10 points: (x2)
-http://quizlet.com/74726774/business-and-labor-vocabulary-flash-cards/
-Unit 3 Vocabulary
Chapter 8 Business Organizations
Business organization
An establishment formed to carry on commercial enterprise
Example: Microsoft
Sole proprietorship
Definition: a business owned and managed by a single individual
Advantages: ease of start up, relatively few regulations, sole receiver of profit, full control, easy to discontinue
Disadvantages: Unlimited personal liability, limited access to resources, lack of permanence,
Example: barber shop
Business license
Authorization to start a business issued by the local government
Example: a day-care provider license
Zoning law
Law in a city or town that designates separate areas for residency and for business
Example: neighborhoods don't want businesses next door to them
Liability
The legally bound obligation to pay debts
Example: being responsible for all their business debts.
Fringe benefit
Payment other than wages or salaries
Example: paid vacation
Partnership
Definition: A business organization owned by two or more persons who agree on a specific division of responsibilities and profits
Advantages: ease of start-up, shared decision making and specialization, larger pool of capital, taxation
Disadvantages: Unlimited liability, potential for conflict
Example: A barber shop
General partnership
Partnership in which partners share equally in both responsibility and liability
Example: Doctors often form these with colleagues
Limited partnership
Partnership in which only one partner is required to be a general partner
Example: one partner only provides money while the other has unlimited personal liability.
Limited liability partnership
Partnership in which all partners in which all partners are limited partners
Example: Many states allow professionals such as attorneys to register as this type.
Articles of partnership
A partnership agreement
Example: An article that talks about details such as the ways new partners can join the firm
Uniform partnership act
Act ordering common ownership interests, profits and loss sharing, and shared management responsibilities in a partnership.
Example: State laws adopted to establish rules for partnerships
Assets
Money and other valuables belonging to an individual or business
Example: computers that a business owns
Corporation
A legal entity owned by individual stockholders
Example: Apple
Stock
A certificate of ownership in a corporation
Example: owning a share of Apply
Closely held corporation
Corporation that issues stock to only a few people, often family members
Example: Family members opening a company
Privately held corporation
A corporation owned by non-governmental organizations or by a relatively small number of shareholders
Example: That company in Minnesota that you used as an example in class where the workers get shares of the company.
Publicly held corporation
Corporation that sells stock on the open market
Example: Apple
Bond
A formal contract to repay borrowed money with interests at fixed intervals
Example: Savings bonds that you can redeem when your 18
Certificate of incorporation
License to form a corporation issued by state government
Example: A state license for a firm
Dividend
The portion of corporate profits paid out to stockholders
Example: Double taxation
Horizontal merger
The combination of two or more firms competing in the same market with the same good or service
Example: If two giant automakers merged to form one company.
Vertical Merger
The combination of two or more firms involved in different stages of producing the same good or service
Example: If an automaker company bought the steel company that they got supplies from.
Conglomerate
Business combination merging more than three businesses that make unrelated products
Example: if an automaker company, a refrigerator company, and a TV company all merged together.
Multinational corporation
Large corporation that produces and sells its goods and services throughout the world
Example: Microsoft
Business franchise
A semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area
Example: McDonald's
Royalty
Share of earnings given as payment
Example: Fees a McDonald's in Chanhassen has to pay to the headquarters.
Cooperative
A business organization owned and operated by a group of individuals for their mutual benefit
Example: Costco
Service cooperative
Cooperative that provides a service, rather than a good
Example: Baby-sitting services
Producer cooperative
Agricultural marketing cooperative that helps members sell their products
Example: a farmers market
Nonprofit organization
Institution that functions much like a business, but does not operate for the purpose of generating profits
Example: the American Red Cross
Professional organization
Nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations
Example: the National Education Association
Business association
Nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of smaller businesses
Example: local Better Business Bureau
Trade association
Nonprofit organization that promotes the interests of a particular industry
Example: the American Marketing Association
Chapter 9 Labor
Labor force
All nonmilitary people who are employed or unemployed
Example: everyone over 16
Learning effect
The theory that education increases productivity and results in higher wages
Example: college-educated workers typically earning more than high school drop outs
Screening effect
The theory that the completion of college indicates to employers that a job applicant is intelligent and hard-working
Example: A person who went to college will be more likely to get an interview that a high school dropout based on this part of their resume.
