Types of Business Ownership
Personal circumstances, financial needs, and type of business.
What do business owners need to consider when selecting a business ownership structure?
A characteristic of a human want.
What is unlimited?
People never stop wanting! When one need is satisfied there is at least one other waiting to takes its place.
What is material?
Materials are items that will become part of a finished good.
Farmers, mines, lumber companies.
What are raw-goods producers?
These producers provide goods in their raw state.
Unlimited, changing and competing.
What are 3 words that describe wants?
Utility measures this.
What is satisfaction?
Consumers will buy goods and services that give them satisfaction.
The items that are found in all economic systems regardless of how it is ran.
What are participants resources, markets, and a medium of exchange.
That is a private corporation?
AKA a closed corporation. Private corporations are subject to double taxation. Usually the shareholders are involved in the management of the business.
Clothing, food, gas, concert tickets.
What is an economic want?
Wants that can only be satisfied by spending money.
The type of good that bolts would be considered to a auto repair shop.
What is parts?
Parts are items that will be part of a finished product and do not require additional processing.
The type of producer that constructs houses, roads or business facilities.
What are builders?
What is economics?
There are not enough resources available for everyone to have as much of them as desired. Everyone has unlimited wants that change.
A product that provides utility for one business may not provide it for another because of this.
What is relative?
A products utility depends on who is using it an when which means it is always changing or that it is not constant.
What economic systems do.
Provide a framework for making production decisions.
All economic systems have limited supply so they should have a process to meet unlimited needs.
Can share millions in stocks. Should make all earning, asset and debt information public.
What is a "C" corporation?
All corporations are ran by a board of directors and owned by its shareholders. C corporations are PUBLIC.
A good or service that customers are willing to pay more for.
What is a scarce good or service?
Used in the operation of the businesses but not in the actual production.
What is equipment?
Rembert works for a grocery store that buys food from producers and sells to consumers.
What is a trade industry?
Trade industries are businesses that buy and sell goods to others.
Retail and wholesalers are two make divisions of this industry.
The gap between unlimited wants and limited resources.
What is scarcity?
Involves form utility.
What is adding a new feature to the good?
Economic system where decisions are based on custom, traditions, and beliefs.
What is a traditional system?
Few new ideas and improvements are adopted.
A characteristic of this ownership type that will not allow the owners personal property to be taken.
What is an Limited Liability Company (LLC)?
Other characteristics include limited life and taxation on the owners income and not the LLC's income (limited taxation). This is a part of a hybrid structure meaning it enjoys the benefits of both a corporation and a sole proprietorship/partnership.
Economic "votes" are cast by consumers each time they do this.
What is make a purchase.
When consumers make a purchase, they are voting for the products that they decide to buy and against the others.
Paper, cups, post-it notes, coffee.
What are supplies?
Supplies are industrial goods that are constantly being purchased and used in the operation.
Describes the services offered by trade industries.
What are limited or full line?
This describes the range of services the business offers.
What Michelle is doing when she is trying to decide which goods and services to purchase so she can maximize satisfaction.
What is economizing?
Obtaining the greatest possible satisfaction from one's limited resources.
The four types of utility.
What is time, form, possession, place?
They economic system where the government is in control of the market.
What is communist command?
Government controls the economic system and does not allow private ownership over production and distribution.
A type of partnership when one or more of the partners holds more liability. These are common in healthcare, accounting and legal industries.
What is an Limited Liability Partnership (LLP)?
Protects against malpractice.
Producers increase production.
What is the producers response to positive economic votes?
When products are wanted production should be increased.
A partnership when one partner is more involved and holds more liability that the other.
What is a limited partnership?
Remember a general partnership is when all partners are equally liable.
Resources that enable a business to operate.
What are inputs?
These are economic resources that are used to produce goods and services.
The opportunity cost of John going to the movies instead of buying jeans.
What was a new pair of jeans?
The alternative that is given up.
