Buz. Orgs.
The 4 basic types of business organizations
Sole Proprietorship? Partnership? Corporation? Franchise?
The 4 basic market structures
Monopoly? Oligopoly? Monopolistic competition? and Perfect competition?
Interest on loans
Money paid regularly at a percentage % rate of the amount of money you borrow?
The business cycle's 4 phases
Growth (expansion), peak, Recession (contraction), and through.
Imports
Products bought from foreign countries? Money leaves country that is importing goods?
FULL definition of "liability"
The legal responsibility to pay debts or damages caused by lawsuit?
The 4 characteristics of market structures
Number of sellers? Ease of entry? Similarity of products? Price control?
Define a asset and give an example of a asset
Anything that one owns and can be given a value in money?
GDP
the market value of all the final goods and services produced within a country? Not the best way to measure an economy's health. Does not take into account value of everything?
Exports
Money sold to foreign countries. Money comes into the country that exports?
How a corporation works
When a oligopoly acts like a Monopoly
Cooperative pricing? price leading? collusion? cartel?
The difference between a credit and a debit card
Credit cards uses borrowed money from a bank. Debit card uses your own money that you have stored in that bank?
Inflation
An increase in overall price of goods and services produced in a economy?
Protective Tariff
An extra tax put on foreign goods? Meant to help domestic sellers over foreign sellers?
How a Franchise works. Give an example
A "parent" company giving permission/licenses for individual owners to run "outlets" for a fee? McDonald's
The definition of "externality". Also an example of a positive and a negative "externality"
Unintended consequences? "Spill over affects" of doing business. Vaccines(+)? Pollution(-)?
Diversification in investing
Investing in many different things and not one singular thing. Helps limit risk?
Not putting all of your eggs in one basket?
Indicators during Growth
GDP is increasing, Unemployment rate is decreasing, Inflation is increasing (usually)?
Pros to International Trade
Liability and profit in each business type
Sole Proprietorship, all liability and profit goes to one person?
Partnership, liability and profit is split between partners?
Corporation, liability and profit is mainly shared among owners and some is shared with shareholders as well?
Franchise, liability and profit is shared between "parent" companies and their licensed "outlets"?
The level of competition and characteristics of one market
(You will need to know these for all market on your test!)
Monopoly, least competitive, one sellers, unique product, high barriers, one seller has full control over price?
Oligopoly, 2nd least competitive, few sellers, similar products, high barriers, few sellers share some control over price?
Monopolistic competition, 2nd most competitive, many producers, differentiated products, few barriers to entry, sellers some control over prices?
Perfect competition, most competitive, many producers, identical products, low or no barriers to entry, sellers have no control over prices.
How a bank makes money
Receiving deposits and then loaning out the money that was received from deposits. Charging people interests and late fees?
Indicators during a recession
GDP is decreasing, Unemployment rate is increasing, Inflation is decreasing (usually)?
Cons to International Trade
Carbon emissions, lack of accountability, exploitation of smaller/poorer countries, Inter-dependence on other countries economies (in a globally economy, economies all affect each other because they are connected)?