Organizing a Business
Types of Businesses
Functions of Business
Ch. 1-5 Terms
Ch. 1-5 Key Ideas
100
A business owned by one person
Sole Proprietorship
100
A retailer purchases goods from who?
A Wholesaler
100
What is the process of planning, pricing, promoting, selling, and distributing ideas, goods, and services?
Marketing
100
________________ are items that people can use to make or obtain what they need or want
Resources
100
What economy contains both private and public enterprises?
A Mixed Economy
200
The main advantage of a corporation is...
Limited Liability
200
What type of business changes raw materials into more finished products?
Processor
200
What function of management is revolved around achieving goals?
Management


200
Companies thrive on ________________, the contest between businesses to win customers
Competition
200
What is last step in the decision-making process?
Evaluating Your Decision
300
What is the main disadvantage of a corporation?
Double Taxation
300
Service businesses perform ___________ rather than goods
Tasks
300
Finance is...
The business or art of money management
300
The total value of the goods and services produced in a country in a given year is called
GDP or Gross Domestic Product
300
What stage follows the depression stage in the business cycle?
The Recovery Stage
400
What organization is owned and operated by its members?
Cooperative
400
Examples of this type of business include fishing and mining
Producer
400
The six functions of a business are ___________________ of each other
Interdependent
400
Factors of production include
Natural, Entrepreneurial, Labor, and Capital Resources
400
What economic shift took place during the mid 1850s?
The Industry-Based Economy
500
What organization does not pay taxes?
Nonprofit Organization
500
What example did we use in class to explain what a processor does?
Sugar cane turned into sugar
500
What is an intermediary?
A business that moves goods from one business to another
500
List three of the five economic indicators.
Gross Domestic Product, Standard of Living, Unemployment Rate, Rate of Inflation, and National Debt
500
If supply INCREASES and demand STAYS CONSTANT, what happens to the equilibrium price?
The Equilibrium Price DECREASES
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