Funeral Home Management

Working Capital (Circulating Capital)
The difference between current assets and current liabilities.
Whole Life Insurance
Life insurance that gives lifetime protection to the insured person.
Wage and Hour Law (Fair Labor Standards Act)
Outlaws discriminatory practices in pay; requires employers to pay a minimum wage to employees and to pay a minimum of one and one-half times the regular rate for any hours beyond forty worked in a week.
Vietnam Era Veterans Readjustment Act
Outlaws discrimination in employment against Vietname Era veterans.
Venture Capitalist
An investor or investment group that commits money to new business ventures.
Variable Expense
A cost which is uniform per unit, but fluctuates in total in direct proportion to change in the related total activity or volume.
Universal Life Insurance
A combination of whole life insurance and term life insurance.
Truth in Lending Act
An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit.
Trademark
An intangible asset that is a distinct name, sign, or symbol that the federal govenment grants exclusive rights to use for a specified period of time.
Trade Credit
A form of credit that is extended by one business to another business to help finance distribution of producer’s goods.
Total Quality Mangement (TQM)
The efforts of all members of an organization directed to ensure that quality in the production of goods and services is achieved.
Term Life Insurance
Life insurance that has no cash value whenever the ploidy expires.
Tangible Assets
A physical asset that possesses genuine value.
Stock or Stock Certificate
A document specifying the number of shares owned by a stockholer.
Staffing
A management function dealing with the recruitment, selection, placement, training, development, and appraisal of the employees of the firm.
Sole Proprietorships
A legal form of organization whereby the business is owned and operated by one person.
Small Business Administration (SBA)
The principal government agency concerned with the financing, operation and management of small businesses.
Small Business
A business which is independently owned and operated and is not dominant in it’s field of operations.
Service Business
A business that provides a service as opposed to a product.
Self-Insurance
A form of risk management whereby a part of the firm’s earnings is earmarked as a contingency fund for possible future losses, specifically afor individual loss categories such as property, medical or worker’s compensation.
Sales Promotion
A plan which provides inducements to potential purchases of products and/or services.
Rubber-Stamp Board of Directors
The business governance board which exists and holds meetings, but only approves actions desired or completed by the manager of the funeral home.
Risk Management
All efforts designed to preserve assets and earning power associated with a business.
Resume
Written summary of one’s personal, educational and professional achievements.
Replacement Value Approach
The fair market price to purchase similar assets.
Recruitment
The process of forming a pool of qualified applicants for tasks that need to be filled.
Rebate
A return of a portion of a payment.
Quantity Discount
Reduction in the amount of a bill when a minimum quantity of merchandise has been ordered.
Public Relations
Inducing the public to have a positive feeling about a particular business.
Proprietorship
A business owned by one person who is subject to claims of creditors.
Professional Business Pattern
The business pattern in which the family funeral home is completed oriented toward the business and not family.
Product Liability Insurance
Insurance that protects a firm agains claims that its product caused bodily injury or property damage to the user.
Pricing Policy
Factors which influence prices.
Post-Need Services (After Care; Follow-up Services)
Services provided by a funeral services organization that occur after final disposition.
Planning
That function of determining in advance what needs to be accomplished in order to achieve a particular goal.
Personnel Management
See Human Resource Management.
Personal Capital (Equity Capital)
Capital that is invested in the business by the owner(s).
Patriarchal
The family pattern in which the father is in charge.
Paternalistic
The business pattern in which the parent is in control.
Patent
The registered right of an inventor to make, use and sell an invention.
Partnership
The voluntary association of two ormore people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit.
Participative
The business pattern in which all family members participate in the operations, decisions or profits of the funeral home.
Paper Board of Directors
The business governance board which exists only on paper and never holds true meetings.
Overseer Board
The business governance board which makes most decisions for a family funeral home, including the decisions made during the daily operations.
Overhead
Expenses incurred in the normal operation of a business.
Organizing
To arrange or constitute in interdependent parts, each having a specific function or relation with respect to the whole;the arrangement and distribution of work among members of an organization.
Opportunistic Entrepreneur
A person who starts a business with both sophisticated managerial skills and technical knowledge.
Operating Ratios
A comparison of profit and each item of expense in the income statement expressed as a percentage of sales income;the operating ratios can be compared to the industry standard in regards to measuring the possible growth of the business
Open End Credit (Revolving Account)
A line of credit that may be used over and over again up to a certain borrowing limit.
Office Management
The administration and supervision of office duties and functions.
