IV.
CE.12a
A. There are three basic ways that businesses organize to earn profits. The three basic business types are:
1.
– one owner
a. The owner – the proprietor – takes all the __________ and gets all the ____
b. The owner is personally ______
2.
3.
____ (responsible) for any __________ the business has.
– two or more owners
a. The partners all share the __________ and share the ___
b. Each partner is personally ______
separate legal _____
______
_______.
____ for any __________ the business has.
– usually has many owners
a. The owners of a corporation are its ____
b. The stockholders share the ____
______.
______.
______. Under law, however, a corporation has a
_____ from the owners. So the stockholders’ liability (risk) is
____ to their individual ____
______. They are not
personally liable for the debts of the company.
B. Entrepreneurs play an important role in all three types of business organizations.
1.
- A person who takes a risk to produce and sell goods and
services in search of a profit.
2. An entrepreneur may establish a business according to
organizational structures.
Donald Trump
types of
V.
CE.12b
Economic Flow (Circular Flow) Chart
A. Resources, goods and services, and money
businesses, and markets in the U.S. economy.
B. Individual and business
that can be borrowed for business expansion and increased consumption.
C.
among households,
____________
(households)
1. _____
_____ the resources used in production
2. ______
____ the resources
3. _____
_____ the income to purchase products
D.
(producers)
1. ____
______ resources
2. _____
_____ products that are sold to individuals, other businesses, and the government
3. use the profits to ____
______ more resources
E. _________________________________
1. use __________ revenue from individuals and businesses to provide ____
goods and services
______
VI.
CE.12c
A. Private financial institutions act as intermediaries between ___
that include households and business investors.
_______
B. Most common types of private financial institutions:
1. ______
____ – offer a full range of saving and checking accounts, and make loans
____ – most offer general banking services
2. ______
3. _______
___ – a type of bank open only to _____
_____ of the
sponsoring group. They are often set up by large companies for their employees to use.
C. Private financial institutions receive ______
____ and make ___
D. Private financial institutions encourage saving and investing by paying ____
VII.
_______.
______ on deposits.
CE.12 d
A. Virginia and the United States pursue international trade in order to _____
_____.
B. _______
___ = worldwide markets in which the buying and selling
of goods and services by all nations takes place
C. Reasons That States and Nations Trade:
1. To obtain goods and services they cannot ____
themselves
2. To buy goods and services at a _____
______ or cannot produce efficiently
_____ or lower opportunity cost
3. To __________ goods and services to other countries
4. To _____
_____
D. Virginia and the United States _____
services, which promotes ______
_____ in the production of certain goods and
____ and ___
_______.
E. Impact of Technological Innovations:
1. Innovations in technology (like the ____
information, capital, goods, and services.
2. The use of such technology also ____
______) contribute to the global flow of
______ the cost of ____
______.
VIII.
CE.13a
A. Ways the Government Promotes Marketplace Competition:
1. Enforcing _____
a. ____
_____ legislation to discourage the development of monopolies
______ = one business controls all or almost all of the sales of a product.
In most cases monopolies are illegal, because without ______
____, the
business has an unfair advantage over buyers. In certain cases, such as electric services or
cable TV, monopolies may be allowed with government regulations of prices.
b. Examples of Antitrust Legislation:
i.
Sherman Antitrust Act of 1890
ii. The Clayton Act of 1914
2. Engaging in global trade
3. Supporting business start-ups
a. SBA – The Small Business Administration
b. Giving ______
____
c. Offering low ________
__
B. Government Agencies that Regulate Business and Oversee the Way Individuals and Companies Do
Business:
1. FTC – _______
a. investigates unfair business practices
b. investigates cases of undue restrictions on markets
IX.
___
2. EPA – ______
a. sets rules to protect the environment
b. regulates ground water contamination and air pollution
____
3. FCC – ______
a. regulates radio and TV broadcasting
b. TV and movie ratings
c. Labeling of music lyrics
____
CE.13b
A. Characteristics of Most Goods and Services Provided by the Government:
1. Provide benefits to many ___
2. Would not likely be available if ____
3. Examples of public goods and services:
a. public _____ _____
b. public ___
_______
c. __________
d. Interstate ____
______
e. ______
____ service
f. national ___
_______ (military)
_______ (at the same time)
______ had to provide them
B. Ways Governments Pay for Public Goods and Services:
1. Through ____
a. ____
items sold in stores.
______
______: state and local government – collected on the sale of most
b. ______
____: local government – collected each year on land, houses,
and other buildings. It is based on the value of the land and buildings.
c. ______
____: local government – collected each year
on cars and other vehicles. The tax is a percentage of the value of the vehicle.
d. ____
______: federal and state government – automatically taken out
of each pay check. In April, tax forms are filed with calculations that show a person’s total
income and tax for the previous year. They may find that they owe a bit more or that they
are owed a refund.
2. Through ______
____ funds
3. Through ____ ______ – like park entrance fees
X.
CE.13c
A. The government __________ , ____
activity.
______, and ____
______ to influence economic
B. If the Government:
1. Raises taxes…there will be __________ money for individuals and businesses to spend.
2. Lowers taxes…there will be __________ money for individuals and businesses to spend.
3. Borrows more money…__________ money will be available for individuals and businesses to
borrow.
4. Borrows less money…__________ money will be available for individuals and businesses to
borrow.
5. Spends more money…
a. Demand will __________, which may __________ employment and production.
b. May result in __________ taxes.
6. Spends less money…
a. Demand will __________, which may result in a __________ of the economy.
b. May result in __________ taxes.
C. The __________ Amendment to the U.S. Constitution authorizes Congress to __________ personal and
business income.
XI.
CE.13d
A. The Federal Reserve System is our nation’s ____
______.
____ government’s bank.
B. The Federal Reserve System acts as the ______
C. The Federal Reserve System has the duty to maintain the ____
(dollar).
______ of the national currency
D. The Federal Reserve System regulates banks to ensure the soundness of the banking system and the
_____
_____ of deposits.
E. The Federal Reserve System manages the ______
keep inflation __________ and ___
_______.
____ of money in the economy to try to
1. If too ____ ______ money is circulating, the value of money will start to _____
2. When the value of money _____
____
XII.
_____, prices start _____
_____. That is called
______.
CE.13e
A. The U.S. government passes laws and creates agencies to protect _____
______
____ rights.
B. Individuals have the right of _____
2. The ____
_____ and ____
______.
______ enforce consumer contracts and laws.
C. Government agencies establish guidelines that protect public ______
1. Consumer Product Safety Commission
2. Food and Drug Administration (FDA)
3. National Highway Traffic Safety Administration
D. Consumers may take _____
CE.13f
A. ______
_____ rights and
_____.
1. Consumers are protected by negotiated _____
XIII.
_____.
____ and ______
____.
_____ against violations of consumer rights.
____ is defined as anything that is generally accepted as a method of payment.
B. When the U.S. government issues _____
_____ and ____
______, people accept it in
exchange for goods and services because they have ______
____ in the
government.
C. Governments everywhere issue money to make such exchanges ___
accomplish.
___ ___ and ____ __
D. In the U.S. the three types of money are:
1. ____
______
2. Federal Reserve _____ _____ (the technical term for U.S. paper currency)
3. ____
______ in bank accounts that can be accessed by:
a. ______
____
b. _______
___
____ to