Legal Environment
What is a Contract?
A legally binding agreement between two or more people or businesses
What are Ethics?
Rules of behavior based on a groups ideas about what is right and wrong.
What does a Business Market consist of?
Customers who buy products for use in a business
What is Proprietorship?
A business that is owned and often operated by a single individual
If Andy buys a handbag worth $85 and sells it for $105, how much more money did he add to the price of the handbag?
$20
What is an Offer?
A proposal to provide a good or service
What is Integrity?
The honesty of a person's actions.
What is a For-profit business?
An organization that generates revenue
How many people must there be to form a partnership?
A vendor buys 50 handmade bracelets for $10 each. He sells 40 of the bracelets for $18 each and the remaining 10 for $12 each. What is the total profit from the sales?
$340
What are Breaches of Contract usually settled in?
The form of money
What are Morals?
An individual's ideas of what is right and wrong
What are the types of businesses in the Private Sector?
Producers, Intermediaries, and Service Business
What is limited partnership also known as?
The silent partner
A baker sells cupcakes for $3 each. The total cost to make 100 cupcakes is $150. If the baker sells all 100 cupcakes, what is the total profit?
$150
What is the role of the Legal System?
To regulate business activities and practices to ensure fair competition.
What are some examples of concerns to businesses that are socially responsible?
Air, water, noise, and land pollution
What are Intermediaries?
People and businesses that sell the goods and services from producers to customers
What is the largest corporation today?
Walmart
A coffee shop spends $75 on ingredients to make 200 cups of coffee. What is the unit cost per cup?
$3.75
What laws in the US regulate the financial activities of businesses?
Antitrust laws, bankruptcy laws, and security laws
What are examples of ways business give back to society?
Protecting natural resources, donating money, or donating products
What do farmers raise to sell, either to end users or other producers?
Crops and livestock
What is at the bottom of the Organizational Structure of a Corporation?
Employees
A company offers its employees a discount of 15% on any purchase from its store. If an employee buys items totaling $80, how much is the discount in dollars?
$12