DECA EXAM

Economic Systems

The way societies allocate resources.

Market Economy

Decisions made by individuals based on supply and demand.

Command Economy

Government controls production and distribution.

Traditional Economy

Based on customs, traditions, and bartering.

Mixed Economy

Combination of market and command systems.

Supply

Quantity producers are willing to sell at different prices.

Demand

Quantity consumers are willing to buy at different prices.

Equilibrium

Point where supply meets demand (market-clearing price).

Opportunity Cost

The value of the next best alternative you give up when making a choice.

GDP (Gross Domestic Product)

Total value of goods and services produced.

Unemployment Rate

Percentage of people actively seeking jobs.

Inflation

General rise in prices, reducing purchasing power.

Expansion

Part of business cycles where the economy is growing.

Recession

A period of economic decline.

Entrepreneurship

The process of starting and managing a business to solve a problem or fulfill a need.

Sole Proprietorship

One owner, full control, unlimited liability.

Partnership

Two or more owners share profits and liabilities.

Corporation

Separate legal entity; limited liability for owners.

LLC (Limited Liability Company)

Combines benefits of partnership and corporation.

Franchise

Licensing of a business model (e.g., McDonald’s).

Business Plan

A formal document outlining the vision and operations of a business.

The 4 Ps of Marketing

Product, Price, Place, Promotion.

Target Market

The specific group of customers a business aims to serve.

Segmentation

Dividing the market by demographics, psychographics, geographics, and behaviors.

Branding

Developing a unique identity for your business through name, logo, and customer experience.

Market Research

The process of gathering information about customers' needs.

Revenue

Total income from sales.

Expenses

Costs of operating the business.

Profit

Revenue - Expenses = Profit.

Break-Even Analysis

Identifies the point at which total revenue equals total costs.

Return on Investment (ROI)

Measures profitability and efficiency of an investment.

Debt Financing

Loans from banks or financial institutions.

Equity Financing

Selling ownership shares to investors.

Crowdfunding

Raising small amounts of money from many people.

Income Statement

Shows revenue, expenses, and net profit/loss.

Balance Sheet

Assets = Liabilities + Owner’s Equity.

Cash Flow Statement

Tracks cash inflows and outflows.

Operations Management

Managing day-to-day activities to ensure efficiency.

Quality Control

Ensuring products meet customer standards.

Risk Management

Identifying and managing financial, operational, and legal risks.

Contracts

Agreements enforceable by law (offer, acceptance, consideration).

Intellectual Property

Protecting ideas with trademarks, patents, copyrights.

Recruitment

Finding and hiring employees.

Leadership Styles

Different approaches to leadership such as autocratic, democratic, and laissez-faire.

SWOT Analysis

A framework for decision-making assessing strengths, weaknesses, opportunities, and threats.

SMART Goals

Specific, Measurable, Achievable, Relevant, Time-bound.

Cash Flow

Money flowing in and out of the business.

Break-Even Point

Sales needed to cover all costs.

Profit Margin

Percentage of revenue that is profit.

Brand Equity

Value a brand adds to a product or service.