Business organizations
This type of business organization allows owners to share profits and liabilities, and is commonly formed by two or more individuals.
What is a partnership?
In a free market economy, prices for goods and services are primarily determined by this factor, rather than by government regulation.
What is supply and demand?
In this type of economy, the government makes all decisions about the production and distribution of goods and services.
What is a command economy?
This is the term for a share of ownership in a company that can be bought or sold on the stock market.
What is a stock or share?
This business structure offers limited liability to its owners, who are called shareholders, and can issue stocks.
What is a corporation?
In a free market, this is the role of consumers who determine the success of a product by choosing to buy or not buy it.
What is consumer sovereignty?
In a command economy, this group typically controls the allocation of resources and sets prices for goods and services.
Who is the government?
When a company first offers its stock to the public, it's called this.
What is an Initial Public Offering?
This form of business combines the tax benefits of a partnership with the liability protection of a corporation and is often chosen by small businesses.
What is an Limited Liability Company?
This economic system is based on the idea that government intervention in business is minimal, and individuals are free to make their own economic decisions.
What is capitalism?
This major historical example of a command economy was led by the Communist Party and existed from 1922 to 1991.
What is the Soviet Union?
his index tracks the performance of 30 major U.S. companies and is often used as a barometer for the overall stock market.
What is the Dow Jones Industrial Average?
This is the simplest form of business ownership, where one person is responsible for all aspects of the business and has full control.
What is a sole proprietorship?
In a free market, when demand for a product exceeds supply, this typically happens to the price.
What is price increases?
In a command economy, this is the term for the process by which the government controls the wages workers are paid and the number of jobs available.
What is central planning?
When an investor buys stocks, bonds, or other securities to build a diverse collection of investments, it’s called this.
What is diversification?
In this type of organization, employees own and control the business, and profits are shared among the workers.
What is a worker cooperative?
This is the term for the situation where businesses compete against each other, driving innovation and improving product quality in a free market economy.
What is competition?
In a command economy, this type of ownership is common, where the government owns and operates most of the industries and businesses.
What is state ownership?
This type of stock typically provides investors with dividends and has priority over common stock in case of bankruptcy.
What is preferred stock?