Marketing Essentials

Section 1: Preparing Financial Documents

After You Read Online Action

Key Terms and Concepts

1. The personal financial statement is a summary of your current personal financial condition.
2. An asset is anything of monetary value that you own. A liability is a debt that you owe. Net worth is the difference between assets and liabilities.
3. One-time costs are expenses that will not be repeated after you begin operating the business. Continuing costs are operating expenses you will pay throughout the life of the business.

Academic Skills

4. Start-up costs = $28,600; $3,800 + $22,800 + $2,000 = $28,600
   Step 1: Initial expenses = $3,800
   Step 2: Money for reserve = $22,800 0r ($2,500 + $750 + 550 = $3,800) X 6 months = $22,800
   Step 3: Start-up inventory = $2,000
5. Each student should identify economic factors, including prevailing wage rates, availability of trained personnel, cost of doing business, such as business taxes, workers' compensation rates, and cost of property.