Unit 1
What is the primary purpose of a business?
To earn Profit
A company where one person owns and has full control is an example of what type of business?
Sole Proprietorship
What is it called when prices go up - a general increase in price over time?
Inflation
What are the two types of businesses?
Goods and Service
What are the two different kinds of partnerships?
General Partnership
Limited Partnership
Surplus
What is a nonprofit?
In a nonprofit, the profit goes toward the mission, whereas in a profit-based company, it goes back into the business and into employees' pockets.
What field studies how people make choices with limited resources(time, money, goods)?
Economics
Capitalism, Socialism, Communism
What is the profit equation?
Revenue-COGS-Expenses=Profit
What is described as the fundamental economic principle that explains how prices are determined in a market economy?
Supply and Demand
What are the 4 economic systems?
What are the 5 steps of design thinking?
1) Empathize
2) Define
3) Ideate
4) Prototype
5) Test
What is it called when supply and demand intersect?
Equilibrium
Demand - pull inflation
cost-push inflation
built-in inflation