...Introduction Starting up a business is a large and complex undertaking which can overwhelm and take a lot out of a person, financially, emotionally, and physically. This new business of an organic restaurant in Gilbert, Arizona will be particularly difficult to begin. Not only can a restaurant be one of the hardest businesses to start and keep running, the target audience is much more particular also. The first question someone will have to ask when beginning any new business is, where is the money coming from? How will the business get bankrolled from startup costs to operating cost before enough transactions happen before profits start to show? This paper will analyze three options to financing this new restaurant. Financing Options The first consideration of where financing will come from is personal assets. According to the U.S. Small Business Association, a person is not eligible for any financial assistance without first "using alternative financial resources, including personal assets" . First, the amount of cash on hand needs to be determined that will be able to be used to help with startup costs. Because a solid business plan has already been put together, a close estimate to startup costs has been determined. The startup cash needed may come from money already set aside in a savings account, or it could come from selling personal items to help raise cash. Some items needed for business startup such as office furniture, storage equipment or computers may be used...
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...Small businesses are the backbone of the American economy just as big businesses are a vital part to the American economy. Both provide jobs for Americans while at the same time provide services and goods. According to the Small Business Association, over half of all employees in the United States work for a small firm. Big business employs around 35% of new hires. There is an on going battle of small business versus big business in ones opinion or even in politics and between experts in the news. However what is undeniable is that they both contribute to the economy locally as well as internationally. There are also several benefits to working for either a small business or big business such as getting work experience from a small business or retirement plans of the big businesses. A business is considered a small business when that business has under 500 employees (499 employees and under). Some examples of a small business one might be familiar with are Laserscope, Neoware Systems, and Penn Virginia. Laserscope, which makes medical laser supplies, employs 229 workers as of 2005. Neoware Systems that makes computer appliances employ’s 114 workers. Penn Virginia which is in the coal fusion business has 32 employees. A business is considered a big business when that business has over 500 employees. Familiar big business includes J.P. Morgan Chase, Apple Inc, General Motors. J.P. Morgan Chase provides various financial services employs around 222, 316 workers...
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...Entrepreneurial Leadership 1 Discuss the common elements described in the theories/philosophies of Case, Kouzes, and Drucker including how their principles strategies relate to the new definition of entrepreneurial leadership presented in Understanding Entrepreneurial Leadership in today’s Dynamic Markets. What is an Entrepreneur? We find entrepreneurs in manufacturing, business, agriculture, health care, tourism, education, government, and the arts. Essentially, we find them among employees and employers in all sectors of life. Being an entrepreneur means more than being a business owner. It means possessing entrepreneurial qualities and characteristics essential to being a productive citizen and excelling in one’s career. Being entrepreneurial means creating something new or developing ideas or projects; it means not following prescribed paths and thinking outside the box. The entrepreneurial spirit is the heart of a society that moves forward and adapts to changing economic, technological, and social challenges. Entrepreneurial leaders tend to crave new beginnings, recognize a need for change and aren’t afraid to take the necessary risks. In regards to Case’s podcast “People, Passion, Perseverance: You’ve Got Entrepreneurship”, Kouzes’ podcast “Rising to the Leadership Challenge” and Drucker’s article “Entrepreneurial Strategies”, all three passionately briefed about possessing the spirit of being an entrepreneur. The gentlemen shared the same common leadership elements...
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...Finance and Business Transcript Speakers: Narrator, Host, Paul C. Clendening NARRATOR: On the subject of banking and finance, we hear Paul C. Clendening, a banker from Kansas City, who is active locally and nationally with Robert Morris Associates, National Association of Bank Loan and Credit Officers. HOST: What does the term finance mean in reference to a small business person? PAUL C. CLENDENING: The term finance refers to the dynamic measurement of a company’s health and progress. Business owners are given accounting information that historically report what a company’s sales have been, how its assets and its liabilities are structured, etc. But the dynamic interaction of those assets, liabilities, and income figures really relate to the health of the company itself. The primary way to utilize financial information is to look at a trend analysis and a ratio analysis. HOST: What about liquidity. What does that mean? PAUL C. CLENDENING: Liquidity is a very important day-to-day measurement for a business owner and really a key tool to use in the management of that business. As an example, one of the most common ratios of liquidity is the current ratio. The current ratio is defined as the total current assets of the company less the current liabilities. Now what that should show is a margin of short-term assets in excess of the short-term liabilities. The benefit of that to the small business owner of manager is that it provides a working capital cushion that...
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...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...
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...CHAPTER ONE INTRODUCTION 1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nation’s foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3. Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 – 1985 Import 1981 1982 1983 1984 1985 N,000 N,000 N,000 N,000 N,000 Total food 1,820,215 1,642,245 1,296,714 843,246 946,567 Wheat 159,422 79,629 255,717 243,067 327,870 C/o of total 9% 5% 20% 29% 35%` Source: Federal Office of Statistics...
