DECA Principles of Finance

common law

laws made by judges in a judicial case rather than written by a legislature ; developed over time by precedent

glossary

end of a book that has important terms

company policies

list of general rules for within a company

company procedures

actions to take in specific events in a company

empathy

the ability to imagine yourself in another persons place

customer inquiry

request from a customer for info or a question/ask for assistance

active listening

focusing on a speaker deeply and interacting to understand a speaker completely

passive listening

hearing instead of listening; not focusing completely on speaker, not retaining all info

business inquiry

request for information from a business to another or from a customer to a business

wordy

having a lot or too much words

trite

overused, lacking originality

full-block format business letter

formal letter with all text aligned to the left; no indents, double spacing between paragraphs and sections and single spacing inside paragraphs. senders name and address top, date below, recipient name and address below, salutation, body, closing, signature

business letter

formal professional letter between businesses/customers

cliche

overused phrase lacking originality

memo

short letter inside an organization

conformity

abiding by rules or standards/policies/ethics

customer service mindset

mindset that focuses on making customers happy

disagreeable customer

challenging customer that doesnt agree with the company

suspicious customer

customer that is doubtful in a company, bc of potential scam, etc.

dishonest customer

customer that tries to lie to a buisiness to scam a business or benefit tthemselves

indecisive customer

customer who finds it hard to choose a purchase and takes a while to make a purchasing decision

touchpointst

interactions between customer and a company, wiht the companys goal to increase customer satisfaction with the company

presale touchpoint

interaction between business and customers before sale; advertising or promoting of a business

during sale touchpoint

interaction between business and customer during a purchase to convince the customer that they are making the right buying deciison

post-sale touchpoint

interaction between business and customer after the sale, in which businesses seek to enforce customer trust/satisfaction in the company or resolve any problems a customer has with a product, or gather feedback

distribution

how products/wealth is distrubuted among people in economic acitivty

production

the making of products from raw materials and labor into goods and services in econ activity

exchange

trading of wealth/goods and services between companies/individuals in econ activity

consumption

the use of goods/services to meet human needs and wants; final stage of econ activity and the goal of all econ activity

market economy

economic system in which private businesses compete; an economy driven by supply and demeand and competition with minimum gov control

communist command economy

econ system in which gov controls all asspects of the econ, lack of competition, prices and distributions of resources completely controlled by gov, no private ownership

personnel office/department or human resources (HR)

part of a business that focuses on hiring and the well-being of employees

avoiding risk

not engaging in an activity to completely rid of risk

preventing risk

implementing measures to reduce chance/effect of negative events

transferring risk

moving risk from one person/organization to another to benefit one

retaining risk

keeping risk by not assessing/managing it or taking measures to reduce/prevent it

indirect competition

rivalry among businesses offering diff products or goods/services, but trying to satisfy the same customer need

direct competition

rivalry among businesses serving the same goods or services

transparent person

person who doesnt hide their feelings/emotions

affirmations

positive statments intended to boost morale or lower negativity; promote positivity

self-esteem

ones evaluation of themself, their worth, and their capabilities

tact

a person being able to say or do things without offending or making other upset

systematic behavior

doing things in an organized, orderly, systematic manner

routine/everyday decision

deciison in which minimum thought is made for something that occurs often

extensive decision

complex decision that takes much thought to make and doesnt occur often

limited decision

decision that takes some thought but not extensive, doesnt occur very frequently but not as rare as extensive decision; in between routine and extensive

senseless

foolish or unreasonable (of a decision/act)

constructive criticism

criticism that has the goal of improving somethijng in a specific area

liability

being responsible/liable fo rsomethign (a bad thing usually)

animated conversation

lively active conversation

animated response

enthusiastic/lively response/reaction

assertiveness

ability to express and communicate oneself whilre respecting others, not being too passive or aggressive, respecting boundaries and standing up for ones beliefs or principles

passiveness

yielding to the will of others wihtout expressing fight or initiative

defensiveness

attitude of constantly expectingt o be attacked; a protective behaviror to protect esteem and avoid vulnerability (usually defenses that cuase harm in other ways) -- negative trait

aggresiveness

hostility/forcefullness to achieve ones goal or get what one wants

quality circle

a group of people in a similar field meeting regularly to solve a problem in a company or discuss issues

dividend

income that a company gives to its shareholders (stockholders) every now and then if the company is performing well

contract

legal agreement that can outline rules, boundaries, responsibilities, rights, etc. in which one party does something for something in return from another party

bonds

type of investment that is a loan from investors to a company in which the company repays later on a specific date with additional fixed interest paid over time

currency

money that a country uses to excahnge goods/services; coins, paper money, etc.

