chapter 5: business and labor

Question 1

business organizations

Answer 1

sale proprietorship
partnership
corporation
cooperative

Question 2

sole proprietorship

Answer 2

unincorporated business that has just one owner who pays personal income tax on profits earned from the businesses
- advt. easy start up, relatively few regulations (zonning laws), sole reciever of profits, full control, easy to discontinue,
-disadv. unlimited personal liability, limited access to resources , lack of permanance

Question 3

partnerships

Answer 3

general (most basic working arrang defined by a written agreement),
limited (one partner is liable for the debts of the partnership, while the other is not),
limited liability (partnerships are not personally liable)
adv- easy start, share decision making and specialization , larger pool of capital, taxation
disadv- unlimited liability, potential conflict

Question 4

franchise

Answer 4

a business where the operatior pays a mixture of upfront and ongoing feees in order to license the brand name and supporting resources of a parent company,
adv- management training and support, standardized quality , national advertising, financial assistance, centralized buying power
disadv- high franching fees and royaltiees, strict operating standards, purchasing restrictions, limited product line

Question 5

corporations

Answer 5

a legal entity that is separate and distinct from its owners
adv limited liability, transferable ownership, ability to attract capital, long life,
disadv- difficulty and expense of starting, double taxations(dividends), loss of control, more regulation

Question 6

corporate structure

Answer 6

share holders -> board of directors -> chairman -> ceo -> coo and cfo

Question 7

corporate combinations

Answer 7

horizontal merger, vertical merger , conglomerate

Question 8

verticle merger

Answer 8

strategy that allows a company to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers

Question 9

horizontal merger

Answer 9

a new combind entity when one company acquires another company in the same indsutry and works at the same production stage

Question 10

vertical v horizontal

Answer 10

v purchase of companies at all levels of production
h purchase of competing companies in same industry

Question 11

conglomerate

Answer 11

a corpation made up of several different, independent businesses

Question 12

multinational corporations

Answer 12

a company that has business operations in atleast one country other than its home country

Question 13

other corporations

Answer 13

business franchise, cooperative organizations, non profits

Question 14

cooperative organizations

Answer 14

consumer, service, producer
consumer cooperatives - the primary purpose is to produce and distribute commoditities to members and non members,
producer cooperatives- undertakers joint production whether agricultural industrial,
service cooperative- engages in medical and dental care, hospitalization, insurance, housing, labor, electric lights and power, communication

Question 15

non profits

Answer 15

professional organizations, business associations, trade associations, labor unions

Question 16

full employment

Answer 16

when all available labor resources are being used in the most efficient way

Question 17

labor

Answer 17

what people do

Question 18

employment

Answer 18

when all available labor resources are being used in the most efficient way possible

Question 19

empolyment and unemployment

Answer 19

employed if you are 16 and older and work for an hour

Question 20

unemployment

Answer 20

a situation where a person actively searches for employment but is able to work
unemployed is considered to be a key measure of the health of the economy

Question 21

bureau of labor statistics

Answer 21

-produce special reports on developments in various sectors of the job market in a series of career outlook articles
-collect and analyze data and provide the resulting economic info to the public
- keep tabs on the labor markets, working conditions, employment, data and chaning wages and prices

Question 22

occupational trends

Answer 22

chaning economy , fewer goods and more serives, effects of international competition

Question 23

outsourcing

Answer 23

the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the companys own employees

Question 24

offshoring

Answer 24

transfer of business operations of developed countries to less developed countries (to make more money),
it then benefits the developed counties -> cost reduction/less stringent roles and reg./tax benefits

Question 25

changing labor forcce

Answer 25

college graduates (learning effect, screening effect), women at work, temporary workers (contingent employment), guest workers

Question 26

reasons for increased use of temp. workers

Answer 26

-flexible arrangemnts to adjust for demand
- less pay and fewer benefits
- easier to discharge
- some workers prefer it

Question 27

trends in wages and benefits

Answer 27

• real wages are down
• cost of benefits are up

Question 28

labor and wages

Answer 28

• derived demand
• payment according to the value of production

Question 29

labor demand

Answer 29

productivity, labor suppy, equalibrium wage

Question 30

wage and skill levels

Answer 30

• unskilled labor, semi skilled labor, skilled labor, professional labor

Question 31

wage discrimination

Answer 31

laws, women (glass ceiling), minorities

Question 32

others factors of wage and labor demand

Answer 32

• minimum wage, safety laws, employer response, unions, “feather bedding”

Question 33

featherbedding

Answer 33

• unions force firms to hire more workers than are required or to impose work rules that reduce output per worker, the result is an increase in the demand for labor

Question 34

labor unions

Answer 34

• an organization formed by workers in a particular trade, industry or company to improve pay, benefits, and working conditions

Question 35

the labor movement

Answer 35

strikes, employer resistance, congressional protections

Question 36

declines of the labor movement

Answer 36

right- to- work laws - if you go on strike, you loose your job
- loss of traditional strongholds

Question 37

collective bargaining

Answer 37

wages and benefits, working conditions, job security

Question 38

strikes and settlement

Answer 38

mediation
arbitration