ECON 110 Chapter Notes - Chapter 7: Multinational Corporation, Average Variable Cost, Opportunity Cost
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ECON 110 Full Course Notes
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General partners manage the firm and are personally liable for the firm"s actions and debts. Multinational enterprises: firms that have locations in more than one country: it is unusual for a single proprietorship or ordinary partnership to be a multinational enterprise, common for large partnerships and very common for large corporations. Not all economic production takes place within firms: many government agencies provide goods and services (defence, roads, etc. ) which are financed through tax revenues. Capital refers to both the amount of money and quantity of goods. Financial capital: the firm"s physical assets (factories, machinery, offices, etc. : this is opposed to real capital. The basic types of financial capital used by firms are equity and debt. Equity: the funds provided by the owner of the firm: single proprietorships and partnerships often have an owner provide the required funds, corporations acquire funds from owners in returns for stocks, shares, or equities.