DECA Principles Flashcards (Business of Admin Core Exam)
What is a franchise?
A contractual agreement between a parent company and a franchisee to distribute goods and services.
What is a corporation?
A form of business ownership that is owned by stockholders who have purchased units or shares of the company.
What is elastic demand?
Demand that changes according to changes in price.
What is inelastic demand?
Demand that is not affected by changes in price.
What is unitary demand?
When sales remain the same because changes in supply and demand are equal.
What is a tort?
A private wrongdoing that potentially harms another person or entity.
What is the Doctrine of Sovereign Immunity?
The universally accepted principle that each nation has the right to manage its own government and develop its own laws.
What is job enlargement?
Combining different tasks into one position.
What is job rotation?
Moving from one job to another job within an organization.
What is specialization by trade?
The type of work that a person performs in order to earn a living, such as engineering, public-relations, or accounting.
What is frictional unemployment?
Occurs because there are always workers who are in transition.
What is structural unemployment?
When the demand for certain types of workers declines and is often due to technology advancements and the need for new skills.
What is cyclical employment?
Result of changes in the economic and business cycles.
What are wage garnishments?
Court-ordered initiatives that involve taking income from an employee’s salary and submitting it to another person or organization.
What is embezzlement?
The theft of valuables that have been entrusted to another’s care.
What is securities fraud?
The use of misleading sales tactics to persuade investors to purchase securities.
What is espionage?
Revealing confidential information without the source or owner’s permission and is often associated with spying.
What is variety-seeking buying behavior?
Involves the purchase of routine items.
What is brand-insistence buying behavior?
A buyer will not buy anything other than a specific brand or product.
What is automation?
Involves the use of machines to carry out production tasks.
What is ergonomics?
The study of the use of equipment or technology and its effects on workers’ physical well-being.
What is innovation?
Taking action to make the idea, item, or process available for consumers to use.
What is a business-format franchise?
Involves a close, continuous, working relationship between the franchisor and the franchisee.
What are consumer products?
Economic goods and services that are purchased and used by the ultimate consumer.
What are capital products?
Purchased by businesses for use in their operations.
What is a communist command economy?
Capital for business investment is provided by the government, which obtains it by taking the profits of businesses it owns and by levying taxes.
What is a traditional economy?
People produce only what they must have in order to exist.
What is a market economy?
Means of production and distribution are owned and controlled by individuals and businesses.
What are operating expenses?
Costs of running the business.
What is Gross Domestic Product (GDP)?
Final market value of the total output of all goods and services produced within a country’s geographic boundaries during a year’s time.
What are Federal Reserve Banks?
Used by local banks to protect their banking functions; do not provide protection for local property.
What is tact?
The ability to express your ideas and opinions so that they do not hurt or offend others.
What is cultural imperialism?
Cultural aspects referring to the creation and maintenance of unequal relationships between civilizations favoring the more powerful civilization.
What is nationalization?
Something whose ownership is taken over by the government.
What is credit?
The arrangement in which businesses and individuals can purchase now and pay later.
What is defamation?
A tort that involves harm to an individual’s or business’s reputation.
What are punitive damages?
Damages intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit.
What is contraction in business?
Businesses are affected by external factors; businesses often experience lower sales and profits.
What is the business cycle?
The periods of expansion and contraction in economic conditions.
What is expansion in economic terms?
When the economy is strong and growing; businesses tend to make profits, expand operations, and hire more employees.
What is a transitional economic system?
When a country’s economic system is moving from one type of economic system to another type of economic system.
What are secondary dimensions of diversity?
Differences that may change at various points throughout one’s lifetime.
What are primary dimensions of diversity?
Inborn differences that cannot be changed and affect a person’s entire life.
What is a debit card?
Funds are electronically transferred from the cardholder’s checking or savings account to the seller’s account.
What are corporate bonds?
Bonds issued by corporations to fund operating expenses.
What are brokerage bills?
A fee charged by an agent, or agent’s company to facilitate transactions between buyers and sellers.
What is gross pay?
Total income earned for the pay period before income taxes and other deductions are subtracted from the wages.
What is net pay?
The amount of money that the worker receives after the taxes and other deductions have been subtracted from his/her wages.
What is overtime income?
The amount of money that an hourly worker earns for working more hours than s/he is normally scheduled to work.
What is general endorsement?
Allows the endorser to cash the check or deposit it into the account of his/her choice.
What are capital gains?
Taxes on earnings from the appreciation of an investment.
What is a rebate?
A part of the price that a customer pays for a good or service, which is usually offered by the product’s manufacturer.
What are stop words?
Commonly used words that do not always add meaning to the primary search terms.
What is logistics?
The function of operations that manages the flow of goods and services from production to consumption.
What is malware?
An illegal computer program that is used to disrupt computer processes, destroy computer programs, and access confidential business information.
What is shareware?
A type of computer program in which computer users can sign up for the software on a trial basis.
What is position innovation?
When an existing product is repositioned.
What is process innovation?
Changing the way that a product is produced or delivered.
What is distributed innovation?
A decentralized model used for problem solving.
What are conceptual skills?
Ability to see the ‘big picture’ and think about how things will work together.
What is moderate input?
Decision maker asks for some help before deciding.
