Business Organizations

Sole Proprietorship – Type of business owned and operated by one person. Partnership – Type of business owned and operated by two or more people. Limited Partnership – Type of business where one or more partners bear little to no risk.

Joint Venture – Temporary partnership set up for a specific purpose for a set period of time. Corporation – Type of business owned by many people and treated by law as though it were a person. Franchise – Type of business in which one business sells to another business the right to use their name and products. Business Organizations

Mergers Merger – The combining of 2 or more companies to make one company

Types of Mergers Horizontal Merger – When two or more companies that are in the same business merge J Shrubs Landscaping by K JK’s Yard Services

Types of Mergers Vertical Merger – When companies that are in the line of production merge and become one company Oil Fields Oil Refineries Gas Stations

Types of Mergers Conglomerate – When many business (3 or more) that make unrelated products combine to make one company

Proctor and Gamble SwifferPringlesDuracellMACH3CrestPumaPampers

Perfect competition – A market structure in which a large number of firms produce the same product. Monopolistic Competition – A market structure in which many companies sell similar but slightly different products. Market Structures

Oligopoly – A market structure in which a few large firms dominate a market. Monopoly – a market dominated by a single seller Market Structures

Comparing Market Structures Perfect Competition Monopolistic Competition OligopolyMonopoly Number of Firms in the Industry Many A few dominate the industry One Product Differentiation NoneSome None Control over prices NoneLittleSomeComplete ExamplesWheatJeans, booksCars, movie studios, breakfast cereals Public Water

Types of Monopolies Natural Monopoly Geographic Monopoly Technological Monopoly Government Monopoly

Game Theory

What is Game Theory? The prisoner’s dilemma – Johnny and Frankie get busted by the police – They separate the suspects and begin to interview them – They place an offer on the table to each one Confess that the both of you committed the crime and you will spend less time in jail than your partner If you don’t confess and he does, you will spend more time in jail

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Marketing

Things to Remember Marketing – All the activities needed to move goods and services from the producer to the consumer.

the types of utility – Form utility The conversion of raw materials into goods and services – Place utility Having a good or service available where consumers want them Things to Remember

the types of utility – Time utility Having a good or service available when consumers want them. – Ownership utility The satisfaction that comes from owning a good or service.

Things to Remember 4 P’s of marketing – Product – Price – Place – Promotion

Things to Remember product life cycle – Introduction – Growth – Maturity – Decline

Bell ringer List the types of monopolies.