Business Organizations
This business structure has one owner and unlimited liability
What is sole proprietorship?
When you buy a share of stock, you become this.
What is a partial owner?
What is perfect competition?
Owners are not personally responsible for all business debts.
What is limited liability?
Emma wants full control and low start up costs for her bakery. This structure fits best.
What is a sole proprietorship?
This structure allows owners to sell stock to raise capital.
What is corporation?
This is a payment made to shareholders from company profits.
What is a dividend?
Many firms selling slightly different products.
What is monopolistic competition?
Obstacles that prevent new firms from entering a market.
What are barriers to entry?
Advertising is most important in this market structure.
What is monopolistic competition?
This is a major advantage of a partnership.
What is shared skills/resources or shared financial risk?
Stock prices are mainly determined by these two forces.
What are supply and demand?
A few large firms dominate this market structure.
What is an oligopoly?
Firms in perfect competition are called this because they must accept the market price.
What are price takers?
Electric companies are often regulated because they are this type of market structure.
What is a monopoly?
This is a disadvantage of corporations involving being taxed twice.
What is double taxation?
If investors expect lower profits in the future, stock prices will likely do this.
What is fall?
One firm controls the entire market.
What is monopoly?
Making a product appear unique from competitors.
What is product differentiation?
What is increase?
This structure allows entrepreneurs to operate under an established brand name.
What is a franchise?
This term describes owning part of a company rather than lending money to it.
What is equity?
This type of monopoly exists because high infrastructure costs prevent competition.
What is natural monopoly?
When one dominant firm sets prices and others follow.
What is price leadership?
This government policy is designed to promote competition and prevent monopolies.
What are antitrust laws?