What are payroll records?
Information about money paid to employees in a given period.
What is a web ring?
A series of linked web pages that share a common theme.
What is channel management?
Responsible for identifying, selecting, monitoring, and evaluating sales channels.
What is product/service management?
Obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities.
What is promotion?
Communicate information about goods, services, images, and/or ideas to achieve a desired outcome.
What is a rolling budget?
A continuous budget.
What is zero-based budgeting?
Requires managers to demonstrate the need for every expense instead of relying on figures from a previous period.
What is working capital?
The difference between a business’s current assets and current liabilities.
What are capital investment decisions?
Which projects the business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to the company’s shareholders.
What is capital structure?
Mix of debt and equity financing used to finance investments and projects.
What is market risk?
Risk of financial loss due to the decreased value of an investment.
What is market risk management?
Using financial instruments to manage exposure to market risk.
What is accrual accounting method?
Journalize income and expenditures at the time they occur even if no money changes hands at that time.
What is cash accounting method?
Record income and expenditures at the time the money changes hands.
What is managerial accounting?
Reporting financial data to internal users.
What is tax accounting?
Recording transactions for tax purposes.
What is churning?
Broker may encourage you to make excessive trades just to collect the commission fees from each one.
What is skimming?
Price strategy that involves setting prices higher than those of the competition.
What is bundling?
Marketing strategy that involves offering several products for sale as one combined product.
What is a flighting strategy?
Media timing strategy that concentrates advertising during peak sales periods followed by periods of no advertising.
What are transfer payments?
Monies paid by the government in which no goods or services are received in exchange.
What is a floating exchange-rate system?
Value of a nation’s currency fluctuates.
What is the law of economies of scale?
Economic concept that the average cost of production decreases as a business expands.
What is picketing?
Form of protest that involves positioning union members (pickets) near a business’s entrance during a conflict or strike.
What is an injunction?
Court order that forbids people from carrying out certain activities.
What is a lockout?
Management refuses to allow union members to work.
What is direct distribution?
Channel of distribution in which goods and services move directly from the producer to the consumer or industrial user.
What is indirect distribution?
Channel of distribution in which goods and services move from the producer to the channel members and then to consumers or industrial users.
What are slack resources?
Resources that go above and beyond what is needed to run the business.
What is competitive aggression?
Striving to win scarce customer dollars.
What is organizational learning?
Strategy that seeks to strengthen an organization by bringing employees together as well as by empowering them as individuals.
What is operations management?
Process of planning, controlling, and monitoring the day-to-day activities required for continued business functioning.
What is information management?
Process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business decision making.
What are touch points?
All of the opportunities that a company has to connect with its customers and reinforce its brand value.
What is a brand promise?
Company’s agreement, spoken or unspoken, with customers that it will consistently meet their expectations and deliver on its brand characteristics and values.
What is a statute?
A law.
What is procedural due process?
Individuals 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 penalty.
What is substantive due process?
Ensure that the government does not take away our fundamental rights.
What is the Takings Clause?
Requires the U.S. government to pay a fair price for any private property that it takes for public use.
What is sovereign immunity?
Protects a federal government from lawsuits brought against it in foreign courts.
What is appropriation?
Involves a business or person who uses—without permission—another person’s name, likeness, and other unique characteristics for the benefit or gain of the user.
What is wrongful interference?
Predatory behavior undertaken by a business to draw either customers or employees away from a competitor.
What is conversion?
Personal property is taken from the owner and given to someone else to use.
What is limited liability?
Their losses are limited to the amount of money that they have invested in the business.
What is unlimited liability?
Business owners are personally liable for debts incurred by the business.
What is a chronological résumé?
Lists an applicant’s education and experience in order according to date, beginning with the most recent.
What is a functional résumé?
Emphasizes major accomplishments according to importance rather than date.
What is a generalized résumé?
Broad, general information rather than specific information.
What is a targeted résumé?
Provides specific information about the applicant’s qualifications.
Who are entrepreneurs?
Individuals who expand their businesses in the form of products, personnel, and target markets.
What is extension in pricing?
Total cost of each quantity of products the buyer is purchasing.
What is amount due?
All extended prices, tax, and delivery charges.
What is pilferage?
Theft of small sums of money or inexpensive items.
What is lending investment?
Lender allows a borrower to use his/her money during a period of time for a specified fee or rate of interest.
What is a work team?
Group of employees which is responsible for carrying out an entire work process.
What is a quality circle?
Problem-solving group.
What is a project team?
Team of employees from different parts of the company who are assigned to work together on a specific project.
What is ethnocentrism?
Belief that your own culture is naturally better than other cultures.
What is cultural sensitivity?
Willingness to adjust your opinions and behaviors so that you value different people and ideas.
What is aptitude?
Possessing the skill or ability to do something.
What is price fixing?
Eliminates competition.
What is price indexing?
Method of measuring inflation.
What is price discrimination?
When businesses charge customers different prices for similar amounts and types of goods.
What is economics?
Study of how people satisfy unlimited, competing, economic wants with limited resources.
What is a channel of distribution?
sales channels
What is a monetary gift?
A gift given without the expectation of repayment
What are customer complaints mainly related to?
Complaints are related to the business’s policies and procedures
