peter Pap Oriental Rugs Incorporated). He operates a business by the name Peter Pap Oriental Rugs Incorporated. Peter is in his own level dealing in the most valuable rugs in the United States. His customers are mostly well off individuals. At present, Peter Pap operates a highly profitable business but sales have from recently been declining consistently day by day. The reason behind this decline is the absence of financial, technological, and administrative skills aspects of his business (O’Reilly 1). He himself lacks all these skills. His business is a one-man show. That is, he spends 80 percent of his time doing things he should be delegating to others. Peter Pap is an expert in educating people on Oriental rugs, appraising, and buying but he spends most of his time performing technological and administrative tasks (O’Reilly 1). Analysis The major concern of the Peter Pap Oriental Rugs Incorporated is the declining sales. Pap would rather follow up a new client willing to purchase a $5000 rug than addressing an old customer interested in a $250,000 antique (O’Reilly 2). Pap’s business has many customers many of whom he has lost or failed to collect their e-mail addresses. Altogether, Peter Pap Oriental Rugs Incorporated lacks a working online marketing program (O’Reilly 2). Alternatives and Conclusions The popularity of Peter Pap Oriental Rugs Incorporated has been the past efforts of Pap. Nevertheless, a business should only delight on the popularity of its owner, and...
Words: 633 - Pages: 3
...maintaining a competitive cost structure. With countries such as China and India becoming more commercialized, air travel will continue to grow at a consistent rate; however, steady growth is not without its challenges: rising fuel prices and mounting material costs have forced aircraft manufacturers to look for other ways of maintaining a competitive structure. One way of maintaining a competitive cost structure is through outsourcing of non-fundamental core jobs. This practice has become so prominent with some of the world’s major aircraft manufacturers that the parts used to build planes today come from all over the world. The airline industry is a fairly resilient industry, even with slow economic times the need for people to travel for business and pleasure is still present. Outsourcing of non-core jobs may be the answer for cost efficiencies but can have serious economic, political and societal consequences that must to be taken into consideration by all businesses in the aircraft manufacturing industry. Introduction Aircraft manufacturing is a competitive industry; by definition, this industry is an oligopoly. In this competitive structure sellers have significant influence over the buyer and therefore must respond to the demands of other selling...
Words: 3083 - Pages: 13
...given. Now two types of numerical variables2 are discrete and continuous. Discrete3 is like IQ scores, SAT scores, a person’s shoes size, and so on. Continuous4 is more along the lines of height, weight, and age. Sometimes in the real world the distinction between continuous and discrete variables can be a blur. Height, weight, and age are considered continuous in theory, but they always seem to be rounded off to the nearest inch, ounce, or year, at which point they become discrete. On the other hand, money, which in theory is a discrete variable (because the difference between two values can’t be less than a penny), is mostly thought as a continuous variable because in most real life situation a penny can be thought of as an insignificantly small amount of money. Variables can also be used to describe gender, hair color, nationality, and so on. These variables are called categorical (or qualitative) variables5. Now in some situations categorical variables must be treated differently from numerical variables. They can’t be added, multiplied, or averaged up. In other ways, you can say that both categorical and discrete variables can be treated similarly, particularly when it comes down to graphical descriptions like bar graphs and pictograms. Here are two...
Words: 1137 - Pages: 5
...Introduction A small business is defined as a business that has a low sales turnover as well as a small number of employees (Dee , 2011). However, the definition of a small business varies from industry to industry and the state. It is one of the businesses that are easy to establish and operate as it is flexible and decision making is easier as compared to running a large business. For any business to function effectively in it should have an effective marketing strategy in place. Therefore, this paper seeks to analyze a small business, the products that it offers, its pricing strategy and the terms that the business apply when dealing with its customers and suppliers. The business is a boutique that specializes in fashion and design products. The main products that the company specializes in are; clothes both for men and women, handbags, shoes, and perfumes. Fashion and design industry are a very competitive industry as the products that are offered in this industry are close substitutes, and the cost of switching from one business to the competitor is very easy. The business value proposition is, for customers who aspire to be unique our brands will offer that to you at a pocket-friendly price. In our store on average, the price of clothes range $20, handbag $40, shoes $13 and perfumes $132. These are the prices on average from the products that our business is offering. Based on the market...
Words: 878 - Pages: 4
...Pape Ndiaye Professor: E.Gause International Business Country Factors Analysis on China After a long reflection, my partners and I concluded to conduct our business in China. For that same perspective we are trying to understand some factors that are essential to know before going in adventure in China. After a deep research, I know that doing business in China is not obvious but could be at the same time very fruitful if you have an clear understanding of their political and legal factor, then know their culture and beliefs and finally their economical and the rise and fall of their currency. The most populous country in the world, the people Republic of China is today emerging as one of the major global economies. China is known as a country of etiquette and ceremonies. The unique character of the Chinese is built on the strong sense of pride in their ancient history and culture. I believe in this day that we need to understand the basic Chinese cultural, ethical and the business values is paramount to any organization wanting to conduct business in today’s very quickly progressing China. Communism China is really deepened in the communism since their leader Mao Zedong. Mao taught the Chinese people the notion of equality of everyone throughout the whole country. Communism kept on progressing gradually from the 1911 revolution to Now. Mao was influenced by the philosophy of Karl Marx and at the same time the Chinese population was experiencing poverty, starvation...
