Chapter 22 Vocab Flashcards
sole proprietorship
a business owned and operated by a single person
a business owned and operated by a single person
sole proprietorship
unlimited liability
when the owner is financailly responsible for any and all problems related to the business
when the owner is financailly responsible for any and all problems related to the business
unlimited liability
financial capital
the money needed to run a business or enable it to grow larger
the money needed to run a business or enable it to grow larger
financial capital
partnership
a business owned by two or more people
-There are fewer partnerships than any other form of business.
a business owned by two or more people
-There are fewer partnerships than any other form of business.
partnership
articles of partnership
a legal agreement made between business partners which identifies how much money each will contribute and what role each will play in the business
a legal agreement made between business partners which identifies how much money each will contribute and what role each will play in the business
articles of partnership
corporation
a business recognized by law that has many of the rights and responsibilities of an individual
a business recognized by law that has many of the rights and responsibilities of an individual
corporation
charter
a government document granting permission to organize (a corporation)
a government document granting permission to organize (a corporation)
charter
stock
ownership shares of the corporation that will be issued
ownership shares of the corporation that will be issued
stock
stockholders
the people who buy stock
the people who buy stock
stockholders
board of directors
elected by the stockholders of a corporation;
responsible for hiring managers to run the corporation on a daily basis
elected by the stockholders of a corporation;
responsible for hiring managers to run the corporation on a daily basis
board of directors
limited liability
means that only the corporation, not its owners, is responsible for the debts of the corporation
means that only the corporation, not its owners, is responsible for the debts of the corporation
limited liability
double taxation
paying taxes twice on corporate profits
paying taxes twice on corporate profits
double taxation
cooperative
a voluntary association of people formed to carry on some kind of economic activity that serves to benefit its members
a voluntary association of people formed to carry on some kind of economic activity that serves to benefit its members
cooperative
labor union
a group of workers who band together to have a better chance to obtain higher pay and better working conditions
a group of workers who band together to have a better chance to obtain higher pay and better working conditions
labor union
closed shop
a worker had to belong to the union in order to be hired by a company
a worker had to belong to the union in order to be hired by a company
closed shop
union shop
companies can hire nonunion people, but htose workers must join the union once they begin working
companies can hire nonunion people, but those workers must join the union once they begin working
union shop
right-to-work laws
prevent unions from forcing workers to join
prevent unions from forcing workers to join
right-to-work laws
modified union shop
workers do not have to join the union after they are hired but they can choose to do so. If they do, they must stay in the union as long as they work for that employer.
workers do not have to join the union after they are hired but they can choose to do so. If they do, they must stay in the union as long as they work for that employer.
modified union shop
collective bargaining
officials from the union and from the company meet to discuss the terms of the workers’ new contract
officials from the union and from the company meet to discuss the terms of the workers’ new contract
collective bargaining
mediation
the stage in contract negotiations in which a neutral person tries to get both sides to reach an agreement
the stage in contract negotiations in which a neutral person tries to get both sides to reach an agreement
mediation
arbitration
union and management submit issues on which they cannot agree to a third party for a final decision
union and management submit issues on which they cannot agree to a third party for a final decision
arbitration
strike
all workers in the union refuse to go to work
all workers in the union refuse to go to work
strike
lockout
the company blocks workers from entering its buildings until they agree to accept its contract terms
the company blocks workers from entering its buildings until they agree to accept its contract terms
lockout
transparency
the legal responsibility of corporations to release financial information regularly
the legal responsibility of corporations to release financial information regularly
transparency
social responsibility
the obligation businesses have to pursue goals that benefit society as well as themselves
the obligation businesses have to pursue goals that benefit society as well as themselves
social responsibility
