Essay on Supply Of A Enterprise : A Business Owned By One Person

1134 Words Dec 8th, 2015 5 Pages
Scarcity - The problem that resources are always limited in comparison with the number and variety of wants people have
Free Enterprise - Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
Needs - Basic requirements for human survival
Profit Motive - the driving force that encourages individuals and organizations to improve their material well-being
Wants - Desires that can be satisfied by consuming a good or service
Competition - A common demand by two or more organisms upon a limited supply of a resource; for example, food, water, light, space, mates, nesting sites. It may be intraspecific or interspecific.
Trade Off - Giving up one thing for another
Stock - A certificate of ownership in a corporation
Opportunity Cost - Cost of the next best alternative use of money, time, or resources when one choice is made rather than another
Sole Proprietorship - A business owned by one person
Traditional Economy - An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.
Partnership - A business in which two or more persons combine their assets and skills
Market Economy - Economic decisions are made by individuals or the open market.
Corporation - a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
Command Economy - An economic system in which the government…

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