| A | B |
|---|
| Proprietorships | A business owned and run by one person. |
| Partnerships | A business owned by two or more persons. |
| Corporations | A business owned by shareholders and recognized in law as a legal individual. |
| Shareholders/Stockholders | Investors in corporations. |
| Dividend | Payment to a shareholder based on corporate earnings. |
| Common Stock | Voting shareholders of corporations |
| Preferred Stock | Non-voting shareholders of corporations |
| Board of Directors | The elected policy-making and goal setting body of a corporation. |
| Conglomerates | A firm which owns a variety of businesses each making unrelated products. |
| Pure/Perfect Competition | Market structure characterized by identical products and a large number of well informed buyers & sellers. |
| Monopolistice Competition | Market structure similar to perfect competition accept products are differentiated. |
| Oligopoly | Market structure characterized by a few large sellers, product differentiation, and price leadership. |
| Monopoly | Market structure characterized by a single seller, a unique product, and price control. |
| Natural Monopoly | Market structure which results from average costs being lowest when there is a single producer. |
| Geographic Monopoly | Market structure which results from location or small size of the market. |
| Technological Monopoly | Market structure which results from control or ownership of a manufacturing process or other scientific advance. |
| Patent | Exclusive right to sell or use a new invention. |
| Copyright | Exclusive right to sell, publish, reproduce work. |
| Product Differentiation | Real of imagined variations between products in the same industry. |
| Non-price Competition | Advertising of a product's appearance, quality, or design rather than price. |
| Market Failure | Any situation in which competition does not allocate resources efficiently. |
| Negative Externality | A harmful side effect that affects an un-involved third party. |
| Positive Externality | A beneficial side effect that affects an un-involved third party. |
| Public Goods | A necessary good consumed collectively that markets will fail to produce. |
| Sherman Anti-trust Act | 1890 law to protect trade and commerce against unlawful restraiont and monopoly. |
| Clayton Anti-trust Act | 1914 law which outlawed price discrimination. |
| Federal Trade Commission | It may order businesses to cease and desist in unfair business practices. |
| Price Descrimination | Charging customers different prices for the same product. |