Contigent employment
A temporary or part-time job
Example: Being payed to complete a certain project then being released
Unemployment
People who are temporarily without work or are not working but have looked for jobs within the last 4 weeks.
Example: A person who just got laid off
Bureau of Labor statistics
Provides answers to 2 important questions: How many people are in the labor force? How many are employed and unemployed at any given time?
Example: their website on the internet
Effects of international competition on US labor market
There are less and less demand for services of unskilled American workers
Trends in wages and benefits
Benefits such as pensions and health insurance are a significant share of total compensation
Derived demand
Demand that is determined by demand for another good or service
Example: Demand for cooks in a market depends on the demand for restaurant meals
Productivity
Value of output
Example: If cooks payed $12 an hour and produce $20 an hour revenue then they have a high value
Equilibrium wage
The wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market
Example: on a graph, what is shown by the intersection of supply and demand curves
Unskilled labor
Labor that requires no specialized skills, education, or training
Example: Dishwashers
Semi-skilled labor
Labor that requires minimal specialized skills and education
Example: Lifeguards
Skilled labor
Labor that requires specialized skills training
Example: Auto mechanics
Professional labor
Labor that requires advanced skills and education
Example: teachers
Wage discrimination – laws against
Anti-discrimination laws that prevent companies from paying lower wages to some employees based on factors like gender or race that are not related to skill or productivity.
Glass ceiling
An unofficial, invisible barrier that prevents women and minorities from advancing in businesses dominated by white men
Example: high managerial positions
Labor union
An organization of workers that tries to improve working conditions, wages, and benefits for its members.
Example: teacher's union
Featherbedding
The practice of negotiating labor contracts that keep unnecessary workers on a company's payroll
Example: Railroad caboosemen
Factors affecting wages
minimum wage laws, safety laws, employers respond to wage levels, unions
Strike
An organized work stoppage intended to force an employer to address union demands
Example: Carpenters strike
Right to work law
A measure that bans mandatory union membership
Example: not having to join unions being widely accepted in the South
Blue collar
Someone who works in an industrial job, often in manufacturing, and who receives wages
Example: working in a clothing factory
White collar
Someone in a professional or clerical job who usually earns a salary
Example: teachers
Collective bargaining
The process in which union and company representatives meet to negotiate a new labor contract
Example: lawyers negotiating with a CEO
Mediation
A settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides will accept
Example: A third party is sometimes called in to settle a dispute
Arbitration
A settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides
Example: A mediator which requires the change
Economic changes in the US that affected unions
Blue-collar manufacturing jobs have been declining while white color have been rising to make union workers go down. Also traditional manufacturing industries have been going down. Also women are less likely to join unions.
Trends in union membership
Blue-collar jobs use unions more than white-collar jobs and there are more people doing white-collar jobs now
Debate over minimum wage
Some people want a living wage and others believe that making the minimum wage higher would make the amount of jobs available lower
Example: republicans are generally against raising, democrats are usually for raising.
1 Point: (x5)
(Posts about articles relating to class topics)
- The article hyperlinked demonstrates how companies in the real business world go overboard on their vertical integration, and the specific example here is Apple. Sounds crazy! http://business.time.com/2012/03/16/how-apple-made-vertical-integration-hot-again-too-hot-maybe/
-The article here talks about a somewhat horizontal merger that google is doing by buying 8 robotics companies. Sure they have the wealth, but is this really necessary? http://www.cbsnews.com/news/google-buys-8-robotics-companies-in-6-months-why/
-This New York Time's business article talks about all the advantages and disadvantages to sole proprietorship. It's a perfect read for people considering opening their own business of economics students! http://www.nytimes.com/allbusiness/AB4113314_primary.html
-This article from The Economic Times tells potential stock buyers all the ways that they can make money in the stock market. It's a great read and really relates to the economics unit because we learned about corporations and the stock market. http://articles.economictimes.indiatimes.com/2014-12-08/news/56839505_1_small-investors-stocks-page-industries
-Featherbedding used to be a bigger problem than it is now, and this article is all about featherbedding in the railroad industry. It's a great example for an economics student trying to better understand this concept. http://fee.org/freeman/detail/featherbedding-a-way-of-life
-http://quizlet.com/74726774/business-and-labor-vocabulary-flash-cards/
-Unit 3 Vocabulary
Chapter 8 Business Organizations
Business organization
An establishment formed to carry on commercial enterprise
Example: Microsoft
Sole proprietorship
Definition: a business owned and managed by a single individual
Advantages: ease of start up, relatively few regulations, sole receiver of profit, full control, easy to discontinue
Disadvantages: Unlimited personal liability, limited access to resources, lack of permanence,
Example: barber shop
Business license
Authorization to start a business issued by the local government
Example: a day-care provider license
Zoning law
Law in a city or town that designates separate areas for residency and for business
Example: neighborhoods don't want businesses next door to them
Liability
The legally bound obligation to pay debts
Example: being responsible for all their business debts.
