MKTG 360 Lecture Notes - Lecture 1: Capitalism, Limited Liability Company, Sole Proprietorship
Competition
rivalry among businesses for the consumer's dollar
Economic growth
increased production of goods and services
Medium of Exchange
a function of money that enables people to make exchanges more easily with one another
Consumers
anyone who selects, purchases, uses, and disposes goods and services
Property Right
ownership of a good or a resource
Profit
The money remaining after deducting costs from sales by selling what consumers want to buy at prices
they are willing to pay
In a free enterprise system
individuals may start and operate any lawful business
When resources are privately owned,
people have incentives to use them carefully and productively
In a market economy, prices provide information. This means that prices
usually tell businesses about the value consumers put on various products
In resource markets, businesses compete against
one another
Document Summary
Competition rivalry among businesses for the consumer"s dollar. Economic growth increased production of goods and services. Medium of exchange a function of money that enables people to make exchanges more easily with one another. Consumers anyone who selects, purchases, uses, and disposes goods and services. Property right ownership of a good or a resource. The money remaining after deducting costs from sales by selling what consumers want to buy at prices they are willing to pay. In a free enterprise system individuals may start and operate any lawful business. When resources are privately owned, people have incentives to use them carefully and productively. This means that prices usually tell businesses about the value consumers put on various products. In resource markets, businesses compete against one another. The capacity and willingness to develop, organize and manage a business along with any of its risks in order to make a profit.
