DECA ETDM TERMS

Libel

making false statements that harm an individual's reputation

Misrepresentation

making unrealistic claims about products

Libel

making false statements that harm an individual's reputation

Misrepresentation

making unrealistic claims about products

Negligence

health hazards in a business setting

Incompetence

not having the skills or abilities necessary to perform satisfactorily

Genuineness of assent

all parties know what they are agreeing to

Consideration

the agreement must include something of value that both parties bargain for

Capacity

having the mental and cognitive ability to make and understand the agreement and the consequences of their actions

Legality of purpose

the agreement must not violate any laws

Joint venture

arrangement that involves two or more businesses entering into a relationship by combining complementary resources

Partnership

the profits are divided among the partners who sometimes disagree as to how profits should be divided

Corporation

the profits are divided among the stockholders

Sole proprietorship

A person who owns the business and is personally responsible for its debts.

Estate tax

collected from a person's estate upon his/her death

Income tax

what business withholds from its employees' wages

Sales tax

charged on sales of certain goods and services by state and/or local governments

Corporate tax

paid by corporations rather than customers

Channels must be __________ to be effective

properly managed

Channel intermediaries can be responsible for __________

marketing functions such as buying, selling, pricing, marking, storing, packaging, promoting, and financing

Human resources activities include __________

recruiting workers for the business, training employees, and monitoring union activities

Well written proposals include __________

specific benefits

Each group of stakeholders has __________

different needs and expectations

Lower tariffs

a global trend that might encourage an entrepreneur to consider international business opportunities

Trademark protection for the __________

company's logo

Private equity

Investment in shares outside a stock exchange

Collateral savings

Collateral is a property or other asset that a borrower offers as a way for a lender to secure the loan

Trade credit

credit extended by one trader to another for the purchase of goods and services

Proximity

nearness in place, time, order, occurrence, or relation.

Feasibility

capable of being done, effected, or accomplished

Financial staments list ________

assets, liabilities, and owner's equity,

Income statement is close to the company's __________

balance sheet

Financial picture describes a business's __________

income statement

Managerial accounting

focused on providing financial information for internal organizational use

Financial accounting

information is used outside of the organization

Marginal analysis compares marginal cost and marginal revenue to determine _________

the amount of output that produces the greatest - profit-maximizing quantity of output

Sales force composite

a sales forecasting technique that creates accurate forecasts for individual products

Commission

a percentage of the total sale amount paid to the individual who makes the sale - it's part of their salary

Fundamental analysis

involves studying all aspects of a company in an effort to understand its intrinsic value

Vertical analysis

used to show the relationship of each component to the total within a single financial statement

Horizontal analysis

is a comparison of the same items on a company's

financial statements for two or more periods

Horizontal analysis

is a comparison of the same items on a company's financial statements for two or more periods

A tagline is a __________

company's slogan

A vision is the future a __________

business desires to create

A mission statement is a __________

brief summary of what a business owner wants to be doing

Companies often have to invest time and money to comply with __________

tax standards, environmental regulations,

employee protection laws, and many other government guidelines

IPO (initial public offering) process means that the business owner is __________

selling stock to the public and giving up

control of some or all of the business

Businesses screen applicants for open positions by using computer software that __________

scans the application or résumé and searches for key words

Careful selection of employees can save money through __________

reduced costs associated with hiring and training and through increased levels of productivity

An advantage of training staff is that it __________

tends to increase employee satisfaction.

Marketing-information management

involves gathering, accessing, synthesizing,

evaluating, and disseminating information for use in making business decisions

Product/Service management

involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities.

A lack of management depth is a __________

potential weakness that a manager might identify

The length of time that businesses use and store their records can __________

vary greatly

An environmental scan provides information that __________

helps the business make decisions, such as whether it should expand into other markets.

Because operations managers control so much of a business's money, they must __________

focus on keeping costs low

Purchasing

a business function which involves the planning and procedures necessary to obtain goods and services for use in the business or for resale

Businesses must have __________

efficient production in order to be competitive

It is important for a business's management team to __________

monitor all aspects of the business so it can maintain or exceed the quality level that its customers expect.

Operating expenses include __________

variable and fixed expenses

Variable expenses may be __________

different from month to month, e.g., payroll and supplies.

Fixed expenses remain the __________

same for an extended period of time, e.g., mortgage or rent

Liability

a debt owed either short-term (due in the current fiscal year) or long-term.

A business needs to __________

estimate sales before it can budget for expenses.

Net profit

money remaining after operating expenses are subtracted from gross profit, which is the money left after the costs of goods expense is subtracted from total income.

In the final stage of supply chain management, customers may__________

return defective products

Business process thinking is customer focused and meant to __________

help a company work more efficiently and achieve goals

When bottlenecks in business processes develop, an effective manager would __________

most likely redesign the business processes to eliminate the bottlenecks

Competition is one of the main external factors that may cause a firm to change its __________

businesses processes.

Supply chain management is a career area in which employees __________

supervise the complete process of getting products into the marketplace

Corporate governance creates a __________

more transparent business environment

A board of directors is __________

elected by stockholders

Performance standards should be __________

measurable

Oligopolistic market

market in which there are relatively few sellers, and industry leaders usually determine prices

Monopoly

there is only one seller or provider of a good or service, and no substitutes are readily available.

Monopolistic competitive market

there are many buyers and sellers and a range of prices, rather than a single market price

Pure competition

many buyers and sellers of nearly identical products, and marketers have very little control over pricing.

Grassroots marketing involves __________

relying on a group of customers to spread a company's marketing message

Cause marketing occurs when __________

a company partners with a nonprofit or charity in a

way that benefits both organizations

Independent sales consultants could earn bonuses, prizes, and vacations. This is an example of a company using __________

push money as a sales incentive

Sweepstakes involve __________

games of chance in which

customers win prizes.

A comfortable waiting room with good magazines is an example of a __________

service provider having

quality tangibles (capable of being touched)

Risks help businesses __________

determine objectives.

A risk inventory is a __________

listing of an organization's entire critical enterprise-wide risks.

A risk assessment is a __________

tool used in risk management

Enterprise risk management allows a company to ___________ the risk in every level of an organization

plan, organize, lead, and control

A risk control is a __________

tactic to mitigate a perceived risk.

To maintain or increase market share is set by __________

top management

Businesses can change its marketing mix (price, place, product, promotion) to __________

reflect any shifts in the environment

The market analysis requires __________

considerable time and external research

Calculate sales-to-receivables ratio by __________

divide sales by account receivables

The change management approach ensures __________

that changes are implemented in the best possible way and that those changes will lead to long-term benefits.