Introduction to Business Quizlet - Final Exam Review (Mrs. Purdy) With Complete Solutions 2024

Introduction to Business Quizlet - Final Exam Review (Mrs. Purdy) With Complete Solutions 2024 Business - correct answer-The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs. What type of economy is the U.S.? - correct answer-Mixed Economy Factors of Production - correct answer-Natural/land, entrepreneurial, human, and capital resources necessary to produce a society's goods and services. What does the government do in exchange for taxes? - correct answer-They provide public services not provided by businesses. Ex: Law Enforcement Command Economy - correct answer-An economic system in which the government controls a country's economy. Supply - correct answer-Quantity of a product producers are willing to sell. Demand - correct answer-Quantity of a product buyers are willing to purchase. Market Price (equilibrium) - correct answer-The price at which the amount that buyers wish to buy equals the amount that sellers wish to sell. Sole Proprietorship - correct answer-A business owned by one person. What is the simplest form of business ownership? - correct answer-Sole proprietorship What are the advantages of a sole proprietor? - correct answer-- Easy to start and cancel - Pride of ownership - Flexibility - No special taxes - Retention of profits What are the disadvantages of a sole proprietor? - correct answer-- Unlimited liability - Lack of capital - Limited management skills - Difficulty in recruiting Partnership - correct answer-A business owned by two or more people. partnership agreement - correct answer-Legal documents that set forth the basic agreement between partners. Example: Duties of each partner, how much each partner will invest, and how the partnership can be dissolved. What are the advantages of a partnership? - correct answer-- Easy to start - Capital is available - Combined skills and knowledge - Retention of profits - No special taxes What are the disadvantages of a partnership? - correct answer-- Unlimited liability - Management disagreement - Frozen investment Corporation - correct answer-A business that is owned by many investors. Stock - correct answer-Share of ownership in a corporation. Stockholder - correct answer-A person who owns a corporation's stock. articles of incorporation - correct answer-Contract between the company and the state; state recognizes the artificial person. Dividend - correct answer-Profit distributed over shareholders quarterly. Board of Directors - correct answer-A group of people elected by the stockholders of a corporation to set the policies for the corporation. What do the board of directors do? - correct answer-Set corporate goals, develop plans, and are esponsible for firm's overall operation. Corporate Officers - correct answer-The chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors What is the structure of a corporation? - correct answer-1. Stockholders elect board of directors 2. Board of directors appoint officers 3. Officers hire employees. What the advantages of a corporation? - correct answer-- Limited liability - Easy to raise capital - Specialized management