1. What financial measurements should be prepared to measure company performance?

There are three main financial documents that need to be prepared to measure the economically performance of your company:

1. The balance sheet
2. The income statement; and
3. The statement of cash flows

2. What are the categories and steps in preparing a financial budget?

1. Prepare Financial Projections
   1. Measuring sales volume
   2. Measuring profits
   3. Measuring cash generated

2. Preparing An Annual 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. Earnings before interest expenses, interest income, and income taxes (EBIT)
   11. Earning before interest expense, interest income, income taxes, and amortization (EBITDA)

3. Preparing A Cash Flow Forecast
   1. Consider cash flow revenues
   2. Consider cash flow disbursements
   3. Reconcile the revenues and disbursements

3. Describe the breakeven technique in the decision-making model to determinate profit and loss.

 The break-even point is the point where the business’s sales have generated enough income to cover all of its fixed costs and expenses. At that point, all of the business’s incoming revenue is profit as long as the expenses and costs are not increased and the sales amounts are not reduced. To use this technique you only need to know the fixed costs of operations, variable costs of production, and price per unit.

The break-even point identifies the total amount of sales the business needs before profit can be earned. When analyzed closely, the break-even analysis also helps the business to identify excessive fixed costs. Since the break-even point is directly related to the fixed costs, reducing and controlling these costs aids the business in achieving a lower break-even point for quicker profitability.

4. Why is building a corporate culture to match a company’s mission important?

Every organization, from small businesses to large corporations, has a culture. The culture refers to the values and attitudes of employees in the business or organization. In a business with an unhealthy culture, employees act as individuals, performing their duties to meet their own needs, such as a paycheck or health benefits. A healthy corporate culture values each employee in the organization regardless of his job duties, which results in employees working as a team to meet the company’s and their own personal needs. Healthy corporate culture improves the performance of a business in a number of areas.

Your company culture defines the way in which your organization interacts with one another and how the team interacts with the outside world, specifically your partners and suppliers. It’s the formula that guides the team, as well as inspires and motivates employees. It is also responsible for attracting and attaining great talent, as well as creating a fun, happy and exciting work environment.

A great company culture also attracts a great partner, which, in turn, creates great success. People will want to do business with you because of what you believe in and stand for, rather than solely on your products alone.

5. Select six leadership attributes that you feel are the most important when building a strong culture. Why?

1. Honesty – Whatever ethical plane you hold yourself to, when you are responsible for a team of people, its important to raise the bar even higher. Your business and its employees are a reflection of yourself, and if you make honest and ethical behavior a key value, your team will follow suit.
2. Organized – Are you prepared for meetings, presentations, events and confident that people around you are prepared and organized as well? You are a reflection of your company, and your employees see and evaluate you as much, if not even more, as you do them. Be organized.
3. Evaluative – Evaluation of events and programs is essential for an organization/group to improve and progress. An exceptional leader will constantly evaluate and change programs and policies that are not working.
4. Respectful – Treating others with respect will ultimately earn respect.
5. Well Educated – Knowledge is power. Work to be well educated on community policies, procedures, organizational norms, etc. Further, your knowledge of issues and information will only increase your success in leading others.
6. Communicative – Being able to clearly and succinctly describe what you want done is extremely important. If you can’t relate your vision to your team, you won’t all be working towards the same goal.

6. Name three important factors that you must take into account when hiring key people.

1. Work experience – Work experience might be one of the most important considerations you have for key jobs at your company.
2. Skills set – The specific skills set of potential key employees is a critical factor that can often determine who you hire and who you do not.
3. Confidence – An applicant who approaches you with a confident attitude makes a good first impression. This is also probably the way this person will approach your clients. An applicant who exudes self-confidence believes in him-/herself. (S)he will believe (s)he can handle the job and exceed expectations. Self-belief is important for facing and succeeding in challenges. Your workplace will benefit from the hiring of individuals who are confident they can learn and perform as needed.