Business and ID Business Flashcards

Flashcards about business requirements, operating and managing a green ID Business, business policies and operations, promoting an ID Business and managing, growing and leading a profitable ID Business

Accounts payable

Amount owed to a creditor.

Accounts receivable

Amount owed to a business from clients

Balance sheet

Accounting document that illustrates the assets, liabilities, and owner’s equity (net worth) of a business for a given period.

Business plan

Professional document describing the major considerations associated with starting or expanding a business, such as defining the business, determining the market, managing the business, and understanding the financials (Created and reviewed over the course of the life of the business)

Break-even analysis

Point at which a businesses’ expenses and income are equal: no profits or losses

Current asset/liquid asset

Tangible item that is easily accessed, such as cash or money in savings or checking account.

Depreciable asset

Tangible item that decreases in value over time, such as phone, computer, car, equipment

Deductible

Amount an owner must pay when collecting on an insurance policy

Gross

Total amount before any deductions, taxes, or expenses

Net

Amount remaining after deductions, taxes, or expenses

Gross profit

The amount after subtracting variable costs from the sales revenue (Sales – Variable costs = Gross profit).

Net profit

Amount calculated by subtracting the gross profit from a businesses’ fixed costs (Gross profit – Fixed costs = Net profit)

Variable cost

Amounts associated with the cost of a sale, such as fees paid for a consultant on a project.

Fixed cost/overhead

Business expenses that do not vary month-by- month, such as rent and insurance

Liability

state of being responsible for something, especially by law Responsibilities associated with debts, actions, and decisions associated with a business

legacy goal

creating something that will be used for a long time

green washing

deceptive claim that a product or service is green

Revenue

income, money a business receives for services and products

Expenses

costs associated with conducting a business, such as rent, utilities, salaries, travel

Strategic plan

Internal management documentation

3 purposes

A. Assess the business current situation

B. Determine the vision and direction of the business

C. Identify the best approaches to successful reach its goals

Employment-at-will doctrine

Principle of law declaring that unless there is a written contract, employees can leave a place of employment for any or no reason and employers can terminate an employee for any or no reason

Independent contractor

According to the IRS, a person hired by an employer that is not defined under common law or under statues for certain situations. Difference is that employers do not generally have to withhold or pay any taxes on payments to independent contractors

Fed MED/EE (how Medicaid is financed)

mandatory tax of 1.45% based on taxable gross earnings

Fed OSADI/EE aka Old-Age, Survivors and Disability Insurance tax (Social Security)

It’s a 6.2% deduction from your paycheck.

3

Being self employed or an independent contractor requires that you pay more taxes as there’s no employer to do it