DECA vocab

Derivative

A financial contract between 2 or more parties, whose value is based on the performance of an asset (e.g., stocks, bonds, interest rates).

Employee Turnover

The percentage of employees that leave a company (fired or quit) over a specific period (month, year, quarter).

Data Mining

The process of finding hidden trends and valuable insights from large datasets using computer-based methods such as classification, anomaly detection, and regressions.

Acquisition Target

A business or asset that a buyer plans to purchase partially or completely.

Acquisitions

The process of a company buying other companies (e.g., Amazon buys Whole Foods).

Bond

A fixed-income debt security issued by a company (borrower) to investors (lender), where the company pays interest to the investors.

Business Litigation

The legal process of resolving disputes such as broken contracts, fraud, profit share disputes, and unauthorized use of patents/copyrights.

Legal Leveraging

The practice of using borrowed money (debt) to increase potential return on investment (ROI).

Legal Segmentation

The division of company operations or assets into distinct categories.

Legal Due Diligence

The audit process used to investigate a company's risks before finalizing an acquisition or major transaction.

Depreciation

An accounting method used to spread the cost of a physical asset over its useful life.

Direct Reports

Employees who report directly to a manager.

Indirect Reports

Employees who work two or more levels below a manager and report to a supervisor who reports to the manager.

Extend Credit

The practice of allowing a delay in loan or asset payments.

Legal Entity

An individual or company that has distinct legal rights and duties separate from its owners.

Joint Venture

A business arrangement in which two or more parties combine resources, money, or expertise to achieve a specific goal while remaining legally independent.

General Partnership

A business structure in which two or more people co-manage a business and share all profits, losses, and liabilities.

Corporation

A legal entity owned by shareholders who elect a board of directors to set long-term goals, monitor risks, and hire management teams.

Project Scope

The identification of specific goals, tasks, deliverables, and boundaries for a project.

Cash Rebate

A partial refund given to a buyer after a transaction is completed.

Cash Reconciliation

The process of checking the accuracy of financial statements to prevent fraud by comparing internal accounting records with external sources.

Monetary Policy

Strategies used by a nation's bank to manage the economy, including expansionary (loose) policies that lower interest rates to promote growth, and contractionary (tight) policies that raise interest rates to slow the economy.

Qualitative Data

Data focused on characteristics, such as customer feedback and employee reviews.

Quantitative Data

Data focused on numbers and metrics, such as statistics, profit margins, website traffic, and turnover rates.

Market Segmentation

The process of dividing a broad target market into smaller groups of consumers for easier management and personalized advertising.

Mirroring

The unconscious mimicking of someone's body language or speech.

Sales Quota

A specific measurable goal assigned to an individual sales representative or team within a time frame.

Oral Presentation

The act of bringing an idea to someone's attention through verbal communication.

Operating Cash Flow

The revenue generated from daily operations of a business.

Free Cash Flow

A measure of a company's performance calculated as operating cash flow minus capital expenditures.

Dividends

A portion of a company's revenue given to its shareholders.

Capital Expenditures

Funds spent on acquiring long-term assets such as equipment, buildings, and property.

Sovereign Immunity

The principle that a government cannot be sued in court without its permission, affecting businesses operating in foreign countries.

Eminent Domain

The legal power of the government to seize private property for public use without the owner's consent.