Business Structures
This business structure is owned by one person who receives all profits but is also personally responsible for all debts and liabilities.
What is a sole proprietorship?
This type of market has many buyers and sellers offering identical products, with no single seller able to control the price.
What is Perfect Competition?
This financial statement shows a business’s assets, liabilities, and owner’s equity at a specific point in time.
What is a Balance Sheet?
These costs stay the same no matter how much a business produces, such as rent, insurance, or loan payments.
What are fixed costs?
Current Assets / Current Liabilities
Current Ratio
This structure is owned by two or more people who share profits, responsibilities, and liability according to a partnership agreement.
What is a partnership?
This market structure is dominated by a single seller that controls the entire supply of a product or service.
What is a monopoly?
This report summarizes a business’s revenues and expenses over a period, revealing whether it made a profit or loss.
Income Statement
These costs change depending on the level of production, such as seed, feed, or fuel.
What are variable costs?
Total Liabilities / Owners Equity
Debt - to - Equity
This business structure is a separate legal entity from its owners, helping protect personal assets from business debts.
What is a corporation?
This type of market has many sellers offering similar but slightly different products, often competing through branding and marketing.
What is monopolistic competition?
This statement tracks how money moves in and out of a business, focusing on operating, investing, and financing activities.
What is a Cash Flow Statement
If total variable costs are $6,000 and fixed costs are $1,000 the business produces 400 units, what is the breakeven selling price?
$17.50
Total Liabilities / Total Assets
Debt - to - Asset Ratio
This type of business structure blends features of a partnership and a corporation, offering limited liability while often allowing pass-through taxation.
What is a limited liability company (LLC)?
This market structure is controlled by a small number of large firms, where each one’s decisions can influence the others.
What is an oligopoly?
This planning tool estimates future income and expenses to help guide financial decisions and keep spending on track.
What is a budget?
Depreciation, Interest, Repairs, ____ and Insurance are examples of a _____ cost
Taxes, Fixed
Current Assets - Current Liabilities
Working Capital
This business structure is owned and controlled by its members, who use the business to meet their shared needs and share in any profits or benefits.
What is a cooperative?
This market structure is the hardest to enter because it is dominated by a single firm that controls prices, output, and often has major barriers like high startup costs, legal restrictions, or control of key resources.
What is a monopoly?
Unlike an income statement, this financial statement focuses strictly on actual cash entering and leaving the business, not just recorded revenue or expenses.
What is a cash flow statement?
A business has fixed costs of $6,000, sells each unit for $30, and has variable costs of $18 per unit. How many units do they need to sell to breakeven?
500
Total Assets - Total Liabilities