Chapter 22 Flashcards
(23 cards)
Sole proprietorship
A business owned && operated by a single person
Unlimited liability
Being financially responsible for any && all problems related to a business
Financial capital
The money needed to run a business or enable it to grow larger
Partnership
A business owned by 2 + people
Articles of a partnership
A legal agreement that identifies how much money each partners will contribute and what role each will play in the business
Corporation
A business recognized by law that has many of the rights && responsibilities of an individual
Charter
A gov document granting permission to organize a corporation
Stock
Ownership shares of a corporation
Stockholder
A person who buys shares of a corporation
Board of directions
Elected by shareholders to act on their behalf , hired managers to run corporation on a daily basis
Limited liberty
Situation in which only a corporation && not its owners is responsible for the debts of the corporation
Double taxation
Paying taxes twice on corporate profits
Cooperative
A voluntary association of people formed to carry on some kind of economic activity that serves to benefit its members
Labor union
Group of workers who band together to have a better chance for higher pay && better working conditions
Closed shop
An arrangement in which a worker must belong to a union in order to be hired by the company
Union shop
An arrangement in which a company can hire nonunion people , but those workers have to join the union once they begin working
Right to work laws
Law that prevents unions from forcing workers to join
Modified union shop
An arrangement in which workers do not have to join the union but can do so after they are hired
Collective bargaining
Meeting in which union && company officials meet to discuss the workers new contract
Mediation
A process in a contract negotiation in which 2 parties bring in a 3 party who tired to help them reach an agreement
Arbitration
A process in a contract negotiation in which a 3 party listens to both sides and then decided how to settle the disagreement
Strike
A work stoppage called by a union to put pressure on the employer to accept its positions
Lockout
A situation in which management prevents workers from returning until they agree to accept its contracts terms
