DECA Business Admin Terms

Self-Awarness

The conscious knowledge of one's own character, feelings, motives, and desires. It plays a crucial role in personal development and emotional intelligence.

Emotional Regulation

The ability to manage and respond to one's emotions in a healthy way. This skill is essential for maintaining mental well-being and fostering positive relationships.

Ethical Decision-making

The cognitive process of evaluating and choosing among alternatives based on ethical principles and values. It involves assessing the moral implications of decisions and actions.

Empathy and Cultural Sensetivity

The capacity to understand and share the feelings of others while being aware of cultural differences and their impact on individuals' experiences. This skill fosters respectful interactions and helps build inclusive environments.

Johari Window

A model used to understand self-awareness and interpersonal relationships by illustrating the relationship between self-disclosure and feedback from others.

Attribution Theory

explains how people interpret the causes of behavior and events, classifying them as internal (dispositional) or external (situational) factors

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Moral Disegagemnet

process by which people justify or rationalize immoral behavior, absolving themselves of responsibility and guilt. It allows individuals to engage in unethical actions without feeling that they have violated their moral codes.

Transactional Leadership

A leadership style that focuses on the exchanges that occur between leaders and their followers. Leaders provide clear instructions and rewards for compliance, and may use penalties for non-compliance. This approach is effective in structured environments but may not foster innovation or creativity.

Transformational Leadership

A leadership style that inspires and motivates followers to achieve exceptional outcomes and, in the process, develop their own leadership capacity. Transformational leaders focus on creating a vision, fostering an environment of collaboration and providing support to help followers achieve their personal and professional goals.

BATNA

The best option you have if the current negotiation fails and no agreement is reached.

Locus of Control

a psychological concept developed by Julian B. Rotter that describes whether a person believes the outcomes in their life are mainly the result of their own actions (internal locus of control) or are determined by outside forces like luck, fate, or other people (external locus of control).

Functions of Money

are that it acts as a medium of exchange for buying and selling goods and services, a unit of account for measuring and comparing the value of things, a store of value for saving purchasing power over time, and a standard of deferred payment for settling debts in the future.

Credit and Cost of Credit

Credit is the ability to borrow money or obtain goods and services now with the promise to pay later, while the cost of credit is the amount you pay for borrowing that money, usually in the form of interest and fees.

Income statement

An income statement is a financial document that shows a company’s revenues, expenses, and profit or loss over a specific period of time, helping determine whether the business is making or losing money.

Balance Sheet

a financial statement that shows a company’s financial position at a specific point in time by listing its assets, liabilities, and shareholders’ equity.

Liquidity

how easily an asset can be quickly converted into cash without losing much of its value.

Solvency

a company’s ability to meet its long-term debts and financial obligations.

Opportunity Cost

is the value of the next best alternative you give up when making a decision.

Time Value Of Money

the idea that money today is worth more than the same amount in the future because it can earn interest.

Compound Interest

interest earned on both the original amount and any previously earned interest.

Simple Interest

interest calculated only on the original principal amount, not on any accumulated interest.

ARP

yearly cost of borrowing money, including interest and certain fees.

APY

yearly return on an investment, including the effect of compound interest.

Debt-to-income ratio

the percentage of your monthly income that goes toward paying debts.

Gross Profit

revenue a business earns from sales minus the cost of goods sold (COGS).

Net Profit

amount of money a business earns after subtracting all expenses, taxes, and costs from its total revenue.

JIT

an inventory strategy where materials and products are produced or acquired only as needed, reducing storage costs.

Six Sigma

quality management method that aims to reduce defects and variability in processes to improve efficiency and customer satisfaction.

Kaizen

a Japanese management philosophy focused on continuous, incremental improvements in processes, efficiency, and quality.

PDCA Cycle

a four-step process for continuous improvement: planning a change, implementing it, checking the results, and acting to standardize or adjust.

Transformational Leadership

a style in which a leader inspires and motivates people to exceed expectations by creating a strong vision, fostering personal growth, and driving meaningful change.

Democratic Leadership

a style where a leader involves team members in decision-making, encouraging participation, collaboration, and shared responsibility.

Autocratic Leadership

a style where a leader makes decisions independently with little to no input from others and expects strict compliance.

Laissez-faire Leadership

a style where a leader takes a hands-off approach, giving team members a high level of autonomy to make decisions and manage their own work.