OAE Business Education flashcards

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

Accounting Equation

Assets equal liabilities plus owner's equity. Every transaction keeps this equality intact because each entry records equal debits and credits across at least two accounts.

Debit and Credit Rules

Assets and expenses increase with debits and decrease with credits. Liabilities, equity, and revenue increase with credits. Contra accounts behave opposite their parent account.

Break-Even Point in Units

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

Straight-Line Depreciation

Cost minus salvage value, divided by useful life. The same depreciation expense is recorded each full year, producing a constant decline in book value.

Current Ratio

Current assets divided by current liabilities. It measures short-term liquidity, indicating whether a firm can cover obligations due within one year from near-term resources.

Trial Balance Limitation

A trial balance confirms total debits equal total credits. It cannot reveal omitted transactions, offsetting errors, or a correct amount posted to the wrong account.

Price Elasticity of Demand

Percent change in quantity demanded divided by percent change in price. Demand is elastic when the absolute value exceeds one and inelastic when it is below one.

GDP Expenditure Formula

Consumption plus investment plus government spending plus net exports (exports minus imports). It counts final goods produced within a nation's borders during a period.

Open Market Operations

The Federal Reserve's buying and selling of government securities. Buying securities injects reserves, expands the money supply, and generally lowers short-term interest rates.

Comparative Advantage

The principle that a party should specialize in producing goods for which its opportunity cost is lowest, then trade, raising total output even without an absolute advantage.

Monopolistic Competition

A market structure with many sellers offering differentiated products, free entry and exit, and limited price control. Examples include restaurants and clothing retailers.

Fisher Effect

The nominal interest rate approximately equals the real interest rate plus expected inflation. Lenders demand compensation for anticipated erosion of purchasing power over the loan term.

Management Control Function

Measuring actual performance against established standards, then correcting deviations. It closes the management cycle begun by planning and depends on measurable, timely performance data.

Herzberg Two-Factor Theory

Hygiene factors such as pay and working conditions prevent dissatisfaction but do not motivate. Motivators such as achievement and recognition produce genuine satisfaction and effort.

Maslow Hierarchy Order

Needs ascend from physiological to safety, social, esteem, and self-actualization. Lower-level needs generally must be satisfied before higher-level needs drive motivation.

Span of Control

The number of subordinates reporting directly to one manager. A narrow span creates a tall hierarchy with many layers; a wide span creates a flat structure.

Marketing Mix Four Ps

Product, price, place, and promotion. Together these controllable elements form a firm's marketing strategy for a target market segment.

Product Life Cycle Stages

Introduction, growth, maturity, and decline. Pricing and promotion emphasis shift at each stage, and competition is typically strongest during maturity.

Contract Required Elements

Offer, acceptance, consideration, capacity, and legality. Without all five, an agreement generally cannot be enforced as a binding contract in court.

UCC Article 2 Scope

Governs contracts for the sale of goods, covering merchants and non-merchants. Service contracts remain under common law, and the UCC supplies implied warranties.

Negligence Four Elements

Duty of care, breach of that duty, causation of injury, and actual damages. A plaintiff must prove all four to recover in a negligence action.

Patent Term

Twenty years from the filing date for utility patents, protecting new and useful inventions. Design patents last fifteen years from grant.

Chapter 7 Bankruptcy

A liquidation proceeding in which nonexempt assets are sold and distributed to creditors. Individuals may receive a discharge, and businesses typically cease operations.

Technology Integration Defined

Using technology tools to teach specific content objectives, not as an isolated skills lesson. Integration is judged by improved learning of the subject matter.

Formative Versus Summative

Formative assessment occurs during instruction and guides adjustments. Summative assessment occurs after instruction and certifies achievement against objectives.

ADDIE Model

Analysis, Design, Development, Implementation, and Evaluation. This instructional design cycle is iterative, with evaluation feeding revision of earlier stages.

Cooperative Learning Elements

Positive interdependence, individual accountability, promotive interaction, social skills, and group processing. Grading only the group product violates individual accountability.

Differentiation Components

Adjusting content, process, or product in response to student readiness, interest, and learning profile. It differs from ability tracking, which separates students into fixed groups.

Absolute Cell Reference

A reference such as $A$1 that stays fixed when a formula is copied. Dollar signs lock the column, the row, or both.

Database Primary Key

A field that uniquely identifies each record in a table. It prevents duplicate rows and is referenced by foreign keys in related tables.

DNS Function

The Domain Name System translates human-readable domain names into numeric IP addresses so browsers can locate servers on the internet.

Phishing Attack

A fraudulent message impersonating a trusted sender to trick recipients into revealing credentials or clicking malicious links. Verifying the sender independently is the key defense.