Mors 200 Arts Final - Klicker Chapter 19- Starting a Business Part 2
An entrepreneur is an individual who starts, manages, and assumes the financial risks of a business. They innovate, make key decisions, and drive the company toward growth and success.
Accident and health insurance
Buy-sell Life insurance
Business interruption insurance
Casualty insurance
Credit insurance
General liability insurance
Endowment life insurance
Key-person life insurance
Liability insurance
Life insurance
Product liability insurance
Self insurance
Term life insurance
Universal life insurance
Whole life insurance
Malpractice insurance
Type of Insurance
Key Terms
Accident and health insurance
Buy-sell Life insurance
Business interruption insurance
Casualty insurance
Credit insurance
General liability insurance
Endowment life insurance
Key-person life insurance
Liability insurance
Life insurance
Product liability insurance
Self insurance
Term life insurance
Universal life insurance
Whole life insurance
Malpractice insurance
Type of Insurance
Insurance against loss through accident or sickness.
Accident and Health Insurance
Insurance covering motor vehicles
Auto Insurance
Insurance on an owner of a business that will supply enough money for a partner to buy his share of the business upon death.
Buy-Sell Life Insurance
An insurance that protects companies during the period necessary to restore property damaged by an insured peril. Coverage pays for lost income and other expenses related to recovery.
Business Interruption Insurance
Insurance that provides monetary benefits to a business that has experienced an unforeseen peri such as flood, fire, etc.
Casualty Insurance
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| Term | Definition |
|---|---|
Accident and health insurance Buy-sell Life insurance Business interruption insurance Casualty insurance Credit insurance General liability insurance Endowment life insurance Key-person life insurance Liability insurance Life insurance Product liability insurance Self insurance Term life insurance Universal life insurance Whole life insurance Malpractice insurance | Type of Insurance |
Insurance against loss through accident or sickness. | Accident and Health Insurance |
Insurance covering motor vehicles | Auto Insurance |
Insurance on an owner of a business that will supply enough money for a partner to buy his share of the business upon death. | Buy-Sell Life Insurance |
An insurance that protects companies during the period necessary to restore property damaged by an insured peril. Coverage pays for lost income and other expenses related to recovery. | Business Interruption Insurance |
Insurance that provides monetary benefits to a business that has experienced an unforeseen peri such as flood, fire, etc. | Casualty Insurance |
Insurance that protects non-retailing businesses from abnormal bad debt losses. | Credit Insurance |
Insurance covering business liability to customers who might be injured on or off premises of from the product sold to them. | General Liability 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. | Endowment Life Insurance |
Life insurance that protects a firm against losses due to the death of a key employee. | Key-Person Life Insurance |
Insurance that covers business liability to customers of others who might be injured from the product sold to them. | Liability Insurance |
Insurance that provides death benefits to the survivors of the insured. | Life Insurance |
Insurance that protects a firm against claims that its product caused bodily injury or property damage to the user. | Product Liability Insurance |
A form of risk management whereby a part of hte firm;s earnings is earmarked as a contingency fund for possible future losses, specifically for individual loss categories such as property, medical, or worker's compensation. | Self-Insurance |
Life insurance that has no cash value whenever the policy expires. | Term Life Insurance |
A combination of whole life insurance and term life insurance. | Universal Life Insurance |
Life insurance that gives lifetime protection to the insured person. | Whole Life Insurance |
The type of insurance to purchase for protection against litigation. Often additional coverage under General Liability policy Sometimes can be purchased seprately some companies have group insurance with this | Malpractice Insurance (Professional Liability Insurance) |
A clause in an insurance policy under which the insured agrees to maintain insurance equip to some specified percentage of hte property value or otherwise to assume a portion of any loss. | Coinsurance Clause |
Insurance policy provision that makes the insurer liable for only losses in excess of the stated deductible. | Deductible Clause |
Suitability- consider remodeling Customer accessibility- ADA compliant? Internal/external flow Room for expansion and visual spaciousness Internal and external appearance Parking facilities Equipment/fixtures requirements Customer service and merchandise organization | Building Requirements and Design Factors |
Physical surroundings Visual spaciousness Customer image Space utilization Government regulations | Design Factors and Guidelines |
Check regulations for the area you want to build or purchase Real estate agent and lawyer should be consulted | Zoning |
Must be in compliance to ensure your funeral home is accessible to people with disabilities. | Federal ADA (Americans with Disabilities Act) |
Caskets Vaults Urns Prayer cards Register books Religious items- crosses, rosaries Thank you cards Memorial jewelry Clothing for deceased | Merchandise |
Embalming chemicals Coveralls Funeral flags and stickers for cars Office supplies Cleaning supplies | Supplies |
Manufacturer or wholesalers? Cooperative buying group? Consider imported products? | Selecting Suppliers |
How fast can you receive the item? How adaptable is the company to customizing the product? Can you receive discounts or rebates? Do you like and trust the sales representative? Is the quality of the product good, better, or best? Is their customer service fair, good, great? Do they honor warranties or guarantees? Do you provide training and technical assisstance? Do they provide sales aids? Are prices compeitive? Can you buy on consignment? Are you comfortable in selling their merchandise? | Consideration Concerning Suppliers |
Economic order quantity Inventory turnover | Inventory Control Considerations |
Cost of products, including any shipping and handling costs Operating expenses including overhead, payroll, and marketing | Determining Price |
What your competitor charges What your customers are willing to pay Amount of profit you desire Supply and demand Economic fluctuations banking conditions marketing strategy value of the merchandise | Other Factors Related to Determining Price |
Competition based pricing Cost plus mark-up pricing Loss leader pricing penetration pricing Economy pricing Package pricing Psychological pricing | Methods of Pricing |
Setting the price based upon the similar products and services charged by the competition. | Competition Based Pricing |
Adding a pre-determined percentage or amount to the cost of the product. | Cost Plus Mark-up Pricing |
Occurs when you advertise a lower price in house that people will find something more expensive that they will like. illegal if you dont sell inexpensive merchandise or services Legally and morally alright if you do offer inexpensive merchandise and services | Loss Leader Pricing |
Setting an initial low price at the beginning of your business in hopes of attracting customers. This price will rise as you gain more market share. | Penetration Pricing |
No-frills low price. Used by funeral homes that decide this will be the philosophy of their business. often called discounters | Economy Pricing |
A set serice and merchandise package at a set price. This price is usually slightly lower than if everything was purcahsed seprately. advised by many consultants- consumers like the ease of this Legal according to FTC if it can still be itemized on the GPL | Package Pricing |
A strategy where the merchandise price ends in an odd number such as 5, 7, or 9 because it is believed that consumers perceive it to be a fairer price. Round down rather than up | Psychological Pricing |
Legislation Types of merchandising Purchasing practices Desired clients | Other Factors Affecting Price |
Funeral directors must conform to federal and state rules regarding every aspect of doing business, including pricing. | Legislation |
Determine quality of merchandise high end, low end, mixture of both? Most funeral homes offer a mixture | Types of Merchandise |
Merchandisers offer special deals Rebates | Purchasing Practices |
Lower income Higher income (the carriage trade) Dont pre-judge the family Should have a good reason the family should choose you over an competitor | Desired Clients |