Economics chapter 8 and 9
receipts
income recieved from the sale of goods or services/ slips of paper documenting a purchase
common stock
shares of ownership in a corporation that gives stockholers voting rights and a portion of future profits (after holders of preferred stock are paid)
natural, geographic, technological, intellectual, government
types of monopolies
personal assets and buisness assets
unlimited liability includes:
articles of incorporation, issue stock, name a board of directors
3 steps necessary to form a corporation
single seller, no substitutes, barrier to entry, control over market price
4 characteristics of a monopoly
expenses, advertising, record keeping, risk
4 elements involved in a buisness operation
sole proprietorship
a buisness owned and operated by one person
partnership
a buisness that two or more individuals own and operate
franchise
a contract where one buisness pays another buisness the right to use its name and sell its products
incubator
a government agency that helps start ups
general partner (does the work) and limited partner (provides money)
a limited partnership includes:
product differentiation
a manufacturer's use of minor differences in quality and features to try to differentiate between similar goods and services
monopolistic competition
a market situation in which a large number of sellers offer similar but slightly different products and in which each has some control over price
monopoly
a market situation in which a single supplier makes up an entire industry for a good or service with no close substitutes
startup
a new buisness
joint venture
a partnership set up for a specific purpose and a short period of time
entrepreneur
a person that organizes, manages, and assums the risks of a buisess in order to gain profits
dividend
a portion of a corporation profits paid to its stockholders
limited partnership
a special form of partnership in which one or more partners have limited liability but no voice in management
corporation
a type of buisness organization owned by many people but treated by law as if it were a person. it can own property, pay taxes, make contracts, and so on.
inventory
extra supply of the items used in a buisness such as raw materials or goods for sale
assets
all items to wich abuisness or household holds legl claim
cartel
an arrange among groups of industrial buisnesses to reduce international competition by controlling the price, production, and distribution of goods
oligopoly
an industry dominated by a few suppliers who exercise some control over price
president, secretary, treasurer
board of directors:
articles of incorporation
document listing basic information about a corporation that is filed with the state where the corporation will be headquartered
barriers to entry
obstacles to competition that prevent others from entering a market
preferred stock
ownership of a corporation with no voting rights. gets the profits first and lose money last.
patent copyright
the exclusive (in writing) right to sell, publish, or reproduce creative works for a specified number of years
corporate charter
the license to operate, granted to a corporation by the state where it is established
board of directors
the pro management team that corporations hire to run the buisness
limited liability
the requirement in which an owner's responsibility for a company's debt is limited to the size of the owner's investment in the firm/if the company goes bankrupt the bank is not allowed to take personal things
unlimited liability
the requirement that an owner is personally ad fully responsible for all losses and debts of a buisness
stock
the share of ownrship in a corporation that entitles the buyer to a certain part of the future profits and assets of the corporation