Economics - Business Organizations

Flashcards covering key concepts from the lecture on business organizations, including entrepreneurship, types of business help, and elements of business operation.

Entrepreneur

People who decide to start a business and are willing to take risks.

Starting a Business

Entrepreneurs should collect information about the business, factors of production, taxes, and laws.

Form of Ownership

Affects types of taxes, liability for debts, and ability to obtain financial resources.

Small Business Administration

A national-level organization that often helps finance startups.

Startup

A beginning business enterprise.

Small Business Incubators

Private or government-funded agencies that assist new businesses by providing advice or low-rent buildings and supplies.

Expenses

Include wages, equipment, utility bills, rent, supplies, and inventory.

Inventory

Extra supply of items used in a business, such as raw materials or goods for sale.

Wages For Yourself

When starting a business, pay yourself a wage equal to what you would earn elsewhere.

Advertising

Information about your company and the service or product you are selling; reduces profit during the startup phase.

Record Keeping

Tracking all of your expenses (money out) and income (money in); necessary for any business to be successful.

Risk

Balance the risk against the advantages of being self-employed when starting a business.

Profit

Business receipts minus total business expenses.

Receipts

How much money you take in; income received from the sale of goods and services; slips of paper documenting a purchase.