FTCE Business Education Certification Study set
(AACSB) >ANSW >an international non-profit organization that provides accreditation to
business schools. It also conducts research and publishes information in business
education.
50/20/30 budgeting >ANSW >the method of allocating 50% of income to necessities,
20% of income to savings, and 30% of income to lifestyle
A business plan should include the following
sections: >ANSW >Executive summary - provides a summary of the
contents of the document and encourages the reader to
learn more about the business.
• Business overview - provides an overview of the
mission, vision, goals, and objectives of the business.
• Market analysis - describes the target customer,
customer needs, current market trends, and predictions
based on evidence of how the market will respond to
the business's product or service.
• Competitive analysis - describes competitors in the
industry of similar products and describes barriers in the marketplace.
• Sales and marketing plan - describes the strategy to bring the product or service to the
customer and persuade customers to buy the product or service.
• Ownership and management plan - describes the legal structure and ownership of the
business, management resources, and the management structure.
• Operating plan - describes the operations of the business and its resources including
facilities,
location, equipment, and personnel.
• Financial plan - describes how the business's finances will be managed, provides
projections of revenue and expenditures, and includes the balance sheet, income
statement, and cash flow
statement.
Accounting >ANSW >the process of managing money
Accounting Cycle >ANSW >a series of steps to process financial transactions. The
accounting cycle typically
consists of 6 steps: analyzing transactions, recording journal entries, posting credits and
debits, adjusting assets, preparing financial statements, and closing temporary
accounts.
,Accounts payable >ANSW >Department that processes expense payments, invoices,
and disbursements.
Accounts Payable >ANSW >Money owed by a business for materials purchased on
credit. Increases assets and liabilities.
Accounts receivable >ANSW >Department that processes income coming into the
organization.
Accounts Receivable >ANSW >Money owed to a business for products sold to
customers on credit.
Advantages of Franchises >ANSW >• Startup process - The franchisee avoids the
challenges of starting a new business and bringing a
new product to the market.
• Brand recognition - The market already knows and recognizes the product so the
franchisee can
reduce marketing efforts and costs.
• Support - Franchisors usually provide support to the franchisee with marketing,
business processes,
and financing. It is in the best interest of the franchisor for the franchisee to be
successful.
Apraxia >ANSW >The inability to carry out specific motor tasks in the absence of
sensory or motor impairment
Assets >ANSW >anything the organization has acquired that has value. This can be
physical assets like cash,
equipment, and land. An asset can be accounts receivable or income. An asset can
also be intangible like company reputation and image.
Assets >ANSW >Liabilities + Equity
Autocratic (Authoritarian) Management >ANSW >Managers make decisions solely
without input from others.
Automation >ANSW >A machine or system that operates using automated machines as
control for production.
Average method >ANSW >calculates the cost of goods sold using the average cost
over time.
Baby Boomers >ANSW >Born between 1946 and 1965
• Prioritize work over personal life
• Believe in promotion based on years served
• Shaped by civil rights movement, Vietnam War, and inflation
,• More open to change than previous generation
• Pursuit of personal gain
Balance Sheet >ANSW >shows the financial position of the organization for a specific
period of time. The balance
sheet includes assets, liabilities, and equity.
Balance Sheets >ANSW >Accounting statements that provide a snapshot of a
company's financial position at a particular time.
Bandwidth >ANSW >The amount of data that can be transmitted over a network in a
given amount of time.
Basic Accounting Equation >ANSW >Assets = Liabilities + Owner's Equity
Basic Programming Elements >ANSW >* Input - data and commands
• Output - results of the computer program
• Arithmetic - mathematical calculations of data
• Conditional - determining if a condition is true or false
• Looping - repeating a set of commands until some condition is met
Benevolent Authoritative >ANSW >One of Likert's management systems, less
controlling than the exploitative authoritative system. Under this system, motivation is
based on the potential for punishment and partially on rewards. The decision making
area is expanded by allowing lower-level employees to be involved in policy-making but
is limited by the framework given to them from upper-level management. Major policy
decisions are still left to those at the top, who have some awareness of the problems
that occur at lower levels. Managers feel very responsible for organizational goals,
workers feel very little. Communication moves downwards, from supervisors to
subordinates.
