DECA Business Management and Administration Terms
Vocabulary terms to study for the DECA "Principles of Business Management" event
Terms in this set (63)
"Receipts" means total income (or in the case of a sole proprietorship, "gross income") plus "cost of goods sold" as these terms are defined and reported on Internal Revenue Service tax return forms.
A written outline that evaluates all aspects of your business.
A type of definition that summarizes the important characteristics of the business and helps to identify areas for improvement.
Calendar Tax Year
12 consecutive months beginning January 1 and ending December 31.
Fiscal Tax Year
12 consecutive months ending on the last day of any month other than December, or a 52-53 week year.
The funds and assets invested in a business by the owners
Cash Basis of Accounting
Method of accounting in which you recognize income when you receive the cash and expense when you receive the bill
Accrual Basis of Accounting
Method of accounting in which you match revenue with expense regardless of when the cash may or may not be collected
Cash Flow Control
A simple method of projecting your future needs for cash
A business for which you must have the lowest cost to survive
A mutually binding legal relationship obligating the sell to furnish supplies or services and the buyer to pay for them
A group of persons granted a state charter legally recognizing them as a separate entity having its own rights, privileges, and liabilities distinct from those of its members
A grade assigned to a business concern to denote the net worth and credit standing to which the concern is entitled in the opinion of the rating agency as a result of its investigation.
The provision of long term loans to small business concerns in exchange for debt securities or a note.
The statistical data of a population, especially those showing average age, income, education, etc.
The overall process of evaluating a business opportunity including examination of financial records
The demonstrated ability of a business to earn a profit, over time, while following good accounting practices.
Emerging Small Business
A small business concern whose size is no greater than 50 percent of the numerical size standard applicable to the Standard Industrial Classification code assigned to a contracting opportunity.
Employer Identification Number (EIN)
Used to identify the tax accounts of employers, sole proprietors, corporations, partnerships, and other entities.
Federal income tax withholding, social security and Medicare taxes, and federal unemployment tax.
One who organizes, operates and assumes the risk in a business
An ownership interest in a business
The provision of funds for capital or operating expenses in exchange for capital stock, stock purchase warrants, and options in the business financed, without any guaranteed return, but with the opportunity to share in the company's profits.
A limited partnership arrangement for providing start-up and seed capital to businesses.
Funds placed in trust with a third party, by a borrower for a specific purpose and to be delivered to the borrower only upon the fulfillment of certain conditions.
Regular, estimated payments on income during the year.
The act by the mortgagee or trustee upon default, in the payment of interest or principal of a mortgage of enforcing payment of the debt by selling the underlying security.
A continuing relationship in which the franchiser provides a licensed privilege to the franchisee to do business, and offers assistance in organizing, training, merchandising, marketing and managing in return for a consideration.
Insurance required showing lender as loss payee covering certain risks on real and personal property used for securing loans.
Human Resources Department including payroll functions and training.
Someone who it self-employed
Introduction of a new idea into the marketplace in the form of a new product or service, or an improvement in organization or process.
Initial Public Offering (the first public issuance of stock in a company.)
A written statement listing the elements of a particular job or occupation, e.g., purpose, duties, equipment used, qualifications, training, physical and mental demands, working conditions, etc.
The cooperation of two or more individuals or enterprises in a specific business enterprise, rather than in a continuing relationship as in a partnership.
The controlling of inventory so that materials are delivered just in time for assembly or manufacture.
Limited Partnership (LP)
An association of two or more partners formed to conduct a business jointly and in which one or more of the partners is liable only to the extent of the amount of money they have invested.
A lender agrees to allow a borrower to draw a pre-specified amount from an account on an as needed basis.
The disposal, at maximum prices, of the collateral securing a loan, and the voluntary and enforced collection of the remaining loan balance from the obligators and/or guarantors.
A business, usually large, or other organization that has created a specialized program to advance strategic relationships with small businesses.
A combination of two or more corporations wherein the dominant unit absorbs the passive ones, the former continuing operation usually under the same name.
Operating a business "in the moonlight"; that is, a part-time business.
The "face to face" process used by local unions and the employer to exchange their views on those matters involving personnel policies and practices, or other matters affecting the working conditions of employees.
The practice of using subcontractors rather than paid employees.
A legal relationship existing between two or more persons contractually associated as joint principals in a business.
A patent secures to an inventory the exclusive right to make, use and sell an invention for 17 years/ Inventors should contact the US Department of Commerce Patent Office
Payroll Service Provider
An outside resource to take over payroll and other employee related function.
Profession and Trade Associations
Non-profit, cooperative and voluntary organizations that are designed to help their members in dealing with problems of mutual interest.
The most common legal form of business ownership; about 85 percent of all small businesses are proprietorships. The liability of the owner is unlimited in this form of ownership.
Return on Investment
The amount of profit (return) based on the amount of resources (funds) used to produce it. Also, the ability of a given investment to earn a return for its use.
A non-profit association dedicated to entrepreneurs education and success of small business.
The US Small Business Association
Loans secured by the assets of your business or your personal assets or both.
The social security and Medicare tax for individuals who work for themselves
A business smaller than a given size as measured by its employment, business receipts, or business assets.
Standard Mileage Rate
Multiplying business miles by the standard mileage rate for the year, to figure car and truck deduction. The standard mileage rate is announced annually by the IRS.
Expenses incurred before the business opens.
The number of times that an average inventory of goods is sold during a fiscal year or some designated period. Care must be taken to ensure that the average inventory and net sales are both reduced to the same denominator; that is, divide inventory at cost into sales at cost or divide inventory at selling price into sales at selling price. Do not mix cost price with selling price.When accurately computed, this is one measure of the efficiency of a business.
Interest which exceeds the legal rate charged to a borrower for the use of money
Money used to support new or unusual commercial undertakings; equity, risk or speculative capital.
A state-mandated form of insurance covering workers injured in job-related accidents.
Money available to a firm for daily operations
Local municipalities regulating businesses to operate at particular sites