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DECA Entrepreneurship Vocabulary
Exam Questions with 100% Correct
Answers
acquisition: - ✔✔The purchase of a company by another, larger firm, which
absorbs the smaller company into its operations.
board of directors: - ✔✔A group of individuals elected by a firm's
shareholders and charged with overseeing, and taking legal responsibility
for, the firm's actions.
business plan: - ✔✔Document in which the entrepreneur summarizes her
or his business strategy for the proposed new venture and how that
strategy will be implemented.
chief executive officer (CEO): - ✔✔The person responsible for the firm's
overall performance.
co-operative: - ✔✔An organization that is formed to benefit its owners in
the form of reduced prices and/or the distribution of surpluses at year-end.
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
common stock: - ✔✔Shares whose owners usually have last claim on the
corporation's assets (after creditors and owners of preferred stock) but who
have voting rights in the firm.
conglomerate merger: - ✔✔A merger of two firms in completely unrelated
businesses.
corporate governance: - ✔✔The relationship between shareholders, the
board of directors, and other top managers in the corporation.
divestiture: - ✔✔Occurs when a company sells part of its existing business
operations to another company.
employee stock ownership plan (ESOP): - ✔✔when a corporation buys its
own stock with loaned funds and giving them to its employees. Employees
"earn'' the stock based on some condition such as seniority. Employees
control the stock's voting rights immediately, even though they may not
take physical possession of the stock until specified conditions are met.
This aligns the employees' interest with those of the shareholders, as they
are shareholders themselves.
entrepreneur: - ✔✔A business person who accepts both the risks and the
opportunities involved in creating and operating a new business venture.
DECA Entrepreneurship Vocabulary
Exam Questions with 100% Correct
Answers
acquisition: - ✔✔The purchase of a company by another, larger firm, which
absorbs the smaller company into its operations.
board of directors: - ✔✔A group of individuals elected by a firm's
shareholders and charged with overseeing, and taking legal responsibility
for, the firm's actions.
business plan: - ✔✔Document in which the entrepreneur summarizes her
or his business strategy for the proposed new venture and how that
strategy will be implemented.
chief executive officer (CEO): - ✔✔The person responsible for the firm's
overall performance.
co-operative: - ✔✔An organization that is formed to benefit its owners in
the form of reduced prices and/or the distribution of surpluses at year-end.
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
common stock: - ✔✔Shares whose owners usually have last claim on the
corporation's assets (after creditors and owners of preferred stock) but who
have voting rights in the firm.
conglomerate merger: - ✔✔A merger of two firms in completely unrelated
businesses.
corporate governance: - ✔✔The relationship between shareholders, the
board of directors, and other top managers in the corporation.
divestiture: - ✔✔Occurs when a company sells part of its existing business
operations to another company.
employee stock ownership plan (ESOP): - ✔✔when a corporation buys its
own stock with loaned funds and giving them to its employees. Employees
"earn'' the stock based on some condition such as seniority. Employees
control the stock's voting rights immediately, even though they may not
take physical possession of the stock until specified conditions are met.
This aligns the employees' interest with those of the shareholders, as they
are shareholders themselves.
entrepreneur: - ✔✔A business person who accepts both the risks and the
opportunities involved in creating and operating a new business venture.
