chapter 5: business and labor Flashcards
(38 cards)
business organizations
sale proprietorship
partnership
corporation
cooperative
sole proprietorship
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
partnerships
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
franchise
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
corporations
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
corporate structure
share holders -> board of directors -> chairman -> ceo -> coo and cfo
corporate combinations
horizontal merger, vertical merger , conglomerate
verticle merger
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
horizontal merger
a new combind entity when one company acquires another company in the same indsutry and works at the same production stage
vertical v horizontal
v purchase of companies at all levels of production
h purchase of competing companies in same industry
conglomerate
a corpation made up of several different, independent businesses
multinational corporations
a company that has business operations in atleast one country other than its home country
other corporations
business franchise, cooperative organizations, non profits
cooperative organizations
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
non profits
professional organizations, business associations, trade associations, labor unions
full employment
when all available labor resources are being used in the most efficient way
labor
what people do
employment
when all available labor resources are being used in the most efficient way possible
empolyment and unemployment
employed if you are 16 and older and work for an hour
unemployment
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
bureau of labor statistics
-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
occupational trends
chaning economy , fewer goods and more serives, effects of international competition
outsourcing
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
offshoring
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
