DECA Finance Cluster Vocab

Intangible Business Property

A type of property that has no tangible value. The value of the property is related to the rights that it provides and is legally protected. Intangible personal property includes goodwill, copyrights, trademark, stocks, etc.

Tort Law

a civil wrong that unfairly causes someone else to suffer loss or harm resulting in legal liability for the person who commits the tortious act, called a tortfeasor.

Voluntary Debtor-Creditor Relationship

the world's economy is dependent on billions of debtor-creditor relationships. At every level, goods and services are provided in exchange for a promise, explicit or implicit, to pay for those goods and services. Almost every individual and business in America either owes money or is owed money, or both.

Roth IRA

an individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.

Compliance

the action or fact of complying with a wish or command.

Reinforcing Service Orientation

a design paradigm for computer software in the form of services. ... Applying service-orientation results in units of software partitioned into discrete, autonomous, and network-accessible units, each designed to solve an individual concern.

Change in Relative Price Ratio

the price of a commodity such as a good or service in terms of another; i.e., the ratio of two prices. A relative price may be expressed in terms of a ratio between any two prices or the ratio between the price of one particular good and a weighted average of all other goods available in the market.

Matrix Organizational Structure

company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships - generally to both a functional manager and a product manager.

Tentative Agreement

reached in collective bargaining negotiations between the University and the exclusive representative for a group of employees (aka union), it is called a Tentative Agreement or T.A. because it is not put into effect until each side has ratified (or voted to approve) it.

GDP Growth

Real Economic Growth Rate is the rate at which a nation's Gross Domestic product (GDP) changes/grows from one year to another. GDP is the market value of all the goods and services produced in a country in a particular time period.

Securities

certificate or other financial instrument that has monetary value and can be traded. Securities are generally classified as either equity securities, such as stocks and debt securities, such as bonds and debentures.

Securities Underwriting

refers to the process by which investment banks raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt capital). The services of an underwriter are typically used during a public offering in a primary market.

Equity

method of raising capital by selling company stock to investors. In return for the investment, the shareholders receive ownership interests in the company.

52 Week High and Low

the highest and lowest price that a stock has traded at during the previous year. Many traders and investors view the 52-week high or low as an important factor in determining a stock's current value and predicting future price movement.

Horizontal Analysis

or trend analysis, is a procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period of time.

Vertical Analysis

method of financial statement analysis in which each entry for each of the three major categories of accounts, or assets, liabilities and equities, in a balance sheet is represented as a proportion of the total account.

Managerial Accounting

process of identifying, measuring, analyzing, interpreting and communicating information for the pursuit of an organization's goals. This branch of accounting is also known as cost accounting.

Business Balancing Sheet

a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders.

HR Management

Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work.

Post-Implementation Review

an assessment and review of the completed working solution. It will be performed after a period of live running, some time after the project is completed.

Trade Associations

also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific industry. ... Many associations are non-profit organizations governed by bylaws and directed by officers who are also members.

Captive Insurance

generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits.

Enterprise Risk Management (ERM)

the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effects of risk on an organization's capital and earnings.

Capital Expenditures

money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment

Capital Market

the part of a financial system concerned with raising capital by dealing in shares, bonds, and other long-term investments

Economies of Scale

a proportionate saving in costs gained by an increased level of production.

Financial Ratio

or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.

Gross Revenue

total revenue received before any deductions or allowances, as for rent, cost of goods sold, taxes, etc. Expand. Also called gross revenue.

Securities and Exchange Commission

(SEC) is a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception. The SEC consists of five commissioners who serve staggered five-year terms.