Occupational Safety and Health Act (OSHA)
Federal legistlation that mandates that employers provide a workplace that is free from hazards likely to cause death or serious physical harm.
Objectives
Specific statements of ends, the achievement of which are contemplated within a specific time period. (Objectives are used in the management control process, and provide a quantitative and time framework to the organization’s goals. Objectives are intended to be accomplished by a specific date and are stated in specific terms, preferably in such a way that there is some measurable basis for determining the extent to which they have been achieved.) [See also Goals.]
New Venture Plan (Business Plan)
A written descrption of a new idea that projects marketing, operational, and financial aspects of a proposed business.
Motivating
Energizing, channeling and sustaining people’s behavior.
Mortgage Loan
A loan secured by a mortgage on property.
Mortgage
A claim given by the borrower to the lender against the borrower’s property in return for a loan.
Merchandising Business
A business that purchases finished goods for resale.
Merchandise
Those goods or stock of goods which are held for resale at a profit.
Matriarchal
The family pattern in which the mother is in charge.
Markup
The difference between merchandise cost and selling price, i.e., gross margin.
Marketing Management
The process of planning and executing the development, pricing, promotion, and distribution of an organization’s goods or services.
Marketing
The process of planning and executing the development, pricing, promotion, and distribution of an organization’s goods or services.
Market Value Approach
An approach used in business valuation which determines value based upon previous sales of similar businesses.
Market Survey
A study that is used by a business to determine where the potential customers are located.
Market
A group of potential customers possessing purchasing power and unsatisfied needs.
Markdown
A reduction of selling price below the original selling price.
Manufacturing Business
A business that makes finished goods from raw materials by hand or machinery.
Management
The art and science of motivating people toward the achievement of a goal.
Liquidation Value (Market Value) Approach
The anticipated value of an asset that would be realized in case of liquidation of the business.
Limited Partner
A partner in a limited parnership who is not active in the management and has limited personal liability.
Limited Liability Companay (not corporation)
New form of business ownership (approved in most states since approximately 1994); combines aspects of partnerships with the liited liability of a corporation; owners known as members.
Liability Insurance
Insurance that covers business liability to customers of others who might be injured from the product sold to them.
Life Insurance
Insurance that provides death benefits to the survivors of the insured.
Legal Entity
A business organization that is recognized by the law as having a separate legal existence.`
Laissez-fare
The business pattern in which the family members do not interfere with each other’s departments or responsibilities.
Key-Person Life Insurance
Life insurance that protects a firm against losses due to the death of a key employee.
Job Specification
A document that lists the knowledge, skills, abilities, and personal characteristics a job holder must possess to perform effectively.
Job Description
A document that lists the major responsibilities and tasks of the job.
Job Analysis
A process for determining the critical components of a job for purposes of selecting, training, and rewarding personnel.
Inventory Turnover
The number of times the average inventory has been sold or used up during a period.
Inventory (Merchandise)
Those goods or stock of goods which are held for resale at a profit.
Interviewing
A job-analysis technique in which individuals currently holding a particular job are asked questions concerning the requirements of the job.
Interdependence
The dependency of businesses on one another.
Intangible Asset
Those assets that cannot be touched or grasped (examples include patents, copyrights and goodwill).
Insurance
Uneventful protection for the samll business or small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced.
Installment Credit (Closed End Credit)
Balance of costly goods paid for in small monthly (fractional) payments over a period of time.
Innovation
The introduction of something new; a new idea, method or device.
Immigration Reform Act
Federal legislation requiring employers to check job applicants’ papers to be sure they are either U.S. citizens or aliens quthorized to work in the U.S.
Human Resource Planning
Developing a comprehensive strategy for meeting future human resource needs.
Human Resource Management (Personnel Management)
The process of acquiring, training, developing, motivating, and appraising a sufficient quantity of qualified employees to perform necessary activities; and developing activities and an organizational climate conducive to maximum efficiency and worker satisfaction.
Human Resource Forecast
Determining personnel needs in terms of numbers of individuals and their required skills.
Human Relations
Motivating people in organizations to develop teamwork which effectively fulfills their needs and achieves organizational objectives.
Goodwill
An intangible asset such as the name of a funeral home; also, an intangible asset which enables a business to earn a profit in excess of the normal rate of profit earned by other businesses of the same kind.
Goals
Broad statements about what an organization wants to achieve; developed in the strategic planning process; they form the basic plan of direction toward which decisions and activities are focused. (Goals are motivational ini nature and are usually stated in broad, general terms without reference to a time period). [See also Objectives].
