DECA ENTP

Labor productivity per employee

Output produced divided by the number of employees.

Harvesting

The process of exiting or cashing out of a business.

Actualization

Implementing a business idea in the real world; turning the plan into operations.

Development

The stage where a product or venture is designed, refined, and prepared for launch.

Discovery

Identifying a potential opportunity, problem, or unmet need in the market.

Business analysis

Evaluating a business situation to inform decisions.

Marketing research

Systematic collection and analysis of data about customers, competitors, and the market.

Contraction

Reducing product lines, operations, or markets to cut costs or refocus the business.

Animation

Using movement/graphics to communicate messages.

Trading up

Persuading customers to buy a more expensive or higher-quality version of a product.

Expansion

Increasing the scale of operations, locations, or product lines to grow the business.

Assets = Equity + Liabilities

Basic accounting equation showing that everything the business owns is financed by owners and creditors.

Distribution channel

The path a product takes from producer to end user.

Product wholesaler

An intermediary that buys products in bulk from producers and resells them.

Sales quota approach

Setting sales goals and budgeting based on desired sales targets.

Bottom-up approach

Planning that starts from detailed, lower-level data and builds upward.

Top-down approach

Planning that starts from overall goals and allocates down to units or departments.

Trading area approach

Estimating sales based on the geographic area from which a business draws customers.

Exchange price

The price at which a buyer and seller agree to trade a good or service.

Company promise

The overall commitment a company makes to stakeholders.

Brand promise

The specific commitment a brand makes to customers about their experience.

Brand point

A key idea or benefit that defines the brand’s main message.

Touchpoint

Any interaction between a customer and the brand.

Change management

Planning, implementing, and guiding organizational changes.

Joint venture

A specific, often temporary, project formed by two or more separate entities.

Partnership

An ongoing business owned and operated by two or more individuals sharing profits and control.

Merger

One company absorbs another; one legal entity survives.

Consolidation

Two or more companies combine to form a new legal entity.

Semivariable cost

Cost that has both fixed and variable components.

Variable cost

Cost that changes in direct proportion to output or sales.

Corrective counseling

A conversation with an employee to address performance problems.

Industrial user

A business that buys goods or services to use in producing other goods/services.

Retailer

A business that sells goods/services directly to final consumers.

Parts of marketing mix

The 4 Ps: Product, Price, Place, Promotion.

Feasibility study

Conducted before launching a venture to determine if the idea is viable.

Working capital ratio

Current assets ÷ current liabilities; measures short-term ability to pay bills.

Dividend yield

Annual dividends per share ÷ current share price; shows cash return from dividends.

Return on equity (ROE)

Net income ÷ average shareholders’ equity; measures profit generation effectiveness.

Liquidity ratio

Compares liquid assets to short-term liabilities to assess ability to pay obligations.

Balance sheet

Financial statement showing a business’s assets, liabilities, and equity at a specific point.

Profit report

Summary of a business’s revenues and expenses over a period.

Income statement

Financial statement showing revenues, expenses, and net profit over a period.

Operating budget

A plan of expected revenues and expenses for day-to-day operations.

Data encryption

Converting data into a coded form for authorized parties.

Data breach

Unauthorized access to or disclosure of confidential data.

Data advertising

Using collected consumer data to personalize advertisements.

Data mining

Analyzing large data sets to find patterns and trends.

Net profit

Gross profit minus all other expenses.

Cash flow

Movement of money in and out of a business over time.

Bottom line

Net income; the final profit or loss figure on the income statement.

Commercial paper

Short-term, unsecured promissory note issued by large companies.

Bank loan

Borrowed money from a bank that must be repaid with interest.

Trade credit

Short-term credit extended by suppliers to buy now and pay later.

Secured loan

Loan backed by collateral that the lender can claim if default occurs.

Pull strategy

Promoting directly to consumers to create demand.

Push strategy

Promoting to intermediaries to push the product to consumers.

Press kit

A package of key information about a company prepared for media use.

Debt financing

Raising money by borrowing that must be repaid with interest.

Gross Profit equation

Gross Profit = Net Sales – Cost of Goods Sold.

Added utility

Extra usefulness or value created for the customer.

Instructive analytics

Not a standard category; main accepted types include descriptive, diagnostic, predictive, and prescriptive analytics.

Prescriptive analytics

Uses data to recommend specific actions to achieve desired outcomes.

Predictive analytics

Uses historical data to forecast future events.

Descriptive analytics

Summarizes what has already happened.

Quality assurance (QA)

Proactive processes to prevent defects and ensure quality.

Quality control (QC)

Reactive testing/inspection to find defects after production.

Purchase order

A formal document specifying items, quantities, and prices.

Open order

Purchase order allows the buyer to order items as needed under pre-agreed terms.

Letter of intent

A written statement outlining intention to enter into a future contract.

Business process thinking

Managing and improving work by focusing on processes used to produce outcomes.

Close Corporation

A business owned by a small group of people whose shares are not publicly traded; ownership is restricted and closely held.

Open Corporation

A publicly traded corporation whose shares can be bought and sold freely on the open market.

Sole Proprietorship

A business owned and operated by one individual who assumes all profits, losses, and liabilities.

General Partnership

A business owned by two or more people who share management responsibilities, profits, and unlimited liability.

Vertical Analysis

A financial analysis method that evaluates each item in a financial statement as a percentage of a base amount.

Horizontal Analysis

A financial analysis method that compares financial data across multiple periods to identify trends or changes over time.

Labor Productivity per Employee

Output produced divided by the number of employees.

Harvesting (Business)

The process of exiting or cashing out of a business (e.g., selling, IPO, liquidation).

Marketing Mix

The 4 Ps: Product, Price, Place (distribution), Promotion.

Feasibility Study

Conducted before launching a venture or project, to determine if the idea is viable financially, technically, and legally.

Working Capital Ratio

Current assets $\div$ current liabilities; measures short-term ability to pay bills.

Return on Equity (ROE)

Net income $\div$ average shareholders’ equity; measures how effectively owners’ investment generates profit.

Balance Sheet

Financial statement that shows a business’s assets, liabilities, and equity at a specific point in time.

Income Statement

Financial statement showing revenues, expenses, and net profit (or loss) over a period.

Gross Profit vs. Net Profit

Gross profit: Sales – Cost of Goods Sold (COGS). Net profit: Gross profit – all other expenses (operating, interest, taxes, etc.).

Data Mining

Analyzing large data sets to find patterns, relationships, and trends that support decisions or predictions.

Push Strategy vs. Pull Strategy

Push strategy: Promoting to intermediaries (wholesalers/retailers) so they push the product to consumers. Pull strategy: Promoting directly to consumers so they demand the product from intermediaries.

Debt Financing

Raising money by borrowing (loans, bonds) that must be repaid with interest.

Gross Profit Equation

Gross Profit $=$ Net Sales $–$ Cost of Goods Sold (COGS).

Types of Analytics

Descriptive Analytics: Summarizes what has already happened. Predictive Analytics: Forecasts future events or trends. Prescriptive Analytics: Recommends specific actions or decisions.

Quality Assurance (QA) vs. Quality Control (QC)

QA: Proactive, system-wide processes to prevent defects. QC: Reactive testing/inspection of products or services to find defects after production.

Purchase Order

A formal document a buyer sends to a seller specifying items, quantities, and agreed prices; can serve as a sales contract.