Economic Principles
Determine how much of a product is made and how much it is sold for
Law of supply and demand
A business with one owner
Sole proprietorship
Defined as the process of promoting and selling a customer good, service, or idea to a customer
Product
Accounting equation
Assets=Liability+Owners Equity
Ownership in a corporation; represents a claim on part of the corporations assets and earnings
Stocks
iIntersect quantity and price
Equilibrium
A shared business
Partnership
Defined as the strategy a company uses to distribute it6s products and services in attempt to gain customer purchases
Place
Income?
Revenue
You loan money to a corporation or government, and they pay you back with interest
Bonds
Limited resources
Scarcity
Like a corporation but is a separate and distinct legal entity
Limited liability company
Defined as the current price at which product can be bought or sold
Price
Money being spent/money going out
Expenses
A collection of stocks and bonds from a group of people , and managed by a broker
Mutual funds
The cost of an alternative that must be forgone in order to peruse a certain action
Opportunity costs
Is more complicated than the sole proprietorship or partnership, must follow stricter regulations
corporation
Defined as any type of communication used to inform, persuade, or remined customers about a companies product
Promotion
The amount an individual or business makes after deduction costs
Net income
Something, typically money, that is owed or due
Debt
What are needs vs wants?
Need: something necessary or required for life, want: something unnecessary but desired
Offers the advantages of a quick start up, a proven business plan, recognizable trademark and brand, and pre-existing infrastructure
Franchise
Defined as a group of potential customers of whom a company wants to sell its product and services
Target Market
Capitol amassed by the company after all liabilities are subtracted
Owners equity
The amount a lender charges a borrower and is a percentage of the principle of the amount loaned
Interest