General Partner
A partner in a limited partnership who has unlimited personal liability. A partner of a partnership who is personally liable for the debts of the business.
General Manager
An entrepreneur who functions as an administrator of a business.
General Liability Insurance
Insurance covering business liability to customers who might be injured on or off premises or from the product sold to them.
Funeral Service Management
The administration of a funeral service enterprise, the activites of which encompass marketing, office, personnel, facilities and financial mangement.
Franchisee
An entrepreneur whose power is limited by a contractual relationship with a franchising organization.
Founder
An entrepreneur who brings a new firm into existence.
Follow-up Services
See Post-Need Services
Fixed Expenses
A cost that, for a given period of time and rage of activity called the relevant range, does not change in total but becomes progressively smaller on a per unit basis as volume increases; these expenses do not increase with increased business, nor do they decrease with declining business activity.
Fixed Capital
Long-term capital that is invested in the small business; also, funds invested in such long-term assets as: land, building, machinery, furniture, fixtures and other equipment.
Financial Management
The efficient utilization and adequate regulation of assets, revenue, expenditures and capital rights.
Finance
The business function of effectively obtaining and using funds.
Fair Labor Standards Act (Wage and Hour Law)
Outlaws discriminatory practices in pay; requires employers to pay a minimum wage to employees, and to pay a minimum of one and one-half times the regular rate for any hours beyond forty worked in a week.
Fair Credit Reporting Act
An act which requires creditors to notify a potential recipient of credit whenever any adverseaction or denial of credit was based on a credit report.
Factoring
Obtaining cash before payments are received from customers by selling of one’s accounts receivables to a third party.
Facilities Management
The obtaining and maintaining of adequate work space and funeral equipment.
Evaluating (Controlling)
A management function which compares organizational and individual performance with predetermined standards or expected results.
Equity Capital (Personal Capital)
Capital that is invested in the business by the owner(s).
Equal Pay Act
Outlaws discrimination in pay against those who are over forty years old.
Equal Employment Opportunity
The absence of employment discrimination based on race, color, religion, sex or national origin.
Equal Credit Opportunity Act
The absence of discrimination based on race, color, religion, sex or national origin.
Entrepreneur
One who organizes, manages, and assumes the risk of a business firm or venture.
Endowment Life Insurance
Life insurance that allows the insured, rather than the beneficiary, to collect the face value of the policy upon maturity or to collect that value in annual payments.
Employment Interview
The primary way of judging the job applicant’s appearance, poise, speech, etc..
Employment Application
The record of statements made at the time the applicant first seeks employment.
Emergency
An unforeseen combination of circumstances that results in a need for immediate action.
Economic Order Quantity (EOQ)
The quantity to be purchased which minimizes total costs.
Economic Base
The wealth produced in or near a community that provides employment and income to the local population.
Earnings Valuation Approach
A business valuation approach which centers on estimating the amount of potential income that may be produced by the business in the next year.
Disaster
A sudden misfortune, resulting in the loss of life and/or property.
Directing (Actuating)
Regulating the activities of course of activities of an organization; to guide and/or supervise the activities of an organization.
Directing
Refers to those activities which encourage subordinates to work toward the achievement of the company’s goals.
Demographics
The statistical study of human populations with respect to their size, density, distribution, composition and income.
Delegation of Authority
Superior’s act of granting to subordinates, on the basis of competence, the right to act or decide.
Deductible Clause
Insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible.
Debt Equity (Debt Capital, Borrowed Capital)
Any borrowed or loaned capital invested in the business that must be repaid to creditors.
Current Ratio
The current assets DIVIDED by the current liabilities and a measure of the liquidity of the business.
Credit Insurance
Insurance that protects non-retailing businesses from abnormal bad-debt losses.
Credit Bureau
An organization of retailers and other firms in a given community that serves its members by summarizing their credit experience with particular individuals.
Credit
An agreement that payment for a product or service will be made at some later date.
Corporation Charter
A written application for permission to incorporate that is approved by a state official.
Corporation
An artificial being, invisible, intangible and existing only in contemplation of law; an entity that is something that has a distinct existence separate and apart from the existence of its individual members.
Corporate Refugees
Thos individuals who flee the bureaucratic environment of big business by going into business for themselves.
Copyright
The registered right of creator to reproduce, publish and sell the work which is the product of the intelligence and skill of that person.
Controlling (Evaluating)
A management function which compares organizational and individual performance with predetermined standards or expected results.