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...CHAPTER ONE INTRODUCTION 1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nation’s foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3. Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 – 1985 Import 1981 1982 1983 1984 1985 N,000 N,000 N,000 N,000 N,000 Total food 1,820,215 1,642,245 1,296,714 843,246 946,567 Wheat 159,422 79,629 255,717 243,067 327,870 C/o of total 9% 5% 20% 29% 35%` Source: Federal Office of Statistics...
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...CHAPTER ONE INTRODUCTION 1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nation’s foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3. Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 – 1985 Import 1981 1982 1983 1984 1985 N,000 N,000 N,000 N,000 N,000 Total food 1,820,215 1,642,245 1,296,714 843,246 946,567 Wheat 159,422 79,629 255,717 243,067 327,870 C/o of total 9% 5% 20% 29% 35%` Source: Federal Office of...
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...We have heard a lot from bankers, but perhaps the most revealing comment at Wednesday's business, innovation and skills select committee was made by Vince Cable on the subject of bank lending, and what would happen if the Project Merlin targets are missed. The business secretary, as expected, issued vague threats about higher taxes. But then he added: "It is hard to imagine that we could penalise individual banks." Why? The Merlin agreement set a collective target for gross business lending by the big five banks (£190bn in total and £76bn to small and medium-sized companies) but it was always possible that some would pull their weight and some would not. So surely there ought to be a way to apply a whip to the laggards. But there is not. Nor, it appears, has the government nailed down the detail of the only sanction that was trumpeted by the chancellor at the time of February's agreement – a link between executive bonuses and lending targets. Cable is only now writing to banks' remuneration committees to ask how they intend to apply the principle. Merlin, as we suspected, was a badly drafted fudge. But, if the targets are missed, get ready for a repeat. The government will threaten higher taxes. The banks will protest that demand for lending is weak (and Bob Diamond got his retaliation in early when he said small businesses have £16bn on deposit at Barclays). Companies themselves will complain that the price of credit is too high. In the end, an equally unsatisfactory Merlin...
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...TITLE: SMALL BUSINESS ASARE, NANA 19 JUL 2015 MBA 610 There are three types of small entities. • "Small businesses" are defined in section 3 of the Small Business Act, 15 U.S.C. . 632, and in the SBA's regulations at 13 C.F.R. . 121.201 (2002). 5 U.S.C. . 601(3). • "Small organizations" are any not-for-profit enterprises that are independently owned and operated and not dominant in their fields (for example, private hospitals and educational institutions). 5 U.S.C. . 601(4). • "Small governmental jurisdictions" are governments of cities, counties, towns, townships, villages, school districts, or special districts with a population of less than 50,000. The size standard used by the Small Business Administration to define small businesses varies by industry; however, the SBA uses the "fewer than 500 employees" cut off when making an across-the-board classification. (A large percentage of small entities are not covered by EEOC laws, because they employ fewer than 15 employees.) If EEOC wishes to use a different definition for any of these types of small entities for purposes of an RFA analysis, it must consult with the Office of Advocacy at the SBA, publish the alternative definition for comment and publish the final definition in the Federal Register. If EEOC seeks to change the definition of small business in a general rulemaking context, it should contact the Administrator of the SBA. In accessing the Equal Employment Opportunity...
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...entrepreneurial leadership. The main elements shared by entrepreneurs and the new definition of entrepreneurial leadership is entrepreneurial leaders have a clear understanding of leadership styles, opportunities and the ability for change. One common element Case, Koruzes, and Drucker share with the definition of Entrepreneurial leadership is that entrepreneurial leaders have a vision for their businesses success. All entrepreneurs should have a clear understanding of the aspirations for their business endeavor, potential for success, a plan to achieve the goals, and a clear understanding of the main business objective(s). Entrepreneurial leaders not only have a vision, but can effectively articulate their vision to employees, stakeholders, and others in order to inspire and facilitate a shared vision. Another similarity among those philosophies is that entrepreneurial leadership creates and/or takes advantage of a good opportunity. Exceptional entrepreneurs recognize opportunities for business and actively takes advantage when necessary and at the appropriate time....
