Business 101
COGS stands for
Cost of goods sold
When prices are to high so you go to another option
substitution effect
the general increase of prices over time
Inflation
the way a society organizes production, distribution, ect.
Economic Systems
One owner In a business
Sole Proprietorship
Profit equation
Revenue- COGS- Expenses=profit
The price changing up and down
movement
__ reasons why inflation increases
3
__ number of Economic systems
4
2+ owners
Partnerhsip
one company selling to another to then go to the consumer
Whole sale
How many things cause a change in supply
5
when a small price change causes large change in demand
Elastic demand
This is what the U.S.A. is
Market Economy
Limited Partners and general partnership
Limited Partnership
People talking about your company so more people can come
Word of mouth
taste preferences cause a shift in what
Demand
This disrupts the cycle, leads to a contraction
Economic shock
You can "choose" your own fate
Capitalism
Limited liability, personal assets are protected
LLC
Non-Profit
What is the "middle" ground for supply and demand
Equilibrium
What checks the increase in prices every month
CPI
Communism is an extreme version of this economy
Socialism
S corporation