Economics chapter 7

How to find average total cost

Total cost divided by the quantity of output

How to find a profit or loss

Total revenue-total cost

An example of fixed cost

Rent

A business that is owned by one individual

Sole proprietorship

Barbershops and restaurants are samples of which type of firm

Sole proprietorship

In which type of firm is decision making often the easiest

Sole proprietorship

Which type of firm accounts for the greatest number of firms

Sole proprietorship

Which type of firm has only one owner?

Sole proprietorship

Which type of firm is likely to have the shortest life span?

Sole proprietorship

Which types of firms have unlimited liability

Sole proprietorship and partnership

A _____ is a legal entity that can conduct business in its own name in the same way that an individual does

Corporation

Walmart, Best Buy, and General Electric are examples of what type

Corporation

Which type of firm accounts for the greatest number of receipts

Corporation

Which type of firm has limited liability?

Corporation

Which type of firm is likely to have the greatest number of owners?

Corporation

Which type of firm is owned by stockholders

Corporation

Which type of firm suffers from double taxation?

Corporation

______ can be complicated in a partnership

Decision making

Disadvantage of corporations

Double taxation

A ___ cost is a coat that is the same no matter how many units of a good are produced

Fix

sole proprietorship are easy to ____ and _____

Form and dissolve

A contract that lets a person or a group use a firms name and sell the firm's goods in exchange for certain payments and requirements

Franchise

The person or group that buys the franchise is the ___

Franchisee

Which form of corporate financing involves the potential for greater returns for the investor

Stock

A corporation is owned by its ______

Stockholders

How to find total cost

Sum of fixed cost and variable cost

The profits of a sole proprietorship are only ____ once

Taxed

How to find marginal revenue

by dividing the change in total revenue by the change in total output quantity.

How to find marginal cost

change in total cost divided by the change in total output.

Marginal cost is the cost of producing an _____ unit of a good

Additional

If one partner incurs a substantial business related debt, ___ partners are responsible for the debt.

All

All corporations have a _____

Board of directors

Which form of corporate financing involves more risk for the investor

Bond

An organization that uses resources to produce goods and services that are sold to consumers, other firms, or the government.

Business firm

The entity that offers the franchise is the ___

Franchiser

In which form of corporate financing is the investor also an owner

If they buy a stock

States that if additional units of one resource are added to another resource in fixed supply, eventually the additional output will decrease

Law of diminishing returns

If you buy a bond from a corporation you are a ____

Lender

If you buy stock, you are an ____

Owner

A ______ is a business that is owned by two or more co-workers

Partnership

Law firms and medical offices are examples of which type of firm

Partnership

One of the disadvantages of sole proprietorship is that the sole proprietors ______ ___ may be hard to pay off the debts of the firm

Personal assets

How to find total revenue

Price of a good times the quantity sold

A ____ cost changes with the number of units of a good produced

Variable

An example of a variable cost is

Wages

In which form of corporate financing is the investor a lender to the corporation

When you buy a bond from a corporation