Lesson 2.1 - Notes Page 1

Households provide goods and services to firms, and firms provide income to households.

Firms provide goods and services to households, and households provide factors of production to firms.

Households provide revenue to firms, and firms provide spending to households.

Firms provide factors of production to households, and households provide income to firms.

Number of owners, liability, lifespan, decision making, taxation

Location, size, industry, marketing, competition

Profit margin, employee benefits, customer base, advertising

Technology, innovation, sustainability, global reach

Business owned by president

Business owned by several companies

Business owned by one person

Business owned by a company

It is the easiest business to form

it requires no physical capital

it is run by multiple owners

it only produces shoes

Low start-up cost

Easy management

Owner keeps all profits

Limited liability