Power to control
exists when a party or parties have 50 percent or more ownership. It may also exist
with considerably less than 50 percent ownership by contractual arrangement or when
one or more parties own a large share compared to other parties. The affiliated
business concerns need not be in the same line of business.
AMORTIZATION Gradual reduction of term debt by periodic
payment sufficient to pay current interest and to eliminate the principal at
maturity.
ANCILLARY BOND A type of surety bond where the surety
company guarantees other factors which are incidental and essential to the
performance of a contract.
ANNUAL RECEIPTS - are receipts averaged over a firm's latest
3 completed fiscal years to determine its average annual receipts.
"Receipts" means the firm's gross or total income, plus cost of goods
sold, as defined by or reported on the firm's Federal Income Tax return. The
term does not include, however, net capital gains or losses, nor taxes collected
for and remitted to a taxing authority if included in gross or total income.
The firm may not deduct income taxes, property taxes, cost of materials or
funds paid to subcontractors. Travel, real estate and advertising agents,
providers of conference management services, freight forwarders and customs
brokers may deduct amounts they collect on behalf of another. If a firm has not
been in business for 3 years, the average weekly receipts for the number of
weeks the firm has been in business is multiplied by 52 to determine its
average annual receipts.
ANSWER DESK SBA maintains an Answer Desk staffed with
multi-lingual personnel. You may either call them free or send an e-mail.
APPRAISED VALUE The value placed on an item, product or
business by an appraiser, recognized for experience in a particular field.
ASSETS The entire property of a person, association,
corporation, or estate applicable or subject to the payment of debts.
ASSUMPTIONS The act of assuming/undertaking another's
debts or obligations.
AUCTION A public sale of goods to the highest
bidder.
AUTOMATIC DATA PROCESSING (ADP) 1. Data processing
largely performed by automatic means. 2. Pertaining to data processing
equipment such as electrical accounting machines and electronic data processing
equipment. 3. The discipline which deals with methods and techniques of
automatic data processing.
BAD DEBTS Funds owing to a business which are
determined to be uncollectible.
BALANCE SHEET Financial statement listing a company's
assets, liabilities, and equity on a specific date.
No comments:
Post a Comment