EC-907
The organized way in which a country handles its economic decisions and solves its economic problems
What is an economic system?
Economic system, these questions are answered by individuals and businesses, not by the government
What is a private enterprise?
The monetary reward a business owner receives for taking the risk involved in investing in a business
What is profit?
Potential events or situations that can cause injury or harm to people, property, or the environment
What are hazard risks?
The rivalry between two or more businesses to attract scarce, or limited, customer dollars
What is competition
A level of existence that barely supports life
What is a subsistence?
Anything of value that people own
What is private property?
Whatever money comes into the business
What is income?
A significant cause of property damage is fire, which can destroy buildings as well as important paperwork and equipment.
What is property damage?
Occurs between or among businesses that offer similar types of goods or services. In this case, it’s movie and TV show streaming
What is direct competition?
This economic system is based on traditions passed down through the generations
What is a traditional economic system?
Individuals and businesses are the primary economic decision makers, while government helps regulate and control the system
What is a mixed system?
The amount of money a business pays for the raw materials from which it produces goods to sell
What is the cost of good?
The possible events and situations that can result from employee actions, core processes, and daily business activities
What are operational risks?
The type of market, or environment, in which businesses operate.
What is market structure?
This system gets its name because a small group of people is in command of all the others
What is a command economic system?
Rivalry between two or more businesses to attract scarce customer dollars
What is competition?
All of the expenses involved in running a business
What are operating expenses?
Have significant impact on the company’s long-term plans. Strategic risks are much broader than the other types of risks we’ve discussed, and they often concern the overall business environment, economic or political issues, or the company’s objectives
What are strategic risks?
Type of market structure you’re most likely to find in a private enterprise economy
What is monopolistic competition?
This capital comes from taxes and from the profits of state-owned businesses
What is financial capital?
The desire to make a profit
What is profit motive?
Money left after the cost-of-goods expense and operating expenses are subtracted from the total income
What is net profit?
Possible events or situations that directly influence a company’s cash flow
What are financial risks?
Exists when the market is controlled by one business, and there are no substitute products readily available
What is a monopoly?