Blooms Taxonomy >ANSW >This describes six levels within the cognitive domain for
learning. These levels are: Knowledge, Comprehension, Application, Analysis,
Synthesis, & Evaluation
Budget >ANSW >A formal document that describes the financial history of a business
and projects the expenses, income, credits, and debits for an upcoming period, typically
a year.
Bureaucratic Management >ANSW >Managers follow the norms and policies of the
organization regardless of
inefficiencies.
Business Plan >ANSW >written document that explains how the business is going to
achieve its goals
, Business Professionals of America (BPA) >ANSW >An organization devoted to helping
high school students successfully enter the business community
Business strategy >ANSW >The means by which a business sets out to achieve its
desired ends (objectives). It can simply be described as a long-term business planning.
Typically a business strategy will cover a period of about 3-5 years (sometimes even
longer).
Business Tort (Economic Tort) Law >ANSW >an unlawful act against an organization or
business entity
Business Tort (Economic Tort) Law Examples >ANSW >• Fraud - knowingly making
false statements or intentionally omitting information.
• Negligent misrepresentation - unintentionally (by ignorance or negligence) making
false statements or claims.
• Breach of fiduciary duty - Acting in a way that is not in the best interest of the
beneficiary (e.g.,
shareholders, company, and owner).
• Civil theft - the unlawful taking of property without the owner's consent (e.g.,
intellectual property,
nformation, and trade secrets).
• Conspiracy - when two or more people act together to commit a crime.
• Defamation - making false and damaging statements that result in financial losses.
• Tortious interference - knowingly interfering with a business relationship or contract.
C-corporation >ANSW >shareholders are taxed separately from the company
Campus Area Network (CAN) >ANSW >Used on campuses with
buildings in close proximity and
managed by an enterprise
Capital Funding >ANSW >Capital funding is the money from lenders and equity holders
to the business for operating costs. A company's capital funding consists for equity
(stock) and debts (bonds). The equity and bond holders expect to earn a return on
investment (ROI) through interest, dividends, or stock appreciation
Capitalism >ANSW >An economic model with the following characteristics: emphasis on
private property, the freedom to manipulate private property to derive as much income
as possible, and competitive and open markets.
Career Cluster >ANSW >The United States government has established sixteen of
these to aid vocational educators, who may be overwhelmed by the variety of potential
careers and can benefit from a system of summary.
(AACSB) >ANSW >an international non-profit organization that provides accreditation to
business schools. It also conducts research and publishes information in business
education.
50/20/30 budgeting >ANSW >the method of allocating 50% of income to necessities,
20% of income to savings, and 30% of income to lifestyle
A business plan should include the following
sections: >ANSW >Executive summary - provides a summary of the
contents of the document and encourages the reader to
learn more about the business.
• Business overview - provides an overview of the
mission, vision, goals, and objectives of the business.
• Market analysis - describes the target customer,
customer needs, current market trends, and predictions
based on evidence of how the market will respond to
the business's product or service.
• Competitive analysis - describes competitors in the
industry of similar products and describes barriers in the marketplace.
• Sales and marketing plan - describes the strategy to bring the product or service to the
customer and persuade customers to buy the product or service.
• Ownership and management plan - describes the legal structure and ownership of the
business, management resources, and the management structure.
• Operating plan - describes the operations of the business and its resources including
facilities,
location, equipment, and personnel.
• Financial plan - describes how the business's finances will be managed, provides
projections of revenue and expenditures, and includes the balance sheet, income
statement, and cash flow
statement.
Accounting >ANSW >the process of managing money
Accounting Cycle >ANSW >a series of steps to process financial transactions. The
accounting cycle typically
consists of 6 steps: analyzing transactions, recording journal entries, posting credits and
debits, adjusting assets, preparing financial statements, and closing temporary
accounts.
,Accounts payable >ANSW >Department that processes expense payments, invoices,
and disbursements.
Accounts Payable >ANSW >Money owed by a business for materials purchased on
credit. Increases assets and liabilities.
Accounts receivable >ANSW >Department that processes income coming into the
organization.
Accounts Receivable >ANSW >Money owed to a business for products sold to
customers on credit.
Advantages of Franchises >ANSW >• Startup process - The franchisee avoids the
challenges of starting a new business and bringing a
new product to the market.
• Brand recognition - The market already knows and recognizes the product so the
franchisee can
reduce marketing efforts and costs.
• Support - Franchisors usually provide support to the franchisee with marketing,
business processes,
and financing. It is in the best interest of the franchisor for the franchisee to be
successful.
