Business Types
Business that is owned by 2 or more people
What is a partnership?
Rivalry among sellers in the same market to win customers
What is competition?
The amount of goods and services a producer makes available at a given price
What is supply?
The amount of money that is needed to pay for or buy something
What is price?
A person who purchases goods and services for personal use
What is a consumer?
Unincorporated business that is owned and managed by a single person
What is a sole proprietorship?
Many producers supply and sell identical product or service and prices are determined by supply and demand.
What is perfect competition?
The amount of goods and services customers are willing and able to buy at a given price
What is demand?
Income that a business has from its normal business activities (the sale of goods and services to customers)
What is revenue?
A government-imposed price control, or limit, on how high a price is charged for a product.
What is a price ceiling?
A legal entity/nonperson that can legally enter into agreements, own property, and be sued
What is a corporation?
Single producer supplies product or service for which there is no close substitutes.
What is a monopoly?
Quantity purchased has an inverse relationship with price: the higher the price, the lower the quantity demanded.
What is law of demand?
The value a producer gives up to produce the good
What is cost?
The value of outputs that can be produced by a given amount of inputs.
What is productivity?
A legal contract that gives you the right to sell another company's product or service in a geographic area (hint: think Dairy Queen, Subway, etc.)
What is a franchise?
Few producers dominate market and produce similar or identical goods or services.
What is an oligopoly?
A direct relationship between price and quantity: quantities respond in the same direction as price changes.
The total revenue a firm receives from selling its products minus the total cost of producing it
What is profit?
A model of an economy showing the interactions between households and business firms as they exchange goods and services in markets.
What is circular flow of economic activity?
A single business enterprise formed by combining firms from unrelated industries (hint: think Disney)
What is a conglomerate?
Market structure characterized by many small sellers, varied products, and easy market entry.
What is monopolistic competition?
The market price where the quantity of goods supplied is equal to the quantity of goods demanded.
What is equilibrium price?
The point at which you have made enough to cover the cost of making the good or service
What is break-even point?
The degree buyers and sellers respond to price changes
What is price elasticity?