Unit 8

 During the “Presimulation: Group Activity,”

managers will prepare a presimulation report
to share information about their businesses
with other managers.
 The audit reports will help your Instructor
evaluate your understanding of business
procedures.
 Audit Summaries
 Business Plan evaluation forms
 Business Plan Table of Contents
 Clip art
 Final audits
8.1
 You will find a complete list of types of
business ownership in PART 4
“Presimulation: Group Activity” on pages
336-337 in your student reference book.
 It is vital that you maintain confidentiality in
your business.
 The balance sheet and statement of income
include confidential information about your
business that should be part of the
presiumlation report unless the business is a
public corporation, such as The Denim Maker
and United Communications.
 All businesses are open from 9 a.m. to 5 p.m.
Monday through Friday. You will open
Saturday, July 28th, from 9 a.m. until 12 noon
in celebration of Western Roundup Days.
 It is important that you read the
RESPONSIBILITIES section of the Operations
Manual to learn about the 15 business that
are not part of the reference book.
 Sometimes managers are forewarned in the
DAILY ACTIVITIES that other business
managers will be stopping by to conduct
business. At other times, you must refer to
your RESPONSIBILITIES.
8.2
 Audits are commonplace in business.
 Auditors examine records to make sure
proper procedures are followed.
 Banks are audited to assure the safety of
depositors’ moneys. A company may be
audited by a certified public accounting to
check the accuracy of its accounting records.
 The IRS conducts audits to ensure that
businesses are paying the correct amount of
income tax. If the IRS discovers that a
business has underreported its income, it will
assess taxes, penalties, and interest and may
bring legal charges against the owners.
 You can be held legally accountable for
falsifying financial records – even if you are
following your employer’s orders.
8.3
 Although business plan usually contain the
six essential parts listed below, there is no
one style for writing a business plan.
 During the managers’ meeting, you will
record a due date for your business plan.
 Introduction
 Description of the Business
 Marketing Plan
 Management Plan
 Financial Plan
 Appendix
 You will find business suppliers listed within
the Yellow Pages of a phone directory or on
the Internet. Vendors also advertise in trade
magazines.
 The chain of command had to do with who
gives orders.
 Delegation has to do with letting others share
the workload.
 A job description helps determine the pay
scale for a position and makes clear to the
employee the duties and responsibilities of
the job.
 Congenial  Mature
 Consistent  Patient
 Cooperative  Productive
 Dependable  Self controlled
 Enthusiastic  Tactful
 Firm but fair
 knowledgeable
 Loan officers read business plans everyday.
They may read the executive summary first
to decide if the business venture interests
them before reading the entire report. It is
crucial, then, that the executive summary and
cover letter be well written, clear, complete,
and concise.
 The concepts and skills taught in Unit 8 would
be essential for success in the following
careers.
 Accountant
 Auditor
 Business consultant
 Certified Public Accountant
 Loan Officer
8.4
 Current assets may be easily converted into cash whereas
fixed assets will be used for many years.
 Fixed assets depreciate (decrease in value) over time.
 The accounts payable are considered current liabilities
because they are paid over a short period of time.
 Loans payable are considered long-term liabilities because
they are paid over several years.
 Owner’s Equity is also known as net worth.
 Advertising  Legal and accounting fees
 Bank charges  Maintenance
 Custodial services  Miscellaneous
 Dues and subscriptions  Mortgage
 Entertainment  Payroll
 Gasoline  Rent
 Insurance  Supplies
 Internet service  Taxes
 Utilities