DECA Hospitality & Tourism Vocab Study Guide

What is a Sole Proprietorship?

A business owned by one individual.

What defines a General Partnership?

A business owned by two or more people who share profits and liabilities.

What is a Limited Partnership?

A partnership with at least one general partner and one limited partner.

What is a Corporation?

A legal entity separate from its owners.

What is a Franchise?

An agreement allowing use of a company’s name and system.

What does Liability refer to in business terms?

Legal responsibility for debts.

What is a Contract?

A legally enforceable agreement.

What is Revenue in a business context?

Income from sales.

What are Expenses?

Costs incurred in operating a business.

What is Profit?

Revenue minus expenses.

What are Fixed Costs?

Expenses that remain constant.

What are Variable Costs?

Expenses that vary with sales volume.

What does Break-Even Point mean?

The sales level where total revenue equals total costs.

What is Cash Flow?

Movement of money in and out of a business.

What is Return on Investment (ROI)?

Profit relative to investment cost.

What is a Product in marketing vocabulary?

A good or service offered to satisfy a need.

What is Product Utility?

Ability of a product to satisfy consumer wants.

What does Form Utility refer to?

Value created by changing the form of a product.

What is Time Utility?

Value created by making a product available when needed.

What is Place Utility?

Value created by making a product available where needed.

What is Possession Utility?

Value created by enabling ownership.

What is a Target Market?

A specific group of consumers.

What is Market Segmentation?

Dividing a market into groups with similar traits.

What defines a Brand?

A name, symbol, or design identifying a product.

What is Brand Loyalty?

Consistent purchasing of a specific brand.

What is Occupancy Rate in hospitality?

Percentage of rooms sold.

What is Average Daily Rate (ADR)?

Average room revenue per room sold.

What does Revenue per Available Room (RevPAR) represent?

ADR multiplied by occupancy rate.

What is Yield Management?

Adjusting prices based on demand.

What is Seasonality in tourism?

Fluctuation in demand by time of year.

What is Capacity in a hospitality context?

Maximum number of guests that can be served.

What does Overbooking mean?

Accepting more reservations than capacity.

What is Service Quality?

Degree to which service meets expectations.

What is Management in a business context?

Planning, organizing, leading, and controlling.

What does Span of Control refer to?

Number of employees supervised by a manager.

What is Delegation?

Assigning responsibility to others.

What does Training entail in HR?

Teaching employees job skills.

What is Motivation in the workplace?

Factors that stimulate employees to perform.

What does Turnover mean?

Rate at which employees leave a company.

What is SWOT Analysis?

Evaluation of strengths, weaknesses, opportunities, and threats.

What is Competitive Advantage?

Feature that gives a business an edge.

What does Risk refer to in business terms?

Chance of loss or failure.

What is Feasibility in a business plan context?

Likelihood a plan will succeed.

What does Benchmarking involve?

Comparing performance to industry standards.