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23 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What are The Three Levels of Production? |
Industry, Firm, and Plant. |
There are three. |
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What are The Stages of Production? |
The Stages of Production are:- Primary Sector Secondary Sector Tertiary Sector Quaternary Sector |
There are four. |
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Define Limited Liability |
Limited Liability are the shareholders' liability for the business, limited to the value of the shares they have agreed to buy. |
Imma take everything from you when you owned everything. |
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Define Industry |
Industry is a group of firms producing the same product. |
Competition between same goods but on different brand. |
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List types of Business Organizations |
The Seven Types of Business Organizations are:- 1. Sole Proprietor/Sole Trader 2. Partnership 3. Private Limited Company (ltd.) 4. Public Limited Company (plc.) 5. Multinational Company (MNC) 6. Co-operative 7. Public Corporation/State-Owned Enterprise/Nationalised Industry |
The first two have Unlimited Liability. The last two have public interests in their heart. The middle three has shortened names. |
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What is a sole proprietor? |
A sole proprietor is a business owned by one person. |
The man willing to bear all risks and make all decisions by himself, business is nothing without him. |
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List the main advantages and disadvantages of a sole proprietor. |
The Acronyms for evaluating sole proprietor are: F- Flexible I- Incentive L- Low Start up costs PC - Personal Contact
L- Limited Finance U- Unlimited Liability L- Lack of Continuity S- Skillset Lackluster H- Health Dependent
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Advantage Acronym: FIL. PC Disadvantage Acronym: LULSH C. |
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What is the definition for Private Limited Company (ltd.)? |
Private Limited Company is a business organisation with a limited liability which can only sell its shares with the approval of existing shareholders. |
You want more financial support? Get permisson from me first before extending your hand to other stockholders. |
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How about Public Limited Company (plc.)? |
The meaning of Public Limited Company is a business organisation with limited liability which sells its shares to the general public. |
You can sell your stocks with others, I don't mind. |
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What makes plc unique? |
There is a separation between ownership and control of the company. The role of of the entrepreneur is divided between shareholders and the directors. The shareholders are the owners but most of them do not take active part in the company, it's usually the job of the director. There is an Annual General Meeting (AGM) where stockholders can elect who will run the company. |
Board of Directors vs. Stockholders |
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What is MNC (Multinational Company)? |
A Multinational Company is a company which produces in a number of countries. |
A global conglomerate. |
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Define Co-operatives |
It is a firm that exists for the benefits of its members. |
The people who work in the business own it, make the decisions and share its profits. |
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What are Public Corporations/State-Owned Enterprises/Nationalised Industries? |
It is a business organisation owned by the government which is designed to act in the public interest. |
We handle Public Goods. |
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What are the advantages of Public Corporations? |
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COST-BENEFIT ANALYSIS |
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What are the disadvantages of public corporations? |
On the other hand, |
Inefficient. |
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Finally, what is Privatisation? |
It is a sale of public sector assets to the private sector. |
I will let our own citizens to handle this, we will concentrate on other stuff. |
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What is Total Cost? |
Duh, the total expense of producing a given output. The graph shows Long-term total cost. |
As its name implies. |
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How about Average Cost? |
Also referred to as a unit of cost, it is a total cost divided by output. |
Can be a price of a product. |
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Define Fixed Costs/Overheads/Indirect Costs. |
Costs which do not change with output in the short run. |
It is always there. Regardless of the production, there is still a cost. |
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What is the meaning of Average Fixed Cost (AFC)? |
Total Fixed Cost divided by output. |
It goes dooooowwwwnnnn. |
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Explain Variable Costs (VC). |
Also sometimes called direct costs, are the costs of the variable factors; they vary directly as output changes. They are costs that changes with output. |
Production and sale of more cars will involve an increased expenditure on component parts, electricity, wages and transport for a car firm. |
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Average Variable Costs (AVC) is... |
total variable cost divided by output. As output increases in the short run, average variable cost tend to fall and then rise. |
This is for the same reason which accounts for an increase in variable cost at different rates with increase in output. |
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Average Cost? |
Average cost consists of average fixed cost and average variable cost or Total Cost divided by Output. The graph is usually U-Shaped. |
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