realizată de Jianing Cai 1 an în urmă
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Main purpose is not to make money
May still take in money to help achieve their goals
Produces and sells Goods & Services with the intention of making money
Reasons for changes in supply
Changes in the environment/nature (disasters and stuff)
Changes in technology
Change in the cost of production
Change in the number of producers
Decrease: producers are willing to supply less at every price
Increase: producers are willing to supply more at every price
Seller's entire relationship with price has changed
Entire supply curve must also change
Is the quantity of goods and services that businesses are willing to supply at a given price
Direct relationship with price
Certeris Paribus: all other things being equal, if price increases, profit increases
The higher the price increases, the more they are willing to supply
The higher the price, the more profit
Reasons for changes in demand
Change in consumers' expectations
Change in consumer tastes/preferences
Change in population
Change in income
Decrease in demand
Same price, less demand
Increase in demand
Same price, higher demand
Consumers' entire relationship with price has changed
Not the result of price changes
Can be cause by prices changing
Changes will remain on the demand curve The demand curve itself remains unchanged
The quantity that consumers are willing/able to purchase at a given price
Access to G/S
Relevant Prices
Available supply of G/S
Awareness that the good exsists
The location where producers and consumers come together
People who use goods and services
business that provides goods and services
Less decision making control
Part of profits goes to head office
Expensive Franchise fees
Recieve training and support from head office
Shared marketing costs (head office does ads)
Brand recognition
Only way to raise money is to attract new members (as well as selling your own G&S for profit)
Board of Directors is sometimes unpaid
Many different viewpoints to consider when decision making
Management issues/disputes
Sacings offered by type of cooperative (keep prices down for consumers)
patronage returns (profits divided up between members)
Limited peronal liability
One vote per member - everyone has equal say
Members share the same goal
Equally owned by its various members
Sell shares/bonds to the public
Can have any number of shareholders
Shares/bonds not sold to the public
Must obtain funds privately
Limited in the number of shareholders they may have (50 max)
Complicated decision making (CEO & Board of Directors)
Extensively record keeping
Closely regulated
Timely, costly, and complicated. paperwork to set up
For shareholders: one vote per share
Might be easier to get loans
Easy to sell ownership
When corp needs $: issue shares
Limited liability
They can only lose what they invest
Responsibilities are limited to amount invested
Each partnership MUST have at least one general partner
Unlimited liability
Responsible to the day-to-day operations
Challenging to sell personal share
Unlimited liability for general partners
Shared profits
Shared decision-making
Conflict between partners
Shared responsibilities
Easier loans
Have a legal document
No legal distinction between partnership and owners
General partners have all the same responsibilities as a sole proprietor
Are formed by 2+ individuals
Owner is responsible for all debts and losses (unlimited liability)
Business is legally tied to the owner - Can come after personal assets when sued
All profits goes to owner
Easy to establish
One owner
