DECA Entrepreneurship Cluster Exam Study Material

Tort Law (Business)

Wrongful interference with the right of a business to operate

Charter

written document filed with the Secretary of State (or registrar in Canada) by the founders of a corporation. It details the major components of a company

Consolidation

The joint of two or more companies to form a new company

Intermediaries/middlemen

Sale agents

Indirect channels of distribution

enlisting a distributor to get your products to a retailer

Direct channels of distribution

Where a company sells directly to the end consumers (website)

Formal business reports

Purpose is the define a specific topic/problem area. Present and interest data

Customization

Inventing a completely new product for a different country's market

Globalization

Keeping product and advertising messages the same throughout the world

Nationalization

Government taking ownership of something (not related)

Cultural sensitivity

Being sensitive to the customs

International trade

an exchange involving a good or service conducted between at least two different countries

Freight forwarding services

the coordination and shipment of goods from one place to another via a single or multiple carriers via air

Free enterprise

an economy where the market determines prices

Inbound-call report

Summary of phone calls processed by sales and service representatives within a specific time period

Environmental scan

An analysis of the environment surrounding the business.

Operating budget

Estimate the business's day-to-day finical inflows (sales) and outflows (payroll/inventory)

Cash receipts

Money that a business collects (income)/money flowing into a business (sales/interest)

Current assets

Can be converted into cash fairly quickly (in a year or less)

Business process thinking

Keeping processes in mind throughout a project or business venture

Debt financing

securing money for your business by taking on debt

Equity financing

process of raising capital through the sale of shares

Marginal revenue

Extra revenue associated with the production and sale of one additional unit of output for a business

Formula: change in total revenue/marginal product

Cash-flow level

Movement of funds into and out of a business

Jury of executive opinion (JEO) method

Uses the opinion of the companies own experts

Fundamental analysis

Studying all aspects of a company in an effort to understand its intrinsic (natural) value

Technical analysis

Using historical information from market activity

Onboarding activity

An HR management activity that gets new employees started on the job

Corrective approach

Intended to discourage further violations after infractions have already occurred

Preventive approach

Approach to managing people in such a way that behaviors which would require discipline are prevented

Termination-at-will approach

Allows for discharge of any employee without cause

Open-door management approach

A policy permitting employees to voice their complaints

Behavioral segmentation

The division of a market based on customers responses to a product

Marketing-information management

the act of compiling

Speciality advertising

"Other media

Market segmentation

the practice of dividing your target market into approachable groups (meant to divide the market in well defined groups to market its products effectively)

Niche marketing/market

A niche market is a specific or narrow classification of customers in a market segment.

Operations activity

Sales forecast (predication of future sales over a specific period of time) is the basis for many other operational activities

Variable cost

Vary according to changes in sales plus or sales revenue and can also change in proportion to the number of items produced

Fixed cost

Remain the same no matter how many units of a product are produced or marketed

Semi-variable cost

Expenses that change very little and are not affected by sales volume as much as variable costs

Nonoperating cost

Costs to the company for goods for which they resell or raw materials that are used to produce goods or services to be sold

Gap analysis

Compares the current status of an activity or process with the desired outcome for that activity or process

Critical Path Method

Project management tool that illustrates all activities needed to complete a task in the order in which they need to be performed

Decision Tree Method

Used by businesses often to facilitate the decision-making process

Mind Map Method

Creative-thinking technique involving generating ideas by making associations

Task force

A group of employees who work in different company departments that meets on a regular basis

Late adopter

Skeptical of a new product and therefore slow to being using or buying that good or service

Brand evangelist

Loyal customers who act as unofficial brand ambassadors to their friends and family members by recommending and enforcing the brands products

Discount customer

Someone that makes purchasing decisions based on the size of current markdowns

Rebate

A sales promotion in which parts of the price a customer pays for a good is given back to the customer

Point-of-sale promotion

Promotions located where the customer purchases a food or service (store)

High breadth

Involves carrying a lot of items in the product mix

Depth

Product-mix dimension referring to the number of products and the assortment of sizes

If the depth is shallow

there are fewer products available in each category (minimizes cost - reduces level of inventory needed to be maintained)

Dashboards

Computer-generated

Balance of payments

the method by which countries measure all of the international monetary transactions within a certain period

Distribution of income

a statistical measure of how many people earn or receive various amounts of income

Inelasticity of demand

when a buyer's demand for a product does not change as much as its change in price