Econ ch 10

The study of individual decision-making units and markets within the economy.

A person living alone or a group of related or unrelated persons who occupy a house, an apartment, or other housing unit.

Household gross, or pretax, income; used to pay taxes, spend and save.

Money from the government for which no direct work is performed in return.

A good that has a useful lifetime of more than one year, such as a car.

A good that has a short useful lifetime, such as food or gas.

Obtaining the greatest possible satisfaction, or return, from an economic decision. It is a balancing process that involves weighing the advantages or benefits and the disadvantages or costs of different courses of action and selecting thoses choices.

Satisfaction realized from consuming a good or service. When you buy lunch or put gas in your car, you receive utility.

Total satisfaction from consuming a particular combination of goods and services.

An organization established to produce and sell goods and services.

One owner business

A business owner's personal assets are subject to use as payment for business debts. The owner's personal assets are subject to use as payment for business debts.

The legal organization of a business that is similar to a proprietorship but has two or more owners.

An owner in a partnership who is subject to unlimited liability. A general partner is one who has the burden of unlimited liability.

A legal entity, owner by stockholders; can carry on in its own name business functions normally performed by individuals. A 'legal person' created by law that can be sued, make contract, pay fines and carry on other aspects of business normally performed by individuals.

Pays a stated dividend to its holder; preferred stockholders are entitled to receive dividends before common stockholders.

Pays a dividend dependent on the profit of a firm after all other financial obligations (creditors and preferred stockholders) have been met.

Governing body of a corporation; elected by stockholders, makes many major decisions

A financial instrument through which a corporation can borrow long term funds. Corporations can borrow large amounts of money for building, expansion, and other purposes by selling bonds.

The acquiring of one company by another; can be accomplished by buying a controlling amount of stock.

A corporation acquires another corporation that produces unrelated goods and services.

A corporation acquires another corporation that supplies its inputs or distributes its products.

A corporation acquires another corporation that competes in the same market such as Pizza Hut, Taco Bell or Kentucky Fried Chicken.

A corporation formed for the purpose of owning or holding stock in other corporations. This type of company produces nothing itself.

Money or income that a company receives from selling its profit.

What results when a business subtracts its costs from its revenue.