DECA Business Administration Core Performance Indicators
Terms in this set (50)
Describe the United States' judicial system.
Depends on adversarial system of justice in which two different litigants present their case before a neutral party, allowing the judge or the jury to determine the truth.
Describe the nature of environmental law
Law for the regulations of the environment. These laws are used to safeguard the environment from human activity.
Discuss the role of administrative law.
The procedures determined by a government agency involving operations, rules, etc. The procedures are unique to each government agency, and can only be challenged once a member of the public has gone through every administrative appeal.
Explain types of business ownership.
Sole Proprietorship-One individual operating the business alone
General Partnership-Composed of two or more people who operate business by sharing expenses and profits
Limited Partnership-One or two general partners with one or more limited partners
Limited Liability Partnership-When one partner does not have liability for the other partner
Limited Liability Company-Is formed by one or more individuals through a special written agreement
Corporation-Business operated by a board of directors
Demonstrate active listening skills (how to be a good listener).
Active listening includes listening, clarifying, and giving feedback
Make eye contact
Lean forward and demonstrate appropriate body language (nodding, not crossing arms, smiling)
Be able to paraphrase what the speaker has said, and repeat their biggest points back to them
Ask questions of clarification to show that you are listening
Be empathetic, open, and aware
Get rid of distractions
Handle telephone calls in a businesslike manner.
Know what you're going to talk about so that you don't waste theirs r your time, tell them who you are, talk clearly and confidently, and end the call strong.
Thank them for their time
Write professional emails.
Have a clear subject ine the identifies the purpose of the email, great the person by name (avoid "to whom it may concern"), keep the email short and to the point, and close appropriately.
Write business letters.
A business letter must include:
Date (21 August 2013)
Body (written in block format)
Prepare sample written reports.
Written reports should include:
Abstract (brief summary of findings)
Introduction (what the problem was)
Materials and Methods (what you used and what you did)
Results (your findings)
Discussion (what it all means)
References (cite EVERYTHING!)
Explain the nature of positive customer relations.
Maintaining frequent contact with customer base. Allow easy communication with the customer by being honest, and upcoming. Use rewards systems as well as exceed customer's expectations.
Handle difficult customers, and customer complaints.
Be patient and put the customer first. Listen first to the customer and empathize with their position/complaint, restate their problem and go about solving the issue or providing the customer with someone who can solve the issue.
Identify a company's brand promise.
Statement made to customers to identify what they should expect out of a product/service
Also called a slogan (Save Money. Live Better. Walmart)
Determine ways of reinforcing the company's image through employee performance.
Employees should know their company's mission and vision an work in a way that demonstrates these.
Distinguish between economic goods and services.
Products and services are how businesses get money
Products are tangible items like food, clothing, machines, etc.
Services are non-tangible things like baby-sitting, tutoring, etc.
Explain the concept of economic resources.
Resources are finite things that companies need to run their business. They incude:
Natural resources (land, water, oil, etc.)
Human resources (workers)
Capital (money, machines, and goods)
Explain the principles of supply and demand.
If there is a large quantity of an item and a low demand for the item, prices will be lower. (Think pencils)
If there is a low quantity of an item and high demand for the item, prices will be high. (Think diamonds)
Explain the role of business in society.
Society needs business to work, even if it is just bartering or trading.
Business shapes society (the state of the economy influences the way that people live).
Business bring changes and innovations to society.
Society also changes business by giving rules that they have to abide by (social norms).
See page 7
Explain the nature of business ethics.
Business ethics is important to making the general public happy about what happens in the business world (public relations).
creates a good reputation
balances the needs of the stakeholders with the needs of the company
helps the business thrive in the global economy
helps to retain employees
keeps the business from being penalized under the law
http://www.slideshare.net/birubiru/meaning-and-nature-of-business-ethics (Pages 4 through 7)
Explain the types of economic systems.
Traditional: bartering and trading resources, goods, and services
Command Economy: government controls the economy by how to use and distribute goods and services
Market Economy: each person makes their economic decisions; government does not control who buys what; based on the laws of supply and demand
Mixed Economic System: Market based economy where the government controls some aspects of what is sold, and who can buy
Explain the concept of private enterprise.
Business activities that are not controlled by the state
E.g. Bob decides to open up a car garage, the state does not own his garage
Explain the concept of public enterprise.
Business activities that are created and controlled by the state
E.g. Colorado decides that there is a need for a DMV, so they build one and hire employees to work there; all of the DMV's activities are controlled by the state
Identify factors affecting a business' profit.
Profit Margin: How much a business spends versus how much they make
Investment costs, operating costs, maintenance costs, material damages, production losses, etc.
Other factors include state of the economy (bad economy, people spend less)
Explain the concept of competition.
It makes customer service better
It gives businesses and individuals a reason to be innovative
It identifies the strengths and weaknesses of companies
It gives consumers the best good/service for the lowest price
Determine the relationship between government and business.
Business influences the government by:
Choosing whether or not they will back certain politicians, and therefore, certain ideas
Forming trade unions
By making political action committees
Effect government policies with their large investments
Governments influence businesses by:
Making laws and regulations that determine what can be sold, who can buy it, etc.
Having government agencies that help workers, small businesses, and people who are trying to get jobs.
Analyze the impact of job specialization/division of labor on productivity.