Consumerism
The emphasis placed on providing to customers products and services that are safe, reliable and honestly advertised; also, a social movement that seeks to strengthen the rights of consumers relative to sellers.
Consumer Credit Protection Act
An act which requires a seller to disclose terms of sale and give facts of actual interest rate and other charges.
Consumer Credit
A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants.
Consignment
The merchandising agreement whereby merchandise is given to a retailer to sell, but the retailer does not have to pay for the merchandise that will be displayed until it is sold.
Conflicted Family Pattern
The family pattern in which the family members work against one another instead of together.
Competition
The practice of trying to obtain something that is being sought by others under similar circumstances at the same time.
Collaborative
The family pattern in which the family members work together.
Coinsurance Clause
A clause in an insurance policy under which the insured agrees to maintain insurance equal to some specified percentage of the property value or others=wise to assume a portion of any loss.
Closed End Credit (Installment Credit)
Balance of costly goods paid for in small monthly (fractional) payments over a period of time.
Civil Rights Act of 1964
Federal legislation that prohibits discrimination on the basis of race, color, religion, sex or nation origin.
Circulating Capital (Working Capital)
The DIFFERENCE between current assets and current liabilities.
Chamber of Commerce
An association of business people who attempt to protect and promote the commercial interest in a community.
Chain of Command
The superior-subordinate relationship that serves as a channel for two-way communication.
Census of Population
A source of market data that compiles population statistics with regard to distribution of population by region, area, etc.
Census of Manufacture
A source of market data that explains where certain manufacturers are located.
Census of Housing
A source of market data that keeps track of new home sales by regions and/or the construction of new houses by region and specific area.
Census of Business
A source of market data that explains where certain businesses are located.
Caveat Venditor
Let the seller beware.
Casualty Insurance
Insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fire, etc.
Cash Discounts
2/10, n/30 – 2% discount if paid in 10 days from date of invoice/net amount must be paid within 30 days of date of invoice.
Capital
The amount by which the total assets EXCEEDS the total liabilities of a business; an owner’s financial interest in a business.
Buy-Sell Life Insurance
Insurance on an owner of a business that will supply enough money for a partner to buy his share of the business on death.
Business Policies
Fundamental statements that serve as guides to management practice.
Business Plan (New Venture Plan)
A written description of a new idea that projects marketing, operational, and financial aspects of a proposed business.
Business Interruption Insurance
An insurance that protects companies during the period necessary to restore property damaged by an insured peril.
Business
An organization that combines inputs of raw materials, capital, labor, and management skills to produce useful outputs of goods and services so as to earn a profit.
Burglary
The forcible breaking and entering of premises closed for business with the subsequent removal of cash or merchandise.
Budget
A formal written statement, which may be based upon adjusted historical data, of management’s plans for the future expressed in financial terms.
Break-Even Analysis
The point at which total sales revenue equals total costs.
Brand
The identification for a product
Book Value
The cost of a FIXED asset LESS accumulated depreciation.
Bona Fide Occupational Qualification (BFOQ)
A qualification that is absolutely necessary for the job; it is an allowed and approved reason for discrimination.
Board of Directors
The governing body that is elected by the stockholders of a corporation.
Better Business Bureau
Association of business firms that promotes ethical conduct by all business firms in a community.
Average Collection Period
A measure of the accounts receivable turnover.
Automobile Insurance
Insurance covering motor vehicles
Artisan Entrepreneur
A person who starts a business with primarily technical skills and little business knowledge.
Articles of Partnership
A written document that states explicitly the rights and duties of partners in a partnership
Angels
Private owners who are willing to supply financing for new and/or risky small venture start-ups.
Americans with Disabilities Act (ADA)
Legislation that guarantees disabled people equal access to employment, as well as access to public places.
Aging Schedule
A grouping of accounts receiving into age categories based upon the length of time they have been outstanding on the company record.
Age Discrimination in Employment Act
Federal legislation that requires employers to treat applicants and employees equally regardless of age.
After Care
See Post-Need Services.
Advisory Board
The business governance board which helps make major decisions for the funeral home, buy does not deal with the daily operations.
Advertising
The art of making the public aware of the services or commodities that a business has for sale.
Actuating (Directing)
Regulating the activities or course of activities of an organization; to guide and /or supervise the activities of an organization.
Accident & Health Insurance
Insurance against loss through accident or sickness.
ABC Method
A method of classifying inventory items with categories which are of high-value, less costly, and/or low-cost items.