Fringe benefit
Payment other than wages or salaries
Example: paid vacation
Partnership
Definition: A business organization owned by two or more persons who agree on a specific division of responsibilities and profits
Advantages: ease of start-up, shared decision making and specialization, larger pool of capital, taxation
Disadvantages: Unlimited liability, potential for conflict
Example: A barber shop
General partnership
Partnership in which partners share equally in both responsibility and liability
Example: Doctors often form these with colleagues
Limited partnership
Partnership in which only one partner is required to be a general partner
Example: one partner only provides money while the other has unlimited personal liability.
Limited liability partnership
Partnership in which all partners in which all partners are limited partners
Example: Many states allow professionals such as attorneys to register as this type.
Articles of partnership
A partnership agreement
Example: An article that talks about details such as the ways new partners can join the firm
Uniform partnership act
Act ordering common ownership interests, profits and loss sharing, and shared management responsibilities in a partnership.
Example: State laws adopted to establish rules for partnerships
Assets
Money and other valuables belonging to an individual or business
Example: computers that a business owns
Corporation
A legal entity owned by individual stockholders
Example: Apple
Stock
A certificate of ownership in a corporation
Example: owning a share of Apply
Closely held corporation
Corporation that issues stock to only a few people, often family members
Example: Family members opening a company
Privately held corporation
A corporation owned by non-governmental organizations or by a relatively small number of shareholders
Example: That company in Minnesota that you used as an example in class where the workers get shares of the company.
Publicly held corporation
Corporation that sells stock on the open market
Example: Apple
Bond
A formal contract to repay borrowed money with interests at fixed intervals
Example: Savings bonds that you can redeem when your 18
Certificate of incorporation
License to form a corporation issued by state government
Example: A state license for a firm
Dividend
The portion of corporate profits paid out to stockholders
Example: Double taxation
Horizontal merger
The combination of two or more firms competing in the same market with the same good or service
Example: If two giant automakers merged to form one company.
Vertical Merger
The combination of two or more firms involved in different stages of producing the same good or service
Example: If an automaker company bought the steel company that they got supplies from.
Conglomerate
Business combination merging more than three businesses that make unrelated products
Example: if an automaker company, a refrigerator company, and a TV company all merged together.
Multinational corporation
Large corporation that produces and sells its goods and services throughout the world
Example: Microsoft
Business franchise
A semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area
Example: McDonald's
Royalty
Share of earnings given as payment
Example: Fees a McDonald's in Chanhassen has to pay to the headquarters.
Cooperative
A business organization owned and operated by a group of individuals for their mutual benefit
Example: Costco
Service cooperative
Cooperative that provides a service, rather than a good
Example: Baby-sitting services
Producer cooperative
Agricultural marketing cooperative that helps members sell their products
Example: a farmers market
Nonprofit organization
Institution that functions much like a business, but does not operate for the purpose of generating profits
Example: the American Red Cross
Professional organization
Nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations
Example: the National Education Association
Business association
Nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of smaller businesses
Example: local Better Business Bureau
Trade association
Nonprofit organization that promotes the interests of a particular industry
Example: the American Marketing Association
Chapter 9 Labor
Labor force
All nonmilitary people who are employed or unemployed
Example: everyone over 16
Learning effect
The theory that education increases productivity and results in higher wages
Example: college-educated workers typically earning more than high school drop outs
Screening effect
The theory that the completion of college indicates to employers that a job applicant is intelligent and hard-working
Example: A person who went to college will be more likely to get an interview that a high school dropout based on this part of their resume.
