DECA Finance

Trademark

intangible asset that indicates the source of goods

tort

a private wrongdoing that potentially harms another person or entity

duty of care

basic principle that expects all businesses and individuals to exhibit socially responsible behavior by using caution to prevent harm by watching about one another

doctrine of sovereign immunity

universally accepted principle that each nation has the right to manage its own government and develop its own laws

debtor

the individual/ business that owes money to another individual or business

creditor

the individual/ business that loans money to another

phishing

emails from reputed companies that wants leaked personal info

pyramid scheme

one person recruits many for reward and chain

ponzi scheme

promises high rate of money return to people and cycle keeps going

pump and dump

makes stock/ product seem great so everyone buys --> appreciates; sells for high price

Roth IRA

taxed initially, tax deductible when withdrawn

Regular IRA

tax deductible when deposited, taxed when withdrawn

government, risk and compliance (GRC) software system

Functions: identifies and measures corporate risk levels, monitors risk-management system, checks if employees adhere to company wide policies, and ensures compliance with reporting requirements enforced by federal and state government agencies/ regulatory commissions

transmittal letter

a letter that accompanies important business papers that are sent by mail to let the recipient know exactly what should be contained in the package and if the recipient needs to take any action- indicates how many copies are included and if the recipient needs to sign and return a copy

acknowledgement letter

acknowledges the receipt of business papers

claim letter

requests a solution to a problem

request letter

asks for information

touch points

opportunities to connect with the consumer and reinforce their brand value

marketing

creating, communicating and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders

management

planning, organizing, directing and controlling business activities to achieve objectives

production

producing goods and services wanted by consumers

risk management

business activity that involves the planning, controlling, preventing and procedures involved in limiting business loses

matrix organizational structure

functional + divisional structure - includes traditional department, but broken down by division (product lines)

systems thinking

organizational learning concept that focuses on the big picture rather that seeing the smaller, individual parts

team learning

thinking and working together as a group

personal mastery

striving for individual learning as a means of advancing the organization

gross domestic product

final, total value of all goods and services produced within a country's geographic boundaries during a year's time

tentative agreement

stage at at which union and management have agreed on the terms of a contract but still need union members to approve/ reject the contract

ratified contract

a contract that union members have approved

financial holding company

provide a variety of financial services and related products where the Federal Reserve Board supervises their activities (sometimes accounting)

accounting firm

provides accounting, tax preparation, auditing and bookkeeping services

commodities investor

invest their funds in goods (futures) such as grains, livestock, raw materials, etc

central bank

responsible for determining interest rates, controlling the nation's money supply and regulating the banking industry (Federal Reserve)

inflation

rapid rise in prices that may occur when demand exceeds supply or when productivity decline and labor costs go up

derivatives

financial instruments whose values depend upon the value of other financial instruments or market indices -to reduce risk of investing in foreign exchange market

emerging markets

financial markets in countries with developing economies - receptive to foreign investment but more volatile and risky than financial markets in developed countries

venture capital

invested money that is used for new business opportunities- funding for new or growing businesses

no-load mutual funds

no up-front sales charges

balance sheet

gives a summary of a company's financial health at a specific point in time- 2 main sections: listing of the company's assets and a listing of the liabilities (shareholder's equity) - assets, liabilities and owner's equity

shareholder's equity

value of all the outstanding stock owned by shareholders- determined by subtracting liabilities from assets

income statement (profit and loss statement)

shows a company's profitability over a specific period of time

cash flow statement

tracks the money that comes into and flows out of a company

annual report

contains financial statements, along with a good deal of other info about the company

price-earnings ratio

(on most stock tables) determined by dividing the last closing price of the stock by the earnings per share - overvalued or overvalued?

earnings per share

tells investors how much profit goes to each share of common stock

net income

money remaining after operating expenses are subtracting from gross profit

total liabilities

the debts that the business owes such accounts payable, salaries, taxes (add for total) and long term notes such as mortgages (not cash, machinery, assets)

retained earnings

income that a corporations keeps after paying dividends to its stockholders - any forwarding balance of retained earnings from previous accounting period- amount reported on company's statement of equity (statement of retained earnings)- depreciation of assets, sales tax payable or debt aren't included

managerial accounting

focuses on capturing, maintaining and interprets the business's accounting info for internal use and any decision making- summarizes info about the businesses day to day financial activities

finanial accounting

capturing, maintaining, preparing and reporting financial info to the external audiences - prepare tax data for government and develop annual report for business stakeholders

cost allocation

assignment of cost to objects, such as a project, department or customer

vertical analysis

an individual calculates each individual item on a financial statement as a percentage of the total --> an analyst can develop common size financial statements that allow him/ her to compare performance across several years for a single company or several companies

