Chap3microF11

Chap3microF11 - Economic Actors: Households and Business...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Economic Actors: Households and Business Households - group of individuals living together and making joint decisions. Consumer sovereignty - the consumer’s wishes dictate what will be produced. Business - private producing units in our society. Profit = Total Revenue - Total Cost Sole proprietorships - businesses that have only one owner. Partnerships - businesses with two or more owners. Corporations - businesses that are treated as a person, that are legally owned by stockholders, who are not liable for the actions of the firms.
Background image of page 2
Business: Forms of Business 3-3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Business: Forms of Business 3-4
Background image of page 4
Business: Forms of Business Advantages Disadvantages Proprietorship • Minimum bureaucratic hassle • Direct control by owner • Limited ability to get funds • Unlimited personal liability Partnership • Ability to share work and risk • Relatively easy to form • Limited ability to get funds • Unlimited personal liability (even for a partner's blunder) Corporation • No personal liability • Increasing ability to get funds • Ability to avoid personal income taxes • Legal hassle to organize • Possible double taxation of income • Monitoring problems 3-5
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/21/2011 for the course ECON 33974 taught by Professor Barbaraross during the Spring '09 term at Hawaii.

Page1 / 19

Chap3microF11 - Economic Actors: Households and Business...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online