Vocab
Sole Proprietorship
Gary owns a lawn care business. Because he runs it by himself, he has all of the liability and keeps all profits. What business type is this?
True or false: Florida has a higher minimum wage than the United States does
True
What business type can raise the most financial capital?
Corporations
A legal entity with an existence that is separate from the people who organize, own and run it
Corporation
The Hunter Motor Company is a used car dealership that is owned by Jim and his father-in-law. Jim is also the full-time manager of the lot while his father-in-law only provides financial capital. They both receive profits while Jim is the only one who takes on debts. What type of business is this?
Limited Partnership
What is a minimum wage on a graph
Price/wage floor
What must you do to be an entrepreneur?
To create something new and own a business/accept liability
The risk of taking on debt or being sued
Liability
Abstergo is a business that creates new technologies such as new and improved VR headsets that let you experience the past. This company is run by a CEO. While its owner do not run day to day operations, they do vote on big discissions such as who to put on the board of directors. Anyone can be an owner if they provide financial capital.
Public Corporation
What might be a downside of having a minimum wage
It creates unemployment
New resources, better technology, train employees, create a better working environment, create more products
A surplus in labor caused by a price floor
Unemployment
Oscorp is a new company that expands scientific research and creates new technology. The CEO, Norman Osborn, runs the company. A select few are owners. Osborn and the current owners can choose who can buy in as new owners. The owners and the company get taxed separately
Private Corporation
Why are famous Actors paid more than barbers?
The supply of famous actors is smaller than the supply of barbers / The demand for famous actors is bigger than the demand for barbers
Progressive insurance buys Allstate insurance. What type of merger is this?
Horizontal Merger
Horizontal Merger
the combination of two or more firms competing in the same market with the same good or service
Screech Management is a music managing company that helps artists with contracts and booking. This company and its owners are separate, but they are only taxed once. They can run the company however they want because they have full control over the business. What business type is this?
Limited Liability Company
Why do people with post high school degrees get paid more than those with just a high school diploma?
They have skills that are harder to replace
What must an entrepreneur do in order to stay ahead of competition? (State at least two ways)
lower prices, create a new product, improve the product, make the product different