Chyou Lang What is opportunity cost? Opportunity cost is simply the value of the alternative foregone. It represents the ability for an individual, investors, or businesses from the alternative they miss out on while trying to choose one over the other. Opportunity cost is a major concept in Economics. When economists use the word …
Corporation in Business A corporation in business (corporate business) is a legal entity which individuals, stockholders, or shareholders established with the purpose of making a profit. It is a single entity that may comprise individuals or a company but it is a separate legal entity from its owners. Corporations are allowed to …
What is an LLC (limited liability company)? A limited liability company (LLC) is a business formation that offers limited liability protection and pass-through taxation. Like corporations, it has a separate legal entity from its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. …
What is partnership in business? Partnership in business refers to a formal arrangement by two or more persons to manage and operate a business and share the profits. We can define it as an unincorporated business in which an association of two to twenty persons. It is usually formed by a legal …
What is a sole proprietorship? A sole proprietorship also known as a one-man business is a business that does not legally have a separate existence from its owner. Income and losses are on the individual tax return. It is an unincorporated business that has a single owner who pays personal income tax …
This activity involves an entrepreneur who takes actions that are directed towards changing the world. Entrepreneurship involves a high level of risk-taking but is also highly rewarding. It serves in terms of generating economic wealth, growth, and innovation. 4 Types of Entrepreneurship There are different types of entrepreneurs as well as the …
In broad terms, capital describes anything that gathers benefit or value to the owner. This can include factories, machinery, or financial assets. Also, capital usually has to do with the cash that individuals and firms put to work for investment and productive purposes. This is a critical aspect of running a business …
What are economies of scale? Economies of scale also known as the scale of production refer to the cost advantages that companies reap when production becomes efficient. These advantages sometimes occur as a result of an increase in the size of as well as the output of a firm. The term means …