class notes chapter 6
There are about _____ million business firms in the United States.
30
During severe recessions, our capacity utilization rate falls to around _____ percent.
70
In Marx's terms, the people who wait outside the factory gates for work are the _______.
Reserved Army of the Unemployed
A corporation is controlled by its _____________.
common stock holders
A corporation is owned by its _____ and its ______.
common; preferred stock holders
The least stable form of investment is __________ investment.
inventory
1. Of the big three spending sectors of GDP, the least stable is _____________.
investments
The key advantage of incorporating is ___________.
limited liability
According to Karl Marx, capital was created by the ______ and expropriated by the ____.
workers and capitalist
The two main disadvantages of incorporation are _______ and _________
High corporations income and the cost of incorporating
A partnership is owned by ________ people.
2 or more
Theoretically, you would need to investment of about $________ to control a corporation that had $100 million in preferred stock, $50 million in common stock, and $350 million in bonds.
25 million and 1 share
Total investment is found by adding ____________, __________ and _____________.
Inventory Investment Investing in Planning Equipment Residential Housing Investments
The creditor of a corporation are mainly its ______________.
bond holder
Gross investment - __________ = Net investment
depeciation
The expected profit rate is found by dividing __________ by ______________.
expected profits by amount invested
An investment will be undertaken if the expected profit rate is higher than the _________.
interest rate
