One of the most misunderstood principles of business deals with the one or few individuals in a small business operation who are critical to operations. This individual is referred to as the Key Man. The best example is that of the primary wage earner in the family unit.
Month: August 2013
The Sixteenth Amendment to the Constitution of the United States gives authority to Congress to tax income. The Internal Revenue Service defines revenue via a term ‘Gross Income’. In Chapter 26 of the Federal Code (Chapter 26 is the Internal Revenue Code) Section 61, Congress defines gross income as “… all income from whatever source derived…”. This means even the penny you pick up off the ground is considered income.
When a business can maximize the product or service delivered within a given period of time, it has reached maximum throughput. This is the basis of maximizing earnings and therefore profits for a company. This article will examine the definition more thoroughly and illustrate to the reader how to identify issues associated with the throughput for your business.