Taxes are money that people have to pay to the government. The government uses this money to pay for everything everyone needs, like roads, schools, and hospitals. Who Pays Taxes Most adults have to pay taxes. When you get a job and earn money, some of that money goes to the government as taxes. Businesses…
The ability to pay principle states that people should pay taxes based on how much money they can afford. This means people who earn more should pay more taxes than those who earn less. Basic Idea The core idea is simple: Those with higher incomes have more resources to contribute to society through taxes. Wealthy…
Business customers are companies or people who buy goods or services from other businesses. They are different from regular shoppers who buy things for themselves. These customers make purchases to improve their own businesses or to sell things to others. Main Types of Business Customers Producers Producers buy raw materials or parts to make new…
The money a business must spend to make and sell things is called a cost. These costs occur constantly as the business runs. Understanding costs helps business owners determine how much money they need and how much to charge for their goods. Fixed Costs Fixed costs stay the same no matter how much a business…
A customer is someone who buys goods or services from a business. Customers pay money to get what they want or need. They are the reason businesses exist and keep running. Without customers, no company can stay open. Types of Customers Businesses have different kinds of customers. Some are people who buy things for themselves…
A product is anything a business sells to its customers. It can be physical items you can touch, like phones or books. It can also be services that people use, like haircuts or car repairs. Digital items like computer software or streaming services are products, too. Types of Products Physical products are items customers can…
When a company makes products, it needs to know the cost of each item. With absorption costing, companies add up four main costs. First, they count the materials they use directly in the product. Second, they include the wages paid to workers who make the product. Third, they add variable overhead costs that change with…
In an absolute auction, the bidding process starts when the auctioneer opens the floor for bids. Interested buyers then place their bids openly. Each new bid must be higher than the previous one. When no one wants to bid any higher, the auctioneer ends the auction. The item then goes to the person who made…
An absolute advantage means someone can produce more of something using the same amount of resources as someone else. Think of it as being more efficient at making something. Let’s break it down. When a country (or person or company) can produce something using fewer resources than others, it has an absolute advantage. The resources…
Remote work is where you do your job from home or another place instead of going into an office. When you work remotely, you use a computer and the internet to connect with your coworkers, attend meetings, and complete your work. How remote work is becoming more common In the past, most people worked in…
