DECA ICDC Test Terms for Review

Flashcards covering the key terms related to DECA ICDC test preparation.

Express Contract

A legally binding agreement where the terms are explicitly stated, either verbally or in writing, leaving no room for interpretation.

Implied Contract

A legally binding agreement that is inferred from the actions, conduct, or circumstances of the parties involved, suggesting a mutual understanding.

Voidable Contract

A legally binding agreement that one or more parties can choose to cancel or enforce, usually due to a flaw or circumstance that makes it unfair.

Primary dimensions of diversity

Inborn differences that cannot be changed and affect a person's entire life, including age, gender, race, ethnicity, and physical traits.

Secondary dimensions of diversity

Differences that may change throughout one's lifetime, including language, religion, income, family status, communication style, and education level.

BATNA

Best Alternative to Negotiated Agreement.

Accrual accounting method

An accounting method that records revenues and expenses when they are earned or incurred, providing a more accurate picture of a business's financial position.

Cash accounting method

An accounting method that records revenues and expenses only when cash is actually received or paid.

Business Line of Credit

A flexible financing option that allows businesses to borrow money up to a pre-approved limit for managing short-term expenses.

Venture Capital

Funding provided by investors to early-stage, high-potential startups or businesses in exchange for equity in the company.

Capital Structure

The mix of debt and equity that a business uses to finance its operations and growth.

Marketer's ultimate goal

Providing satisfying connections between producers and customers.

Marketing Plan

A strategy document outlining how a business promotes its products or services to reach its target audience.

Governance Structure

Framework that defines how a company is directed and controlled, outlining the rules, processes, and roles of responsibility.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, ensuring accountability and transparency.

Business Objectives

Specific, measurable steps or goals that a company aims to achieve to fulfill its broader business goals.

Price (Marketing Mix)

Determining the price of the product or service, considering factors like production costs and market demand.

Product (Marketing Mix)

Goods or services offered by a business, including features, quality, design, packaging, and branding.

Place (Marketing Mix)

Focuses on how and where the product or service is made available to customers.

Promotion (Marketing Mix)

Encompasses the communication and marketing activities used to inform and persuade customers about a product or service.

Formal Reports

Documents that define a specific topic or problem area, present and interpret data, and make recommendations.

Facilitator

Leader of a group.

Simple Interest Formula

I = Principle X Rate X TIME (IN YEARS).

Jury of Executive Opinion (JEO)

A sales forecasting method where a group of company executives collectively form a forecast.

Horizontal Analysis

Comparison of the same items on a company's financial statements for two or more periods.

Vertical Analysis

States each dollar amount on a financial statement as a percentage of another amount.

Common-sized statements

These are financial statements where every line item is expressed as a percentage of a base figure. Vertical analysis is the technique used to come up with these.

Niche Marketing

Marketing to a specific or narrow classification of customers in a market segment.

Semi-Variable Costs

Costs that share characteristics of fixed and variable costs, while not meeting either definition fully.

Quality Assurance

A process that businesses use to prevent defective products from being created. The focus of it is planning ahead and getting things right the first time.

Quality Control

A process that involves inspecting products for defects after the production process. In some situations, it involves repairing defective products to meet quality standards.

Fraud

An intentional misrepresentation or deceitful act intended to deceive or mislead another party, leading to financial or other harm.

Factor

A finance company or bank that will pay cash for the accounts receivable of a firm for a charge of 0.5-2.75% of the outstanding accounts.

Income Statement

Statements that summarize a business's income and expenses over a period of time. They should all have at least five basic categories which include revenue, cost of goods sold/cost of sales, gross profit, operating expenses, and net income/profit.

Incremental Budgeting

Budgeting method that builds on the previous year's budget by adjusting for expected changes like inflation, growth, or planned expenses. It's straightforward and efficient but may perpetuate inefficiencies if existing allocations aren't critically reviewed.

Zero-Based Budgeting

Budgeting method that starts from scratch every cycle, requiring all expenses to be fully justified based on necessity and value. Promotes efficiency and resource optimization but is labor-intensive and time-consuming to implement.

Remedial Action

A process used to address and improve unacceptable employee performance or behavior, aiming to guide employees towards meeting expectations and standards. However, it’s difficult to predict how the employee will react to it.

Routing

Determining the sequence of materials through the production process.

Sales Promotion

Short-term incentives to encourage purchases or boost sales. Examples include discounts, coupons, free samples, contests, and loyalty programs.

Direct Marketing

A promotional strategy where businesses communicate directly with their target audience through channels like email, text messages, catalogs, or mail, aiming for immediate and measurable responses. It eliminates intermediaries, fostering a direct connection with customers.

Public Relations

Strategic management of a company's image and reputation through activities such as media coverage, press releases, events, and community engagement. It aims to build trust, maintain positive relationships, and influence public perception. One of the uses of public relations is to promote products and increase awareness of the products and of the business.

Advertising

A paid, non-personal communication method used to promote products, services, or ideas through various media channels like TV, radio, print, digital platforms, and outdoor advertisements, aiming to inform, persuade, or remind the target audience.

Personal Selling

A direct, face-to-face interaction between a salesperson and a potential customer. It aims to build relationships, address customer needs, and persuade them to purchase a product or service through tailored communication. Expensive and usually for highly customizable products at high price points.

Advergaming

A sales-promotion tactic involves placing products in video games to generate brand awareness or to reinforce brand loyalty.

Push Strategies

Pull Strategies

Businesses promoting their products to intermediaries (like retailers or distributors), who then market and sell the products to customers. Examples include trade shows, where companies showcase their products to retailers, and getting retailers to stock the product, which ensures availability through the supply chain.

Pull Strategies

This focuses on direct promotion to consumers, encouraging them to seek out the product and drive demand. Customer relationship management (CRM) is a great example because it fosters direct engagement with customers, while mass media advertising and sales promotions also create demand among consumers.

Press Kit

A collection of materials that businesses put together to help journalists, bloggers, and media outlets quickly understand the company and its offerings. Basically, business info for journalists.