DECA 2025-2026 Entrepreneurship
Cluster Exam with verified solutions
Tort Law (Business) - correct answer ✔✔Wrongful interference with the right of a business to operate
Charter - correct answer ✔✔written document filed with the Secretary of State (or registrar in Canada)
by the founders of a corporation. It details the major components of a company, such as its objectives,
structure, and planned operations.
Consolidation - correct answer ✔✔The joint of two or more companies to form a new company
Intermediaries/middlemen - correct answer ✔✔Sale agents, wholesalers, and retailers who perform
specific functions in the movement of goods from products to consumers
Indirect channels of distribution - correct answer ✔✔enlisting a distributor to get your products to a
retailer, who can sell on your behalf
Direct channels of distribution - correct answer ✔✔Where a company sells directly to the end
consumers (website)
Formal business reports - correct answer ✔✔Purpose is the define a specific topic/problem area.
Present and interest data, draw conclusions, and make recommendations
Customization - correct answer ✔✔Inventing a completely new product for a different country's market
Globalization - correct answer ✔✔Keeping product and advertising messages the same throughout the
world
Nationalization - correct answer ✔✔Government taking ownership of something (not related)
, Cultural sensitivity - correct answer ✔✔Being sensitive to the customs, habits, and traditions of a
particular group of people
International trade - correct answer ✔✔an exchange involving a good or service conducted between at
least two different countries
Freight forwarding services - correct answer ✔✔the coordination and shipment of goods from one place
to another via a single or multiple carriers via air, marine, rail or highway
Free enterprise - correct answer ✔✔an economy where the market determines prices, products, and
services rather than the government
Inbound-call report - correct answer ✔✔Summary of phone calls processed by sales and service
representatives within a specific time period
Environmental scan - correct answer ✔✔An analysis of the environment surrounding the business.
Operating budget - correct answer ✔✔Estimate the business's day-to-day finical inflows (sales) and
outflows (payroll/inventory)
Cash receipts - correct answer ✔✔Money that a business collects (income)/money flowing into a
business (sales/interest)
Current assets - correct answer ✔✔Can be converted into cash fairly quickly (in a year or less)
Business process thinking - correct answer ✔✔Keeping processes in mind throughout a project or
business venture
Debt financing - correct answer ✔✔securing money for your business by taking on debt, must pay
interest and pay the money back even if the business fails (although you get to control how the money is
spent)
Cluster Exam with verified solutions
Tort Law (Business) - correct answer ✔✔Wrongful interference with the right of a business to operate
Charter - correct answer ✔✔written document filed with the Secretary of State (or registrar in Canada)
by the founders of a corporation. It details the major components of a company, such as its objectives,
structure, and planned operations.
Consolidation - correct answer ✔✔The joint of two or more companies to form a new company
Intermediaries/middlemen - correct answer ✔✔Sale agents, wholesalers, and retailers who perform
specific functions in the movement of goods from products to consumers
Indirect channels of distribution - correct answer ✔✔enlisting a distributor to get your products to a
retailer, who can sell on your behalf
Direct channels of distribution - correct answer ✔✔Where a company sells directly to the end
consumers (website)
Formal business reports - correct answer ✔✔Purpose is the define a specific topic/problem area.
Present and interest data, draw conclusions, and make recommendations
Customization - correct answer ✔✔Inventing a completely new product for a different country's market
Globalization - correct answer ✔✔Keeping product and advertising messages the same throughout the
world
Nationalization - correct answer ✔✔Government taking ownership of something (not related)
, Cultural sensitivity - correct answer ✔✔Being sensitive to the customs, habits, and traditions of a
particular group of people
International trade - correct answer ✔✔an exchange involving a good or service conducted between at
least two different countries
Freight forwarding services - correct answer ✔✔the coordination and shipment of goods from one place
to another via a single or multiple carriers via air, marine, rail or highway
Free enterprise - correct answer ✔✔an economy where the market determines prices, products, and
services rather than the government
Inbound-call report - correct answer ✔✔Summary of phone calls processed by sales and service
representatives within a specific time period
Environmental scan - correct answer ✔✔An analysis of the environment surrounding the business.
Operating budget - correct answer ✔✔Estimate the business's day-to-day finical inflows (sales) and
outflows (payroll/inventory)
Cash receipts - correct answer ✔✔Money that a business collects (income)/money flowing into a
business (sales/interest)
Current assets - correct answer ✔✔Can be converted into cash fairly quickly (in a year or less)
Business process thinking - correct answer ✔✔Keeping processes in mind throughout a project or
business venture
Debt financing - correct answer ✔✔securing money for your business by taking on debt, must pay
interest and pay the money back even if the business fails (although you get to control how the money is
spent)
