Business Organizations
business owned and run by two or more people
What is a partnership?
products are identical
What is perfect (pure) competition?
charges all incomes the same percentage
What is a proportional tax?
a request for the insurance company to make a payment
What is a claim?
part ownership in a corporation
What is stock OR shares?
disadvantage of sole proprietorship and partnership
What is unlimited liability OR limited life?
industry dominated by a few large firms
What is an oligopoly?
places the largest tax burden on the wealthy
What is a progressive tax?
covers your paycheck incase you are out of work after an accident
What is disability insurance?
another name for a business
What is a firm?
type of business that is a separate legal entity
What is a corporation?
businesses are price makers
What is oligopoly OR monopoly?
has a larger impact on the poor
What is a regressive tax?
covers doctor's bills
What is medical OR health insurance?
corporations pay a share of their profits annually to their shareholders
What are dividends?
type of corporation with a local owner, that is part of a larger corporate chain
What is a franchise?
type of regulated monopoly in which one business can produce most efficiently
What is a natural monopoly (economy of scale)?
an example of a progressive tax
What is income tax?
sum of money regularly paid in exchange for insurance coverage incase of an accident
What is a premium?
person you designate to receive your life insurance payment
Who is your beneficiary?
easiest to organize, but least able to benefit from specialization
What is a sole proprietorship?
government rewards innovation and creates a monopoly by issuing this
What is a patent?
an example of a proportional tax
What is social security OR medicare?
if a damage estimate is for $6,000 and there is a $1,000 deductible, this is how much the insurance company will pay
What is $5,000?
the use of advertising to make one businesses' product seem different or better than another's
What is product differentiation?