Factors affecting profit
increasing sales and decreasing expenses has what impact?
increases profit
Benefit of a strong economy
answers may vary
control over prices and lots of competitors
monopolistic competition
government passes building code laws is an example of what type of risk
compliance risk
total revenue - COGS - operating expenses
net profit
decrease
competition does what for society?
no difference in product and no control over price
perfect competition
An employee who accidentally breaks a machine
operational risk
Total revenue is
price X quantity
government raises taxes by 10%
decreases
People who start a business
entrepreneurs
high prices and no competition
monopolies
Businesses can protect themselves from the risk associated with lost shipments by
insuring against it.
what are the two key components of defining Demand
Willing and able to purchase.
AI increases productive efficiency
increases
an economy in a recession is called
Bear market
many companies with differentiated products
monopolistic competition
investments failed to produce earnings
financial risk
How is market demand created
adding up individual demand curves.
Company uses an advertising campaign to increase sales
increases
Office jobs are known as?
White Collar jobs
few competitors, difficult entry/exit
Oligopoly
The company enters a new market
strategic risk
The type of risk where an influencer can cause harm to a company that pays them.
reputational risk