ECON 208 Lecture 7: & 8 - Producer in SR & LR
10 Jan 2016
School
Department
Course
Professor
27
ECON 208 Full Course Notes
Verified Note
27 documents
Document Summary
Chapter 7 producers in the short run. Limited partnerships (limited liability: invest money and enter the business becomes co-owner = only responsible to the amount of money you invested) Corporations (people with shares in a business only responsible to the amount of money you invested) = can be private (shares are privately traded) and public (shares are publicly traded) State-owned ( crown ) corporations main share-holder is a state. Non-profit organizations aim isn"t to create profit. Some firms are transnational corporations (tncs), or often called multinational enterprises (mnes) Firms use financial capital equity and debt. A firm acquires funds from its owner in return for stocks, shares or equity (as they are variously called). Profits may be distributed as dividends, or may be retained. A firm"s creditors are lenders (not owners) using debt instruments or bonds. Firms have the obligation to replay the principal and some interest to the lender. Economists usually make 2 key assumptions about firms:
