EC-002
Monetary reward
for taking a risk
and investing in
a business
what is profit
• The possibility of loss
(failure) or gain (success)is
What is business risk
Competition is...
The rivalry between two or more businesses.
What Is an Economic System?
What is the way a country makes its earning and
spending decision.
Disadvantages of
Private Enterprise
What is Unemployment?
Raw materials
purchased to
produce products
what is cost of goods
• Hazard
• Operational
• Strategic
• Financial are...
what is Classifications of Business Risk
The types of competition is..
what is direct and indirect.
Economic systems are needed because.
What is
Our wants are unlimited, but our
resources are not.
Economic Freedoms
in Private Enterprise
What is freedom to choose?
Money left after
cost of goods and
operating expenses
are subtracted
from income
what is net profit?
What is pure risk.
Price competition is
what is Using prices to attract scarce
customer dollars
Types of economic systems are.
Traditional
Command
Market
An example of free enterprise is
What is starting a business?
Gross Profit –
Operating Expense =
what is net profit.
avoiding risk is__
What is not go towards it.
Competing on a basis other than price to
attract scarce customer dollars is.
What is nonprice competition?
Two primary types of command economic
systems are
Two primary types of command economic
systems are
Limits to Freedom
in Private Enterprise are
What is laws and taxes.
Profit’s Benefits for
Business Owners is
what is motavation and satisfaction
Speculative risk is..
what is possibility of loss, no change,
or gain
oligopoly is a...
what is market structure?
Examples of Market Economies are
are
United States
• Japan
• India
Characteristics of
Private Enterprise
what is
Freedom in the marketplace
• Private property
• Limited government control
• Competition
• The profit motive
• The price-directed system