Business 100

Business 100 - India. 3) Communism- almost all economic...

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Business 100 Business - organized profit seeking approach to providing people with goods and services they want. Profit - the difference between two expenses. Good - a tangible item Service - not tangible, but paying for it Free market system : Competition Supply/demand Social forces (when the society tells you what to sell and not to sell) Technological forces Government Economy based on Rights : 1) Private property—have the right to own, sell, or rent 2) Freedom of choice 3) Right to rewards Economics - study of how wealth is created and distributed Four factors of production: 1) Land 2) Labor (employees; biggest expense: HR expense) 3) Capitol 4) Entrepreneurship Intrapreneur- works for a company, aren’t comfortable going on their own Main economic systems: 1) Capitalism (pure capitalism)- an economic system where all resource allocations are not 2) Socialism- the key industries are owned and controlled by the government. Provide government services. Ex. Medicare, social housing, etc. But you’re taxed! Countries: most of Europe and
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Unformatted text preview: India. 3) Communism- almost all economic resources are owned by the government. Countries: N. Korea and Cuba. GDP- gross domestic product = Total value of all goods & services produced + Profits from foreign owned businesses within the nation--Any money from US forces, not going to include foreign money Types of competition: 1) Pure competition- does not exist** many buyers and sellers. 2) Monopolistic competition- many buyers with quite a few sellers; the sellers have to differentiate with the buyers because there are so many. Ex. Gas stations: advertise full service, etc. 3) Oligopoly- few sellers, but each of these sellers are large; each of these sellers have control over price. An industry dominated by a few sellers. 4) Monopoly- a market with any only one seller, no competition. Theyre illegal. Natural monopoly- an industry that would require a huge investment. Ex. Public utilities such as Dominion....
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This note was uploaded on 04/07/2008 for the course BUS 100 taught by Professor Spence-gale during the Fall '08 term at VCCS.

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