Table of Contents

Section 1: Getting Started. 1

Learning Objectives: 1

Introduction. 1

Buying an Existing Business. 3

Determining How Much to Pay for the Business. 4

Get Started. 6

Business Location. 7

Developing a Business Plan. 10

Components of the Business Plan. 12

Section 1 Review Questions. 17

Section 2: Debt and Equity Financing. 18

Learning Objectives: 18

Financing Options and Strategies for the Small Business. 18

Debt Financing. 21

Establishing Good Business Credit Rating. 24

Small Business Administration. 24

Equity Financing. 26

Leasing Instead of Purchasing. 28

Section 2 Review Questions. 31

Section 3: Managing Financial Assets. 32

Learning Objectives: 32

Working Capital 32

Cash Management 33

Inventory Management and Control 34

Credit and Collection Policy. 37

Section 3 Review Questions. 40

Section 4: Legal Considerations. 41

Learning Objectives: 41

Deciding upon a Legal Structure for the Business. 41

Legal Contracts. 45

Business Licenses. 46

Obtaining a Patent, Trademark, or Copyright 46

Protecting Against Criminal Acts. 47

Section 4 Review Questions. 50

Section 5: Accounting, Cost, and Financial Analysis. 51

Learning Objectives: 51

Internal Controls. 51

Accounting Records. 53

Financial Statements. 55

Financial Statement Analysis. 57

Budgeting. 59

Costs of a Business. 61

Cost Analysis. 64

Are You Breakeven?. 65

Choosing the Fiscal Year. 68

Section 5 Review Questions. 69

Section 6: Taxes. 71

Learning Objectives: 71

Individual and Partnership Taxes. 71

Corporate Taxes. 72

Subchapter S Corporation and Limited Liability Corporation. 73

Payroll Recordkeeping and Taxes. 74

Sales and Excise Taxes and Tax on Small-Business Equipment 75

Section 6 Review Questions. 77

Section 7: Marketing. 78

Learning Objectives: 78

Marketing Research and Planning. 78

Product Introduction. 80

Advertising, Internet Marketing, Networking and Social Media Marketing. 81

Sales Force. 84

Pricing. 85

Packaging. 88

Trade Shows. 88

Section 7 Review Questions. 89

Section 8: Operations. 90

Learning Objectives: 90

Managing the Business. 90

Insurance. 92

Important Records. 96

Computerizing the Small Business. 97

Section 8 Review Questions. 100

Section 9: Managing Human Resources. 101

Learning Objectives: 101

The Recruitment Process. 101

Management of Employees. 102

Contracting Out Services. 103

Section 9 Review Questions. 105

Section 10: Types of Businesses. 106

Learning Objectives: 106

Opening a Franchise. 106

Service Business. 108

The Retail Store Business. 108

The Wholesale Business. 109

Mail-Order and Online Businesses. 110

Other Information Sources. 112

Questions and Answers Before Starting a Business. 114

Section 10 Review Questions. 118

Review Question Answers. 119

Appendix. 146

Internet Information Resources. 146

Where to Get Marketing Help. 146

Glossary. 150

Index. 158

CPE Exam Answer Sheet 159

Final Examination. 161

CPASelfstudy.com Course Evaluation. 168