DECA ENTP
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.
Channel Members
Individuals or businesses that participate in moving a product from producer to consumer (e.g., wholesalers, retailers).
Intensive Distribution
A strategy where a product is stocked in as many outlets as possible to maximize availability.
Inclusive Distribution
A less common term usually referring to distributing goods broadly to ensure access for many market segments.
Selective Distribution
A strategy where a product is sold through a limited number of outlets that meet certain criteria.
Exclusive Distribution
A strategy where a product is available through only one or very few authorized dealers in a geographic area.
Vertical Analysis
A financial analysis method that evaluates each item in a financial statement as a percentage of a base amount (e.g., total sales).
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 (e.g., total revenue ÷ number of workers).
Harvesting – The process of exiting or cashing out of a business (e.g., selling, IPO, liquidation) to realize the value built.
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 (costs, benefits, processes, risks) 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 (often in advertising or presentations).
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: everything the business owns (assets) is financed by owners (equity) and creditors (liabilities).
Distribution channel – The path a product takes from producer to end user (e.g., manufacturer → wholesaler → retailer → consumer).
Product wholesaler – An intermediary that buys products in bulk from producers and resells them to retailers or other businesses.
Sales quota approach – Setting sales goals and budgeting/supporting activities based on those desired sales targets.
Bottom-up approach – Planning or forecasting that starts from detailed, lower-level data (e.g., individual products/branches) and builds upward.
Top-down approach – Planning or forecasting that starts from overall goals or totals and allocates down to units or departments.
Trading area approach – Estimating sales or potential based on the geographic area from which a business draws its 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 about how it will operate and deliver value.
Brand promise – The specific commitment a brand makes to customers about the experience and value they can consistently expect.
Brand point – A key idea or benefit that defines the brand’s main message or advantage in the customer’s mind.
Touchpoint – Any interaction between a customer and the brand (website, ad, support call, packaging, store visit, etc.).
Change management – Planning, implementing, and guiding organizational changes so people adapt and results improve.
Joint venture vs partnership –
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/entities sharing profits, losses, and control.
Merger vs consolidation –
Merger: One company absorbs another; one legal entity survives.
Consolidation: Two or more companies combine to form an entirely new legal entity.
Semivariable cost – Cost that has both fixed and variable components (e.g., base salary + commission).
Variable cost – Cost that changes in direct proportion to output or sales (e.g., materials per unit).
Corrective counseling – A conversation with an employee to address performance/behavior problems and plan improvement.
Industrial user – A business that buys goods or services to use in producing other goods/services (not for resale to consumers).
Retailer – A business that sells goods/services directly to final consumers.
Parts of marketing mix – The 4 Ps: Product, Price, Place (distribution), Promotion.
When to conduct a feasibility study – Before launching a venture or project, to determine if the idea is viable financially, technically, and legally.
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 how effectively owners’ investment generates profit.
Liquidity ratio – Any ratio that compares liquid assets to short-term liabilities (e.g., current ratio, quick ratio) to assess ability to pay near-term obligations.
Balance sheet – Financial statement that shows a business’s assets, liabilities, and equity at a specific point in time.
Profit report – Summary of a business’s revenues and expenses over a period, highlighting profit or loss (often similar to an income statement summary).
Income statement – Financial statement showing revenues, expenses, and net profit (or loss) over a period.
Operating budget – A plan of expected revenues and expenses for day-to-day operations over a specific period.
Data encryption – Converting data into a coded form so only authorized parties with a key can read it.
Data breach – Unauthorized access to or disclosure of confidential or protected data.
Data advertising – Using collected consumer data (behavior, demographics, preferences) to target and personalize advertisements.
Data mining – Analyzing large data sets to find patterns, relationships, and trends that support decisions or predictions.
Net profit vs gross profit –
Gross profit: Sales – Cost of Goods Sold (COGS).
Net profit: Gross profit – all other expenses (operating, interest, taxes, etc.).
Cash flow – Movement of money in and out of a business over time (inflows vs outflows).
Bottom line – Net income; the final profit or loss figure on the income statement.
Commercial paper – Short-term, unsecured promissory note issued by large, creditworthy companies to raise funds.
Bank loan – Borrowed money from a bank that must be repaid with interest according to agreed terms.
Trade credit – Short-term credit extended by suppliers, allowing a business to buy now and pay later.
Secured loan – Loan backed by collateral (assets) that the lender can claim if the borrower defaults.
Pull strategy – Promoting directly to consumers so they demand the product from intermediaries.
Push strategy – Promoting to intermediaries (wholesalers/retailers) so they push the product to consumers.
Press kit – A package (digital or physical) of key information about a company (e.g., bios, facts, logos, photos) prepared for media use.
Debt financing – Raising money by borrowing (loans, bonds) that must be repaid with interest.
Gross profit equation (with COGS and sales) –
Gross Profit = Net Sales – Cost of Goods Sold (COGS).
Added utility – Extra usefulness or value created for the customer (e.g., right place, right time, right info).
Instructive analytics – Not a standard analytics category; sometimes used informally, but the main accepted types are descriptive, diagnostic, predictive, and prescriptive analytics.
Prescriptive analytics – Uses data and models to recommend specific actions or decisions to achieve desired outcomes.
Predictive analytics – Uses historical data and statistical models to forecast future events or trends.
Descriptive analytics – Summarizes what has already happened using reports, dashboards, and basic statistics.
Quality assurance vs quality control –
Quality assurance (QA): Proactive, system-wide processes to prevent defects and ensure quality.
Quality control (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.
Open order – Purchase order that lets the buyer order items as needed under pre-agreed terms (e.g., price, supplier) without specifying every shipment upfront.
Letter of intent – A written statement that outlines a party’s intention to enter into a future contract or deal.
Business process thinking – Managing and improving work by focusing on the sequence of steps (processes) used to produce outcomes, not just the end results.