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| Capitalism is an economic system based on privately owned industries operating for profit. Capitalism affords business owners the right to run their business without government intervention in most aspects of the business. |
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| is a system of government ran economy, in which all major factors of production are owned by the government. |
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| process that turns self-directed gain into social and economic benefits for all.Coined by (Adam Smith) |
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| process that turns self-directed gain into social and economic benefits for all. |
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| How do the economic theories of supply and demand help explain how market prices are determined |
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| where the supply and the demand graphs cross |
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| is when one seller in a market cannot dictate the price of the product |
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| getting buyers to believe one product that is very similar, is actually very different from the rest |
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| when just a few sellers own the market |
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| happens when just one seller owns the whole market |
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| monthly statistic that measures pace of inflation and deflation |
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| they went over there budget and the government spent more than they actually brought in |
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| is the accumulation of deficits over time |
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| Economics is the study of how society chooses to distribute resources to produce goods and services for consumption of competing groups and individuals |
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| sole proprietorship (ADVANTAGES) |
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| Advantages of being a part of a sole proprietorship is only having to be taxed on personal income. Proprietorships are able to retain all of the company’s profits. |
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| sole proprietorship (DISADVANTAGES) |
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proprietorships have unlimited liability
, time commitment |
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more than one person shares the liability and expenses of the business
3 KINDS MLP’s, LLP’s, and limited partnerships |
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| are businesses that have no personal liability within the business when it comes to personal belongings. life of the company is not tied to the death of the owners |
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| corporation (disadvantages) |
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| would be double taxation on personal and company income, initial cost, two tax returns, stock holder conflict, and difficulty of terminating the business. |
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| is combining two companies that are in different stages of related business. |
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| are when two firms in the same industry expand their product and are able to provide more diversification in there production lines |
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| units different kinds of companies together that may not be related, but diversify business operations and developments |
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| franchise is a business that sells there name and product to another person; most of the time charging a large startup fee and receives part of the profits from each franchise |
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| entrepreneur is an individual or group that comes up with an idea; they invest their time and money (or other investor money) and take on the risk of running their own business |
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| the details behind what an entrepreneur wants to do with their idea. It points out the target market, what sets them apart, and the resources and qualifications of the owner/owners. |
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| includes anticipating trends and changes in the market |
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| is taking the plan and setting it up to run smoothly. It’s the structure that helps everything and everyone work together. |
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| one of the management team’s most important necessities, if your management cannot lead and control situations effectively, the plans will not work. It comes down to proper training and what the team is able to get from its employees |
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| visual aid used to show who reports to who in a company |
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| when the employees need direct supervision |
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| promotes team involvement |
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| laissez faire (free-rein) |
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| is when the employees are given the opportunity to make decisions |
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| Empowering employees gives them the power make decisions on their own without consulting the management team |
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| charged on imported products in order for domestic products to compete with the price difference |
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| raise money for the government, a tax that doesn’t affect the business side |
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| limiting the amount of certain products that come into the US |
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| complete ban of certain products or any imports to particular countries, for example North Korea |
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| laws that are written to protect us from fraud, theft, and Violence |
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| the responsibility people have towards one another to treat others the way one would want to be treated and the proper relationships we should have with one another |
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| compliance-based ethics codes |
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| emphasize the prevention of un-lawful acts; they do this by gaining control and penalizing the act of breaking the companies code of ethics |
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| private company information that insiders use to further their own fortunes or those of people close to them |
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| span of control is the optimal amount of subordinates a manager should supervise |
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| when a company hires on a 3rd party to conduct functions they may not be the best at. Or its cheaper to bring in a 3rd party for specific tasks. |
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| formal organization details the company’s structure from the bottom to the top management |
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| is a spontaneous structure that is formed by employees. create camaraderie amongst employees and helps build relationships outside the formal structure |
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| tangible objects that are produced for the consumer |
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| intangible, they are what make life easier for the consumer |
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| an area where costumers are able easily access the producers products. |
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| puts things together to create a final product. (i.e. assembly lines) |
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| allows products with a longer assembly process to be created; the service or product is readily available whenever the consumer wants it |
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| can be changed for specific costumers, producing costume products just as fast as mass produced products. |
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| JIT manufacturing is when companies keep the least amount of inventory and only order what they need to complete their orders |
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