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| a risk taker, they combine the three main resource types to create something new or improve upon something else (invent v. innovate) |
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| a business organization where the firm is owned by 1 person, unlimited liability |
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| a business organization where the firm is owned by 2 or more people, unlimited liability |
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| a business organization where the firm is owned by stockholders, has limited liability |
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| the idea that risk is spread around and reduced for owners. Typically used when talking about the benefits of owning a corporation |
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the money made after taking into account costs.
Revenue - costs = profit |
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| money made on sales of a good or service |
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a cost that is constant from month, though the amount might change.
For you= paying for gas or cell phone or lunch
For a business= rent for a place, wages, etc |
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| cost that changes as you produce more or less of a good/service |
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| a market structure where there is lots of competition, it is easy to start, firms are price takers, identical things are produced |
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| a market structure that is only different from perfect competition because similar things are made |
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| a market structure where similar things are made, hard to enter, and the firms are sort of price makers |
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| a market structure where there is one business, there is no competition, the firms are price makers |
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| a group of businesses that acts together (like a monopoly) to limit prices |
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| a way of organizing firms based on risk, reward (liability) and number of owners |
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| a way of organizing firms based on competition, price control, and number of firms |
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| the associated costs that go into producing a good or service |
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| the idea in economics where firms or individuals effort to get the best deal or most business |
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| sum total of the cost of all resources that go into making a product, also known as cost of production |
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| laws passed by the government that prevent businesses from combining to create a monopoly |
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| factors that limit the ability of people to start a business (money needed, knowledge, machinery, buildings, etc) |
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| when a group of businesses work together to behave like a monopoly. They agree to provide a good or service for the same price. Tempting to cheat and is illegal |
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| the idea that ALL of the risk is on you as a business owner. Typically applies to sole-proprietors and partnerships |
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| The cost of making one more additional unit of something. |
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| The money earned by producing one more additional unit of something. |
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| When a business allows investors to purchase shares (parts) of the business. Decisions are made by the majority shareholder(s). Original owners no longer have a say |
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| When a business is owned by the people who started the business. There is no sharing of profits by people outside of the business. |
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| when a business owner buys the rights to use the colors and processes of a bigger business. |
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| when something has demand because another good/service has demand. Example: demand for rare metals because electronics are popular. demand for cotton is up because denim jeans are popular. |
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| buying ownership in a company |
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| an independent operator of a business that pays a fee to a corporation that allows them to use color schemes, advertising, production methods. Is typically a version of sole-proprietorship |
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| One of the four main productive resources. Is when people take on a risk to combine the other resources into a new (invented) or improved (innovated) good or service. |
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| shorthand version of a company's name. i.e. NIKE= NKE APPLE= APPL WAL-MART= WMT |
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| represents ownership in a company. The more shares you own, the more of the company you own. |
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| when the government takes rules away from a business and lets them compete freely. |
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| anywhere stocks are bought and sold. Examples include the New York Stock Exchange and the NASDAQ |
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| a measurement of how stock markets are doing. Usually averages together a group of companies ranging in number from 30 to 1000s. Examples include the Dow Jones Industrial Average (DJIA) and the Standard and Poor's 500 |
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