Chapter 22 Vocab

Question 1

sole proprietorship

Answer 1

a business owned and operated by a single person

Question 2

a business owned and operated by a single person

Answer 2

sole proprietorship

Question 3

unlimited liability

Answer 3

when the owner is financailly responsible for any and all problems related to the business

Question 4

when the owner is financailly responsible for any and all problems related to the business

Answer 4

unlimited liability

Question 5

financial capital

Answer 5

the money needed to run a business or enable it to grow larger

Question 6

the money needed to run a business or enable it to grow larger

Answer 6

financial capital

Question 7

partnership

Answer 7

a business owned by two or more people

-There are fewer partnerships than any other form of business.

Question 8

a business owned by two or more people

-There are fewer partnerships than any other form of business.

Answer 8

partnership

Question 9

articles of partnership

Answer 9

a legal agreement made between business partners which identifies how much money each will contribute and what role each will play in the business

Question 10

a legal agreement made between business partners which identifies how much money each will contribute and what role each will play in the business

Answer 10

articles of partnership

Question 11

corporation

Answer 11

a business recognized by law that has many of the rights and responsibilities of an individual

Question 12

a business recognized by law that has many of the rights and responsibilities of an individual

Answer 12

corporation

Question 13

charter

Answer 13

a government document granting permission to organize (a corporation)

Question 14

a government document granting permission to organize (a corporation)

Answer 14

charter

Question 15

stock

Answer 15

ownership shares of the corporation that will be issued

Question 16

ownership shares of the corporation that will be issued

Answer 16

stock

Question 17

stockholders

Answer 17

the people who buy stock

Question 18

the people who buy stock

Answer 18

stockholders

Question 19

board of directors

Answer 19

elected by the stockholders of a corporation;
responsible for hiring managers to run the corporation on a daily basis

Question 20

elected by the stockholders of a corporation;
responsible for hiring managers to run the corporation on a daily basis

Answer 20

board of directors

Question 21

limited liability

Answer 21

means that only the corporation, not its owners, is responsible for the debts of the corporation

Question 22

means that only the corporation, not its owners, is responsible for the debts of the corporation

Answer 22

limited liability

Question 23

double taxation

Answer 23

paying taxes twice on corporate profits

Question 24

paying taxes twice on corporate profits

Answer 24

double taxation

Question 25

cooperative

Answer 25

a voluntary association of people formed to carry on some kind of economic activity that serves to benefit its members

Question 26

a voluntary association of people formed to carry on some kind of economic activity that serves to benefit its members

Answer 26

cooperative

Question 27

labor union

Answer 27

a group of workers who band together to have a better chance to obtain higher pay and better working conditions

Question 28

a group of workers who band together to have a better chance to obtain higher pay and better working conditions

Answer 28

labor union

Question 29

closed shop

Answer 29

a worker had to belong to the union in order to be hired by a company

Question 30

a worker had to belong to the union in order to be hired by a company

Answer 30

closed shop

Question 31

union shop

Answer 31

companies can hire nonunion people, but htose workers must join the union once they begin working

Question 32

companies can hire nonunion people, but those workers must join the union once they begin working

Answer 32

union shop

Question 33

right-to-work laws

Answer 33

prevent unions from forcing workers to join

Question 34

prevent unions from forcing workers to join

Answer 34

right-to-work laws

Question 35

modified union shop

Answer 35

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.

Question 36

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.

Answer 36

modified union shop

Question 37

collective bargaining

Answer 37

officials from the union and from the company meet to discuss the terms of the workers' new contract

Question 38

officials from the union and from the company meet to discuss the terms of the workers' new contract

Answer 38

collective bargaining

Question 39

mediation

Answer 39

the stage in contract negotiations in which a neutral person tries to get both sides to reach an agreement

Question 40

the stage in contract negotiations in which a neutral person tries to get both sides to reach an agreement

Answer 40

mediation

Question 41

arbitration

Answer 41

union and management submit issues on which they cannot agree to a third party for a final decision

Question 42

union and management submit issues on which they cannot agree to a third party for a final decision

Answer 42

arbitration

Question 43

strike

Answer 43

all workers in the union refuse to go to work

Question 44

all workers in the union refuse to go to work

Answer 44

strike

Question 45

lockout

Answer 45

the company blocks workers from entering its buildings until they agree to accept its contract terms

Question 46

the company blocks workers from entering its buildings until they agree to accept its contract terms

Answer 46

lockout

Question 47

transparency

Answer 47

the legal responsibility of corporations to release financial information regularly

Question 48

the legal responsibility of corporations to release financial information regularly

Answer 48

transparency

Question 49

social responsibility

Answer 49

the obligation businesses have to pursue goals that benefit society as well as themselves

Question 50

the obligation businesses have to pursue goals that benefit society as well as themselves

Answer 50

social responsibility