Managing Resources-Money and People

9 important questions on Managing Resources-Money and People

What is Burn Rate and Runway?

The rate at which a new company uses up its cash to finance overhead before generating positive cash flow from operations.

What are the methods to measuring Financial Performance?

  • Measuring sales volume
  • Measuring profits
  • Measuring cash generated

What are the categories in a Standard Budget?

  1. Sales
  2. Cost of Goods sold
  3. Gross Profit 
  4. Operating Expenses
  5. Operating Profit/Loss
  6. Other Income and Expenses
  7. Pretax Income
  8. Income Taxes
  9. Net Income
  10. EBIT
  11. EBITDA
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How to make a Cash Flow Forecast?

Step 1: Consider Cash Flow Revenues
Step 2: Consider Cash Flow Disbursements
Step 3: Reconcile the Revenues and Disbursements

What are the Leadership Attributes?

  • Honesty
  • Alignment
  • Risk
  • Teams
  • Empowerment
  • Freedom 
  • Support 
  • Engagement
  • Stimuli
  • Communication

What are the Legal Agreements?

  • Employment agreement
  • Consulting agreement
  • Separation agreement
  • Sales and Marketing agreement
  • Confidentiality agreement

What are the three Principles to Resolve Ethical Dillemmas?

  1. The Gut-Feel test
  2. Analysis of Conflict
  3. Full Disclosure

What is Incentive Stock option?

A type of stock that qualifies for preferential tax treatment provided that the option holder holds the stock for one year.

What is Nonqualified Stock option? 

An option that does not receive preferential tax treatment and is considered the equivalent of cash compensation.

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