In possession utility, a consumer finds a product helpful after doing this.
What is buying the product?
A consumer can not actually have satisfaction in a good or service until they buy it.
Government owns some basic means of production but private owner is allowed.
What is socialism?
The franchisee can choose the name of the business.
A product trade-name franchise.
There is an independent relationship between the supplier (franchisor) and a dealer (franchisee). The Franchisor allows the franchisee to stock and sell a specific product.
A computer purchased for homework assignments.
What is a consumer good?
Consumer goods and services are those that are purchased and used by the ultimate consumer.
The type of business that Jake would run if he was unsure that he has adequate business skills to be successful.
What is a business-format franchise.
In this agreement the franchisee must operation under the continuous assistance in operating the business.
Natural resources, human resources and capital goods.
What are the factors of production?
Also considered to be the three categories of economic resources. These are all inputs that go towards producing goods and services.
A manager accepts making less products so that the products produced have a high quality.
What is a trade-off?
Trade-offs involve giving up all or part of one thing to get something else.
The marketing concept is all about this.
What is the consumer?
The marketing concept is based on the belief that consumers wants and needs are satisfied.
An economy where individuals and business own the means of production.
What is market economy?
AKA free enterprise.
ABC Specialty Wear is the only company that has written permission to use a national football team's logo in is sportswear.
What is a licensing agreement.
Licensing refers to the owner's authorization or permission for another entity to use trademarked, copyrighted, or patented material that results in a profit for both parties.
The laundry service for a restaurant.
What is an industrial service?
Industrial goods and services are purchased by producers for resale, used to make other goods or services or used for business operations.
The people that benefit from a company being socially responsible.
What is the company itself, employees, the community and the consumers?
Socially responsible is directly related to maximizing profits, better products, and better work environments.
Producers should do this so that consumers are more likely to get what they want.
What is use the best combination of resources?
The three basic economic questions.
What products will be produced, how will they be produced, how will they be allocated?
Every economy should answer this question.
Needs to be present to reach consumer satisfaction.
The way in which an economic system answers the basic economic questions depends on the country's ______.
What is government?
No matter the type of economic system all systems must operate under the laws and regulations of their country.
A type of corporation that was developed to help small businesses by taxing them as individuals in a partnership.
What is an "S" Corporation.
An "S" Corporation is a private corporation that is limited to 100 or fewer shareholders and requires little financial reporting.
Marketers do this to aid in marketing planning.
What is classify goods and services?
The types of promotion, distribution and selling that a marketer uses are affected by the product's classifications.
A potential problem for market economies.
What is financial loss?
Since businesses and individuals can make their own decisions they run the risk of not being successful.
This resource helps people to be more productive.
What are capital goods.
Capital goods help human resources do more in less time.
The process or activity of using goods and services.
What is consumption?
The ultimate goal of all economic activity is consumption. For this to occur goods and services have to be produced.
Jackie doesn't want to buy Christmas presents online so she goes shopping at the mall.
What is an example of place utility?
Lack of economic growth is a problem for this economic system.
What is traditional?
Members of traditional economies consume everything they produce so they are unable save so they cannot invest and are unable to raise their economic standards.
What is a merger, consolidation, expansion?
Merger - two businesses combine to form one.
Consolidation - one company acquires another.
Expansion - offering a new product or adding new location.
The classification of goods.
What is are convenience, shopping, specialty, unsought?
Convenience - staple or impulse
Shopping - shop around
Specialty- unique
Unsought - adversity instead of desire
The state of technology in a given location can affect these types of goods.
The four economic activities.
What are production, distribution, exchange, consumption?
Distribution is how producers and resource owners divide the income they receive from consumers.
Layaway.
A store holds an item that a consumer cannot afford.
Businesses should do whatever it takes to help consumers afford their products and meet possession utility.
What are taxes?
High-taxes are imposed on socialist economies to pay for government human-service programs.