1. Federal Trade Commission Act (1914)
1.1. This act bans "unfair methods of competition" and "unfair or deceptive acts or practices."
2. Clayton Antitrust Act (1914) -
2.1. An amendment passed by the U.S. Congress in 1914 that provides further clarification and substance to the Sherman Antitrust Act of 1890. The Clayton Antitrust Act attempts to prohibit certain actions that lead to anti-competitiveness.
3. Sherman Antitrust Act (1890) -
3.1. The first Federal act that outlawed monopolistic business practices; approved July 2, 1890
4. Markets
4.1. Market Structure
4.1.1. Market classification according to number and size of firms, type of product, and type of competition.
4.2. Perfect Competition
4.2.1. A market structure in which the following five criteria are met: 1) All firms sell an identical product; 2) All firms are price takers - they cannot control the market price of their product; 3) All firms have a relatively small market share; 4) Buyers have complete information about the product being sold and the prices charged by each firm; and 5) The industry is characterized by freedom of entry and exit.
4.3. Product Differentiation
4.3.1. Real of imagined differences between competing products in the same industry.
4.4. Monopolistic Competition
4.4.1. Market structure having all conditions of pure competition except for identical products; form of imperfect competition.
4.5. Oligopoly
4.5.1. A situation in which a particular market is controlled by a small group of firms.
4.6. Collusion
4.6.1. A non-competitive agreement between rivals that attempts to disrupt the market's equilibrium. By collaborating with each other, rival firms look to alter the price of a good to their advantage
4.7. Monopoly
4.7.1. A situation in which a single company or group owns all or nearly all of the market for a given type of product or serviceA situation in which a single company or group owns all or nearly all of the market for a given type of product or service..
4.8. Geographic Monopoly
4.8.1. A market situation in where one company has a monopoly because of its location or the size of the market.
4.9. Technical Monopoly
4.9.1. Market situation where a firm has a monopoly because it owns or controls a manufacturing method, process, or other scientific advance.
4.10. Government Monopoly
4.10.1. A monopoly created and/or owned by the governmetnt
5. Antitrust Legislation
6. By: Taylor Boos, Jackson Ceserani & Christian Silvestre
7. Definition: A written government approval to establish a corporation.
8. Forms of Businesses
8.1. Sole Proprietorship
8.1.1. Definition: unincorporated business with one owner who pays personal income tax on profits from the business. There is little Government regulation.
8.2. Unlimited Liability
8.2.1. Definition: owners can be held personally accountable for a business's debt.
8.3. Limited Life
8.3.1. Definition: This applies to both sole proprietorship and partnerships, and is when a firm legally ceases to exist when there is a change in the ownership position. Definition: This applies to both sole proprietorship and partnerships, and is when a firm legally ceases to exist when there is a change in the ownership position.
8.4. Partnership
8.4.1. Definition: Unincoprportated business owned and operated by two or more people who share profits and have unlimited liability for debts and obligations related to the company.
8.5. Corporation
8.5.1. Definition: A business recognized by law as a separate legal entity with all the rights and responsibilities of an individual.
8.6. Charter
8.7. Nonprofit Organization
8.7.1. Definition: An economic institution that operates like a business, but does not seek financial profit. (Charity)
8.8. Coopreative
8.8.1. Definition: A nonprofit association performing some kind of economic activity to benefit the people involved.
9. Mergers
9.1. Merger
9.1.1. The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
9.2. Horizontal Merger
9.2.1. A merger occurring between companies in the same industry. Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service.
9.3. Vertical Merger
9.3.1. A merger between two companies producing different goods or services for one specific finished product.
9.4. Conglomerate Merger
9.4.1. A merger between firms that are involved in totally unrelated business activities.
9.5. Multinational
9.5.1. A corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management.
10. Financing a Business
10.1. Stock
10.1.1. A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
10.2. Dividend
10.2.1. A distribution of a portion of a company's earnings to a class of its shareholders.
10.3. Common Stock
10.3.1. A security that represents ownership in a corporation; common stockholders are on the bottom of the priority ladder for ownership structure.
10.4. Preferred Stock
10.4.1. A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock; generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights.
10.5. Bond
10.5.1. A debt investment in which an investor loans money to a corporate or governmental entity that borrows the funds for a defined period of time at a fixed interest rate.
10.6. Principal
10.6.1. The amount borrowed or the amount still owed on a loan; separate from interest.
10.7. Interest
10.7.1. The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
10.8. Double Taxation
10.8.1. A taxation principle referring to income taxes that are paid twice on the same source of earned income.
10.8.2. Double taxation occurs because corporations are considered separate legal entities from their shareholders.