Exam 4 Vocab Flashcards
1
Q
A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal)
A
Agency
2
Q
A person having a duty created by his or her undertaking to act primarily for another’s benefit in matters connected with the undertaking
A
Fiduciary
3
Q
A relationship founded on trust and confidence
A
Fiduciary
4
Q
One who works or, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer
A
Independent Contractor
5
Q
A party’s act of accepting or giving legal force to a contract or other obligation entered into by another that previously was not enforceable
A
Ratification
6
Q
A rule requiring that an agent’s authority be in writing if the contract to be made on behalf of the principal must be in writing
A
Equal Dignity Rule
7
Q
Authorization for another to act as one’s agent or attorney in either specified circumstances or in all situations
A
Power of Attorney
8
Q
A public official authorized to attest to the authenticity of signatures
A
Notary Public
9
Q
Authority that is only apparent, not real
A
Apparent authority
10
Q
Arises when the principal causes a third party to believe that the agent has authority, even though she or he does not
A
Apparent Authority
11
Q
A principal whose identity is known to a third party at the time the agent makes a contract with the third party
A
Disclosed Principal
12
Q
A principal whose identity is unknown by a third party, but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract
A
Partially Disclosed Principal
13
Q
A principal whose identity is unknown by a third party, and that person has no knowledge that the agent is acting for a principal at the time the agent and the third party form a contract
A
Undisclosed Principal
14
Q
A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course or scope of their agency or employment
A
Respondeat Superior
15
Q
Indirect liability imposed on a supervisory party for the actions of a subordinate because of the relationship between the two parties
A
Vicarious Liability
16
Q
A common law doctrine under which either party may terminate an employment relationship at any time for any reason, unless a contract specifies otherwise
A
Employment at Will
17
Q
An employee’s disclosure to government authorities, upper-level managers, or the media that the employer is engaged in unsafe or illegal activities
A
Whistleblowing
18
Q
An employer’s termination of an employee’s employment in violation of the law or an employment contract
A
Wrongful Discharge
19
Q
The lowest wage, either by government regulation or union contract, that an employer may pay an hourly worker
A
Minimum Wage
20
Q
State statutes that establish an administrative process for compensating workers for injuries that arise in the course of their employment, regardless of fault
A
Workers’ Compensation Laws
21
Q
The creation of an absolute or unconditional right or power
A
Vesting
22
Q
The process of verifying the employment eligibility and identity of a new worker. Must be completed within three days after the worker commences employment
A
I-9 Verification
23
Q
A document, known as a green card, that shows that a foreign born individual can legally work in the united states
A
I-551 Alien Registration Receipt
24
Q
A firm that requires union membership by its workers as a condition of employment, which is illegal
A
Closed Shop
25
A firm that requires all workers, once employed, to become union members within a specified period of time as a condition of their continued employment
Union Shop
26
A state law providing that employees may not be required to join a union as a condition of retaining employment
Right-To-Work Law
27
An illegal agreement in which employers voluntarily agree with unions not to handle, use, or deal in the nonunion-produced goods of other employers
Hot-Cargo Agreement
28
A card signed by an employee that gives a union permission to act on his or her behalf in negotiations with management
Authorization Card
29
The process by which labor and management negotiate the terms and conditions of employment, including working hours and workplace conditions
Collective Bargaining
30
An action undertaken by unionized workers when collective bargaining fails, the workers leave their jobs, refuse to work and picket the employers workplace
Strike
31
An illegal strike directed at suppliers and customers of the primary employer with whom the union has a labor dispute
Secondary Boycott
32
Occurs when an employer shuts down to prevent employees from working typically because it cannot reach a collective bargaining agreement with the union
Lockout
33
A group of persons protected by specific laws because of the group's defining characteristics, including race, color, religion, national origin, gender, age, and disability
Protected Class
34
Treating employees or job applicants unequally on the basis or race, color, national origin, religion, gender, age, or disability
Employment Discrimination
35
A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes
Disparate-Treatment Discrimination
36
A case in which the plaintiff has produced sufficient evidence of his or her claim that the case will be decided for the plaintiff unless the defendant produces no evidence to refute it
Prima Facie Case
37
Discrimination that results from certain employer practices or procedures that, although no discriminatory on their face, have a discriminatory effect
Disparate-Impact Discrimination
38
A termination of employment brought by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave
Constructive Discharge
39
The demanding of sexual favors in return for job promotions or other benefits, or language or conduct that is so sexually offensive that it creates a hostile working environment
Sexual Harassment
40
A significant change in employment status or benefits, such as occurs when an employee is fired, refused a promotion, or reassigned to a lesser position
Tangible Employment Action
41
A defense to an allegation of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance
Business Necessity
42
Identifiable characteristics reasonably necessary to the normal operation of a particular business; can include gender, national origin, and religion, but not race
Bona Fide Occupational Qualification
43
A system in which those who have worked longest for an employer are first in line for promotions, salary increases, and other benefits, and are last to be laid off if the workforce must be reduced
Seniority System
44
Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discriminations
Affirmative Action
45
One who initiates and assumes the financial risk of a new business enterprise and undertakes to provide or control its management
Entrepreneur
46
The simplest form of business organization, in which the owner is the business, reports business income on his or her personal income tax return, and is legally responsible for all debts and obligations incurred by the business
Sole Proprietorship
47
Any arrangement in which the owner of a trademark, trade name, or copyright licenses another to use that trademark, trade name, or copyright in the selling of goods or services
Franchise
48
One receiving a license to use another's trademark, trade name, or copyright in the sale of goods and services
Franchisee
49
One licensing another to use the owner's trademark, trade name, or copyright in the selling of goods or services
Frachisor
50
An agreement by two or more persons to carry on, as co-owners, a business for profit
Partnership
51
The market value of the good reputation of any company, partnership, or other business entity
Goodwill
52
A business entity that has no tax liability. The entity's income is passed through to the owners, and they pay taxes on the income
Pass-Through Entity
53
A tax return submitted by a partnership that only reports the business's income and losses. The partnership itself does not pay taxes on the income, but each partner's share of the profit, whether distributed or not, is taxed as individual income to that partner
Information Return
54
A written agreement that sets forth each partner's rights and obligations with respect to the partnership
Articles of Partnership
55
Partnership liability imposed by a court on persons who have held themselves out to be partners, even though they were not, and others have detrimentally relied on their representations
Partnership Estoppel
56
The act or agreement of a debtor permitting a judgment to be entered against him or her by a creditor for an agreed sum without the institution of legal proceedings
Confession of Judgment
57
In partnership law, an order granted by a court to a judgment creditor that entitles the creditor to attach a partner;s interest in the partnership
Charging Order
58
In partnership law, the partners' share liability for partnership obligations and debts. A third party must sue all of the partners as a group, but each partner can be held liable for the full amount
Joint Liability
59
In partnership law, a doctrine under which a plaintiff may sue, and collect a judgment from, all of the partners together or one or more of the partners separately. A partner can be held liable even if she or he did not participate in, ratify, or know about the conduct that gave rise to the lawsuit
Joint and Several Liability
60
The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business (buyout)
Dissociation
61
The amount payable to a partner on his or her dissociation from a partnership, based on the amount distributable to that partner if the firm were wound up on that date, and offset by any damages for wrongful dissociation
Buyout Price
62
The formal disbanding of a partnership or a corporation. It can take place by
- Acts of the partners or, in a corporations, acts of the shareholders and board or directors
- The subsequent illegality of the firm's business
- The expiration of a time period stated in a partnership agreement or a certificate of incorporation or
- Judicial decree
Dissolution
63
The second of two stages in the termination of a partnership or corporation, in which the firm's assets are collected, liquidated, and distributed, and liabilities are discharged
Winding Up
64
A partnership consisting of one or more general partners, and one or more limited parters
Limited Partnership
65
In a limited partnership, a partner who assumes responsibility for the management of the partnership and has full liability for all partnership debts
General Partner
66
In a limited partnership, a partner who contributes capital to the partnership but has not right to participate in its management. The partner has no liability for partnership debts beyond the amount of her or his investment
Limited Partner
67
A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership
Limited Liability partnership
68
A person who has an ownership interest in a limited liability company
Member
69
The document filed with a designated state official (State Dept of Assessment and Taxation) by which a limited liability company is formed
Articles of Organization
70
An agreement in which the members of a limited liability company set forth the details of how the business will be managed and operated
Operating Agreement
71
A joint undertaking for a specific commercial enterprise by two or more persons or business entities. Treated like a partnership for federal income tax purposes
Joint Venture
72
A group of individuals or firms that join together to finance a project. AKA investment Group
Syndicate
73
A hybrid form of business organization that combines characteristics of a corporation and a partnership. Usually regarded as a partnership for tax and other legal purposes
Joint Stock Company
74
A form of business organization, created by a written trust agreement, that resembles a corporation. Legal ownership and management stay with the trustees, and the profits are distributed to the beneficiaries, who have limited liability
Business Trust
75
An association which may or may not be incorporated, that is organized to provide an economic service to its members.
