DECA Business Administration Core Exam

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Franchise
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Terms in this set (128)
Franchise
a contractual agreement between a
parent company and a franchisee to distribute goods and services
Corporation
a form of business ownership that is owned by stockholders who
have purchased units or shares of the company
Elastic Demand
demand that changes according to changes in price
Inelastic Demand
demand that is not affected by changes in price.
Unitary Demand
when sales remain the
same because changes in supply and demand are equal
Tort
a private wrongdoing that potentially harms another person or entity
Doctrine of Sovereign Immunity
the universally accepted principle that each nation has the right to manage its own government and develop
its own laws.
Job Enlargement
combining different tasks into one position
Job Rotation
moving from one job to another job within an organization
Specialization by Trade
the type of work that a person performs in order to earn a living, such as engineering, public-relations, or accounting.
Frictional Unemploymentoccurs because there are always workers who are in transitionStructural Unemploymentwhen the demand for certain types of workers declines and is often due to technology advancements and the need for new skillsCyclical Employmentresult of changes in the economic and business cyclesWage Garnishmentscourt-ordered initiatives that involve taking income taken from an employee's salary and submitting it to another person or organizationEmbezzlementtheft of valuables that have been entrusted to another's careSecurities Fraudthe use of misleading sales tactics to persuade investors to purchase securitiesEspionagerevealing confidential information without the source or owner's permission and is often associated with spyingVariety-seeking Buying Behaviorinvolves the purchase of routine itemsBrand-insistence Buying Behaviorbuyer will not buy anything other than a specific brand or productAutomationinvolves the use of machines to carry out production tasksErgonomicsthe study of the use of equipment or technology and its effects on workers' physical well-beingInnovationtaking action to make the idea, item, or process available for consumers to useBusiness-format Franchiseinvolves a close,continuous, working relationship between the franchisor and the franchiseeCustomer Complaintsrelated to the business's policies and proceduresConsumer Productseconomic goods and services that are purchased and used by the ultimate consumerCapital Productspurchased by businesses for use in their operationsCommunist Command Economycapital for business investment is provided by the government, which obtains it by taking the profits of businesses it owns and by levying taxesTraditional Economypeople produce only what they must have in order to existMarket Economy (Free Enterprise)means of production and distribution are owned and controlled by individuals and businessesOperating Expensescosts of running the businessGross Domestic Productfinal market value of the total output of all goods and services produced within a country's geographic boundaries during a year's timeFederal Reserve Banksused by local banks to protect their banking functions; do not provide protection for local propertyTactthe ability to express your ideas and opinions so that they do not hurt or offend othersCultural Imperialismcultural aspects referring to the creation and maintenance of unequal relationships between civilizations favoring the more powerful civilization.Nationalizationsomething whose ownership is taken over by the governmentCreditthe arrangement in which businesses and individuals can purchase now and pay later.Defamationa tort that involves harm to an individual's or business's reputationMonetary Giftgiven without expectations of repaymentPunitive Damagesdamages intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuitContractionbusinesses are affected by external factors; businesses often experience lower sales and profitsBusiness Cyclethe periods of expansion and contraction in economic conditionsExpansionwhen the economy is strong and growing; businesses tend to make profits, expand operations, and hire more employeesTransitional Economic Systemwhen a country's economic system is moving from one type of economic system to another type of economic systemSecondary Dimensions of Diversitydifferences that may change at various points throughout one's lifetimePrimary Dimensions of Diversityinborn differences that cannot be changed and affect a person's entire lifeDebit Cardfunds are electronically transferred from the cardholder's checking or savings account to the seller's accountCorporate Bondsbonds issued by corporations to fund operating expensesBrokerage Billsa fee charged by an agent, or agent's company to facilitate transactions between buyers and sellersGross Paytotal income earned for the pay period before income taxes and other deductions are subtracted from the wagesNet Paythe amount of money that the worker receives after the taxes and other deductions have been subtracted from his/her wagesOvertime Incomethe amount of money that an hourly worker earns for working more hours than s/he is normally scheduled to workGeneral Endorsementallows the endorser to cash the check or deposit it into the account of his/her choiceCapital Gainstaxes on earnings from the appreciation of an investmentRebatea part of the price that a customer pays for a good or service, which is usually offered by the product's manufacturerStop Wordscommonly used words that do not always add meaning to the primary search termsLogisticsthe function of operations that manages the flow of goods and services from production to consumptionMalwarean illegal computer program that is used to disrupt computer processes, destroy computer programs, and access confidential business informationSharewaretype of computer program in which computer users can sign up for the software on a trial basis. After the trial expires, the computer user can purchase and register the program, if desiredPosition Innovationwhen an existing product is repositionedProcess Innovationchanging the way that a product is produced or deliveredDistributed Innovationa decentralized model used for problem solvingConceptual