7: Economic Organizations Flashcards
refers to the act of coordinating various factors of production - land, labor, and capital.
Economic Organizations
In his book ________, the German sociologist Max Weber attributed the rise of organizations to the following factors: the expansion of markets, the developments in the law, and the changes in the nature of authority.
Theory of Social and Economic Organization
The oldest form of business organization, ___________ is something of a “one-man business”.
Sole Proprietorship
This type of business organization is carried on by two or more men.
Partnership
an economic organization that consists of shareholders who subscribe to its capital, which is divided up into a large number of shares.
Joint Stock Company
the profits of this are distributed according to the value of the purchases. Moreover, unlike joint stock companies, members of _________ are not allowed to sell their shares.
cooperative society
refers to the mutual exchange of services or goods among social peers. It is a relationship wherein two parties agree to do similar work for each other, or allow each other the same rights, and so on.
Reciprocity
This is a relationship in which one side loses in the exchange.
Negative reciprocity
Exchange of goods and services through a market is called
market transaction
refers to a transaction in which an order is placed by an insider, after filing all appropriate documentation, to buy or sell restricted securities openly on an exchange.
Open-Market Transactions
take place when there is an order placed by a company’s insider to buy or sell restricted securities from within the company’s own treasury. This also requires filing of appropriate documentation to ensure the legality of the process.
Close-Market Transactions
are inevitably related to one another. The decisions made by either one of them will definitely affect the other.
Markets and State
in economics refers to the theory, policy, or practice of lessening or reducing inequalities in income.
Redistribution
