business ownership
What is the main advantage of a sole proprietorship?
It is the easiest to set up and is the least expensive
What is a monopoly?
What is one factor of production?
labor, capital, land, management
What is a shortage?
When a product is not produced enough to meet demand
How long is a fiscal quarter?
3 months
What is the one disadvantage of a corporation?
high cost, double tax, reports to advisory board, legal responsibilities
In a command market, who controls the businesses and what they
the government
What is scarcity?
fundamental economic concept of having limited resources to meet unlimited human wants and needs
What is something that can change demand
trends, seasons, human wants
What is one of the four phases of the business cycle
expansion, peak, recession, trough
What is the most important step in creating a partnership?
getting a legal agreement to partnership
what is the difference between free market and a monopolistic competition?
free market-- products are usually the same, only differing cost
monopolistic market--products differentiate, each business its own drive
Describe information value
•Enhances value by supplying consumers with information
What is the difference between monopoly and monopolistic competition?
Monopoly has one competitor where monopolistic competition has multiple competitors that have their own comparable products
What makes a period of time a recession
two or more periods of economic decline
What is the difference between limited and general partnerships
limited-- unequal split of liability
general-- even split of liability
what is free enterprise?
What is the third economic question to determine the profitability of a business,
−what goods and services do we produce?
−how do we produce those goods and services?
−who should benefit from the goods and services produced
What happens to supply when prices go up
it increases
T or F the business cycle follows a perfect system
False
What is liability when discussing business ownership
The responsibility of the owner to handle the company's debts
Which economy does the US have
Capitalism
T or F, Specialization is the only easy to be profitable
False
why do supply and demand have an inverse relationship?
because suppliers what to produce more when price is high and consumers what to buy more when prices are lower
a really long period of a trough (a really bad recession)