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product differentiation

if a consumer prefers Nike shoes to Reebok, that is an example of a

Shareholders

Own a corporation

corporations

type of business that brings in the most revenues

sole proprietorship

the most common form of business

monopolistic competition

advertising is most used in this kind of market

board of directors

the group in a corporation that hires officers to run the business and hire other employees

monopsony

the dominant buyer

merger

when two or more companies combine

conglomerate

when four or more unrelated companies are controlled by the same corporation

Sherman Antitrust Act

an 1890 law that was the first US legislation to prevent monopolies

inventory

the supple of items used in a business

monopolistic competition

the most common market structure

franchise

when a business sells the rights to use it's name and sell its products

Clayton Act

A 1910 law that banned interlocking directorates and mergers that significantly lessened competition

charter

the license to operate a corporation (granted by an individual state after the business has filed articles of incorporation)

FTC

Protects consumers from misleading and fraudulent advertising. Reviews advertising claims. Can order a company to change their ad

FDA

The agency that is responsible for determining if a food or drug is safe and effective enough to be sold to the public.

FCC

established to oversee wired and wireless communication

OSHA

a government agency in the Department of Labor to maintain a safe and healthy work environment

EPA

agency that made public responsible for public interest and required environmental impact statements of most public projects

NRC

an independent federal agency created in 1974 to license and regulate nuclear power plants

horizontal merger

when companies buy other companies that are similar to them (Wendy's and McDonald's)

vertical merger

when companies buy other companies from the same process to cut out the middle man (Sandwich Shoppe and Bakery)

four basic elements of business operation

advertising, expenses, risk, record keeping

four types of market structures

monopolistic competition, perfect competition, monopoly, oligopoly

United

the company that received bad press through social media last summer (especially through youtube)

intellectual property

songs, books, movies, and other creative works

primary audiences for websites

shareholders, customers, and employees

frequency marketing

the information gathered by computers that can track the choices and regularity of consumer purchases

Schumpeter

the economist who theorized that economic change was usually driven by technological change

"generation y"

the youth market

ad clutter

the immense amount of ads that consumers are exposed to

e-commerce

business conducted on the internet

4 P's of Marketing

Product, Price, Place, and Promotion

collective bargaining

the process in which unions and employers negotiate the conditions of employment

white-collar workers

the largest sector of the American labor force

closed shop

a company in which only union members may be hired

labor union

association of workers organized to improve wages and working conditions for its members

stretchout

when management reduces the hours that workers are scheduled but demands the same level of productivity/output

4 different skill levels of labor

professional, skilled, semi-skilled, unskilled

3 factors that typically determine wages

geography, type of job, and skill level

$7.25

current US minimum wage

AFL-CIO

the name of the merger between the craft and industrial unions finalized in 1955

scarcity

the condition arising from a limited supply of resources insufficient to meet unlimited wants

TINSTAAFL

there is no such this as a free lunch

Adam Smith

an 18th century economist who advocated capitalism in his book, The Wealth of Nations

profits

the money left over after all costs have been paid

need

things you must have to survive (water)

want

anything besides survival needs (iPod)

durable good

a good that lasts for over three years (computer)

non-durable good

a good that lasts for less than 3 years (flashlight)

quota

a fixed amount of good that must be met

economic stability

prices of good cannot fluctuate dramatically over a short period of time

economic freedom

the ability to buy and produce whatever you want from/for whomever you want

3 questions of production

what to produce?
for whom?
how to produce?

factors of production

land, labor, entrepreneurs, capital goods, and technology

3 main economic systems

traditional, market, and command

4 costs that businesses incur

labor, utility, rent/place, capital goods

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