DECA vocab


Derivative

Financial contract between 2+ parties, value based on performance of asset (ex. stocks, bonds, interest rates) 

Employee Turnover

Percent of employees that leave company (fired or quit) over specific period (month, yr, quarter)

Data Mining

Finding hidden trends & valuable insights from large datasets using computer based methods like classification, anomaly detection (finding outliers in data), regressions (relationships w/variables)

Acquisition Target

business/asset that a buyer plans to purchase partially or completely

acquisitions

company buying other companies (ex. Amazon buys whole foods)

Bond 

Fixed-income debt security issued by company (borrower) to investors (lender), company pays interest to investors 

Business litigation

Legal process of resolving disputes like broken contract, fraud, profit share disputes, unauthorized use patents/copyright

Legal Leveraging

Using borrowed money (debt) to increase potential ROI

Legal Segmentation

Dividing company operations/assets to distinct categories

Legal Due Diligence

audit process to investigate companies risks before finalizing an acquisition/major transaction

Depreciation

Accounting method to spread cost of physical asset over useful life

Direct Reports

Employee who reports directly to manager 

Indirect Reports

Employee who works 2+ lvls below manager, reports to supervisor who reports to manager

Extend credit

Allowing delaying of loan/asset payments

Legal entity

individual/company with distinct legal rights/duties separate from its owners

Joint venture

2+ parties combine resources/$/expertise to complete specific goal while remaining legally independent

General partnership

2+ people co-manage business and share all profits, losses & liabilities

corporation

Owned by shareholders who elect board of directors to set long term goals, monitor risks & hire management teams to run daily operations

Project scope

Identify specific goals/tasks, deliverables (results), boundaries

Cash rebate

Partial refund to buyer after transaction completed

Cash reconciliation

Checks accuracy of financial statements to prevent fraud by comparing internal accounting records w/external sources

Monetary policy

Strategies used by nation bank to manage $, expansionary (loose) lowers interest to grow economy/inflation, contractionary (tight) raises interest to slow economy and reduce inflation

Qualitative data

Characteristic focused (customer feedback, employee reviews)

Quantitative data

Number focused (metrics, stats, profit margins, website traffic, turnover rates)

Market segmentation

Dividing broad target market to smaller groups of consumers for easier management and personalized ads

mirroring

Unconsciously mimicking someone's body language/speech

Sales Quota

Specific measurable goal assigned to individual sales rep or team with time base

Oral presentation

Bringing idea to someones attention

Operating cash flow

revenue from daily operations

Free cash flow

measure of companies performance (operating cash flow-capital expenditures)

dividends

portion of revenue given to shareholders

Capital expenditures

money spent on long term assets (equipment, buildings, property)

Sovereign immunity

gov cant be sued in court w/out permission, affects businesses operating in foreign countries

Eminent domain

Legal power of gov to seize private property for public use w/out owner consent