GACE Business (715) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Opportunity cost

The value of the next-best alternative given up when a choice is made; it underlies all economic decision-making and trade-off analysis in business.

Law of demand

The principle that as price rises, quantity demanded falls, all else equal; shown as a downward-sloping demand curve on a price-quantity graph.

Equilibrium price

The price at which quantity supplied equals quantity demanded; above it a surplus appears, below it a shortage appears, and the market tends toward it.

Comparative advantage

The ability to produce a good at lower opportunity cost than another producer; it explains why specialization and trade raise total output even for less efficient nations.

GDP versus GNP

GDP counts final output produced within a country's borders; GNP counts output produced by a country's residents wherever they operate.

Tariff

A tax imposed on imported goods; it raises the domestic price, protects domestic producers, and increases costs for consumers and downstream businesses.

Accounting equation

Assets equal liabilities plus owner's equity; it must stay in balance after every transaction and underlies the entire double-entry bookkeeping system.

Debit and credit rules

Debits increase assets and expenses; credits increase liabilities, equity, and revenue. Each transaction records equal debits and credits.

Current ratio

Current assets divided by current liabilities; it measures short-term liquidity and the ability to pay obligations due within one year.

Break-even point

Fixed costs divided by contribution margin per unit (price minus variable cost); it is the sales volume at which total revenue equals total cost.

Straight-line depreciation

Cost minus salvage value, divided by useful life; it allocates an asset's cost evenly across periods and is not a cash outflow.

Contract elements

A valid contract requires offer, acceptance, consideration, capacity of the parties, and legality of purpose; missing any element can make it unenforceable.

Net present value

The sum of discounted future cash flows minus the initial investment; a positive NPV means the project adds value at the required rate.

Management functions

Planning, organizing, leading, and controlling; controlling compares actual performance with standards and takes corrective action when gaps appear.

Span of control

The number of subordinates reporting to one manager; a narrow span creates a tall hierarchy, while a wide span creates a flat one.

Maslow's hierarchy

Needs ordered from physiological, safety, social, esteem, to self-actualization; lower needs generally must be satisfied before higher needs motivate behavior.

Herzberg's two factors

Hygiene factors such as pay and policy prevent dissatisfaction but do not motivate; motivators such as achievement and growth create satisfaction and engagement.

Marketing mix

The four Ps of Product, Price, Place, and Promotion; services marketing adds People, Process, and Physical evidence to the mix.

Product life cycle

Stages of introduction, growth, maturity, and decline; sales growth slows in maturity while profit typically reaches its peak there.

Market segmentation

Dividing a market by demographic, geographic, psychographic, or behavioral traits; segments should be measurable, accessible, substantial, and actionable for targeting.

Penetration pricing

Setting a low introductory price to win market share quickly; it can discourage entrants but may weaken perceived value if raised later.

SWOT analysis

A planning tool pairing internal strengths and weaknesses with external opportunities and threats to guide strategy and resource allocation.

Database primary key

A field that uniquely identifies each record in a table; foreign keys in other tables reference it to establish relationships between tables.

CIA triad

Confidentiality, integrity, and availability; the three goals that information security controls are designed to protect in any organization.

Phishing

A deceptive message that impersonates a trusted party to steal credentials or install malware; defenses include sender verification and multi-factor authentication.

Cloud service models

IaaS provides infrastructure, PaaS provides development platforms, and SaaS provides finished applications; deployment may be public, private, or hybrid.

Direct versus indirect approach

Direct puts the main point first for routine or good news; indirect opens with a buffer and reasons before delivering unfavorable news.

Active voice

Sentence construction in which the subject performs the action; preferred in business writing for clarity and accountability, while passive suits unknown actors.

Business CTSOs

Career and technical student organizations such as FBLA, DECA, and BPA that offer competitive events, leadership development, and networking tied to business coursework.

Backward design

Planning sequence that first identifies desired results from standards, then determines acceptable evidence, and only then designs learning experiences and instruction.

Formative versus summative assessment

Formative assessment monitors learning during instruction to guide adjustments; summative assessment measures achievement at the end of a unit or course.

Analytic rubric

A scoring guide that evaluates separate criteria individually, producing detailed feedback; holistic rubrics instead give one overall score for the whole performance.