Entrepreneurship Exam 3 with Complete Solutions

three forces of pricing - ANSWER-image, competition, value markup - ANSWER-the difference between the cost of a product or service and it's selling price proper financial management - ANSWER-relevant financial information, easy to understand, timely types of financial statements - ANSWER-income statement, balance sheet, cash flow income statement - ANSWER-financial statement that represents a moving picture of a business, compares expense against revenue to show net profit. revenue-expenses= net profit balance sheet - ANSWER-"snapshot" of a business' financial position, providing owners with an estimate of its worth on a given date. assets-liability=equity cash flow - ANSWER-a summary of the cash on hand, starting with net profit and adding sources of cash and subtracting uses of cash. timeline for financial forecast - ANSWER-forecast by every month, 12 months into the future, then quarterly for another year. accounts receivable - ANSWER-account for single largest cash management problem for small businesses. 90% - ANSWER-percentage for credit sales in manufacturer or wholesale business 40% - ANSWER-percentage for credit sales in retail business 95% - ANSWER-percentage of small businesses who will sell to anyone without a credit check or credit application. 3 steps to combat bad debt - ANSWER-credit applications, have a written credit policy, produce bills timely and accurately "2/10 net 30" - ANSWER-for accounts payable if you pay total due within 10 days you get a 2% discount, but if you don't pay then the full amount is due in 30 days.