Vocabulary Part I
A rare occurrence when a large market of firms produce essentially the same product and the market is in equilibrium
What is Pure Competition?
What is an Oligopoly?
A product that is considered the same regardless of who makes/sells it. Example: Low grade gasoline, notebook paper, sugar
What is a commodity?
Teachers, Bankers, and Doctors would fall under this category of work.
What is professional?
This type of business has unlimited liability and generally relies on one person to make the business successful.
What is sole partnership?
The legal obligation to pay debts
What is Liability?
Jonathan wants to start his own film editing company. He needs to purchase Adobe Premier or Final Cut Pro X and have a good enough computer to perform all the RAM intensive rendering and processing. This type of barrier to entering this business would fall under this category.
What is technology?
The ownership structure of a business or firm; Sole Proprietorship, Partnership, Franchise, or Corporation
What is a Business Organization?
A cook, lifeguard, and construction worker would fall under this category of work.
What is Semi-Skilled?
This is the corporate tax rate.
What is 21%?
When one company joins with another company to form a single company
What is a merger?
A firm's ability to control prices and output would be this.
What is Market Power?
Money or other things of value
What is an Asset?
Susan found out that she and her friend Thomas both got accepted into Junior Partners at Berret, Berret, and Johnson. Susan found out that they offered Thomas $1000 more a month for the same position. This 1963 law makes this situation illegal.
What is the Equal Pay Act?
This type of business has an already established reputation that individuals can take advantage of.
What is a franchise?
A formal contract issued by a corporation or entity that includes the promise to repay the borrowed money with interest at fixed intervals
What is a bond?
These types of laws are designed to maintain competition and keep companies like T-Mobile and AT&T from joining together against Verizon.
What are Anti-Trust Laws?
Competition through ways that are not through lower prices
What is "Non-Price Competition"?
The CEO's of American Airlines and Southwest met up for lunch and while their normal prices for flights averaged less than $300, they decided that they would both add $100 to each flight as a way to increase their profits. Those companies agreeing to higher prices for artificial reasons would be considered this.l
What is Collusion?
This type of corporation is typically controlled by families and can't be bought by the public.
What is Closely Held?
The process of distinguishing one product or service from another, making it more attractive
What is differentiation?
Terry decided to not form an LLC, or a Limited Liability Corporation, when he began to plan for his business. The next step for his business is to do this.
What is register the business's name?
A share of a corporation’s profit paid to the owners of stock
What is a dividend?
There are particular loans for women that the USSBA offers. Those loans can be as much as this amount.
What is $5,000,000?
At large companies like Disney and Amazon, this group will decide who the CEO is.
What is the Board of Directors?