Vocabulary
Economic Systems
Business Organizations
Corporations
Making Business Decisions
100
What is profit?
The money a business has left after it has paid its expenses.
100
What is the want-satisfaction chain.
The process of obtaining goods or services to satisfy your wants.
100
What are the 3 main types of business organizations in America?
1. Sole proprietorship


2. Partnership


3.Corporation

100
What is a corporation?

A type of business organization that is recognized by law as a separate legal entity from the people who own it. 

100
What are the 4 factors of production?
Labor, entrepreneurship, natural resources, capital
200
What is a sole proprietorship?
A small business owned by one person.
200
What are the three types of economic systems?
Traditional economy, command economy, and market economy.
200
What is an advantage of a sole proprietorship?
-You are your own boss

-You decide how your business will operate and hours of operation

-You don't have to share the profits with anyone

200
What are two ways corporations raise money?
By selling stocks and bonds.
200
What is capital?
The manufactured goods used to make other goods and services.
300
What is a market economy?

An economic system in which economic decisions are made by individuals looking out for their and their families best interests.

300
What are the two main principles of economy, and explain them?
Law of supply: businesses will produce more goods if they can sell them at higher prices.

Law of demand: people will buy more of a product if the prices are lower.

300
What is a disadvantage of a partnership?
-The business may face a big loss, and the partners may lose their personal belongings

-Disagreements may occur, causing a business to lose efficiency

300
What do corporations have to do in return for having the rights of selling stock and conducting business?
Follow state regulations in regard to their organization.
300
What is one way you can get financial capital?
If you have good credit and a good business plan, you can take out a loan from a bank. You might also apply for a loan from the SBA (Small Business Association).
400
What is an entrepreneur?
A person who organizes, manages, and assumes the risks of a business.
400
What is an advantage, and a disadvantage of the free-enterprise system?

Advantage: people can start highly successful businesses because of economic freedom

Disadvantage: there is the risk of huge losses (if they create a product only to learn that there is no demand for it, or they might find that they have to charge more than people are willing to pay for their goods)

400
How many businesses are there in the US? How many are sole proprietorships?
30 million; 18 million
400
How are the debts of a corporation paid if it fails?
It sells its buildings, property, and other valuables to raise money to pay off the debts.
400
What is the difference between salaries and hourly wages?
Salaries are fixed earnings, while hourly wages are paid for every hour a person provides labor.
500

What are nonprofit organizations? 

Business organizations that provide goods or services without seeking to earn a profit for stockholders.
500
What is the relationship between monopolies and the U.S? And why? (This is a bonus question. If the team can't answer it they still get the 500 points for the first part.)

Monopolies (excluding certain public utilities) are illegal in America. (This is because they limit competition, and set their own prices. If a business is the only one selling an essential for living, it may set the price to high, which is harmful for consumers.)

500
What does a written agreement in a partnership do?

It sets out what responsibilities each partner has for running the business. It also establishes how the partners will be paid if the business earns profits. 

500
What happens at the stockholders' meeting?
They elect the board of directors, choose corporate officers, and vote on changes in the corporation's business structure. 
500
What are two ways government helps business?

-ensures that big corporations do not destroy competition from small businesses

-protects a person's right to own private property and to buy and sell in free market

-protects workers' health and safety

-preserves environment

-protects buyers from discrimination

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