Forms of Business ownership
What is a "Sole Proprietorship"?
One individual owns and operates the business
What is a "good"?
A good is something that you can buy/attain
What is "Competition"?
Rivalry between businesses to attract customers and increase market share
What is a "Partnership"?
When 2 or more people own and operate the business
What is a ”Service”?
Doing something for the customer
What is ”Perfect Competition”?
Many sellers offering identical products
No single seller controls the price
What is a "Franchise"?
Business where the owner licenses its operations—along with its products, branding, and knowledge—in exchange for a franchise fee
What is a ”fad”?
A good that becomes popular for a short period of time then quickly disappears
What is ”Monopolistic Competition”?
Many sellers offering similar but not identical products
Differentiation through branding, quality, or features
What is a "Multinational Corporation"?
A company that operates in multiple countries
What is an ”industry”?
Group of business that make similar products or services
What is an”Oligopoly”?
Few large firms dominate the market
Products may be similar or different
High barriers to entry
What is a Crown Corporation?
A Crown corporation is a government-owned enterprise, either federal or provincial, that operates with commercial and public policy objectives.
What is the ”market equilibrium”?
When the supply in the market is equal to the demand in the market
What is a ”Monopoly”?
One firm controls the entire market
No direct competition
Often regulated by the government