The more job specialization there is, the more productivity increases
Explain the impact of the law of diminishing returns.
The law of diminishing returns states that no matter how much time, human, and capital resources are put into machine for example, there is only a certain amount more of money that the machine will make the company.
Businesses should keep the law of diminishing returns in mind so that they do not waste resources on something with a low return rate
Discuss the measure of consumer spending as an economic indicator.
People decide to spend money, usually, when the economy is good (they have money to spend), and they save money when the economy is bad.
Explain the concept of Gross Domestic Product (GDP).
GDP is a measure of the total dollar value of all of the goods and services provided by a country over a year
It is important because it shows if the economy is relatively bad or good.
Describe the economic impact of inflation on business.
Inflation causes businesses to:
Increase their costs in order to still make a profit
Lose a lot of customers because the customers do not want to pay the higher price
Explain the nature of global trade.
Also called international trade, it is the exchange of goods and services across international borders
Effected by industrialization, globalization and outsourcing
Causes new competition to arise and innovations to be made
Identify desirable personality traits that are important to business.
Creative—you have to think outside of the box so that you're ahead of what everyone else is doing
Dependable—do what you say you will do so that others will respect your word
Compassionate—in business, you have to deal with a lot of people, and they will respect you more if you are compassionate
Enthusiastic—having the right attitude will help you to be the best
Motivated—being self-motivated makes you more effective
Curious—curiosity may lead to great innovations
Resilient—you have to accept that you will fail, and you can let those failures make you better
Confident—do not be obnoxious or arrogant but believe in what you are saying
Explain the concept of leadership.
Good leaders are:
Skilled in the field that they lead
Good communicators (both talking and listening)
Explain the time value of money.
The principle that money now is better than money later
Explain the purposes and importance of credit.
Having good or bad credit determines whether or not people can be approved to get credit cards, take out loans, buy cars, start businesses etc.
Credit shows how financially responsible a person is based on how they pay their bills and what debt they are in.
Explain types of investments.
Bonds: by purchasing a bond, you are lending money to a company or business—in return the company or government will eventually pay you back
Stocks: by purchasing stock, you are essentially buying a piece of the company, so you can vote as a shareholder and say what the company can or cannot do
Mutual funds: a collection of stocks and bonds that is held by a group of people. By investing in a mutual fund you are sharing in your part of the risk and your part of the reward
Describe concept of insurance.
When you buy insurance, you agree to a policy that says that if something happens to whatever you have insured, it will be fixed, replaced, or protected up to a certain amount
Explain the concept of accounting.
Keeping financial records so that an individual or business can see where their money is coming from, what it is going to, and how they can spend their money more efficiently.
Discuss the role of ethics in accounting.
The nature of what accountants do requires a high level of ethics because accountants work with people's money
"Knowledge of ethics can help accountants and auditors to overcome ethical dilemmas, allowing for the right choice that, although it may not benefit the company, will benefit the public..."
Describe the nature of cash flow statements.
Measure how much money is coming into and going out of a business
Shows the business how much profit they are making and shows them where they may need to cut spending to make a higher profit
Explain the nature of balance sheets.
Summarizes a company's assets, liabilities, and shareholders' equity at a certain point in time
Allow investors to see what the business owns, what it owes, and how much was invested in the company by shareholders
Describe the nature of income statements.
A statement that shows how much a business has made in a certain accounting period
Shows the net profit or net loss incurred during a time period
Discuss the nature of human resource management.
The department in a business that is responsible for attracting, selecting, training, hiring, and rewarding employees within the business.
Explain the role of ethics in human resource management.
Human resource departments must work ethically, especially when making decisions about the hiring and treatment of employees. They are responsible for making sure that the company has workplace safety as well as a zero tolerance for discrimination.
Ethics in human resource management help the company work better and improve the perception of the company by the public
Explain marketing and its importance in a global economy.
To remain competitive, companies must often market their product to the entire world, instead of just a small group
The product, price, placement, or promotion of a product or service will vary across the world
By marketing globally, companies like Coca-Cola and Starbucks are known and trusted worldwide
Describe the marketing functions.
The 7 marketing functions are:
Marketing Information Management
Product and Service Management
Describe health and safety regulations in business.
OHSA (The Occupational Safety and Health Administration) is a government agency that tries to make sure that workplaces in America are safe
Businesses are required to provide their employees with consistent protection from harm
Explain the nature of overhead costs.
The term for all of the expenses for which a business must pay on an on-going basis to keep their business running, not including the cost of materials, labor, or third-party expenses.
Ex. Rent, utilities, insurance.
Explain the employee's role in expense control.
Employees have a big impact on how much money their business spends. They should:
Help the company save when travelling (if applicable)
Control the energy costs by turning of lights and putting their computers to sleep
Not waste office supplies
Take care of what they use (desks, break room, etc.)
Keep their printing to a minimum
Accept temporary reduced work hours
Explain the rights of workers.
Employees have the right not to be discriminated on because of age, disabilities, gender, genetic predispositions, race, religion, sexual orientation, etc.
They should be able to support unions, take medical leaves, file complaints and report unsafe conditions without retaliation.
Explain career opportunities in entrepreneurship.
There is opportunity to make a lot of money, be your own boss, have total authority, make an impact on the economy and on society, to leave a legacy, and to know that you have done a great accomplishment.