Business and types
Sole Propitership
Business owned by one person/family
Traditional
How humans first traded
Merger
When 2 companies comes together
When cunsumers want or need in the market
Opportunity cost
A cost of what you cant do because of doing another thing
Partnership
Business owned by 2 or more people
Command
Production is determined by Gov
What is one type of merger?
A horizontal merger. Which is when 2 alike companies join together
What is the "Law of Demand"
When price rises, demand goes down. When price drops, demand goes up.
What is a pro of a Partenership Company
You have help, lower taxes than corps.
Corporation
A publicly traded company, usually on the larger side and not owned by individual people
What did ancient Romans start using for currency?
They were the first to use coins as a way of having currency
Whats another type of merger
A vertical merger. Which is were 2 different companies join
What is a "price"
A price is a negotiation point between buyer and seller
Yes it does
Franchise
A business thats owned by one person but part of a larger company
Free Market
Consumers determine price of items
Whats an example of a horizontal merger
Ex. If Mcdonalds and Burger king came togther it would be a horizontal merger
Does this apply to a Free Market Economy?
Yes it does
Who has a FME
USA,MEXICO,ITALY,JAPAN, and CANADA
Business Organization
Businesses way of making profit
Whats an Economic system
An organized way for society to provide wants and needs
Whats an example of a Vertical merger
Ex. If Vons and Disney came together it would be a vertical merger
Does this apply to a command economy?
No, it does not
Risk vs Reward factor
Innovator and tech improvement are rewarded with profit