Quiz 3 Flashcards
Necessities for survival
Needs
Things we desire
Wants
Limited quantities of resources
Scarcity
Physical objects
Goods
One person performs for another
Service
A good or service is unavailable
Shortage
Human-made goods that are used to produced other goods
Physical capital
Skills and knowledge gained by a worker through education and experience
Human capital
Ambitious leader
Entrepreneur
Number one reason why people want to own a business
To be their own boss
Freedom
An alternative that we sacrifice when we make a decision
Trade-off
The most desirable alternative given up as the result of a decision
Opportunity cost
Deciding whether to do or use one additional unit of some resource
Cost benefit analysis
The government can’t control what you buy they regulate it
Free market
Person or group of people living in the same residence
Household
Organization that uses resources to produce a product
Firm
Firm
Inc
LLC
Soleprop
Inc
Incorporation
Best legal protection sell share/bonds
Business and person are separate
Legal protection
LLC
Limited liability corporation Smaller businesses Less reporting Less government Business and person are separate
Sole prop
Product of some sort, not lots of $$$, assume all liability
Loses everything
The business is the person and the person is the business
