Types of Business Ownership
You start a big company and sell stock to make money. A group helps make decisions, and the owners don’t have to pay if the company loses money.
List one way the NBA makes money:
Ticket sales, media rights, sponsorships, merchandising, any one of these works
What country has the highest GDP
America
What is Opportunity cost
the loss of potential gain from other alternatives when one alternative is chosen (or a variation of this)
You and two friends start a business together. You all share the work, the money you make, and the responsibility if something goes wrong.
Partnership
What is the NBA selling jerseys with team logos an example of?
Merchandizing
How is GDP calculated?
By the profets of all the products produced in a certain country that year
What is scarcity?
Scarcity is the condition of having not enough of something. (Or a variation of this)
You start a business where you are not personally responsible for the company's debts. You don’t sell stock, but you still get the protection of limited liability.
LLC / Limited Liability Corperation
What is ESPN or TNT paying billions for NBA games an example of?
Media rights revenue
What do taxes go to?
Public services, first responders, military.
What represents ownership in a company and entitles the holder to a share of profits?
Stock
What business model has no more than 100 stockholders?
S Corporation
The NBA invests in new markets like China to grow long-term profits. In personal finance, this is simple to what?
Diversifying your investments
What is the Branch of government in America called that is responsible for collecting taxes?
IRS
What refers to a diversified collection of investments held by an individual or institution?
Portfolio (Stock Portfolio also accepted)