Words: 1249 - Pages: 5
...Robert Ambrose Small Business Management October 9, 2015 Professor S. Turner Final Paper The Dilemma The gentlemen of “Three Guys Garage” all have the best interest of the organization in mind. However, they have differing outlooks on the best approach to expand “Three Guys Garage” and reach the level of success they all aspire for. Karl is very interested in turning the company into a national chain, but the other members of the team have some concerns. For an example, Ben is concerned about control losing control of the brand. Rick on the other hand has voiced that he is worried about losing his profits. The Strategy After evaluating the different Growth strategies the best strategy for the team is to continue on as a privately owned company. As a privately owned company while growth may be slower than the other options it is still possible. On the other hand, if the gentleman where to try and franchise the organization there is a very good chance they would lose control of the day to day operations of some units, which is an issue for Ben. While it is required for franchise owners to follow company-operating procedure developed by the parent company, ultimately the unit is owned by the franchisee and he or she going to make decisions for his or her shop that best fits their goals (Joseph, 2015). If the team decide to take the offer of the investor and start a joint venture, they will have to further split their profits which does not go over well with Rick. Other...
Words: 679 - Pages: 3
...Acrobat Fabrics Farima Thomas Kaplan University MT209: Small Business Management Professor Mark Piva February 14, 2011 Executive Summary Business and company overview: Acrobat Fabrics provide fine fabrics for the entertainment, event industry and anyone who designs with fabric such as; event planners, trade shows, scenic design studios, theaters, etc. Acrobat Fabrics also, offers custom sewing, so our clients can come to us for one stop shopping. Our philosophy is to exceed our customers expectation. We have defined the standard for personalized, result oriented service. Our experienced team are experts and passionate about their service and products. The product/service line: Acrobat Fabrics is a business designed to provide services and products of the most unique color and quality flame retarded and non-flame retarded fabrics to professional designers of all levels. Our business offers to source and provide any desired color and quality fabric or service for our clients. In addition, we create custom draperies, Banners, signage, etc. for the event, retail and exhibit industries. Our goal is seeking our clients satisfaction by saving them time and resources through lower price, higher quality, better and faster service. Our form of organization is a limited liability company. The Target Market: The target market would be the professional home decorating designers, clothing designers, movie set designers, Broadway and theatrical departments of schools and event coordinators...
Words: 2542 - Pages: 11
...BSB 203/BALM 111/BCD 130 SMALL BUSINESS MANAGEMENT/PRINCIPLES OF MANAGEMENT CAT 1 Answer all Questions 1. To organize in an effective manner, managers have certain guidelines to use and make useful decisions. Explain the principles of organization that can be used by a manager. (10 marks) There are various principles that guide managers in their daily operations. They include: i. Principle of equity- this principle is geared towards ensuring all workers especially in a joint effort are treated equally to manage joint projects. This principle allows managers to develop standard ways of evaluating worker performance. ii. Esprit de corps-this is the principle that fights for unity and morale among workers. This principle allows the manager to develop motivational programs geared at motivating productivity and loyalty to the organization. iii. Principle of initiative-this principle advocates for managers to allow for initiative patterns that allow their employees to come up with new ways. The principle allows the manager to delegate duties and allow new techniques of handling problems. iv. Principle of remuneration-this principle should allow the manager develop a good payment system because money is an important motivator. We should never forget that there is no perfect remuneration system. v. Principle of unity of direction-this principle advocates for similar objectives for people conducting one task in a single plan. The manager is able to develop...
Words: 1565 - Pages: 7
...A Framework for IT Governance in Small Businesses by Herman Koornhof A FRAMEWORK FOR IT G O V E R N A N C E by IN SMALL BUSINESSES Herman Koornhof TREATISE Submitted for the partial fulfilment of the requirements for the degree MAGISTER TECHNOLOGIAE in Business Information Systems in the FACULTY ENGINEERING, BUILT ENVIRONMENT OF THE AND INFORMATION TECHNOLOGY of the N E L S O N M A N D E L A M E T R O P O L I T A N U N I V E R SI T Y Supervisor: Prof. Rossouw von Solms January 2009 ii Declaration I, Herman Koornhof, hereby declare that: • • • The work in this treatise is my own work. All sources used or referred to have been documented and recognised. This treatise has not previously been submitted in full of partial fulfilment of the requirements for an equivalent or qualification at any other recognised educational institution. higher Herman Koornhof iii Acknowledgements I would like to express my gratitude to the following people: • My love, Jenny, for your love and understanding during the past year. Without your encouragement and inspiration this work would not have been possible. • • My family and friends for your interest and support. My supervisor, Prof. Rossouw von Solms, for your guidance and advice, and your detailed and constructive comments. • To Him who is able to do immeasurably more than all we ask or imagine, according to his power that is at work within us. iv Table...
Words: 36563 - Pages: 147
...Introduction Management Information System (MIS) enables small business organization to focus on solving business problems and creating new opportunity with technology. In his article titled “The impact of Management Information System effectiveness on task productivity”, Trivellas explains that “management information system (MIS) is the basic tool to support planning and controlling functions of the managers in small business organization” (2013). He states that MIS touches almost all areas of business, such as manufacturing, accounting & finance, human resource and marketing. Trivellas conducted a survey to investigate the impact of MIS in small business sector such as banking. According to his survey, MIS provides necessary information for managers so that they can able to monitor the organization’s activities and make important decisions accordingly. On the other hand, many other authors state that while MIS provides several benefits to the organization, Trivellas fails to mention the issues and the challenges associated with implementing the MIS technology. The authors find that installing MIS can be expensive for small business organization. The organization should create a separate budget to ensure that the system is current. Trivellas ignore the fact that maintenance of the system is another issue that comes along with installing MIS. Companies should hire someone to keep the system operating effectively. This increases labor cost. Moreover, MIS...
Words: 2382 - Pages: 10
