Economics ppt lesson 5

Cards (21)

  • Entrepreneurship
    The process of identifying, creating, and pursuing opportunities to develop and manage innovative business ventures
  • Entrepreneur
    A person who sets up a business or businesses, taking on financial risks in the hope of profit
  • Employees
    A person employed for wages or salary, especially at non-executive level
  • Inventors
    A person who invented a particular process or device or who invents things as an occupation
  • Types of Entrepreneurial Business
    • Manufacturing
    • Wholesaling
    • Retailing
    • Service
  • Characteristics of a Successful Entrepreneur
    • Independent
    • Self-confident
    • Determined and perseverance
    • Goal-oriented
    • Know what they want and able to focus on achieving it
    • Have a need to achieve and set high standards
    • Creative
    • Able to act quickly
  • Entrepreneurial Process
    1. Identification and evaluation of the opportunity
    2. Development of the business plan
    3. Determination of the required resources
    4. Management of the resulting enterprise
  • Different kinds of Investment
    • Direct Investment
    • Indirect Investment
  • Real Estate
    The land and any permanent structures, like a home, or improvements attached to the land, whether natural or man-made
  • Indirect Investments
    • Savings Account
    • Bonds
    • Stocks
    • Mutual Funds
    • Life Insurance
    • Rent
  • Mutual Funds
    A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt
  • Life Insurance
    A contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period
  • Rent
    A payment of a factor of production in excess of its opportunity cost
  • Types of Rent
    • Inframarginal Rent
    • Pure Economic Rent
    • Quasi Rent
    • Monopoly Rent
  • Unemployment
    A situation where a person actively searches for employment but is unable to find work
  • Types of Unemployment
    • Fictional Unemployment
    • Cyclical Unemployment
    • Structural Unemployment
  • Direct Investment:
    • Business Investment
    • Real Estate
  • Business Investments:
    Spending by private businesses and nonprofits on physical capital long lasting assets used to produce goods and services.
    Buying small business
  • Savings Account:
    Interest-bearing deposit account held at a bank or other financial institution
  • Bonds:
    • Used by government or companies to raise money by borrowing from investors
    • Government securities and corporate bonds
  • Stocks:
    Type of security that gives stockholders a share of ownership in a company