Skillsability to see the "big picture" and think about how things will work togetherModerate Inputdecision maker asks for some help before decidingPayroll Recordsinformation about money paid to employees in a given periodWeb Ringa series of linked web pages that share a common theme.Channel Managementresponsible for identifying, selecting, monitoring, and evaluating sales channelsChannels of Distributionsales channelsProduct/Service Managementobtaining, developing, maintaining, and improving a product or service mix in response to market opportunitiesPromotioncommunicate information about goods, services, images, and/or ideas to achieve a desired outcomeRolling Budgetcontinuous budgetZero-Based Budgetingrequires managers to demonstrate the need for every expense instead of relying on figures from a previous periodWorking Capitalthe difference between a business's current assets and current liabilitiesCapital Investment Decisionswhich projects the business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to the company's shareholdersCapital Structuremix of debt and equity financing used to finance investments and projectsMarket Riskrisk of financial loss due to the decreased value of an investmentMarket Risk Managementusing financial instruments to manage exposure to market riskAccrual Accounting Methodjournalize income and expenditures at the time they occur even if no money changes hands at that timeCash Accounting Methodrecord income and expenditures at the time the money changes handsManagerial Accountingreporting financial data to internal usersTax Accountingrecording transactions for tax purposesChurningbroker may encourage you to make excessive trades just to collect the commission fees from each oneSkimmingprice strategy that involves setting prices higher than those of the competitionBundlingmarketing strategy that involves offering several products for sale as one combined productFlighting Strategymedia timing strategy that concentrates advertising during peak sales periods followed by periods of no advertisingTransfer Paymentsmonies paid by the government in which no goods or services are received in exchangeFloating Exchange-Rate Systemvalue of a nation's currency fluctuatesLaw of Economies of Scaleeconomic concept that the average cost of production decreases as a business expandsPicketingform of protest that involves positioning union members (pickets) near a business's entrance during a conflict or strikeInjunctioncourt order that forbids people from carrying out certain activitiesLockoutmanagement refuses to allow union members to workDirect Distributionchannel of distribution in which goods and services move directly from the producer to the consumer or industrial userIndirect Distributionchannel of distribution in which goods and services move from the producer to the channel members and then to consumers or industrial usersSlack Resourcesresources that go above and beyond what is needed to run the businessCompetitive Aggressionstriving to win scarce customer dollarsOrganizational Learningstrategy that seeks to strengthen an organization by bringing employees together as well as by empowering them as individualsOperations Managementprocess of planning, controlling, and monitoring the day-to-day activities required for continued business functioningInformation Managementprocess of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business decision makingTouch Pointsall of the opportunities that a company has to connect with its customers and reinforce its brand valueBrand Promisecompany's agreement, spoken or unspoken, with customers that it will consistently meet their expectations and deliver on its brand characteristics and valuesStatutea lawProcedural Due Processindividuals and businesses who are sued or charged with a crime have the opportunity to present evidence on their behalf before a court can impose a penaltySubstantive Due Processensure that the government does not take away our fundamental rightsThe Takings Clauserequires the U.S. government to pay a fair price for any private property that it takes for public useSovereign Immunityprotects a federal government from lawsuits brought against it in foreign courtsAppropriationinvolves a business or person who uses—without permission—another person's name, likeness, and other unique characteristics for the benefit or gain of the userWrongful Interferencepredatory behavior undertaken by a business to draw either customers or employees away from a competitorConversionpersonal property is taken from the owner and given to someone else to useLimited Liabilitytheir losses are limited to the amount of money that they have invested in the businessUnlimited Liabilitybusiness owners are personally liable for debts incurred by the businessChronological Résumélists an applicant's education and experience in order according to date, beginning with the most recentFunctional Résuméemphasizes major accomplishments according to importance rather than dateGeneralized Résumébroad, general information rather than specific informationTargeted Résuméprovide specific information about the applicant's qualificationsEntrepreneursindividuals who expand their businesses in the form of products, personnel, and target marketsExtensiontotal cost of each quantity of products the buyer is purchasingAmount Dueall extended prices, tax, and delivery chargesPilferagetheft of small sums of money or inexpensive itemsLending Investmentlender allows a borrower to use his/her money during a period of time for a specified fee or rate of interestWork Teamgroup of employees which is responsible for carrying out an entire work processQuality Circleproblem-solving groupProject Teamteam of employees from different parts of the company who are assigned to work together on a specific projectEthnocentrismbelief that your own culture is naturally better than other culturesCultural Sensitivitywillingness to adjust your opinions and behaviors so that you value different people and ideasAptitudepossessing the skill or ability to do somethingPrice Fixingeliminates competitionPrice Indexingmethod of measuring inflationPrice discriminationwhen businesses charge customers different prices for similar amounts and types of goodsEconomicsstudy of how people satisfy unlimited, competing, economic wants with limited resources