Apraxia >ANSW >The inability to carry out specific motor tasks in the absence of
sensory or motor impairment
Assets >ANSW >anything the organization has acquired that has value. This can be
physical assets like cash,
equipment, and land. An asset can be accounts receivable or income. An asset can
also be intangible like company reputation and image.
Assets >ANSW >Liabilities + Equity
Autocratic (Authoritarian) Management >ANSW >Managers make decisions solely
without input from others.
Automation >ANSW >A machine or system that operates using automated machines as
control for production.
Average method >ANSW >calculates the cost of goods sold using the average cost
over time.
Baby Boomers >ANSW >Born between 1946 and 1965
• Prioritize work over personal life
• Believe in promotion based on years served
• Shaped by civil rights movement, Vietnam War, and inflation
,• More open to change than previous generation
• Pursuit of personal gain
Balance Sheet >ANSW >shows the financial position of the organization for a specific
period of time. The balance
sheet includes assets, liabilities, and equity.
Balance Sheets >ANSW >Accounting statements that provide a snapshot of a
company's financial position at a particular time.
Bandwidth >ANSW >The amount of data that can be transmitted over a network in a
given amount of time.
Basic Accounting Equation >ANSW >Assets = Liabilities + Owner's Equity
Basic Programming Elements >ANSW >* Input - data and commands
• Output - results of the computer program
• Arithmetic - mathematical calculations of data
• Conditional - determining if a condition is true or false
• Looping - repeating a set of commands until some condition is met
Benevolent Authoritative >ANSW >One of Likert's management systems, less
controlling than the exploitative authoritative system. Under this system, motivation is
based on the potential for punishment and partially on rewards. The decision making
area is expanded by allowing lower-level employees to be involved in policy-making but
is limited by the framework given to them from upper-level management. Major policy
decisions are still left to those at the top, who have some awareness of the problems
that occur at lower levels. Managers feel very responsible for organizational goals,
workers feel very little. Communication moves downwards, from supervisors to
subordinates.
Blooms Taxonomy >ANSW >This describes six levels within the cognitive domain for
learning. These levels are: Knowledge, Comprehension, Application, Analysis,
Synthesis, & Evaluation
Budget >ANSW >A formal document that describes the financial history of a business
and projects the expenses, income, credits, and debits for an upcoming period, typically
a year.
Bureaucratic Management >ANSW >Managers follow the norms and policies of the
organization regardless of
inefficiencies.
Business Plan >ANSW >written document that explains how the business is going to
achieve its goals
, Business Professionals of America (BPA) >ANSW >An organization devoted to helping
high school students successfully enter the business community
Business strategy >ANSW >The means by which a business sets out to achieve its
desired ends (objectives). It can simply be described as a long-term business planning.
Typically a business strategy will cover a period of about 3-5 years (sometimes even
longer).
Business Tort (Economic Tort) Law >ANSW >an unlawful act against an organization or
business entity
Business Tort (Economic Tort) Law Examples >ANSW >• Fraud - knowingly making
false statements or intentionally omitting information.
• Negligent misrepresentation - unintentionally (by ignorance or negligence) making
false statements or claims.
• Breach of fiduciary duty - Acting in a way that is not in the best interest of the
beneficiary (e.g.,
shareholders, company, and owner).
• Civil theft - the unlawful taking of property without the owner's consent (e.g.,
intellectual property,
nformation, and trade secrets).
• Conspiracy - when two or more people act together to commit a crime.
• Defamation - making false and damaging statements that result in financial losses.
• Tortious interference - knowingly interfering with a business relationship or contract.
C-corporation >ANSW >shareholders are taxed separately from the company
Campus Area Network (CAN) >ANSW >Used on campuses with
buildings in close proximity and
managed by an enterprise
Capital Funding >ANSW >Capital funding is the money from lenders and equity holders
to the business for operating costs. A company's capital funding consists for equity
(stock) and debts (bonds). The equity and bond holders expect to earn a return on
investment (ROI) through interest, dividends, or stock appreciation
Capitalism >ANSW >An economic model with the following characteristics: emphasis on
private property, the freedom to manipulate private property to derive as much income
as possible, and competitive and open markets.
Career Cluster >ANSW >The United States government has established sixteen of
these to aid vocational educators, who may be overwhelmed by the variety of potential
careers and can benefit from a system of summary.