Contigent employment
A temporary or part-time job
Example: Being payed to complete a certain project then being released
Unemployment
People who are temporarily without work or are not working but have looked for jobs within the last 4 weeks.
Example: A person who just got laid off
Bureau of Labor statistics
Provides answers to 2 important questions: How many people are in the labor force? How many are employed and unemployed at any given time?
Example: their website on the internet
Effects of international competition on US labor market
There are less and less demand for services of unskilled American workers
Trends in wages and benefits
Benefits such as pensions and health insurance are a significant share of total compensation
Derived demand
Demand that is determined by demand for another good or service
Example: Demand for cooks in a market depends on the demand for restaurant meals
Productivity
Value of output
Example: If cooks payed $12 an hour and produce $20 an hour revenue then they have a high value
Equilibrium wage
The wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market
Example: on a graph, what is shown by the intersection of supply and demand curves
Unskilled labor
Labor that requires no specialized skills, education, or training
Example: Dishwashers
Semi-skilled labor
Labor that requires minimal specialized skills and education
Example: Lifeguards
Skilled labor
Labor that requires specialized skills training
Example: Auto mechanics
Professional labor
Labor that requires advanced skills and education
Example: teachers
Wage discrimination – laws against
Anti-discrimination laws that prevent companies from paying lower wages to some employees based on factors like gender or race that are not related to skill or productivity.
Glass ceiling
An unofficial, invisible barrier that prevents women and minorities from advancing in businesses dominated by white men
Example: high managerial positions
Labor union
An organization of workers that tries to improve working conditions, wages, and benefits for its members.
Example: teacher's union
Featherbedding
The practice of negotiating labor contracts that keep unnecessary workers on a company's payroll
Example: Railroad caboosemen
Factors affecting wages
minimum wage laws, safety laws, employers respond to wage levels, unions
Strike
An organized work stoppage intended to force an employer to address union demands
Example: Carpenters strike
Right to work law
A measure that bans mandatory union membership
Example: not having to join unions being widely accepted in the South
Blue collar
Someone who works in an industrial job, often in manufacturing, and who receives wages
Example: working in a clothing factory
White collar
Someone in a professional or clerical job who usually earns a salary
Example: teachers
Collective bargaining
The process in which union and company representatives meet to negotiate a new labor contract
Example: lawyers negotiating with a CEO
Mediation
A settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides will accept
Example: A third party is sometimes called in to settle a dispute
Arbitration
A settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides
Example: A mediator which requires the change
Economic changes in the US that affected unions
Blue-collar manufacturing jobs have been declining while white color have been rising to make union workers go down. Also traditional manufacturing industries have been going down. Also women are less likely to join unions.
Trends in union membership
Blue-collar jobs use unions more than white-collar jobs and there are more people doing white-collar jobs now
Debate over minimum wage
Some people want a living wage and others believe that making the minimum wage higher would make the amount of jobs available lower
Example: republicans are generally against raising, democrats are usually for raising.
1 Point: (x5)
(Posts about articles relating to class topics)
- The article hyperlinked demonstrates how companies in the real business world go overboard on their vertical integration, and the specific example here is Apple. Sounds crazy! http://business.time.com/2012/03/16/how-apple-made-vertical-integration-hot-again-too-hot-maybe/
-The article here talks about a somewhat horizontal merger that google is doing by buying 8 robotics companies. Sure they have the wealth, but is this really necessary? http://www.cbsnews.com/news/google-buys-8-robotics-companies-in-6-months-why/
-This New York Time's business article talks about all the advantages and disadvantages to sole proprietorship. It's a perfect read for people considering opening their own business of economics students! http://www.nytimes.com/allbusiness/AB4113314_primary.html
-This article from The Economic Times tells potential stock buyers all the ways that they can make money in the stock market. It's a great read and really relates to the economics unit because we learned about corporations and the stock market. http://articles.economictimes.indiatimes.com/2014-12-08/news/56839505_1_small-investors-stocks-page-industries
-Featherbedding used to be a bigger problem than it is now, and this article is all about featherbedding in the railroad industry. It's a great example for an economics student trying to better understand this concept. http://fee.org/freeman/detail/featherbedding-a-way-of-life