Core DECA

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.

Frictional Unemployment

Occurs because there are always workers who are in transition.

Structural Unemployment

When the demand for certain types of workers declines, often due to technology advancements.

Cyclical Employment

Result of changes in the economic and business cycles.

Wage Garnishments

Court-ordered initiatives that involve taking income from an employee's salary.

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.

Variety-seeking Buying Behavior

Involves the purchase of routine items.

Brand-insistence Buying Behavior

A 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.

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.

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 similar conduct.

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.

Transitional Economic System

When a country's economic system is moving from one type to another.

Secondary Dimensions of Diversity

Differences that may change throughout one's lifetime.

Primary Dimensions of Diversity

Inborn differences that cannot be changed.

Debit Card

Funds are electronically transferred from the cardholder's account to the seller's account.

Corporate Bonds

Bonds issued by corporations to fund operating expenses.

Brokerage Bills

A fee charged by an agent to facilitate transactions between buyers and sellers.

Gross Pay

Total income earned for the pay period before deductions.

Net Pay

The amount of money that the worker receives after taxes and deductions.

Overtime Income

Amount earned for working more hours than normally scheduled.

General Endorsement

Allows the endorser to cash the check or deposit it into their account.

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.

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 from production to consumption.

Malware

An illegal computer program used to disrupt processes, destroy programs, and access confidential information.

Shareware

Type of computer program that users can sign up for on a trial basis.

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, and evaluating sales channels.

Channels of Distribution

Sales channels.

Product/Service Management

Obtaining, developing, maintaining, and improving a product or service mix.

Promotion

Communicate information about goods, services, and/or ideas.

Rolling Budget

Continuous budget.

Zero-Based Budgeting

Requires managers to demonstrate the need for every expense.

Working Capital

The difference between a business's current assets and current liabilities.

Capital Investment Decisions

Determining which projects to invest in and how to finance them.

Capital Structure

Mix of debt and equity financing used to finance investments.

Market Risk

Risk of financial loss due to 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.

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 excessive trades just to collect commission fees.

Skimming

Pricing strategy that involves setting higher prices than the competition.

Bundling

Marketing strategy that involves offering several products as one combined product.

Flighting Strategy

Media timing strategy that concentrates advertising during peak sales periods.

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 average cost of production decreases as a business expands.

Picketing

Form of protest positioning union members near a business's entrance during a conflict.

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 move directly from producer to consumer.

Indirect Distribution

Channel of distribution in which goods move from producer to channel members and then to consumers.

Slack Resources

Resources that exceed 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 empowering employees.

Operations Management

Process of planning, controlling, and monitoring day-to-day business activities.

Information Management

Process of accessing, processing, maintaining, and disseminating data.

Touch Points

All opportunities a company has to connect with its customers.

Brand Promise

Company's agreement with customers to meet their expectations.

Statute

A law.