Deca Entrepreneurship Exam

Sovereign Community

Sovereign Community

A legal concept stating that the courts in a country represent the country's laws, and their decisions cannot be reversed by the decision of courts in other countries.

Legal concept that affects foreign countries

Eminent Domain

the right of a government or its agent to take away private property for public use, with payment of compensation.

Absolute privilege

An absolute defense to an otherwise defamatory statement because of the venue or context in which the statement was made.

Social Responsibility

An organization or individual has an obligation to act for the benefit of society at large.

Infringement

The action of breaking the terms of a law, agreement, etc.

Defamation

A statement that injures a third party's reputation.

National Labor Relations Act

to protect the rights of employees and employers, to encourage collective bargaining, and to lessen certain private sector labor and management practices

Vocational Rehabilitation Act

Was put in place to correct the problem of discrimination against people with disabilities in the United States.

Fair Labour Standards Act

A law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week.

Americans with Disabilities Act

A civil rights law that prohibits discrimination based on disability.

Does not allow employers to ask employees about potential medical history.

Consolidation

joining of two or more companies to form a new company

General Partnership

designed to combine capital, experience,

and the abilities of two or more people

Limited Partnership

permits a partner to invest in a business but have limited

liability and responsibility

Open Corporation

sells millions of shares of stock to many

stockholders

Intermediaries

Put buyers and sellers together without taking ownership of the product, service or property. They act as go-betweens.

Wholesalers

an intermediary who helps to move goods between producers and retailers by buying goods from producers and selling them to retailers

Industrial user

A business that buys materials, services, or goods which it will use to make other goods

indirect agent

intermediaries who assist in the sale and/or promotion of goods and services but do not take title to them

acquisition

Taking ownership of another business. Frequently used in conjunction with the word merger, as in mergers and acquisitions or M&As.

Strategic planning

is long-range planning (three to five years)

for the company as a whole

Tactical planning

is short-range planning (one year)

of specific actions the business will take

. Systematic planning

involves using a set of procedures to plan activities

Environmental planning

focuses on establishing goals and activities that affect the natural environment.

SWOT Analysis

describes

the business (or business owner's) strengths, weaknesses, opportunities, and threats

business plan

is a detailed document that serves as a blueprint or guide for developing the business.

promotional

plan

is the framework for the business's promotional activities

corporate philosophy

is often

documented and provides details about the business's core values and its mission.

Outsourcing

is acquiring assistance from individual consultants or outside

organizations to obtain goods and services to perform primary business activities.

cash flow statements

Businesspeople prepare ___________ to estimate when, where, and how much

money will flow into and out of a business during a certain period of time

collateral

security for repayment of a loan

Financial accounting

focuses on capturing, maintaining, preparing, and reporting financial information to external audiences. Examples of this include preparing tax data for the government and developing the annual report for the business's stakeholders.

annual report

usually

contains information about the business's long-term investment goals.

equity financing

stocks are sold to shareholders and those shareholders own a stake in the company

multiply the net profit margin (14.39%) by the asset turnover rate (1.0455) by the equity multiplier (2.0621) to obtain 31.02%

how to calculate ROE (return on equity)

Vertical analysis

is often used to show the relationship of each component to the total within a

single financial statement

net sales

is the base amount used for vertical analysis of items on the income statement

market

consists of customers or potential customers who have unfulfilled desires and are financially able and willing to satisfy those desires

economic system

is the organized way in which a nation handles its economic decisions and solves its economic problems

corporate chain

consists of a number of similar stores owned and managed by a corporate organization

cooperative

is a business that is owned and operated by its customers.

Customer profiles

are used by companies to create a clear picture of their target market for use in decision making.

data mining

is the process of searching computer databases for patterns of information and correlations or relationships among information.

demographics

are the physical and

social characteristics (e.g., age, gender, education) of a population or market segment

variance

is a measure of how data points differ from the mean

geometric mean or central tendency

is used in business to show average rates of growth

Logistics

refers to managing the flow of goods and services from production to consumption

variable expenses

Operating costs that fluctuate with changes in production are called

material flow, information flow, and money flow

The three types of flows in supply chain management are

distribution

The function of business that involves the moving, storing, locating, and/or transferring

ownership of goods and services is

accountable, responsible, consulted, and informed

ARCI stands for

Paradigm innovation

occurs when there is a significant change or shift in thinking

product, place, price, promotion

marketing mix (4 P's)

invoice

a bill

transit media

is a form of out-of-home advertising that businesses place in various

modes and locations of mass transportation

rebate

is a sales-promotion technique in which a business returns part of the price that a customer pays for a good or service

Sweepstakes

involve a game of chance in which a customer wins a prize

middle/mid-level

management that would determine what needed to be

done in order to enter the new market

executive/top-level

management is responsible for strategic planning, including making the decisions about entering a new market

Supervisory/first level

management who work directly with the employees carrying out the directions of top and mid-level management

dashboards

are technology applications that allow management to view and evaluate a process or activity as it occurs

human resource management

staffing, employee compensation and benefits, and defining/designing work.

operations management

refers to the administration of business practices to create the highest level of efficiency possible within an organization

yield

give way to arguments, demands, or pressure.

interest from an investment

point of sale

the place at which goods are retailed.

pilferage

a thief who steals without using violence

meet unlimited human wants

Economics is the study of how to

CPI (consumer price index)

measures changes in the price level of market basket of consumer goods and services purchased by households

stipend

a fixed regular sum paid as a salary or allowance

inelastic

(of demand or supply) insensitive to changes in price or income.

scarcity

the state of in short supply; shortage

letters of inquiry

is a letter written to request information and/or ascertain its authenticity

Transfer payments

are monies paid by the government in which no goods or services are received in exchange.

information management

management is the process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business planning and decision making.