Cooperative
76
A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners
Corporation
77
A distribution of corporate profits to the corporation's shareholders in proportion to the number of shares held
Dividend
78
The portion of a corporation's profits that has not been paid out as dividends to shareholders
Retained Earnings
79
A company whose business activity is holding shares in another company
Holding Company
80
Ina given state, a corporation that is organized under the law of that state
Domestic Corporation
81
In a given state, a corporation that does business in that state, but is not incorporated there
Foreign Corporation
82
A corporation formed in another country but doing business in the United States
Alien Corporation
83
A corporation whose shareholders are limited to a small group of persons, often only family members
Close Corporation
84
The document containing basic information about the corporation that is filed with the appropriate state official, usually the secretary of state, when a business is incorporated
Articles of Incorporation
85
The internal rules of management adopted by a corporation at its first organizational meeting
Bylaws
86
Acts of a corporation that are beyond its express and implied powers to undertake
Ultra Vires
87
To put funds or goods together into one mass so that they are mixed to such a degree that they no longer have separate identities, as when personal and corporate interests are mixed together to the extent that the corporation has no separate identity
Commingle
88
The agreement between the issuer of a bond and the bondholder that sets out the terms and features of the bond issue
Bond indenture
89
Generally, stocks, bonds, or other items that represent an ownership interest in a corporation or a promise of repayment of debt by a corporation
Securities
90
An ownership interest in a corporation, measured in units of shares
Stock
91
A security that evidences a corporate debt
Bond
92
Shares of ownership in a corporation that give the owner of the stock with a proportionate interest in the corporation with regard to control, earnings, and net assets. Lowest in priority with respect to payment of dividends and distribution of the corporations assets on dissolution
Common Stock
93
Stock that has priority over common stock as to payment of dividends and distribution of assets on the corporation's dissolution
Preferred Stock
94
Financing provided by professional, outside investors to new business ventures
Venture Capital
95
Funds invested by a private equity firm in an existing corporation, usually to purchase and recognize it
Private Equity Capital
96
The legal combination of two or more corporations in such a way that only one corporation continues to exist, having acquired all of the assets and liabilities of the other corporation
Merger
97
The legal combination of two or more corporations that can be accomplished without the approval of the shareholders of either corporation because one company owns at least 90% of the outstanding shares of each class of stock of the other corporation
Short-Form Merger
98
The formal disbanding of a corporation which can take place by:
- An act of the state
- An agreement of the shareholders and the board of directors
- The expiration of a time period stated in the certificate of incorporation
- A court order
Dissolution
99
In a corporate dissolution, a court appointed person who winds up corporate affairs and liquidates corporate assets
Receiver
100
Prohibits am employer from eliminating a workers medical, optical, or dental insurance on the voluntary or involuntary termination of the workers employment
COBRA
101
A close business organization that has most corporate attributes, including limited liability, but qualifies under the IRS to be taxed as a partnership
S Corporation
102
The legal combination of two or more corporations in such a way that the original corporations cease to exist, and a new corporation emerges with all their assets and liabilities
Consolidation
103
The corporation to be acquired in a corporate takeover
Target corporation
104
The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation
Takeover
105
An offer made by one company directly to the shareholders of another company to purchase their shares of stock
Tender offer
