Please enable JavaScript.
Coggle requires JavaScript to display documents.
The Firm and Its Environment - Coggle Diagram
The Firm and Its Environment
basic economic institution
come in every shape and size
large
small
determine much of how the economy operates
produce goods and services
Types of businesses
advantages
they are easy to organize
decisions can be made quickly
owners receive all profits
disadvantages
One person
has limited resources to start and operate a business
unlimited liability
profits
are shared with only a few people
the owners are responsible for success or failure of the business
business that, although owned by one or more investors, legally has the
rights and duties of an individual
legal contracts, hire and fire
workers, set prices, and be sued, fined and taxed
shares of stock
limited liability
