DECA Business Administration Core Exam

Franchise

a contractual agreement between a

parent company and a franchisee to distribute goods and services

Corporation

a form of business ownership that is owned by stockholders who

have purchased units or shares of the company

Elastic Demand

demand that changes according to changes in price

Inelastic Demand

demand that is not affected by changes in price.

Unitary Demand

when sales remain the

same because changes in supply and demand are equal

Tort

a private wrongdoing that potentially harms another person or entity

Doctrine of Sovereign Immunity

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

its own laws.

Job Enlargement

combining different tasks into one position

Job Rotation

moving from one job to another job within an organization

Specialization by Trade

the type of work that a person performs in order to earn a living, such as engineering, public-relations, or accounting.

Frictional Unemployment

occurs because there are always workers who are in transition

Structural Unemployment

when the demand for certain types of workers declines and is often due to technology advancements and the need for new skills

Cyclical Employment

result of changes in the economic and business cycles

Wage Garnishments

court-ordered initiatives that involve taking income taken from an employee's salary and submitting it to another person or organization

Embezzlement

theft of valuables that have been entrusted to another's care

Securities Fraud

the use of misleading sales tactics to persuade investors to purchase securities

Espionage

revealing confidential information without the source or owner's permission and is often associated with spying

Variety-seeking Buying Behavior

involves the purchase of routine items

Brand-insistence Buying Behavior

buyer will not buy anything other than a specific

brand or product

Automation

involves the use of machines to carry out production tasks

Ergonomics

the study of the use of equipment or technology and

its effects on workers' physical well-being

Innovation

taking action to make the idea, item, or process available for consumers to use

Business-format Franchise

involves a close,continuous, working relationship between the franchisor and the franchisee

Customer Complaints

related to the business's policies and procedures

Consumer Products

economic goods and services that are purchased and used by the ultimate consumer

Capital Products

purchased by businesses for use in their operations

Communist Command Economy

capital for business investment is provided

by the government, which obtains it by taking the profits of businesses it owns and by levying taxes

Traditional Economy

people produce only what they must have in order to exist

Market Economy (Free Enterprise)

means of production and distribution are owned and controlled by individuals and businesses

Operating Expenses

costs of running the business

Gross Domestic Product

final market value of the total output of all goods and

services produced within a country's geographic boundaries during a year's time

Federal Reserve Banks

used by local banks to protect their banking functions; do not provide protection for local property

Tact

the ability to express your ideas and opinions so that they do not hurt or offend others

Cultural Imperialism

cultural aspects referring to the creation and maintenance of unequal relationships between civilizations favoring the more powerful civilization.

Nationalization

something whose ownership is taken over by the government

Credit

the arrangement in which businesses and individuals can purchase now and pay later.

Defamation

a tort that involves harm to an individual's or business's reputation

Monetary Gift

given without expectations of repayment

Punitive Damages

damages intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit

Contraction

businesses are affected by external factors; businesses often experience lower sales and profits

Business Cycle

the periods of expansion and contraction in economic conditions

Expansion

when the economy is strong and growing; businesses tend to make profits, expand operations, and

hire more employees

Transitional Economic System

when a country's economic system is moving from one type of economic system to another type of economic system

Secondary Dimensions of Diversity

differences that may change at various points throughout one's lifetime

Primary Dimensions of Diversity

inborn differences that cannot be changed and affect a person's entire life

Debit Card

funds are electronically transferred from the cardholder's checking or savings account to the seller's account

Corporate Bonds

bonds issued by corporations to fund operating expenses

Brokerage Bills

a fee charged by an agent, or agent's company to facilitate transactions between buyers and sellers

Gross Pay

total income earned for the pay period before income taxes and other deductions are subtracted from the wages

Net Pay

the amount of money that the worker receives after

the taxes and other deductions have been subtracted from his/her wages

Overtime Income

the amount of money that an hourly worker earns for working more hours than s/he is normally

scheduled to work

General Endorsement

allows the endorser to cash the check or deposit it into the account of his/her choice

Capital Gains

taxes on earnings from the appreciation of an

investment

Rebate

a part of the price that a customer pays for a good or service, which is usually offered by the product's

manufacturer

Stop Words

commonly used words that do not always add meaning to the primary search terms

Logistics

the function of operations that manages the flow of goods and services from production to consumption

Malware

an illegal computer program that is used to disrupt computer processes, destroy computer programs, and access confidential business information

Shareware

type of computer program in which computer users can sign up for the software on a trial basis. After the

trial expires, the computer user can purchase and register the program, if desired

Position Innovation

when an existing product is repositioned

Process Innovation

changing the way that a product is produced or delivered

Distributed Innovation

a decentralized model used for problem solving

Conceptual Skills

ability to see the "big picture" and think about how things will work together

Moderate Input

decision maker asks for some help before deciding

Payroll Records

information about money paid to employees in a given period

Web Ring

a series of linked web pages that share a common theme.

Channel Management

responsible for identifying, selecting, monitoring, and evaluating sales channels

Channels of Distribution

sales channels

Product/Service Management

obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities

Promotion

communicate information about goods, services, images, and/or ideas to achieve a desired outcome

Rolling Budget

continuous budget

Zero-Based Budgeting

requires managers to demonstrate the need for every expense instead of relying on figures from a previous period

Working Capital

the difference between a business's current assets and current liabilities

Capital Investment Decisions

which projects the business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to the company's shareholders

Capital Structure

mix of debt and equity financing used to finance investments and projects

Market Risk

risk of financial loss due to the decreased

value of an investment

Market Risk Management

using financial instruments to manage exposure to market risk

Accrual Accounting Method

journalize income and expenditures at the time

they occur even if no money changes hands at that time

Cash Accounting Method

record income and expenditures at the time the money changes hands

Managerial Accounting

reporting financial data to internal users

Tax Accounting

recording transactions for tax purposes

Churning

broker may encourage you to make excessive trades just to collect the commission fees from each one

Skimming

price strategy that involves setting prices higher than those of the competition

Bundling

marketing strategy that involves offering several products for sale as one combined product

Flighting Strategy

media timing strategy that concentrates advertising during peak sales periods followed by periods of no advertising

Transfer Payments

monies paid by the government in which no goods

or services are received in exchange

Floating Exchange-Rate System

value of a nation's currency fluctuates

Law of Economies of Scale

economic concept that the average cost of production decreases as a business expands

Picketing

form of protest that involves positioning union members (pickets) near a business's entrance during a conflict or strike

Injunction

court order that forbids people from carrying out certain activities

Lockout

management refuses to allow union members to work

Direct Distribution

channel of distribution in which goods and services move directly from the producer to the consumer or industrial user

Indirect Distribution

channel of distribution in which goods and services move from the producer to the channel members and then to consumers or industrial users

Slack Resources

resources that go above and beyond what is needed to run the business

Competitive Aggression

striving to win scarce customer dollars

Organizational Learning

strategy that seeks to strengthen an organization by bringing employees together as well as by empowering them as individuals

Operations Management

process of planning, controlling, and monitoring the day-to-day activities required for continued business functioning

Information Management

process of accessing, processing, maintaining,

evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business decision

making

Touch Points

all of the opportunities that a company has to connect with its customers and reinforce its brand value

Brand Promise

company's agreement, spoken or unspoken, with customers that it will consistently meet their expectations and deliver on its brand characteristics and values

Statute

a law