| A | B |
|---|
| Economic System | the method used by a society to produce and distribute goods and services. |
| Free Enterprise System | An economic system that allows businesses to manage and operate without any government interference. |
| Private Ownership | Business is owned and operated by individuals or corporations. It has very little government control. |
| Free Economic Market | People have the right to decide how and where they spend, save, and invest their money. |
| Profit Motive | The main reason for operating a business begins with desire and motivation of earning a profit.....(To Make $$$!) |
| Supply | The amount of products and services available for sale. |
| Demand | The amount of products and services consumers want to buy. |
| Competition | Two or more businesses striving for the same customer or market in order to a make a profit. |
| Monopoly | A single company that controls the entire supply of a product or service. |
| Sole Proprietorship | A person who starts a new business and takes on the risks, responsibilities, and takes the risks, responsibilities, and potential rewards of operating and expanding the business. |
| Partnership | Two or more people that go into business together. |
| Corporation | Business owned by many people. Formed by selling portions of shares of stock. The people who buy the stock and become part owners of the business. It can be a public or private entity. |
| Unlimited liability | A business owner is personally responsible for all of the business's debts, meaning their personal assets can be used to cover business debts if the business cannot. |
| Limited liability | Offers the benefit of separating the business's finances from the owner's personal finances, protecting the owner's personal assets from business debts. (This is the structure of a LLC-Limited Liability Company). |