Fair Credit Reporting Act (FCRA)

law that regulates the use of customer credit info, granting consumer rights like the right to inspect their report and dispute errors

credit reporting agencies (CRAs)/credit bureaus/ consumer reporting agencies

companies that compile financial info to develop credit reports

creditworthiness

evaluation of a debtors ability to repay credit to determine whether the debtor is worthy of being granted credit by a creditor

creditor

one that provides credit to a debtor; the person who is owed money by debtor

debtor

one that receives credit by a creditor; the person who owes money to the creditor

credit

the idea of borrowing money and paying it back later, usually with interest

judicial lien

legal claim to a property by a seller if the buyer doesnt fulfill their payments; the lender is able to obtain the debtors assets/collateral

liquidation

conversion (of assets) into cash or money

bankruptcy

process that helps those who cannot repay their debts gain a "fresh start"; relief of debt through asset liquidation or making of an achievable repayment plan

defamation

writing/saying something that damages ones reputation

defamation claim

lawsuit against a false statement that damages ones reputation; lawsuit against defamation

excise tax

targeted taxes applied to specific goods that use a flat rate and is included in a good's price (invisible) rather than separately (sales tax is separate), often imposed to decrease consumption of something (alcohol, tobacco, fuel, etc.)

estate tax

tax imposed on the transfer of asssets from a deceased to a beneficiary

capital gains tax

tax charged on profits made from sale of asset like stock or real estate

sales tax

broad tax on goods that is percentage based on most goods/services included separately at the point of sale

reconciling bank statemnet/balancing an account

comparing entries in a checkbook to entries on a bank statement

monthly payment schedule

plan to organize how much and whent o pay monthly payments like mortgage, bills, etc.

social security

federal insuranfe prgoram that provides financila security to retirees, the disbaled, or family members aftera worker dies

annual percentgae rate (APR)

interest rate charged if a balnace is not paid in full on a credit card each month plus other fees like processing/transaction fees

annual fees

fees on a credit card for the ability to use the card

the cost of credit

apr, annual rate, late fees; all costs of borrowing money

investment bank

issues securities (stocks/bonds) for large corporations and facilitates merging and aquisitions

mortgage company

provides loans to people to prucahse real estae (provides mortgagges)

savings and loan bank

offers savings accounts and providing loans, usulaly for real estate

commercial bank

for profit institution that offers savings/checking/credit cards and loans to public

credit union

not for profit, member owned institution that provides same services as commercial banks but usually more benefits due to being available only to members. membership restricted to those w/ a common bond

investnment brokers

facilitates buying and selling of securities on behalf of a client; intermediary between clients and the stock market

brokerage company

intermediary between buyres and sellers to facilitate a transaction (like securities, real estate, etc.) in return for a commission/fee

cash method of accounting

method of accounting that records revenue when cash is received and expenses when cash is paid; simple method of accouting usually for small businesses

accrual method of accounting

method of accounting that records revenues when earned and expenses when incurred, regardless of when cash is received/paid. used by busiensses that carry inventory or make sales on credit

matching principle of accounting

says that expenses should be recorded in the same accounting period as the revenues they helped generate to provide a better view on profitability. used in the accrual method

GAAP (general accepted accounting principles)

set of standards that companies must follow when preparing financial statements (accounting)

International Financial Reporting Standards (IFRS)

set of accountign rules to standardize financila reports and provide comparability/consistency

COD (cash on delivery) method of payment

method of payment in which the customer pays for a purchase only when it is delivered (usuallly cash)che

stock

share of ownership/shareholding in a company

capital gain

profit made from selling an asset for higher than its og price (stocks, real estaet, property, etc.)

capital appreciation

increase in value of an asset; growht in an assets price. 120 bought and 150 later value: it is 30

capital depreciation

decrease in value of an asset; decrease in an assets price. 120 bought and 60 later value: it is 60

strategic management (company)

the process of planning, executing, and evaluating a company's resources to achieve its long-term goals and objectives

financial analysis (company)

the process of evaluating a company's performance and financial health by examining its financial data to make informed decisions about its future