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...Small Business Examination Paper Danita Benson LDR/531 February 12, 2013 Cherlyn Conner Small Business Examination Paper ESI Companies is a small company in Bartlett, Tennessee. ESI Companies is proud of their credit of providing tactical security specialist, and solutions to relieve threats to the environment. They install and build security systems in courthouse, detention facility, transportation hub, office building, and production plant. The company has partnered with private industry, law enforcement, military agencies, and correctional and detention facilities to keep their operating environments safe and secure from the threats of criminal activity and terrorism. Organizational Structure ESI Companies small business organizational structure is or can be a partnership. They are comfort of knowing their professional posses the needed skills and expertise to assist with the customers design and build techniques with courthouse, detention facility, office building, production plant, and others. They also partner with customers for facilities renovations, and maintenance of their security system regardless of any unique and challenging security needs. ESI Companies requires the customer partner in the design and implementation of their standards of operation intended to reduce the risks of security catastrophes. ESI Companies believe in working together to design, implement, build, install, and support state – of – the – art electronic surveillance and security...
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...their business. What makes them different from other small business owners is their overwhelming desire to make their businesses grow. These entrepreneurs can be broken down into many different categories based on their entrepreneurial approach. The classic entrepreneur Fred Wells founded Blue Bunny ice cream. As a classic entrepreneur, he started his company by identifying a business opportunity and allocating his resources to create a profit. The wellsenterprisesinc.com site states they believe in consistent, predictable financial performance that provides a competitive return to the stakeholders, and they believe in being goal and performance-oriented through individual responsibility and accountability. Each year Wells Enterprises has supported and contributed to nonprofit community organizations that reflect the company values and complement business priorities, but their primary goal is to make profits. Social entrepreneurs Ben Cohen and Jerry Greenfield founded Ben & Jerry’s ice cream. They started their business in the same way as Fred Wells, but in addition to making a profit, they also focused on solving society’s challenges through their business. They took a strong internal view that created a value-led organization advocating on issues that don’t have an obvious fit with its business operations, such as peace. With very different leadership techniques, each business has been tremendously successful. Fred Wells founded his first business in...
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...PUBLIC LAW 106–50—AUG. 17, 1999 113 STAT. 233 Public Law 106–50 106th Congress An Act To provide technical, financial, and procurement assistance to veteran owned small businesses, and for other purposes. Aug. 17, 1999 [H.R. 1568] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Veterans SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Veterans Entrepreneurship and Small Business Development Act of 1999’’. SEC. 2. TABLE OF CONTENTS. Entrepreneurship and Small Business Development Act of 1999. 15 USC 631 note. The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I—GENERAL PROVISIONS Sec. 101. Findings. Sec. 102. Purpose. Sec. 103. Definitions. TITLE II—VETERANS BUSINESS DEVELOPMENT Sec. 201. Veterans business development in the Small Business Administration. Sec. 202. National Veterans Business Development Corporation. Sec. 203. Advisory Committee on Veterans Business Affairs. TITLE III—TECHNICAL ASSISTANCE Sec. 301. SCORE program. Sec. 302. Entrepreneurial assistance. Sec. 303. Business development and management assistance for military reservists’ small businesses. Sec. Sec. Sec. Sec. Sec. 401. 402. 403. 404. 405. TITLE IV—FINANCIAL ASSISTANCE General business loan program. Assistance to active duty military reservists. Microloan program. Defense Economic Transition Loan Program. State development company program. TITLE V—PROCUREMENT...
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...AN EVALUATION OF THE INTERNAL CONTROLS SYSTEM FOR CASH FOR THE CASE OF NAIROBI SMALL BUSINESSES BY CLEOPHAS MUSINGA A Management Research Project Submitted In Partial Fulfillment For The Requirements Of The Award Of Bachelor Of Commerce (BCOM), School Of Business, University Of Nairobi JULY, 2008 DECLARATION This research project is our own original work and has not been submitted for academic purposes in any institution of higher leaning. Name Number Sign CLEOPHAS MUSINGA D33/6646/05 ………………………….. This research project has been submitted for examination with my approval as the university supervisor Signed……………………………. Date…………………………………………. Mr. Abdulatif Essajee Lecturer University of Nairobi TABLE OF CONTENTS DECLARATION i CHAPTER ONE 1 INTRODUCTION 1 1.1 Background of the study 1 1.2 Statement of the problem 5 1.3 Objectives of the study 6 1.4 Research questions 6 1.5 Scope of the study 6 1.6 Justification of the study 7 CHAPTER TWO 9 LITERARURE REVIEW 9 2.1 Evolution of internal controls 9 2.2 Components of Internal Controls 12 2.4 Relationship between a firm’s age and internal control 18 2.6 Internal controls in small businesses 19 CHAPTER THREE 21 RESEARCH METHODOLOGY 21 3.1 Research design 21 3.2 Population 21 3.3 Sample and Sampling Technique 21 3.4 Data collection methods 22 3.5 Data analysis 22 CHAPTER FOUR 23 DATA ANALYSIS AND FINDINGS 23 4.1 Introduction...
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