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Flashcards in Quiz 3 Deck (20)
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1

Necessities for survival

Needs

2

Things we desire

Wants

3

Limited quantities of resources

Scarcity

4

Physical objects

Goods

5

One person performs for another

Service

6

A good or service is unavailable

Shortage

7

Human-made goods that are used to produced other goods

Physical capital

8

Skills and knowledge gained by a worker through education and experience

Human capital

9

Ambitious leader

Entrepreneur

10

Number one reason why people want to own a business

To be their own boss
(Freedom)

11

An alternative that we sacrifice when we make a decision

Trade-off

12

The most desirable alternative given up as the result of a decision

Opportunity cost

13

Deciding whether to do or use one additional unit of some resource

Cost benefit analysis

14

The government can't control what you buy they regulate it

Free market

15

Person or group of people living in the same residence

Household

16

Organization that uses resources to produce a product

Firm

17

Firm

Inc
LLC
Soleprop

18

Inc

Incorporation
Best legal protection sell share/bonds
Business and person are separate
Legal protection

19

LLC

Limited liability corporation
Smaller businesses
Less reporting
Less government
Business and person are separate

20

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