Category: Business Principles
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Bookkeeping – Policies and Procedures (Lesson 96)
At the peak of the hierarchy of internal controls sits policies. Policies are written by the highest echelon of management for a company, its Board of Directors or Trustees. The upper tier and mid level management of a business develop procedures to carry out the policies of the company.
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Winding Up (Going Out of Business)
Winding up is a business phrase referring to the final steps a business entity takes to cease operations, comply with all financial obligations and distribute the final profits to the remaining owners.
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Non-Disclosure Agreement (NDA) – Introduction
A document used to protect the secrecy of information is called the non-disclosure agreement or NDA. With business, it is customarily a legal contract signed by employees, owners, vendors and in some cases customers.
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Three Ownership Interests Exist as an Entrepreneur
There are three distinct ownership interests with a closely held company. There is an economic expectation, a right to manage the company and right to hold the ownership position as an asset.
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Revenue (Sales) Codes
Revenue (sales) codes are unique identifiers for products sold or services rendered. They are used to organize information so management can better understand customer demands and the company’s profitability related to the items sold.
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Overhead – General Definition
Those costs not directly tied to the production of revenue are referred to as overhead costs.
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Item Codes – Fundamental Understanding
Item codes are broken out into two distinct types: Sales (Revenue) and Cost Codes. The primary purpose is group values and units together in an account for evaluation purposes.
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Business Leadership Tips
Being a boss or business owner is easy. Being a leader; that’s a whole different story. It can be challenging to become capable of motivating & inspiring staff. Is this what you want to achieve? Look no further.
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Lien – Simple, Business and Legal Definitions
A documented right to property owned by a debtor and granted to a creditor is referred to as a ‘lien’. Although relatively a simple definition, it gets much more complicated when used in various contexts.
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Bookkeeping – Controls in Accounting (Lesson 95)
Just as manufacturing uses controls to ensure quality of product, controls are used in accounting to generate accurate information, maintain security over assets and comply with Generally Accepted Accounting Standards.