horizontal/ trend analysis

analyzes dollar amounts on financial statements for a single company across several years - doesn't involve the development of common size financial statements

ratio analysis

calculation of ratios based on a company's financial data- compares numbers within a financial statement and determines the relationship among numbers on different financial statements - compare the performance of multiple companies

investment value

present value= [(future value)/ (1+interest rate)^number of years)]

debt modeling

allows the user to assess the potential impact of loans and lines of credit - user would input the terms of the loan or line of credit, including the interest rate, term, principle. etc

decision trees

data mining technique commonly used to classify data and build models

environmental scanning

gathering info about the environment surrounding a business, analyzing that information, and determining the future impact of the info on the business

zero-based budgeting

method of budgeting that requires a manager to demonstrate the need for every expense instead of relying on figures from a previous period

debt ratio

indicates the applicant's current level of of debt in relation to his/ her current assets

bookmarking applications

allow users to organize sites by categories by placing them into folders on a computer

intranet

internal network similar to the internet that is accessible only by authorized employees

date/ time stamp

enables a business to identify the date and time that a particular record was added to the database

validation-rules application

enables a database developer to restrict how and/or what data can be keyed in a particular database field (can perform tasks without interfering with others' work)

sort application

enables users to view only the data they need to view, such as orders placed on a particular date

record keeping

shows status of business- info about what is happening with the business (profit?)

self fulfillment

personal growth, achievement, and reaching one's full potential

corporate finance

manage policy and strategy for (and the implementation of) capital structure, budgeting, acquisition and investment, financial modeling and planning, funding, dividends and taxation

marketing communications

inform, remind, and/ or persuade the targeted audience of ideas, experiences, goods/ services, and/ or images

securities and investments industry

brokerage firms, investment banks and stock exchanges , all of which support the flow of funds from investors to companies and institutions

underwriter

responsible for calculating the risk of loss, establishing premium rates and designing policies to cover risk (usually specialize in a type of interest)

insurance agent

responsible for selling insurance policies and other financial services

accountants

responsible for preparing, analyzing and verifying a variety of financial data

financial/ securities/ investment analyst

evaluate companies and industries and make recommendations to to buy, sell or hold certain securities

corporate governance

system of rules and practices that control the company - revolves around balancing the desires of the stakeholders in a company - focuses on desires of ALL stakeholders (not concerned with competitor's desires)

company hierarchy

board of directors (govern activities of corporation and elected by corporation's shareholders); accounting manager and director of sales vice president to CEO, CEO reports to board of directors

whistleblower policy

encourages and enables employees to report unethical behaviors or actions without fear of negative repercussions such as firing or demotion

credit policy

guidline for a business to follow in controlling the use of payment plans that allow customers to purchase now and pay later

monetary policy

government policy that determines the amount of money that will be in circulation and and the level of interest rates

constituent policy

public policy that applies to the government or nation as a whole (national security, foreign affairs, diplomacy)

contingency plans

alternative course of action- states specific guidelines that a business uses when responding to undesirable circumstances

content theories

theories of motivation that focus on internal needs, drives and incentives that cause people to behave in a certain manner

enterprise risk management

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

captive insurer

aids its parent group by reducing premium expenses, freeing up capital and covering risks not commonly addressed by the greater insurance company (reduces taxes due on a company's loss reserve)

hedge fund

Investment pool where a group of investors usually invest in high risk businesses, in order to maximize capital gain. They utilize alternative investment choices like using borrowed money, or esoteric assets

partnership

A business in which 2 or more members own it

Sole Proprietorship

A business run and owned by one person

Domain computing

Logical grouping of computers

Data reconciliations

When data is transferred the new data is compared to the old data to make sure it's been transferred correctly

Selling price variance analysis

Difference between companies expected selling price and actual selling price

purchase price variance

Difference between actual price and baseline price (of materials)

Material yield variance

Difference between the actual amount of material used and the standard amount expected to be used multiplied by the standard cost of the materials

Fixed overhead variance

Difference between the amount budgeted for fixed overhead costs based on production volume and the amount that is eventually absorbed

Segregation of duties

In accounting more than one person is responsible for key functions

Upward communication

When lower level employees give feedback to higher level employees

Machine engine technology

Technology that matches suitable bids and offers to execute trades

CRM

Helps teams create successful marketing campaigns

Personalization technology

Technology that creates experiences tailored to the individual

Sales force automation

Software apps that manage sale

Globalization

Effect that increases productivity by letting goods and services travel easily across borders