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
