Business Formations
What are the five business formations?
Sole propriotorship, partnership, limited liability company, C-corporations, S-corporations
What are the four different types of economies?
Traditional, command, market, mixed
What is a recession and how long does it last?
A contraction of the economy that lasts longer than 6 months
What is a potential risk of a sole propriotorship?
High personal risks : hard to raise capital : ends if owner quits
What are the three "isms"?
Capitalism, socialism, communism
What is equilibrium considered?
When demand equals supply
How many owners can a LLC have?
1+ members
What are the three questions asked in an economic system relating to production?
What to produce? How to produce? For whom to produce?
What are the five shifters of demand?
1. Taste or preferences 2. Number of consumers 3. Related goods' prices 4. Income 5. Expectations
How many shareholders can a S-corporation have?
Up to 100 shareholders
What does the Consumer Price Index (CPI) track?
Price changes in a "basket" of common goods
What does price elasticity measure?
How sensitive the demand for a good/service is to a change in its price
Approximately how many sole propriotorships are there in the United States?
Around 23 million
Who was the first person to popularize the Communist idea?
Karl Marx
What economy type is commonly found in communist/socialist systems?
Command economy