Types of Businesses
Someone who owns an unincorporated business by themselves
Sole proprietorship
A business with tax-exempt status designated by the IRS for social and public benefit.
Non-Profit Organization (NPO)
A financial gain or advantage from buying, operating, or producing something in a business activity after paying business expenses.
Profit
A rise in prices that decreases the purchasing power over time.
Inflation
Two or more people combined their resources and create a business together
Partnership
Groups of workers who join together to bargain for terms and conditions of their employment such as benefits, wages, working conditions and schedules with their employer.
A strategy of selling goods or services at prices based on similar goods or services sold by competitor companies in the market. Includes matching, lowering, or raising costs.
Price Competition
The process where individuals or businesses focus on a specific job or type of production.
Specialization
A business owned by shareholders with an elected board of directors that is legally established and owns assets, privileges and liabilities separate from those that established it.
Corporation
The negotiation between workers and employers on terms and conditions for employment. This is a collectively determined agreement that may be done through a labor union.
Collective Bargaining
A marketing strategy that relies on providing unique selling points for goods and services to increase sales rather than lowering prices. The goal is to have your product or service stand out from the rest of the market.
Non-Price Competition
What are the three types of inflation?
Demand-Pull, Cost-Push, Built In
Protects owners from being liable (and risking personal wealth) for company’s debts or actions in a lawsuit.
LLC (Limited Liability Corporation)
An NPO must further these types of research or causes
religious, scientific, charitable, educational, literacy, public safety, or cruelty-prevention causes
A fraction of ownership of the issuing corporation/company and a form of equity (hint:These are similar to slices of pizza)
Stock
What are the four types of unemployment?
Frictional, Cyclical, Structural, Seasonal
Name one pro and one con of an LLC
Pros Similar to a partnership with additional protections, Establishes legal agreements for all members, Set up arrangements in case members leave/die, Keeps business and personal assets separate
Cons Paperwork must be filed with the state and fees paid , Yearly fees and paperwork is required in addition to tax filing
How many types of labor unions are there?
Four
What are the three types of profit?
gross, operating, and net
Unemployment occurs when workers are unable to find
Jobs