Economic Systems
This item is found in all economic systems
What is Participants
In a private enterprise economic system, this allows consumers to choose from a variety of products
What is competition?
In business terms, profit is
What is a monetary reward?
When a rival’s product on the market reduces sales of your company’s product, your company is experiencing strategic risk caused by ____________.
What is competition?
The most common medium of exchange in modern economic systems
What is Money
Alex owns a guitar, several books, and a telescope. Alex’s possessions are examples of
What is private property
This is the money spent to run a business
What is operating expense?
A garden store customer tripped over a plant, fell, and sued the store for damages. This is an example of a(n) __________ risk.
What is hazard?
This country has a socialist command economy
What is Sweden
This factor directly limits the economic freedom of individuals in a private enterprise system
What is government taxation?
Business owners are usually interested in net profit because it allows them to ________
What is know what they can keep?
These are the general classifications of business risks
What is hazard, operational, strategic, and financial risk?
This type of economic system is used in the United States
What is the market economy system
They answer the basic economic questions in a private enterprise economic system
Who are Businesses and Individuals
Employees increase what by working faster or better
What is their efficiency?
Having well-planned buildings and providing effective employee training are ways that a business can ___________ business risks.
What is prevent or control?
This is a potential problem in market economies
What is financial loss
This is one of the benefits of economic freedom that provides individuals with:
What is the opportunity for success
Profitable businesses help improve their local communities by doing what
What is contributing to charitable causes?
This risk is small in terms of money, so a business may decide to __________ the risk.
What is retain?